Engie Energia Chile (ECL) Q3 2024 earnings summary

Executive summary

• 9M24 EBITDA rose 36% to US$424 million and net income increased to US$201 million from US$69.5 million, despite revenue falling 20%.

• Lower fuel and spot-market costs, improved hydrology, greater gas availability and increased renewable output supported profitability.

• PEC receivables monetization and green-bond issuance strengthened liquidity while financing investment plans.

• Accelerated renewables and battery-storage investment; announced closure of 1.1 GW of coal capacity by 3Q26.

Financial highlights

• 9M24 operating revenue was US$1,381.1 million, down 20% year-over-year; average realized price fell 16% to US$125/MWh while average supply cost declined 29%.

• 9M24 EBITDA reached US$424 million, up 36%, and net income was US$201 million versus US$69.5 million; gross earnings rose to US$337.4 million from US$195.9 million.

• Q3 revenue fell 13% to US$447.6 million, while EBITDA increased 5% to US$129.5 million and net income rose 18% to US$50.5 million year-over-year.

• Fuel costs fell 52% and spot-market energy and capacity purchases declined 22% in 9M24.

• Net debt increased US$284 million to US$2.1 billion, mainly to finance investment and working capital.

Outlook and guidance

• FY24 EBITDA guidance was upgraded to US$475–525 million, with results expected at the high end of the range.

• FY24 CapEx guidance was US$650 million, with a net debt/EBITDA target of 4.0x.

• 2025 outlook anticipates further improvement from full-year contributions of new wind and battery projects; 2025 guidance to be provided with FY24 results.

• CTM1 and CTM2 thermal units are scheduled for disconnection by Dec. 31, 2025; CTA and CTH disconnection was authorized for May 2026, with a possible one-year extension for grid security.