CEBR3: quote, dividends and indicators for Companhia Energética de Brasília - CEB

Companhia Energética de Brasília – CEB is a publicly traded mixed-capital company controlled by the Government of the Federal District, with shares traded on B3 under the tickers CEBR3, CEBR5, and CEBR6. Its origins go back to the NOVACAP Department of Power and Light, which was replaced by Companhia de Eletricidade de Brasília – CEB in 1968. In the 1990s, the company went through a period of scope expansion that culminated in the change of its corporate name to Companhia Energética de Brasília – CEB in 1992 and its IPO in 1994. Starting in 1993, it also began operating in piped gas distribution in the Federal District and, in 1994, started participating in hydropower generation consortia, diversifying its revenue sources within the energy value chain.

Throughout the 2000s, CEB was deeply affected by the regulatory evolution of the Brazilian power sector, especially Law No. 10,848/2004 and the need to unbundle activities. In 2006, the company carried out a corporate restructuring that separated its distribution and generation operations, creating CEB Distribuição S.A. for power distribution in the Federal District and CEB Geração S.A. and CEB Participações S.A. (CEBPar) for generation and equity interests. Subsequently, CEB focused on its role as a holding company, controlling different electric power, natural gas, and public lighting companies, as well as interests in hydropower projects. In 2021, its subsidiary CEB Distribuição S.A. was sold, marking the company’s exit from the electric power distribution business in the Federal District and reinforcing its current profile as a pure holding company.

Companhia Energética de Brasília – CEB’s business model is now structured as a holding company that concentrates investments in electric power generation, public lighting services, and piped gas distribution, as well as equity interests in consortia and special purpose entities in the power sector. The company has no direct end customers, as it does not sell energy or services directly; its revenue essentially derives from the equity income of its subsidiaries, associates, and jointly controlled entities, reflecting the operating performance of these investees. Its main subsidiaries include CEB Geração S.A., which operates the Paranoá Hydropower Plant; CEB Participações S.A., focused on managing interests in energy and infrastructure projects; CEB Lajeado S.A., which markets the energy from the Luís Eduardo Magalhães HPP; CEB Iluminação Pública e Serviços S.A. (CEB IPeS), the public lighting concessionaire for the Federal District; and Companhia Brasiliense de Gás – CEBGAS, which operates in the distribution and sale of piped natural gas in the Federal District.

In the generation segment, CEB Geração S.A. operates the Paranoá Hydropower Plant, a public power generation concessionaire with an installed capacity of 30 MW and a concession agreement in force until 2050. All of the plant’s energy is allocated under a quota regime to distributors in the National Interconnected System, generating revenue through a tariff regulated by the Brazilian Electricity Regulatory Agency (ANEEL), in the form of Annual Generation Revenue. CEB Lajeado S.A., through Investco S.A. and Consórcio Lajeado, participates in the Luís Eduardo Magalhães HPP on the Tocantins River, with installed capacity of 902.5 MW and a concession valid until 2035, marketing 19.80% of the energy generated. CEB Participações S.A. holds a 17.5% stake in the CEB-CEMIG consortium, which operates the Queimado HPP, with 105 MW, located between Minas Gerais and Goiás, and also holds a minority interest in Corumbá Concessões S.A., which operates the Corumbá IV HPP, with 129.2 MW. These structures demonstrate CEB’s strategy of accessing the generation segment mainly through consortia and equity investments.

In the field of interests in hydropower projects, CEB also holds stakes in assets operated jointly or as associates. Energética Corumbá III S.A., a jointly controlled entity, holds 40% of the consortium that operates the Corumbá III HPP, with installed capacity of 93.6 MW and a concession valid until 2040, located on the Corumbá River in the municipality of Luziânia (GO). Corumbá Concessões S.A., classified as an associate, is the concessionaire for the Corumbá IV HPP, also on the Corumbá River, with installed capacity of 129.2 MW and a concession valid until 2040. BSB Energética S.A., in which CEB holds 9% of the share capital, aims to build and operate Small Hydropower Plants (PCHs), and holds a stake in BRASIL PCH S.A., which owns 13 PCHs in Minas Gerais, Espírito Santo, Goiás, and Rio de Janeiro, totaling 291 MW of installed capacity. Through these interests, CEB broadens its geographic and technological exposure in the generation segment, albeit indirectly.

Operations in the public lighting services segment are carried out by CEB Iluminação Pública e Serviços S.A., a wholly owned subsidiary created to manage the public lighting system of the Federal District. The company is responsible for managing, maintaining, modernizing, improving efficiency, and expanding the public lighting infrastructure, as well as executing related engineering projects and construction works. CEB IPeS holds the concession contract signed with the Federal District for managing the public lighting system, with a 30-year term starting in 2024. This system is one of the largest in the country in number of fixtures and lighting points, and the investment plan includes large-scale replacement of conventional lamps with LED technology, focusing on energy efficiency and reduced power consumption.

In the natural gas segment, Companhia Brasiliense de Gás – CEBGAS, a mixed-capital company controlled by CEB, holds the exclusive concession for the distribution and sale of piped gas in the Federal District. The company serves industrial, commercial, residential, automotive, thermoelectric generation, and other uses permitted by technological developments. The concession runs until January 2030, with the possibility of being extended for up to 30 years, providing a long-term horizon for CEB’s activities in natural gas. This segment adds diversification to the holding’s consolidated revenue sources, with exposure to an energy mix different from hydropower generation.

Government regulation plays a central role in the activities of Companhia Energética de Brasília – CEB and its subsidiaries. In the power segment, concessions, tariffs, investment obligations, and contracting regimes are defined and supervised by ANEEL, the Electric Power Trading Chamber (CCEE), and the National System Operator (ONS). The Paranoá plant, for example, is remunerated under the quota regime, with Annual Generation Revenue approved by ANEEL, and the hydropower projects in which CEB participates operate under the framework of the New Power Sector Model, which structures the regulated and free contracting environments. The company is also subject to Brazilian corporate law, including the Corporations Law and the State-Owned Companies Law, as well as regulation by the Brazilian Securities Commission (CVM), given that its shares are listed on B3.

In the environmental, social, and governance field, CEB develops initiatives mainly related to modernizing the public lighting system and measuring the positive environmental impacts associated with energy efficiency. The company systematically collects ESG data, with emphasis on calculating the reduction in energy consumption resulting from the replacement of lighting fixtures with more efficient technologies, the proper disposal of replaced equipment, and the quantification of greenhouse gas emission reductions using the international GHG Protocol methodology. ESG information is presented in the Management Report, together with the financial statements audited by independent auditors and overseen by an audit committee and a fiscal council. CEB’s materiality matrix is under development, indicating an ongoing process of more formally structuring key performance indicators for sustainability and governance.