The Equatorial group should prioritize businesses in the electricity distribution and sanitation sectors, while seeing fewer opportunities to invest in energy generation and transmission, according to information from a presentation to investors released this Wednesday.
In the energy distribution area, the company highlighted opportunities for organic growth through investments in the group’s seven concessionaires, which have a customer base of 34 million people and 31.4 billion reais in assets, in addition to renewing contracts of its distributors in Maranhão and Pará.
According to the presentation, Equatorial may ask the regulatory agency Aneel, next month, to bring forward the renewal of concessions in Maranhão and Pará, whose contracts only expire in 2028 and 2030, respectively.
The company states that the two companies meet the criteria for adequate provision of services for the extension in 2025 and that, if this anticipation is accepted, the contractual amendment could be signed in April of next year.
In a second scenario, of no anticipation, Equatorial may request contract renewal in July 2025 for the distributor in Pará and in August 2027 for the distributor in Maranhão.
In sanitation, the company will invest in Sabesp, which now has Equatorial as a reference shareholder in its privatization process, seeking to accelerate investments and other actions planned post-privatization, such as “readjustment of positions and salaries” and “implementation of the management”.
In addition to Sabesp, Equatorial plans to move forward with the universalization of sanitation services in Amapá and is also evaluating growth through new tenders “within São Paulo and privatizations that will take place in Brazil”, in processes that it can participate in via Sabesp or with the holding company .
READ MORE: Sabesp unlocks new sanitation concessions, but the deadline is tight
The company listed eleven sanitation projects in Brazil in the presentation, which total investments of R$87.2 billion and a consumer audience of 29.2 million people.
In turn, in electricity generation, the group indicated that it will resume investments under “favorable market conditions”. Brazil is currently facing an oversupply of energy, which affects medium and long-term energy prices and hinders the viability of new generation projects.
Another aspect that prevents contributions in the area are the generation cuts imposed by the national electrical system operator (ONS), called “constrained-off”. Equatorial’s renewable parks, mainly wind farms in the Northeast, are among the main ones affected by these cuts in the country.
In the presentation, Equatorial indicated that it is taking a series of actions to improve the situation of its projects in the face of these generation cuts. At the judicial level, the company said it had filed individual actions related to the issue, seeking compensation for losses, for the Serra do Mel, Ribeiro Gonçalves and Barreiras parks.
In energy transmission, an area in which the group has less activity and has recently made divestments, Equatorial indicated possible participation in auctions “if it is attractive”.
By Leticia Fucuchima
