Competitive Analysis of Equatorial Energia

Equatorial Energia is a notable energy player in Brazil, boasting a diverse portfolio that spans electricity distribution and renewable energy generation. The company’s financial performance is robust, reflecting its successful expansion and strategic management.

The Company owns control of CEMAR (Companhia Energetica do Maranhao) and Geramar, electricity distributors in the state of Maranhao. It also owns share control of Echoenergia Participacoes, a renewable energy generator.

1. Low Carbon Footprint

Equatorial Energia is one of Brazil’s leading energy companies. It operates as a holding company with multiple subsidiaries focused on electricity distribution and renewable energy generation. Its geographical presence across the northern and northeastern regions of Brazil allows the company to serve millions of customers while reducing its ecological footprint.

The company’s distribution subsidiary, Companhia Estadual de Energia Eletrica do Maranhao (CEMAR), is responsible for distributing power in the 217 municipalities of its home state of Maranho. It also provides electricity in 224 municipalities of the states of Para, Piau and Alagoas, as well as in 72 municipalities of the state of Rio Grande do Sul.

The company’s renewable energy subsidiary, Greffex, is focused on harnessing cleaner sources of power, including solar and wind. Greffex has developed systems that enable vaccine production to delivery nationwide in just weeks, which is critical for the country’s response to an infectious outbreak.

2. Reduced Carbon Footprint

Equatorial Energia is a power distribution company that operates in the state of Rio Grande do Sul. It provides energy to 144 municipalities across the region, covering over 14.7% of the Brazilian territory. In 2022, the distributor improved its DEC and FEC indicators by 44 hours and 19.6 times compared to those recorded in the previous year.

The company also owns a wind development business that has 1GW of capacity across the states of Maranhao, Para, Piaui and Alagoas. It has also invested in infrastructure for the transportation of energy.

In 2016, Equatorial entered the transmission segment by winning blocks at two auctions held by ANEEL. In 2017, the company became the owner of INTESA – Integracao Transmissora de Energia, a transmission SPE with operating lines in the States of Para, Piaui, Bahia and Minas Gerais.

3. Increased Security

Equatorial Energia is an energy company that operates in the power distribution and generation sector. The Company has a presence in the Brazilian energy market, serving millions of customers and contributing to the nation’s energy infrastructure. Headquartered in SAPSo LuAs, Maranho, Equatorial Energia is a holding company with multiple subsidiaries involved in electricity distribution and renewable energy generation.

In 2022, the concessionaire of Equatorial Para distributed 10,032 GWh to 2,913,209 consumers, an increase of 6.1% compared to last year. In the same period, DEC and FEC rates decreased.

Understanding Equatorial Energia’s competitive landscape is critical when selecting equities to include in your portfolio. Our competitive analysis tools can help you identify the factors that drive a company’s price, as well as forecast volatility and risk-adjusted expected returns.

4. Enhanced Energy Efficiency

Conducting a competitive analysis of Equatorial Energia helps you understand the company’s market position and the potential opportunities and threats it faces. This step is crucial to making a sound investment decision and to develop an appropriate strategy toward taking a position in the stock.

The Company carries out its operations through the following segments: Distribution, responsible for energy distribution in the state of Maranhao and Para; Generation, generating electricity through thermoelectric plants; Services/Sale, offering trading electricity, billing services and maintenance of electrical installations, among other activities; and Central Management.

Investors typically examine the value of an asset, such as Equatorial Energia stock, by assessing its past and current price, profit potential, financial leverage, growth potential and more. This evaluation is done against the company’s peers and the broader financial market.

5. Increased Economic Growth

Equatorial Energia SA operates in the utilities sector. It holds equity interests in companies that generate and distribute electric energy. The Company offers services such as trading electricity, billing and maintenance of electrical installations. It also offers energy consulting and specialized services. It competes with other regulated and non-regulated electric power companies.

Its transmission segment entered the energy sector in 2016 and 2017 with the participation of 8 lots at auctions 013/2015 2nd Stage and 005/2016, respectively, in the States of Para, Piaui, Bahia, Minas Gerais, and Rio Grande do Sul. Equatorial Energia owns INTESA – Integracao Transmissora de Energia S/A, which has 695 km of operating lines in the States of Tocantins and Goias.

In March 2022, the company acquired local wind developer Echoenergia. The deal helped it expand its exposure to Brazil’s growing renewable energy industry.