Brazil Utilities: Latin America: Takeaways from London Conferences

Companies keep pursuing initiatives toward value creation, mostly including operating efficiencies, liability management and contracted growth execution. Opportunistic inorganic growth remains possible, but always focusing on return discipline, risk mitigation & portfolio optimization. We outline key highlights for four utilities that attended our conferences in London this week: Axia Energia (AXIA3 - OW), Equatorial (EQTL3 - OW), Sabesp (SBSP3 - OW), and Auren Energia (AURE3 - EW). AXIA remains constructive on long-term power prices, transmission growth, and shareholder remuneration. EQTL: organic growth & cost control remain key focuses toward value creation and consumer services' improvement, especially in power & water distribution. SBSP: constructive medium-term outlook, with upcoming tariff cycle, capex growth & universalization execution, despite ST volume & cost pressures. AURE: deleveraging & value-unlocking regulatory catalysts remain focuses, with capital allocation, if any,