Enel Chile (ENIC) Q4 2024 earnings summary

Executive summary

• Hydro generation increased by 12% year-over-year, driven by favorable hydrology and the El Niño phenomenon, with the Los Condores Hydro Power Project connected and operating at full capacity.

• Adjusted EBITDA reached $1.4 billion and net income $0.6 billion, fully in line with 2024 guidance, despite a $657 million non-cash impact from a change in functional currency.

• Hydro generation and gas trading activities delivered significant contributions, aided by favorable hydrology and effective commodity management.

• Asset rotation and portfolio optimization, including the Arcadia transaction, enhanced capital structure and flexibility.

• Voluntary compensation of $80 million was agreed for customers affected by August 2024 outages, and a $20 million fine was booked for service disruption.

Financial highlights

• Adjusted EBITDA for 2024 was $1,421 million, up $320 million year-over-year, mainly due to higher PPA sales and improved hydrology.

• Net income for 2024 reached $622 million, a 22% increase over 2023, driven by EBITDA growth.

• FFO improved by $332 million to $1,209 million, supported by EBITDA gains and factoring operations.

• Gross debt decreased by 11% to $3.9 billion, with 89% at fixed rates and an average cost of 5.0%.

• Total CAPEX for 2024 was $583 million, 90% lower than 2023, reflecting completion of major projects.

Outlook and guidance

• 2025 guidance confirmed, with expectations for increased EBITDA and CAPEX of just under $800 million, focusing on new BESS and renewable projects.

• Change of functional currency to USD for Enel Chile and key subsidiaries effective January 2025, expected to reduce exchange rate risk exposure.

• Regulatory changes allow for gradual tariff increases and recovery of accumulated debt by generators, with new funds and subsidies for vulnerable customers.

• Hydro output for 2025 is conservatively set at the 10-year average (10.7 TWh), with flexibility to adjust based on weather.

• No changes to the strategic plan or CAPEX allocation for the distribution segment; focus remains on grid resilience and quality.