Company ‘A Geradora’ Invests R$ 50 Million to Renovate Its Generators and Acquire 500 New Machines to Meet Temporary Energy Demand

According to the company’s director, in 2022 the sanitation mark must put many projects into effect also in the energy area and, for that, it will increase the number of generators

The company A Geradora, a leading Brazilian company in the sector of generator rental, lighting towers, and air compressors, has positive expectations for 2022. With the return of in-person events and the rise in demand for temporary energy, an increase in revenue is expected. To meet the projected demand, the company intends to focus on renewing and expanding its equipment fleet, investing about R$ 50 million in the purchase of 500 new machines.

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Last year, A Geradora generated R$ 212 million in revenue, about 25% more than reported in 2020. According to the company’s CEO, Enilson Moreira, the good revenue was mainly due to the provision of temporary energy services with generators and air compressors to meet industrial needs; a significant part was from the petrochemical, maintenance, and pulp sectors.

“Brazilian companies practically only carried out essential maintenance stoppages in 2020 and postponed many to last year; A Geradora has a lot of expertise in providing this type of service and benefited from the increase in demand, which was suppressed.” The growth of business in this segment was 30% compared to previous years.

In 2020, the year in which A Geradora achieved a revenue 30% above that recorded in 2019, was marked by the great need of field hospitals, both in the construction or adaptation stage of the structures and in maintenance, especially in São Paulo, Rio de Janeiro, Bahia, Pará, Goiás, and Sergipe. “This was a new segment that emerged and demanded a lot of energy,” says Enilson Moreira.

Although the pandemic caused a crisis, the demand for energy did not decrease: industry, commerce, services, and infrastructure maintained their consumption. Enilson reaffirms that the company did not slow down and, thus, was able to meet market needs. “In 2020, we had better results than in 2019,” he adds.

Expectations for 2022             

According to Candido Terceiro, commercial and marketing director of A Geradora, in 2022 the sanitation mark should “put many projects into motion.” The government expects that the legal mark will allow resource allocation in the segment and contribute to universalizing water supply and sewage collection and treatment in Brazil by 2033. The estimate is that private investments will amount to R$ 600 billion to R$ 700 billion in sanitation.

For this sector, A Geradora provides electric and pneumatic energy equipment, including generators and air compressors. “We are also optimistic about the recovery of GDP and investments in infrastructure in the country. The possibility of the end of the pandemic, the sanitation mark, and the resumption of macroeconomic normality also represent good prospects for 2022,” he states.

Another situation that may raise the demand for generators is the energy crisis, which is expected to return to the agenda in 2022. According to sector specialists and consulting firms in the energy industry, the biggest water crisis in the last 91 years is expected to impact consumers and company finances at least until 2025. “Every year, the dry periods have been more severe, and there is indeed a risk of blackouts during peak hours. Therefore, the demand for generators has already begun to increase and is expected to grow even more in 2022,” explains the director.