Enel Chile (NYSE:ENIC) Q3 2025 Earnings Call November 04, 2025 08:00 AM ET Company ParticipantsSimone Conticelli - CFOIsabela Klemes - Head of Investor RelationsOperatorGood morning, ladies and gentlemen, and welcome to Enel Chile third quarter and nine months 2025 results conference call. My name is Carmen, and I will be your operator for today. During this conference call, we may make statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act o ...

Financial Data and Key Metrics Changes - The company closed the first nine months of 2025 with stable EBITDA compared to the previous year, despite lower hydrology conditions [8] - Net income for the nine months of 2025 reached $352 million, a 21% decrease compared to the previous year, primarily due to higher depreciation and bad debt expenses [24] - FFO reached $615 million, representing an improvement of $248 million compared to the previous year, driven by the recovery of PEC receivables [26] Business Line Data and Key Metrics Changes - Net production decreased by 9% in the first nine months of 2025 compared to the same period in 2024, driven by lower hydro dispatch and maintenance of solar plants [10][11] - Energy sales reached 22.7 terawatt-hour, mainly due to lower sales to regulated customers following the expiration of contracts [11] - EBITDA for the last quarter totaled $345 million, a decrease of $63 million compared to the same period in 2024, mainly due to decreased PPA sales [18] Market Data and Key Metrics Changes - The company maintained its hydrology guidance despite a particularly dry year in 2025, thanks to the flexibility of its hydro plants [9] - The gas business saw an increase in margin during the first nine months of 2025, adding $74 million due to favorable trading opportunities [10] - The average cost of debt reached 4.8% as of September 2025, down from 5.0% in December 2024, reflecting efforts to optimize financial costs [29] Company Strategy and Development Direction - The company is focused on operational excellence and sustainable growth, aiming to deliver long-term value to shareholders while advancing in energy transition [8] - Significant regulatory updates are expected that will clarify tariffs and market mechanisms, which are essential for refining long-term strategy [30] - The company is implementing proactive initiatives to address portfolio dynamics and climate challenges, including strengthening generation and distribution businesses [30] Management's Comments on Operating Environment and Future Outlook - Management confirmed that despite a tough hydrological situation, the company showed flexibility and maintained high production levels [46] - The company expects to improve FFO performance in the last quarter of 2025, driven by higher ordinary cash flow and efficient management of working capital [47][48] - Management remains committed to investing in strategic renewable projects and delivering sustainable returns for shareholders [30] Other Important Information - Total CAPEX reached $245 million during the first nine months of 2025, with a focus on grid investments and thermal power projects [17] - The company is awaiting settlement of outstanding debt related to the VAD decree for 2020-2024, expected to be settled in 2026 [14] Q&A Session Summary Question: What is the amount that Enel Chile must return to customers due to the miscalculation of the CNE? - The estimated amount is between $40 million and $45 million, expected to be accrued in 2025 and paid back in the first half of 2026 [33] Question: What is the amount owed to Enel distribution Chile in connection to the VAD 2020-2025 freeze? - The amount is around $50 million to $55 million, with potential cashback starting in mid-2026 [35][36] Question: Could you explain your strategy regarding LNG and Argentinian gas? - The company has a long-term gas contract for LNG and is negotiating a new contract for Argentinian gas, with ongoing discussions [39] Question: Could you provide an update on CAPEX for the generation business? - CAPEX for 2025 is expected to be around $150 million to $160 million, with at least $50 million allocated for BESS projects [41][42] Question: What measures are being taken to address increasing energy losses? - The company is increasing recovery activities and launching flexible payment plans for customers, while also working with regulators to address the issue [44] Question: Is the company confirming its latest guidance? - Yes, despite a tough year, the company has shown flexibility and can confirm the results for the year [46] Question: Could you explain the dynamics of FFO during the nine months of this year? - FFO is usually concentrated in the second half of the year, with expectations for improved performance in the last quarter [47][48] Question: Do you have any news for unregulated PPA contracts? - Currently, there are no updates regarding unregulated PPA contracts [58]

Enel Chile (NYSE:ENIC) Q3 2025 Earnings Call November 04, 2025 08:00 AM ET Speaker1Good morning, ladies and gentlemen, and welcome to Enel Chile Third Quarter and Nine Months 2025 Results Conference Call. My name is Carmen, and I will be your operator for today. During this conference call, we may make statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect only our current expectations, are not ...

Enel Chile Consolidated Results Presentation November 04th, 2025 Simone Conticelli CFO Key highlights of the period Q3 & 9M Positive gas optimization activities continues in Q3 2025 Successful implementation of the comprehensive Winter Plan aimed at strengthening grid resilience Country and Regulatory context VAD 2024-28 Preliminary Regulator technical report published in Oct/25 H1 2026 preliminary energy regulated tariff decree published in Oct/25 Regulated energy auctions to be held in Q4 2025 2027-30 per ...

Financial Performance - Net income attributable to Enel Chile S.A. shareholders reached US$ 246 million as of June 30, 2025, a decrease of 7.8% compared to June 30, 2024[6]. - Operating revenues totaled US$ 2,279 million as of June 2025, down 7.3% compared to June 2024, primarily due to lower energy sales[6]. - EBITDA totaled US$ 659 million as of June 2025, representing a growth of 10.4% compared to June 2024[6]. - Total energy sales for the first half of 2025 amounted to US$ 2,027 million, a decrease of US$ 231 million or 10.23% compared to the first half of 2024[38]. - Energy sales in Q2 2025 were US$ 1,029 million, down US$ 193 million or 15.79% from Q2 2024[38]. - The financial result for the first half of 2025 showed a loss of US$ 84 million, a deterioration of 62.7% compared to the same period in 2024[40]. - Net income for the period was US$ 267 million, down US$ 25 million or 8.6% from US$ 292 million in the previous year[60]. Customer and Sales Metrics - Total sales decreased by 11.6% to 15,895 GWh as of June 2025, mainly due to lower sales to regulated customers[10]. - The number of customers grew by 1.4% at the end of the first half of 2025, reaching a total of 2,175,718 end users[12]. - The number of customers increased to 2,175,718 as of June 30, 2025, representing a growth of 1.4% compared to the previous year[36]. Costs and Expenses - Procurement and services costs totaled US$ 1,413 million as of June 2025, a decrease of 16.1% compared to June 2024[6]. - Financial expenses increased to US$ 84 million as of June 2025, compared to an expense of US$ 52 million as of June 2024[6]. - Operating costs for the Generation business decreased by US$ 200 million or 18.2%, totaling US$ 902 million as of June 30, 2025[48]. - Personnel expenses for the Generation business rose to US$ 33 million, an increase of US$ 6 million or 21.6% compared to the same period in 2024[49]. - Operating costs for the Distribution & Networks segment decreased by US$ 49 million or 6.4%, totaling US$ 719 million as of June 30, 2025[55]. Debt and Liquidity - Cash and cash equivalents stood at US$ 320 million, with committed credit lines available totaling US$ 590 million[14]. - Enel Chile's gross financial debt increased by US$ 40 million compared to December 2024, totaling US$ 3,970 million[12]. - The average cost of debt decreased to 4.9% in June 2025 from 5.0% in December 2024[12]. - The liquidity ratio improved to 1.02 times as of June 30, 2025, reflecting a 2.8% increase from 1.00 times at the end of 2024[76]. - Working capital turned positive at US$ 48 million as of June 30, 2025, a significant improvement of US$ 57 million from a negative working capital position at the end of 2024[76]. - The debt ratio decreased to 1.33 times as of June 30, 2025, down from 1.39 times at the end of 2024, indicating improved equity commitment[76]. Asset Management - Total assets decreased by US$ 220 million to US$ 12,545 million as of June 30, 2025, representing a 1.7% decline compared to December 31, 2024[79][83]. - Current assets fell by US$ 191 million, primarily due to a US$ 94 million decrease in trade accounts receivable and a US$ 65 million reduction in cash and cash equivalents[80][81]. - Total equity increased by US$ 43 million to US$ 5,389 million as of June 30, 2025, with equity attributable to shareholders rising to US$ 5,023 million[86]. Risk Management - The company faces risks related to governmental regulations and environmental regulations that could impact its operations and financial performance[94][95]. - Enel Chile has established a policy to mitigate risks under extreme drought conditions by defining sale commitment levels in line with generating capacity during dry years[112]. - The company continuously reviews the convenience of hedging against commodity price volatility, particularly in light of current operational conditions in the electricity generation market[113]. - Interest rate risk management aims to minimize debt costs while reducing income statement volatility, with a sensitivity analysis indicating a 25 basis point change would affect monthly financial expenses by ThUS$ 52.08[125][129]. - The risk management policy includes a taxonomy of 6 macro-categories and 37 sub-categories to identify and manage risks effectively[102]. - Enel Chile's credit risk from commercial accounts receivable is historically limited due to short collection terms, with continuous monitoring in place[120]. Investment and Capital Expenditure - The company invested US$ 138 million in property, plant, and equipment during the period, down from US$ 444 million in June 2024[93]. Currency and Exchange Rate - Enel Chile changed its functional currency to US dollars as of January 1, 2025, impacting its financial reporting and risk management strategies[30]. - The estimated impact of exchange rate fluctuations for the next quarter is projected to reach US$ 26.2 million, considering the change of functional currency to US dollars effective January 1, 2025[124].

Financial Data and Key Metrics Changes - In the first half of 2025, EBITDA reached $659 million, representing a 10% improvement compared to the previous year, driven by strong generation performance and improved gas trading activities [24][31] - Net income for the first half amounted to $246 million, an 8% decrease year-over-year, primarily due to higher general and administrative expenses [24][34] - The first half FFO showed significant improvement, reaching $403 million, 7.8 times the previous year's figure [25][37] Business Line Data and Key Metrics Changes - Hydro generation remained consistent with last year's levels, supported by higher thermal dispatch, despite lower cumulative rainfall [9][16] - Net electricity generation decreased by 5% compared to June 2024, primarily due to lower hydro dispatch and increased curtailment levels [17] - Capital expenditures (CapEx) reached $157 million in the first half, with 40% directed towards grid investments and 29% towards renewable and storage projects [26][28] Market Data and Key Metrics Changes - The national electricity system faced challenges including poor hydrological conditions and maintenance issues, leading to increased spot prices in the Central Southern Zone of Chile [15][16] - Despite these challenges, the company maintained its hydrology guidance for the year, expecting hydro generation to reach around 11 terawatt hours [16][56] Company Strategy and Development Direction - The company is committed to its winter plan in the distribution business, focusing on service continuity and reliability [44] - A new vegetation monitoring and control program has been implemented to enhance infrastructure stability [11] - The company plans to launch construction of battery energy storage projects, adding around 0.5 gigawatts to its portfolio within the next two years [14][90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding hydro production for the second half of the year, despite initial dry conditions [55] - The company is actively working with regulators to improve the distribution business and reduce energy losses [48] - Management remains confident in achieving its EBITDA and net income guidance for the year, despite external pressures [59] Other Important Information - The company changed its functional currency from Chilean pesos to US dollars as of January 1, 2025 [23] - The regulatory framework is evolving, with updates expected on ancillary services remuneration and electricity subsidies for vulnerable households [21][96] Q&A Session Summary Question: What is the main reason behind the higher energy losses in the distribution business? - Management indicated that higher electricity prices and climate events contributed to increased energy losses, and they are working on payment plans and regulatory improvements to address this [48] Question: How sustainable are the higher gas sales in the generation business? - Current guidance for gas sales is between $80 million to $90 million for the year, with expectations of sustainability depending on market conditions [51] Question: How do you expect hydro volumes to evolve in the second half? - Management is optimistic about hydro production due to favorable conditions expected from snowmelt, confirming the full-year target of 10.7 terawatt hours [56] Question: What is the current average cost of debt? - The average cost of debt is currently at 4.9%, slightly decreased from 5% at the beginning of the year [57] Question: Are you considering adjusting your full-year guidance? - Management remains confident in maintaining guidance despite external pressures and expects to continue on a positive trend [59] Question: Will there be any additional impairment related to the SALINA project? - Management does not expect further impairments for the SALINA project, as the asset value has been adjusted to market levels [64] Question: What are the expectations for the new battery investment plan? - The new battery investment plan involves an investment of around $400 million for three projects totaling 450 megawatts, expected to be operational by 2027 [75][90]

Financial Data and Key Metrics Changes - In the first half of 2025, EBITDA reached $659 million, representing a 10% improvement compared to the previous year, driven by strong generation performance and improved gas trading activities [26][32] - Net income for the first half amounted to $246 million, an 8% decrease from the previous year, primarily due to higher general and administrative expenses [26][35] - The first half FFO showed significant improvement, reaching $403 million, 7.8 times the previous year's figure [26][27] Business Line Data and Key Metrics Changes - Hydro generation remained consistent with last year's levels, supported by higher thermal dispatch, despite a 5% decrease in net electricity generation compared to June 2024 [9][20] - The distribution segment has seen increased energy losses due to higher electricity prices and climate events, prompting the company to implement better payment plans and tools to manage debt [48][49] Market Data and Key Metrics Changes - The national electricity system faced challenges including poor hydrological conditions and maintenance issues, leading to increased spot prices in the Central Southern Zone of Chile [16][17] - Despite these challenges, the company maintained its hydrology guidance for the year, expecting hydro generation to reach around 11 terawatt hours [17][56] Company Strategy and Development Direction - The company is committed to its Resilient and Winter program to strengthen the grid and improve response to climate-related events, including deploying remote control systems and vegetation monitoring [11][12] - Plans to launch construction of battery energy storage projects in Northern Chile, adding around 0.5 gigawatts to the portfolio within the next two years, were announced [15][72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about hydro production for the second half of the year, despite a dry start in July, citing favorable conditions for snowmelt [56] - The company is actively advocating for a new regulatory model to recognize significant investments in the network to address climate change impacts [95][96] Other Important Information - The company changed its functional currency from Chilean pesos to US dollars as of January 1, 2025, for comparative purposes [25] - Capital expenditures in the first half reached $157 million, with a focus on Greece investments and thermal projects [27][28] Q&A Session Summary Question: What is the main reason behind the higher energy losses in the distribution business? - Management indicated that higher electricity prices and climate events contributed to increased energy losses, and they are working with regulators to improve the situation [49][50] Question: How sustainable are the higher gas sales in the generation business? - Current guidance for gas sales is between $80 million to $90 million for the year, with expectations for sustainability depending on market conditions [52] Question: How do you expect hydro volumes to evolve in the second half? - Management is optimistic about hydro production due to favorable conditions and expects to meet the full-year target of 10.7 terawatt hours [56] Question: What is the current average cost of debt? - The average cost of debt has decreased to 4.9%, reflecting favorable conditions from previous financing [57] Question: Are there plans to adjust the full-year guidance in light of market conditions? - Management remains confident in their ability to navigate challenges and does not anticipate adjusting the full-year guidance [59] Question: Will there be any additional impairments related to the SALINA project? - Management does not expect further impairments for the SALINA project after recent adjustments [63] Question: What are the expectations for the new battery investment plan? - The new battery investment plan aims to hybridize existing solar PV plants and is expected to enhance production during non-solar hours [88]

Financial Performance - H1 2025 EBITDA increased by 10% to $659 million compared to $597 million in H1 2024[6, 21] - H1 2025 Net Income decreased by 8% to $246 million compared to $267 million in H1 2024[21, 33] - H1 2025 FFO was $403 million, driven by $261 million received from PEC's factoring[6, 36] - Q2 2025 EBITDA decreased by 3% to $293 million compared to $304 million in Q2 2024[21, 27] Operational Highlights - Hydro generation in Q2 2025 was in line with last year's levels[6] - Thermal generation and gas trading showed notable performance[6] - H1 2025 North Zone thermal generation increased by 7%[10] - Emission-free production accounted for 78% of net installed capacity[14] Regulatory and Portfolio Management - VAD 2024-28 Consultant's final report is expected in Q3 2025[6, 17] - H2 2025 energy regulated tariff decree was published in July 2025[6, 17] - BESS ancillary system regulation is expected to be released in Q3 2025[6] - Total receivables net of recovery Jun/25 PEC 164 million USD[17] Debt and Liquidity - Gross debt was $3.650 billion as of June 30, 2025[39] - The company has a robust liquidity position of $1.7 billion[39] - 86% of gross debt has a fixed rate[39]

Financial Performance - Enel Chile's Q1 2025 EBITDA increased by 25% to $365 million, compared to $293 million in Q1 2024[17, 22] - Net income for Q1 2025 rose by 11% to $175 million, up from $157 million in Q1 2024[17, 25] - Funds From Operations (FFO) remained relatively stable at $109 million in Q1 2025, a decrease of 5% compared to $114 million in Q1 2024[17, 27] Portfolio and Operations - Los Cóndores hydropower plant started commercial operation in February 2025[6] - Emission-free production accounted for 78% of the total, including Renewable Energy (REN) and Battery Energy Storage Systems (BESS)[11, 42] - Net installed capacity stands at 8.9 GW, with 78% from REN + BESS[11, 42] Regulatory and Dividends - The VAD 2020-24 Decree was published in April 2025[8, 13] - The final dividend approved by the 2025 AGM is approximately 3.34 CLP/share[8] - Total dividend approved of ~4.24 CLP/sh for 2024[9] Investments and Debt - Q1 2025 CAPEX totaled $68 million, with 39% allocated to REN + BESS and 32% to Grids[20] - Gross debt as of March 31, 2025, was $3.993 billion, compared to $3.931 billion on December 31, 2024[31] - The company has a strong liquidity position of $1.1 billion, covering debt maturities up to 2027[31]

Financial Data and Key Metrics Changes - The company reported a net income of $175 million for Q1 2025, reflecting an 11% increase compared to the previous year [22] - Funds from operations (FFO) reached $109 million, showing a slight decrease of $5 million compared to Q1 2024 [24] - EBITDA for the quarter was $365 million, with a notable increase attributed to improved energy distribution receivables [24] Business Line Data and Key Metrics Changes - Net electricity generation totaled 5.6 terawatt hours, an 8% decrease compared to 2024, primarily due to lower hydro and renewable generation [12] - Energy sales amounted to 7.7 terawatt hours, marking a 9% reduction from the previous year, driven by lower sales to regulated customers [13] - The company achieved a total net installed capacity of 8.9 gigawatts, with 28% from renewable energy sources and battery storage systems [11] Market Data and Key Metrics Changes - The company experienced a reduction in energy purchases from third parties by 0.2 terawatt hours and a decrease in spot market purchases by 0.1 terawatt hours [13] - The regulatory framework is undergoing significant changes, with updates expected in the second quarter of 2025 regarding ancillary services and electricity subsidies [15][16] Company Strategy and Development Direction - The company is focused on a resilient plan to strengthen grid infrastructure in response to increasing climate risks [9] - There is a commitment to advocate for comprehensive distribution reform and modernization of the regulatory framework to enhance asset resilience [28][29] - The strategic vision emphasizes innovation, efficiency, and economic competitiveness within the energy sector [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 guidance, with expectations for improved remuneration from the regulatory changes [57] - The company remains optimistic about the hydrology forecast for 2025, maintaining the target of 10.7 terawatt hours [52] - The management acknowledged the challenges posed by extreme climate events but emphasized the adaptability of the business model [28] Other Important Information - The final dividend for the 2024 fiscal year was approved at approximately 4.24 Chilean pesos per share [11] - The gross debt increased by 2% to $4 billion, with a competitive average cost of debt at 4.9% [26] Q&A Session Summary Question: Additional details on the resilience program for distribution - Management confirmed the implementation of a strong resilience program to enhance grid quality and digitalization, with increased CapEx planned [36] Question: CapEx guidance for the year - Management maintained the CapEx guidance of $800 million for the year, with a significant portion expected in the second half [41] Question: Impact of new regulatory changes - Management indicated it is too early to quantify the impact of regulatory changes on profitability, but they expect some benefits from improved rules for ancillary services [45] Question: Hydrology expectations for the year - Management confirmed that the target of 10.7 terawatt hours for 2025 remains valid, pending further hydrological assessments [53] Question: Economic impact of the resilient program - Management stated that the CapEx for the resilience program is included in the last industrial plan, but estimating its impact on EBITDA is challenging at this stage [61] Question: Gas supply contracts with Argentina - Management confirmed that the current gas contract portfolio includes take-or-pay clauses, ensuring stability for the remainder of the year [66] Question: Expired regulated contracts - Management clarified that the expired contracts were related to a tender process from 2013, which had higher prices than current market rates [73] Question: Renewable generation decrease - Management attributed the decrease in renewable generation to maintenance at solar plants and lower hydro generation, which was offset by other generation sources [73]