Light SA (LGSXY) Q4 2024 Earnings Call Highlights: Financial Recovery and Strategic Advancements

In This Article:

  • Net Income: BRL1.6 billion in 2024.

  • Cash Position: BRL3.1 billion, a 47% increase over the previous year.

  • Net Debt for Light SESA: BRL4.5 billion, a reduction of nearly 50% compared to 2023.

  • Adjusted EBITDA for Light SESA: BRL1.4 billion, a 3.7% increase compared to the previous year.

  • Market Growth: 1.3% increase in 2024 compared to 2023.

  • Commercial Segment Performance: 2.1% year-on-year increase.

  • DEC (Interruption Duration Indicator): 6.74 hours, the lowest level for a fourth quarter in the company's history.

  • Operating Cash Generation (EBITDA minus CapEx): BRL453 million in 2024.

  • CapEx: Increased by almost 20% year-on-year.

  • Distributors EBITDA: BRL1.4 billion, a 3.7% increase over the same period last year.

  • Energy Generation and Commercialization EBITDA: BRL700 million, down 14% year-to-date compared to the same period last year.

Release Date: March 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Light SA (LGSXY) successfully approved a court-mandated reorganization plan with the support of over 99% of creditors, leading to debt restructuring and cost reduction.

  • The company reported a consolidated net income of BRL1.6 billion in 2024, reflecting significant financial recovery.

  • Operational improvements led to a 40% increase in productivity among internalized field teams.

  • The DEC and FEC indexes, measuring power interruption duration and frequency, remained below regulatory limits, indicating strong service quality.

  • Light SA's cash position grew by 47% year-over-year, reaching BRL3.1 billion, strengthening its financial health.

Negative Points

  • The energy generation and commercialization segment experienced a 14% decline in EBITDA due to reduced margins from less profitable contracts.

  • The company faces challenges in addressing high levels of losses in its concession area, requiring structural solutions beyond current operational actions.

  • Despite market growth, distributed generation captured part of the potential increase, limiting overall consumption growth.

  • The company is still in the process of completing its judicial reorganization plan, with several steps pending, including a reverse auction and capital increase.

  • Light SA's debt restructuring, while beneficial, still leaves the company with a significant net debt of BRL4.5 billion.

Q & A Highlights

Q: Can you provide details on the buyback process for Light Energia? A: We are currently finalizing the documentation for what we refer to as a reverse auction. We aim to launch this process in April, shortly after publishing our results.