Enel Chile (ENIC) Q3 2024 earnings summary

Executive summary

• Hydro generation increased by 20% year-over-year, boosting portfolio efficiency and margins, and driving robust business performance in Q3 and 9M 2024.

• Net income and EBITDA saw significant year-over-year growth, supported by higher hydro generation, improved generation mix, and strong PPA and energy sales.

• Factoring of PEC III receivables executed for $630 million, improving liquidity and reducing short-term debt.

• Extreme weather in August 2024 caused significant damage to the distribution network, leading to force majeure claims, increased OPEX, and extensive contingency measures.

• Financial result worsened due to higher exchange rate losses and financial expenses.

Financial highlights

• Nine-month 2024 EBITDA reached $1,005 million, up 46% year-over-year; Q3 EBITDA was $405 million, up 18% year-over-year.

• Net income for nine months was $446 million, a 52% increase year-over-year; Q3 net income up 3% to $178 million.

• FFO for nine months was $366 million, nearly flat year-over-year, reflecting PEC factoring and higher taxes.

• Gross debt rose 8% to $4,765 million by September 2024; net debt at $3,765 million.

• Net debt/EBITDA ratio improved to 2.9x, below the 3x target.

Outlook and guidance

• 2024 EBITDA and net income are expected at the upper end of the $1.3–1.5 billion range.

• Hydro generation guidance raised to 13 TWh for 2024, up from 12 TWh; medium/long-term hydro generation estimated at 10–11 TWh annually.

• Regulatory changes allow for gradual tariff increases for regulated customers, ending debt accumulation and enabling recovery of balances.

• New business plan to be unveiled on November 21, 2024.

• Ongoing focus on renewable energy expansion and risk mitigation in commodity and currency exposures.