Enel Chile (ENIC) Q2 2024 earnings summary

Executive summary

• H1 2024 delivered robust financial and operational performance, with strong hydro and renewable generation, and a diversified portfolio supporting decarbonization and electrification goals.

• 250 MW of new renewable and battery storage capacity was added, with 410 MW receiving commercial operation date, totaling 0.6 GW since Jan 2023.

• Secured a 20-year regulated PPA for 3.6 TWh/year, diversifying sales and increasing long-term contracted portfolio.

• Regulatory milestones achieved: stabilization mechanism law approved, updated tariffs published, and distribution tariff for 2020–2024 cycle enacted.

• Solid EBITDA and net income growth in H1 2024, with positive FFO and strong liquidity for future CapEx.

Financial highlights

• Net electricity generation reached 12.1 TWh in H1 2024, up 15% year-over-year, mainly from hydro and renewables.

• H1 2024 EBITDA rose 74% to $597 million (Ch$561,743 million), with Q2 EBITDA up over 540% year-over-year.

• Net income for H1 2024 increased 120.5% to Ch$250,824 million ($267 million), mainly due to higher EBITDA.

• FFO for H1 2024 was $52 million, a $56 million improvement year-over-year.

• Total CapEx in H1 2024 was $290 million, down 9% year-over-year, with 66% allocated to renewables and storage.

• Gross debt rose 8% to $4.8 billion (US$4,750 million) by June 2024, with average cost of debt at 5%.

Outlook and guidance

• 2024 guidance confirmed, with hydro generation estimate raised to 12 TWh from 10 TWh.

• Expect to factor $550–$650 million of PEC receivables in H2 2024; remaining recovery by 2027.

• Regulatory changes in 2024 allow for gradual tariff increases and debt recovery for generators, with additional US$5,500 million added to the MPC fund.

• Confident in meeting 33 TWh sales target for 2024–2026, with ongoing negotiations for expiring PPAs.