Energy companies that incorporated renewable sources into their portfolios have shown, over the last four years in Brazil, a 25% higher appreciation than those that maintained a traditional energy matrix.
Overall, the average appreciation of companies in the energy sector in the country was 20% over the last four years. This data is one of the main highlights of the Industry Insights Energy & Utilities study, prepared by Strategy&, the strategic consulting arm of PwC, based on the analysis of more than 3 thousand companies around the world, including Brazil.
The segments evaluated include oil and gas, energy, sanitation and distribution. In Brazil, the electricity sector stood out, representing 72% of the companies analyzed – almost double the global average of 43%.
Second Adriano Correa, partner and leader of the Energy and Utilities Industry, the perception of risk regarding the viability of renewable sources is already behind us. “Renewable sources are on the path of growth in efficiency, return and expansion of plants in the country, there is no way to go back on this issue”, he comments.
Correia also highlights that technological advances and the maturity of the sector have consolidated renewables as strategic assets. “This appreciation of renewable companies is important not only for the portfolio, but for the planet,” he adds.
Renewable generation companies outperformed those operating with fossil fuels in several aspects, such as value multiples, average return and stability in results, according to the study.
Still, fossil assets maintain a relevant growth rate, driven by concerns about global energy security in an unstable geopolitical scenario.
The survey also shows that companies with more agile and dynamic strategies — generally smaller or more specialized — tend to record better pricing and growth. Large, integrated companies, on the other hand, demonstrate greater solidity and consistency in their results.
Another factor that has driven the advancement of renewables is technological progress. Solutions such as batteries and biofuels have become increasingly accessible and reliable, while the energy transition, carbon regulation and international conflicts continue to put pressure on the volatility of fossil fuel prices.
Strategy&'s analysis covers the period from 2018 to 2022 and indicates that the global energy and utilities sector has already sured pre-pandemic levels in revenue and market value. The growth trend remains above inflation. In Brazil, despite challenges such as exchange rate devaluation, the sector has followed this movement in local currency.
“It is important to say that companies that work in an integrated manner (Oil, Gas and Renewables) have greater business resilience, especially when we the adversities in recent years such as the pandemic and international conflicts. In other words, having a complete and integrated portfolio of renewable and non-renewable resources is important to have resilience and face crises”, adds Correia.
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