Enel Américas (ENELAM) Q3 2024 earnings summary

Executive summary

• Q3 2024 EBITDA declined 6% year-over-year to $0.94 billion, mainly due to FX devaluation in Brazil and lower hydro generation in Colombia.

• 9M 2024 EBITDA rose 4% year-over-year to $3.01 billion, driven by grids in Argentina and Colombia, and generation in Brazil and Central America.

• Net income for 9M 2024 surged to $2.47 billion, reflecting the positive impact of the sale of Peruvian assets.

• Gross debt reduced by 30% year-over-year to $5.7 billion, primarily from asset sales in Peru and debt reduction in Brazil.

• Investments in grids business increased by 30% to $0.4 billion, focusing on network resilience and service quality.

Financial highlights

• Q3 2024 revenues increased 4.8% year-over-year to $3.60 billion; 9M 2024 revenues up 5.5% to $10.35 billion, mainly from higher distribution revenues in Brazil, Colombia, and Argentina.

• Q3 2024 EBIT fell 16% year-over-year to $598 million; 9M 2024 EBIT nearly flat at $1.97 billion.

• Free cash flow for 9M 2024 was $0.66 billion, supported by positive working capital trends and lower financial expenses.

• Cost of debt decreased from 12.2% to 10.5% due to liability management and lower interest rates.

• Net financial debt was $2.31 billion, a 64.7% reduction from end-2023, mainly due to cash from Peruvian asset sales.

Outlook and guidance

• Hydrological impact in Colombia estimated at $130–150 million for 2024, with mitigation actions underway.

• Positive free cash flow expected by year-end, close to $100 million before dividends.

• Strategic plan for 2025–2027 to be presented on November 22, 2024.

• Strategic focus remains on corporate simplification and concentration in countries supporting energy transition.

• Ongoing analysis of potential sale of remaining businesses in Argentina.