Auren Energia (AURE3) has reported a net profit of R$ 54 million for the first quarter of 2025, marking a significant decrease of 64.3% compared to R$ 151.3 million in the same period last year. This decline in profit is largely attributed to falling energy prices in the free market, which have adversely affected the company's margins.
The financial results were disclosed on Wednesday, May 7, 2025, indicating that Auren's net profit reflects the first full quarter as a combined entity following its acquisition of AES Brasil. Despite the drop in net profit, the company reported an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of R$ 1.2 billion for the quarter, which represents a year-on-year increase of 65.7%. This figure was bolstered by the generation segment, which alone contributed approximately R$ 1.1 billion and experienced a growth of 50% year-on-year, driven by a higher volume of energy produced.
In terms of operational efficiency, Auren's adjusted EBITDA margin improved by 7.9 percentage points to reach 40.8%. The company’s president, Fabio Zanfelice, noted the strong performance in EBITDA, stating, "In a short span of time – just five months after the transaction’s completion – we have achieved R$ 1.2 billion in EBITDA, a 66% increase; it's certainly very strong." He emphasized the potential for further capturing synergies from the AES acquisition, which have already yielded savings of R$ 56 million in the first quarter.
On the revenue front, Auren reported a net revenue of R$ 2.952 billion, a 33.6% increase compared to the first quarter of 2024. This growth was attributed to the commencement of new projects like Jaíba, Tucano, and Cajuína, as well as an increase in the volume of energy sold and higher average selling prices. Notably, the trading segment generated R$ 1.78 billion in revenue, a remarkable 48.3% increase year-on-year, surpassing the generation segment's revenue of R$ 1.62 billion, which saw a 22% increase.
The company’s energy production from its own assets reached 3.8 average gigawatts (GWmed), marking a 30.8% increase compared to the same period in 2024. Hydroelectric plants generated 2.5 GW average, exceeding the physical guarantee by 24.2% and showing a 23.2% increase compared to last year, while wind farms produced 995 MW average, a 41.3% increase year-on-year.
Amidst these financial results, Auren has also taken significant steps to manage its debt. The company announced a prepayment of R$ 3.2 billion of its fourth debenture issue, which represents 59% of the total R$ 5.4 billion issued. This move is part of Auren's strategy to enhance its financial stability and reduce its gross debt, which has decreased to R$ 24.8 billion from R$ 27 billion in December 2024. The prepayment was made possible through a R$ 2 billion issue of incentivized debentures, which carries a competitive cost of CDI-0.50% per year over a ten-year term.
As Auren continues to integrate AES Brasil, a transaction valued at R$ 7 billion, it aims to become the third-largest energy generator in Brazil. The completion of this integration is anticipated by the end of 2025, with the company focusing on capturing synergies and enhancing the availability of the incorporated wind assets. Zanfelice stated that the integration efforts are crucial for the company’s growth and operational efficiency.
In conclusion, while Auren Energia has faced challenges reflected in its reduced net profit, the company has shown resilience through significant growth in EBITDA and revenue, alongside proactive debt management strategies. The focus on completing the integration of AES Brasil and capturing operational synergies will be pivotal as Auren aims to solidify its position in the competitive energy market.
