Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) Q3 2024 earnings summary

Executive summary

• Q3 revenue rose 30% YoY to ARS 555,788 million; distribution margin increased 22% to ARS 211,079 million, supported by tariff adjustments.

• Q3 EBITDA was ARS 45,682 million, versus ARS 446,039 million in Q3 2023, which included the effect of CAMMESA payment-plan agreements.

• The 2025–2029 tariff review advanced, while an October USD 184 million Class 7 note issuance brought in new money and refinanced debt.

Financial highlights

• 9M24 revenue was ARS 1,412,638 million, up 21% YoY; Q3 revenue was ARS 555,788 million, up 30%, despite lower sales volumes.

• 9M24 operating results were ARS 26,850 million, versus a loss of ARS 127,036 million in 9M23; Q3 operating results were ARS 6,719 million versus ARS 1,927 million.

• Q3 net financial results improved to ARS 36,927 million from a loss of ARS 202,673 million, mainly due to lower interest payments on CAMMESA debt.

• Q3 net income was ARS 114,438 million, down 51% YoY; the prior-year comparison included a regulatory-obligations agreement and larger RECPAM and income-tax gains.

• 9M24 capex rose 30% YoY to ARS 245,229 million; 79% was classified as network structure investment.

Outlook and guidance

• The Five-Year Tariff Review for 2025–2029 advanced; completion was expected during 2024, with timing potentially affected by regulatory transitions.

• VAD adjustments were +3% in August, +3% in September, +2.7% in October and +6% in November.

• ENRE reported a 10.31% after-tax real weighted average cost of capital, equivalent to a 15.87% pre-tax real rate, for the tariff-review process.

• Ongoing maintenance and major projects were focused on improving network reliability and service quality.