News

• Adjusted net income for the period is R$ 909.6 million - 33% higher than that recorded from January to September 2020
• 183% growth in investments reaching R$ 2.6 billion in new projects (greenfield), reinforcements and improvements and acquisitions (brownfield)
• R$ 863 million in earnings will be paid in November
• The company advances in the sector digital transformation with the inauguration of the first digital substation of the basic network

São Paulo, October 28, 2021 - ISA CTEEP, the largest private transmission company in the country, announced today its regulatory results for the third quarter and nine- month period of 2021. Adjusted net revenue up to September amounted to R$ 315.3 million (14%) higher versus same period in 2020, reaching R$ 2.5 billion. Accumulated adjusted EBITDA for the nine-month period amounted to over R$ 2 billion, a 12% increase when compared to the same period of the previous year. Adjusted net income year-to-date from January to September 2021 reached R$ 909.6 million, a 33% increase versus the same period of the previous year. The adjusted result excludes positive extraordinary effects obtained in 2020, such as the revenue generated from the Periodic Tariff Review (RTP) of the renewed agreement and the remuneration of the financial component of the Existing System Basic Network (RBSE).

The company's operating cash generation was also a highlight, amounting to R$ 1.7 billion in nine-month period, compared to R$ 1.5 billion in the same period in 2020. As a result, ISA CTEEP announces the payment of earnings, including dividends and interest on equity, for November, in the total amount of R$ 863 million.

“This initiative reinforces our strategy of distributing at least 75% of regulatory net income and the early payment showcases the company's financial strength”, adds Carisa Cristal, finance and investor relations executive officer at ISA CTEEP.

The higher year-to-date results for 2021 are explained, mainly, by the energization of new projects and the conclusion of Piratininga - Bandeirantes Transmissora de Energia (PBTE) acquisition, with the latter consolidated in the company's economic and financial result as of March this year.

183% increase in investments
The company remains focused on promoting growth with sustainable value generation, by significantly expanding its investments during the year. The accumulated amount for the nine-month period of 2021 amounts to R$ 2.6 billion, with 183% increase versus the same period in 2020, considering reinforcements and improvements, new projects (greenfield) and acquisition (brownfield). This growth exceeds the compound annual investment rate (CAGR) of the last three years, of 48.5%.

The company also ratified its investment plan for reinforcements and improvements up to 2026. A total of R$ 2.3 billion will be allocated to the revamping of existing assets, considering a pipeline of 258 projects authorized by the regulatory agency. Of this amount, 10% has already been executed and the remainder will be diluted in the coming years, mostly expected for 2023.

In addition, the Company has nine greenfield projects under construction with a CAPEX estimated by the National Electric Energy Agency (ANEEL) of R$ 4.8 billion. Six of these projects are expected to be powered by June 2022: Biguaçu (SC), Itaúnas (ES), Três Lagoas (MS and SP), Ivaí (PR), Paraguaçu (BA and MG) and Aimorés (MG). In the last six years, the company has won 14 lots in auctions and, of these, five have already been delivered (Itapura Bauru, Itaquerê, Tibagi, Aguapeí and Lorena substation), an average of 11 months ahead of the regulatory schedule.

“In four years, we have more than doubled our annual investments in reinforcements and improvements and in greenfield projects, we grew from R$ 440 million in 2018 to R$ 1 billion in 2021. We understand that this is an important growth path, in line with our purpose of generating sustainable value”, explains Rui Chammas, ISA CTEEP CEO.

Access to complete data from the release of results: link

Innovation and digital transformation
The company has advanced in the digital transformation of the electric sector and accomplished pioneering initiatives in the country. In July, it obtained authorization from the National Civil Aviation Agency (ANAC) to use a drone that incinerates objects that fall on the transmission lines and can harm the energy supply to society, such as balloons and kites.

In October, ISA CTEEP inaugurated the Lorena Substation (SP), the first digital in the network of the National Interconnected System (SIN), which will benefit Vale do Paraíba region and is a milestone to the sector.

About ISA CTEEP
With a staff comprising around 1,400 employees, ISA CTEEP is present in 17 States, operating a complex transmission network, responsible for the flowing of 33% of all electricity consumed in the country, and 94% of the State of São Paulo. Its electric system comprises over 20 thousand kilometers of transmission lines and 140 substations (assets in operation and under construction). The Company was privatized in 2006, and its main controlling shareholder is Multi-Latin ISA Group, holding 35.82% of the total capital.

Press information - ISA CTEEP
RPMA Comunicação
Pedro Henrique Santos – (11) 96513-0069
Kelly Queiroz – (11) 94216-3176 [email protected]