EQPA3: quote, dividends and indicators for Equatorial Energia

Equatorial Pará Distribuidora de Energia S.A. is the concessionaire responsible for the distribution of electric power throughout the State of Pará and is part of Grupo Equatorial Energia, whose holding company has shares traded on B3 under the tickers EQPA3, EQPA7, EQPA6 and EQPA5. The distributor originated in 1962, initially as Centrais Elétricas do Pará S.A. – CELPA, created with the goal of electrifying the state. In 1969 it partnered with Força e Luz do Pará S.A. – Forluz and, starting in 1981, began receiving power from the North-Northeast Interconnected System. In 1998, in the context of the privatization of the power sector, it was acquired at auction by a consortium formed by Inepar and Rede Energia. The following year, with the start-up of the 500 kV North-South Interconnection, it became part of the Brazilian Interconnected System. The company went through a period of financial stress that culminated in a request for court-supervised reorganization in 2012, approved at a creditors’ meeting that same year. Also in 2012, control was acquired by Equatorial S.A., now Equatorial Energia, in a transaction authorized by ANEEL and CADE, initiating a process of corporate and operational restructuring.

After joining Grupo Equatorial, the controlling shareholder’s equity interest was increased through capital raises approved in 2013 and 2015, reaching around 96.5% of total capital. In 2014, the Pará State Court of Justice ordered the closure of the court-supervised reorganization proceedings, marking the formal end of that crisis cycle. In 2019, Equatorial Energia structured, together with Itaú Unibanco, an investment agreement in Equatorial Energia Distribuição S.A., a vehicle that began to concentrate the stakes in the distributors Equatorial Pará and Equatorial Maranhão. The transaction involved the transfer of direct control of these concessions to Equatorial Distribuição, subject to ANEEL’s consent, with Itaú subscribing preferred shares representing 9.9% of the total share capital of the distribution holding company. In December 2019, the company adopted the name Equatorial Pará Distribuidora de Energia S.A., consolidating alignment with the identity of the controlling group. Between 2025 and 2026, Equatorial Energia exercised call options on preferred shares of Equatorial Distribuição held by Itaú, gradually increasing its total interest in the capital of the distribution holding company to approximately 95.53%, while remaining the holder of 100% of the common shares.

The core of Equatorial Pará’s business model is the provision of public electric power distribution services under a federal concession. The company is the sole power distributor in Pará, operating under Concession Contract No. 182/98, executed with the Federal Government, through ANEEL, on July 28, 1998. In May 2026, the concession was renewed in advance by the Ministry of Mines and Energy, extending the contractual term until July 28, 2058, following a process that involved ANEEL’s recommendation and validation of criteria by the Federal Court of Accounts (TCU). Equatorial Pará’s corporate purpose includes the construction and operation of power generation, transmission, transformation and distribution systems and related services in areas where it holds concessions, in addition to the possibility of taking stakes in other companies in the sector. In practice, however, the company operates as a pure distributor, with a single operating segment, from which 100% of its net operating revenue and net income are derived.

From an operational standpoint, Equatorial Pará operates in a state with an area of approximately 1.246 million km², 8.7 million inhabitants and 144 municipalities, which entails service challenges in extensive regions with low population density in part of the territory. As of December 31, 2025, the customer base totaled 3,092,955 consumer units, distributed mainly among residential customers (88.3% of the total), followed by commercial, industrial and other categories. In fiscal year 2025, total metered energy plus through-flow reached 11,871 GWh, with consumption split among residential customers (41.7% of the total), industrial (15.2%), commercial (18.5%) and other consumers (14.7%), plus a small share related to interconnection energy with other distributors. Supply quality performance is monitored by ANEEL using indicators such as DEC and FEC; in 2025, the average equivalent duration of outages per consumer unit was 15.8 hours and the average frequency was 6.9 outages per unit. Energy losses accounted for 29.6% of energy required in the period, a high level compared with more mature markets, reflecting structural characteristics of the concession area and challenges related to technical and non-technical losses.

Equatorial Pará’s revenue is entirely derived from distribution activities. In 2025, net operating revenue from the distribution segment totaled R$ 12,223.774 million, with net income of R$ 1,552.654 million, both 100% attributable to the same segment. There is no concentrated dependence on large customers, as no individual client accounted for more than 10% of annual net revenue, reinforcing the highly diversified nature of the billing base. The company has no subsidiaries and operates in a focused manner within the Pará concession, as part of Grupo Equatorial’s distribution portfolio. Demand dynamics show seasonality associated with weather conditions: consumption tends to intensify during periods of lower rainfall and higher temperatures, peaking between September and December, which coincides with the region’s dry season, while in the rainy season, more intense between December and April, demand is usually relatively lower, especially in the residential and commercial classes.

Equatorial Pará’s power supply comes predominantly from purchases in regulated auctions in the Regulated Contracting Environment (ACR), through Power Purchase Agreements (CCEAR) signed with generators. By December 2025, about 84.1% of contracted energy came from these regulated auctions organized by ANEEL, based on the guidelines of the New Power Sector Model Law and Decrees No. 5,163/2004 and No. 9,143/2017. The remainder of supply, equivalent to 15.9% of energy purchased, consisted of contracts linked to PROINFA, physical guarantee quotas and nuclear generation. As of December 31, 2025, the distributor’s portfolio included 1,036 CCEAR contracts with 623 suppliers, with a supply mix composed of 52.2% hydroelectric energy, 30.6% fossil fuel-based sources and 17.2% alternative sources such as wind and solar. The distribution system itself is an extensive network of high, medium and low voltage lines, predominantly overhead but also underground in certain areas, connecting substations and end consumers and operating as the interface between the transmission system and the retail power market.

Equatorial Pará operates in a highly regulated sector, with ANEEL playing a central role in defining the tariff model, quality standards, oversight of investments and energy contracting rules. The tariff regime is based on a “price-cap” model, in which the maximum tariff is set by the regulatory agency and broken down into Parcel A, which covers generation, transmission and sector charges, and Parcel B, which remunerates operating costs and investments under the concessionaire’s control. Tariffs undergo annual adjustments and periodic reviews, in accordance with contractual criteria, taking into account cost variations and inflation indices (IGP-M or IPCA) minus Factor X, which captures efficiency gains to be shared with consumers. The company is also subject to specific tax incentives and obligations, such as those associated with regional development policies in SUDAM areas, which may include Income Tax benefits conditional on local investments. The current regulatory framework is the result of successive reforms of the Brazilian power sector since the 1990s, involving the creation of ANEEL, CCEE and EPE, as well as the unbundling of generation, transmission, distribution and trading activities.

In the environmental, social and governance (ESG) field, Equatorial Pará follows the Sustainability Policy of Grupo Equatorial Energia, which seeks to integrate social-environmental and governance aspects into business management. The corporate guideline emphasizes efficient use of natural resources, reduction of emissions and pollutants, preservation of ecosystems and promotion of a low-carbon economy, in addition to topics such as human rights, occupational health and safety and engagement with communities and other stakeholders. The group prepares an annual Sustainability Report, in its 9th edition for fiscal year 2024, with financial data in accordance with IFRS and non-financial information reported under international standards such as GRI and SASB, subject to limited assurance by an independent auditor. The group’s materiality matrix was updated in 2025 based on the concept of double materiality, aligned with European guidelines (EFRAG), including topics such as climate change, cybersecurity, biodiversity, access to energy and working conditions in the supply chain, reinforcing the systematic incorporation of ESG risks and opportunities into the strategic management of Equatorial Pará and the other companies in the group, whose shares are traded on B3.