CPFL Gains as B3 Faces Quarterly Profit Drop

CPFL Energia (CPFE3) reported a substantial net profit of R$1.75 billion ($342.1 million) for the first quarter.

This marked a 6.3% increase from the same period in 2023, driven primarily by its improved energy distribution operations.

In contrast, their EBITDA reached a record R$3.86 billion ($756.9 million) during this quarter. This figure represented a 9.5% year-on-year rise.

CPFL’s distribution units, serving São Paulo and Rio Grande do Sul, grew consolidated net energy load by 5.1%.

Residential and commercial energy use saw significant double-digit increases.

CEO Gustavo Estrella cited higher temperatures at the year’s start for boosting air conditioning usage. He also emphasized structural changes in customer consumption.

Industrial energy consumption climbed 2.2%, hinting at a recovery trend. Estrella said, “In April and early May, this trend seems to be holding.”

CPFL operates heavily in Rio Grande do Sul’s energy sector. Estrella noted that recent flooding could have wiped out up to 50,000 RGE consumer units.

B3’s Recurring Profit Falls to R$1.13 Billion ($221.6 Million), Down 7.1%

B3 (B3SA3) saw a 7.1% drop in its recurring net profit in Q1 2024 compared to last year.

Profits fell to R$1.13 billion ($221.6 million), down from R$1.216 billion ($238.4 million).

Net profit attributed to shareholders stood at R$949.6 million ($186.2 million), showing a 12.8% decrease over 12 months.

Recurring EBITDA reached R$1.573 billion ($308.4 million), declining 3% annually, resulting in a 2.1% dip in the EBITDA margin to 71.3%.

B3’s first-quarter net revenue hit R$2.221 billion ($435.5 million), growing by 0.5% over the previous year.

Average Daily Trading Volume (ADTV) in stocks grew by 6.4% to R$24.3 billion ($4.77 billion) in Q1 2024 compared to Q1 2023.

This was due to ongoing monetary tightening globally and high interest rates in Brazil.

Expenses reached R$927.1 million ($181.8 million), marking an 8.8% increase from Q1 2023.

Net financial results became positive at R$45.4 million ($8.9 million), reducing by 68.1% from last year’s financial losses.

B3 had total gross debt of R$14.1 billion ($2.77 billion) by Q1 2024, with 83% long-term and 17% short-term.

This debt equaled 2.2 times its recurring EBITDA over the past 12 months.

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