Enel Chile (ENIC) Q2 2024 earnings summary

Executive summary

• H1 2024 delivered robust financial and operational performance, with net income attributable to shareholders reaching Ch$250,824 million, up 120.5% year-over-year, driven by a more efficient generation mix, strong hydro production, and higher energy sales.

• EBITDA increased 74.3% year-over-year to Ch$561,743 million (US$597 million), with Q2 EBITDA up 543% to $301 million, reflecting exceptional hydro and renewable generation.

• Added 250 MW of new renewable and battery storage capacity in H1 2024, enhancing portfolio flexibility and supporting decarbonization.

• Regulatory milestones included the publication of the PEC 3 decree, VAD 2020-2024 tariff decree, and new law on stabilization mechanism and subsidies for vulnerable families, supporting business stability and enabling debt recovery.

• Business performance aligned with 2024 guidance, with continued focus on renewables, electrification, and a strengthened contracted portfolio.

Financial highlights

• Net income for H1 2024 was Ch$250,824 million (US$267 million), up 120.5% year-over-year, mainly due to improved EBITDA and higher energy sales.

• EBITDA for H1 2024 reached Ch$561,743 million (US$597 million), up 74.3% year-over-year; Q2 EBITDA was $301 million, 6.4x higher than Q2 2023.

• Net electricity generation reached 12,119 GWh (12.1 TWh) as of June 2024, up 14.8% year-over-year, mainly from hydro and renewables.

• FFO for H1 2024 was $52 million, up from a negative $63 million in H1 2023, supported by higher EBITDA.

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

Outlook and guidance

• 2024 guidance confirmed, with hydro generation estimate raised to 12 TWh from 10 TWh, and all contracts for 2024 in place.

• Regulatory changes in 2024 allow for gradual tariff increases for regulated customers, ending debt accumulation by generators and enabling recovery of balances under stabilization mechanisms.

• Factoring of $550-$650 million in receivables expected in H2 2024; remaining PEC receivables to be recovered by 2027.

• Hydrology outlook remains favorable, with above-average rainfall in key basins supporting hydro generation.

• Continued expansion in renewables and battery storage expected to further improve portfolio flexibility.