Engie Energia Chile (ECL) Q3 2024 earnings summary

Executive summary

• Achieved strong operational and financial recovery in 9M24, with EBITDA up 36% to $424 million and net income up 189% to $201 million, driven by lower fuel costs, improved hydrology, and increased renewables.

• Announced total exit from coal-fired generation and accelerated investments in renewables and battery storage, with a 2.1 GW pipeline and 0.9–1.01 GW already in portfolio.

• Monetized $356 million in PEC-3 receivables in October 2024, improving liquidity, with further sales of $75–90 million expected.

• Issued $225 million green bond in Swiss market and $500 million green bond in April 2024, supporting renewables and refinancing.

• Upgraded FY24 EBITDA guidance to the high end of $475–525 million, reflecting improved cost structure and higher renewable output.

Financial highlights

• Operating revenues for 9M24 were $1,381 million, down 20% year-over-year, with average realized price down 16% to $125/MWh.

• EBITDA margin improved to 30.7% in 9M24, up 12.5 percentage points year-over-year.

• Net income for Jan–Sep 2024 reached $201 million, up from $69.5 million year-over-year.

• Net debt increased by $284 million to $2.1 billion, with net debt/EBITDA at 4.1x.

• No dividends paid for 2022 and 2023; stock price up 7% over the last 12 months.

Outlook and guidance

• FY24 EBITDA expected at the high end of $475–525 million, driven by lower fuel costs, increased renewables, and new storage projects.

• FY24 CAPEX guidance at $650 million, with ND/EBITDA target of 4.0x.

• Additional contributions from new wind and battery projects expected in 2025, with updated guidance in Q1 2025.

• Improved liquidity and reduced exposure to tariff stabilization receivables after PEC-3 sale.

• Plan to resume minimum 30% dividend payout in 2025, subject to board approval.