CLSC3: quote, dividends and indicators for CELESC

Centrais Elétricas de Santa Catarina S.A. – CELESC is a mixed-capital power-sector company created on December 9, 1955 by the government of the State of Santa Catarina, in a context of fragmented regional power systems and rising electricity demand. Formalized by state and federal decrees in 1955 and 1956, the company began with modest capital and an initial role focused on planning Santa Catarina’s power system. Throughout the 1960s and 1970s, CELESC went through an expansion process by incorporating several regional electricity companies, consolidating generation, transmission and distribution assets and unifying operations in the state. In 1973 it obtained registration as a publicly held company, with shares listed on the stock exchange, and in the following years carried out reverse splits and share issues, adjusting its capital structure to regulatory changes and to Brazilian capital market practices.

With the new regulatory framework for the Brazilian power sector between 2003 and 2004, which required the unbundling of generation, transmission and distribution activities, CELESC reorganized its corporate structure. Since October 2006, the company has operated as a pure holding, controlling two wholly owned subsidiaries: Celesc Distribuição S.A. and Celesc Geração S.A. It also holds significant equity stakes in other infrastructure companies, such as Companhia de Gás de Santa Catarina – SCGÁS, Empresa Catarinense de Transmissão de Energia – ECTE and Companhia Catarinense de Águas e Saneamento – CASAN. The State of Santa Catarina is the controlling shareholder, with slightly more than half of the common shares, while significant portions of the capital are in free float on B3, where shares are traded under the tickers CLSC3 (common) and CLSC4 (preferred). EDP – Energias do Brasil S.A. is an important private shareholder, with a significant stake in total capital following acquisitions made from 2017 onward.

CELESC Group’s business model is focused on three main fronts: electricity distribution, electricity generation and natural gas distribution, with the first two consolidated directly and the third recognized under the equity method through SCGÁS. Celesc Distribuição is responsible for supplying electricity to approximately 3.6 million consumer units, serving all or part of 285 municipalities, predominantly in Santa Catarina and also in Rio Negro, in Paraná. The concessionaire operates a high-voltage system with thousands of kilometers of 138 kV and 69 kV lines and hundreds of power transformers, ensuring the transport of energy from the transmission grids to end consumers. The distributor’s revenue comes mainly from providing network usage services (transport and distribution), since the purchase of energy itself, carried out through auctions within the framework of the Electric Energy Trading Chamber (CCEE), is regulated so as not to generate margin for the concessionaire.

CELESC Geração, in turn, focuses on power production and trading and participates in transmission projects in partnership with private investors. Its own generation park consists of thirteen hydroelectric plants and smaller plants, all located in Santa Catarina, in addition to solar photovoltaic projects under the remote distributed generation model. As of December 31, 2025, Celesc Geração’s total capacity in commercial operation was around 139 MW, including its own park and minority stakes in special purpose entities. The hydro plants include larger assets such as the Pery, Palmeiras, Bracinho, Garcia and Cedros HPPs, as well as small hydroelectric plants and hydro generating plants distributed across municipalities in Santa Catarina. The company has also developed a growing portfolio of solar plants in cities such as Lages, Campos Novos, São José do Cedro, Modelo, Videira and Capivari de Baixo, increasing its source diversification. The generation environment is competitive and exposed to price volatility in the free market, influenced by hydrological conditions and economic activity.

In the natural gas segment, SCGÁS, in which CELESC is the majority shareholder in voting capital, operates as the piped gas distributor throughout the state of Santa Catarina, with exclusivity granted under state legislation. Established in 1994, the company began commercial operations in 2000, serving industrial, commercial, residential customers and CNG stations. Gas supply to the state is mainly via the Bolivia-Brazil Gas Pipeline, under long-term supply contracts. CELESC records SCGÁS’s results under the equity method, which complements the group’s energy infrastructure business portfolio, even though most of the holding’s consolidated revenue comes directly from electricity distribution operations. There is no material concentration in a single customer accounting for more than 10% of consolidated net revenue, reflecting the dispersed consumption among millions of supplied units.

CELESC’s operations are heavily conditioned by the regulatory framework of the Brazilian power sector, with federal concessions for distribution and generation granted and supervised by the Brazilian Electricity Regulatory Agency – ANEEL. Celesc Distribuição operates under a concession contract extended in 2015 for another 30 years, subject to service quality and economic-financial sustainability targets, under a price cap tariff regime that distinguishes manageable and non-manageable costs. The distributor must contract in advance the energy required to supply its market, under rules for tariff moderation, universal access and penalties in cases of over- or under-contracting. Celesc Geração and its plants operate under concessions with defined terms, participating in the Energy Reallocation Mechanism (MRE), which shares hydrological risks among generators. The group is also subject to the rules of the Regulated Contracting Environment (ACR) and the Free Contracting Environment (ACL), with Celesc Geração having obtained authorization as a retail trader in 2024, which allows it to operate directly with eligible consumers in the free market.

From a corporate governance standpoint, CELESC joined Bovespa’s Level 2 Corporate Governance segment in 2002, adopting more robust practices of transparency, minority shareholder rights and governance structure. Over the years, it has developed long-term strategic plans, such as the “Celesc 2030” Master Plan, and has restructured its bylaws and internal organization to better align with sector best practices and regulatory requirements. The company trades its CLSC3 and CLSC4 shares on B3, with high free float, which supports liquidity and participation by institutional and individual investors. The combination of state control with significant private capital and participation in both regulated and competitive segments gives the company distinctive characteristics in how it is managed and how it interacts with regulators, shareholders and other stakeholders.