403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
Eneva Shares Surge 5.66% As Ministry Revises Auction Rules
(MENAFN- The Rio Times) Eneva's stock price jumped 5.66% to R$10.64 on Monday, outpacing the broader market's 1.41% gain. This surge came after Brazil's Ministry of Mines and Energy altered rules for an upcoming thermal power capacity reserve auction.
The change allows Eneva to potentially renew contracts for its Parnaíba complex power plants, reversing a previous decision that excluded existing facilities.
The ministry's new ordinance permits existing thermoelectric plants to compete for power delivery contracts starting from 2028, 2029, and 2030.
This move opens up significant opportunities for Eneva, as it can now bid to extend contracts for its Parnaíba complex.
Analysts view this development positively, noting that Eneva's shares currently trade at an internal rate of return of around 13%, even without considering potential asset recontraction.
Eneva also announced a share buyback program, aiming to repurchase up to 50 million ordinary shares over the next 18 months.
This represents about 2.59% of the company's total outstanding shares. Additionally, Eneva resumed full natural gas operations in Sergipe following pipeline replacements, further strengthening its market position.
Background
Eneva, a major player in Brazil's energy sector, has demonstrated impressive financial resilience in the third quarter of 2024.
The company reported a net profit of R$102.7 million ($18 million), marking a significant turnaround from the R$86.9 million ($15.2 million) loss in the same period of 2023.
This recovery showcases Eneva's adaptability in a challenging market environment.
Eneva Shares Surge 5.66% as Energy Ministry Revises Auction Rules
The change allows Eneva to potentially renew contracts for its Parnaíba complex power plants, reversing a previous decision that excluded existing facilities.
The ministry's new ordinance permits existing thermoelectric plants to compete for power delivery contracts starting from 2028, 2029, and 2030.
This move opens up significant opportunities for Eneva, as it can now bid to extend contracts for its Parnaíba complex.
Analysts view this development positively, noting that Eneva's shares currently trade at an internal rate of return of around 13%, even without considering potential asset recontraction.
Eneva also announced a share buyback program, aiming to repurchase up to 50 million ordinary shares over the next 18 months.
This represents about 2.59% of the company's total outstanding shares. Additionally, Eneva resumed full natural gas operations in Sergipe following pipeline replacements, further strengthening its market position.
Background
Eneva, a major player in Brazil's energy sector, has demonstrated impressive financial resilience in the third quarter of 2024.
The company reported a net profit of R$102.7 million ($18 million), marking a significant turnaround from the R$86.9 million ($15.2 million) loss in the same period of 2023.
This recovery showcases Eneva's adaptability in a challenging market environment.
Eneva Shares Surge 5.66% as Energy Ministry Revises Auction Rules
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Most popular stories
More Story
Comments
No comment