Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) Q2 2024 earnings summary

Executive summary

• The February 16 tariff adjustment, a 319.2% VAD increase, restored economic balance and drove 2Q24 EBITDA to ARS 77,437 million from a loss of ARS 27,558 million in 2Q23.

• 1H24 EBITDA reached ARS 82,650 million, while net income was ARS 107,580 million.

Financial highlights

• 2Q24 revenue rose 28% YoY to ARS 436,721 million in constant pesos, as tariff adjustments offset lower sales volumes.

• 2Q24 distribution margin increased 94% YoY to ARS 217,071 million; 1H24 margin rose 76% to ARS 354,298 million.

• 2Q24 net income was ARS 47,269 million versus a net loss of ARS 17.9 billion in 2Q23.

• 2Q24 operating expenses declined 3% YoY to ARS 167,912 million, mainly on lower regulatory fines and receivables impairment.

• 2Q24 net financial expense increased 2% YoY to ARS 132,505 million, reflecting higher debt and CAMMESA interest.

Outlook and guidance

• The 2025–2029 Five-Year Tariff Review was on schedule for completion during 2024; a public hearing was planned for October 1.

• Monthly VAD adjustments based on expected inflation were to begin in August 2024; May–July adjustments were to be incorporated into the tariff review.

• Growth opportunities include renewable and conventional generation, critical minerals, and other non-regulated businesses.