Engie Energia Chile (ECL) Q3 2024 earnings summary

Executive summary

• EBITDA rose 36% to US$424 million and net income nearly tripled to US$201 million in the first nine months of 2024, driven by lower fuel costs, improved plant availability, and higher physical energy sales.

• Achieved strong operational and financial recovery, with cost reductions from lower fuel and spot energy prices, improved hydrology, and increased natural gas availability.

• Monetized significant PEC receivables and issued green bonds, improving liquidity and reducing financial risk.

• Accelerated investments in renewables and battery storage, with major projects on track and a pipeline of 2.1 GW, including 0.9 GW already in the portfolio.

• Announced total exit from coal-fired generation, with closure of 1.1 GW coal capacity by 3Q26.

Financial highlights

• Operating revenues for 9M24 were US$1,381 million, down 20% year-over-year due to an 18% drop in average realized prices.

• EBITDA margin improved to 31% in 9M24, up from 24% in Q3 2023, reflecting significant cost reductions.

• Net income reached US$201 million, almost tripling from the prior year, aided by EBITDA growth, lower depreciation, and higher financial income.

• Net debt increased by US$284 million to US$2.1 billion as of September 2024, mainly due to CapEx and receivables build-up.

• No dividends paid for 2022 and 2023 to support investment and liquidity.

Outlook and guidance

• FY24 EBITDA expected at the high end of US$475–525 million, with further improvement anticipated in 2025 from new wind and battery projects.

• FY24 CapEx guidance at US$650 million, with ND/EBITDA target of 4.0x.

• Guidance for 2025 to be provided with full-year 2024 results.

• Improved leverage and liquidity ratios are expected to support ongoing investment and decarbonization plans.