Engie Energia Chile (ECL) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong performance with EBITDA up 15% year-over-year to $159.5 million and net income up 69% to $77.8 million, driven by higher electricity margins, increased gas sales, and lower fuel costs.

• Dividend payments resumed after three years, with a 30% payout of 2024 net profits, reflecting improved financial health.

• Guidance for 2025 maintained at the high end, with expected EBITDA of $525–575 million and CapEx of $850–900 million, supported by a strong cash position and stable fuel costs.

• Ongoing transformation includes accelerated renewables and battery storage development, advanced coal exit preparations, and major projects like the Kallpa wind farm (344 MW) reaching commercial operation.

• Operating revenues increased 16% year-over-year to $515.4 million, mainly due to higher physical sales to regulated customers.

Financial highlights

• Q1 2025 EBITDA reached $159.5 million, a 15% increase year-over-year, with a 31% margin.

• Net income for Q1 2025 was $77.8 million, up 69% year-over-year.

• CapEx investment in Q1 totaled $169 million, focused on renewables and storage.

• Net debt decreased to $1.93 billion, with net debt to EBITDA at 3.6x as of March 2025.

• Total energy sales reached 3,353 GWh, a 7% increase year-over-year.

Outlook and guidance

• 2025 EBITDA expected at the high end of guidance ($525–575 million), with net debt to EBITDA on or below 4x.

• Approximately $900 million CapEx planned for 2025, and $1.4 billion over 2025–2027 for renewables and BESS.

• By 2027, portfolio to include 2.5 GW renewables and batteries, 1.2 GW coal exit, and 0.4 GW new gas capacity.

• Guidance excludes any potential legal settlement outcomes.

• ND/EBITDA expected at 3.9x for 2025.