Energisa Mato Grosso – Distribuidora de Energia S/A

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What it is

Energisa Mato Grosso is an electricity distributor operating in the state of Mato Grosso, founded in 1905 and headquartered in Cuiabá. It holds the regulated concession to deliver power across the whole state under federal licence — a natural monopoly; no rival may wire the same streets.

Mato Grosso today has approximately 1.56 million consumer units, spanning soy farms, cattle ranches, processing plants and homes across one of Brazil’s fastest-growing agricultural states. The company is engaged in electricity distribution, transmission, generation and marketing, and operates a transmission and distribution network alongside five thermoelectric generation plants.

Who owns it

Energisa Mato Grosso is a subsidiary of Rede Energia Participações S.A., which is itself part of the wider Energisa Group. Energisa Group’s share control is exercised by Gipar S.A., directly and indirectly controlled by the Botelho family.

Insiders — overwhelmingly the Botelho-family chain — hold 94.7% of the shares, with institutions at 1.2% and a free float of roughly 4% (our calculation from EODHD data). That thin float makes ENMT3 thinly traded by design; the family keeps the company close.

Who runs it

Ricardo Perez Botelho is Chief Executive Officer of Energisa S.A., the group’s publicly listed parent, and leads group-wide strategy. Omar Carneiro Cunha Sobrinho has been chairman of Energisa S.A. since April 2024.

The Energisa Group manages its subsidiaries, including Energisa Mato Grosso, through a shared executive structure; the specific board composition for ENMT3 itself is not separately disclosed in available investor-relations pages.

The money, in plain words

Revenue has grown every year: R$7.6bn (US$1.5 bn) (~$1.47bn) in 2023, R$8.2bn (US$1.6 bn) (~$1.59bn) in 2024, and R$9.0bn (US$1.7 bn) (~$1.75bn) in FY2025 — a 9.3% rise year-on-year (our calculation). In FY2025 the company kept about 9.7 cents of profit from every real of sales — a net profit margin of 9.7% (our calculation) — though net income fell from R$1.09bn (US$212 mn) to R$871m (US$169 mn) (~$169m) as costs rose faster than tariffs.

For every real of owners’ equity in the business, the company earns back about 18 cents a year — a return on equity of 18.4%, solid for a regulated utility. The shares trade at 11.9 times earnings (price-to-earnings of 11.9×), which is modest, and they pay out a dividend yield of 9.4%, one of the highest in Brazilian utilities.

The balance sheet carries heavy borrowing: gross debt of R$8.7bn (US$1.7 bn) (~$1.69bn) against cash of just R$153m (US$30 mn) (~$30m), leaving net debt of R$8.53bn (US$1.7 bn) (~$1.66bn) — about 2.2× total equity (our calculation). That leverage is typical for a capital-intensive regulated distributor, but it does make earnings sensitive to Brazil’s interest rates.

What it is doing now

A recent opinion from ANEEL, Brazil’s electricity regulator, recommends to the Ministry of Mines and Energy the renewal of Energisa’s concession for another 30 years, a decision that would secure the company’s operating licence beyond 2027. The technical recommendation has prompted a new round of public discussion and raised questions about the quality of service provided in the state.

ANEEL approved an annual tariff adjustment for April 2025 with an average impact of 1.79% on consumer bills — 5.42% for high-voltage industrial users and 0.34% for low-voltage residential customers. Restrained residential increases keep political pressure manageable but limit near-term revenue upside.

What to watch

• Concession renewal decision: The concession is scheduled to expire in 2027; the Ministry of Mines and Energy’s final sign-off — and any investment conditions attached — will define the company’s economics for a generation.
• Service-quality scrutiny: A recent study by the Euvaldo Lodi Institute reinforces the diagnosis that low quality of electricity service has limited economic advancement in the state, adding political pressure on Energisa ahead of renewal talks.
• Interest-rate exposure: With net debt at R$8.53bn (US$1.7 bn) (~$1.66bn) and Brazil’s benchmark rate elevated, any sustained rise in borrowing costs flows straight through to net profit.
• Thin float: At roughly 4% free float, price moves can be sharp on low volume; the stock is not liquid by large-cap standards.

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This is news, not investment advice.