I am a researcher and operations manager at DM Martins Research. Previously, I contributed to TheStreet and currently write for platforms such as TipRanks and GuruFocus. Here at Seeking Alpha, my goal is to provide insightful analysis primarily on foreign equities, with a focus on emerging markets, to empower informed investment decisions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the n ...

Kutay Tanir/DigitalVision via Getty Images Whether foreign or domestic, electrical utility companies have always been a popular choice for income investors. They pay good dividends, have a predictable customer base, and reliable sources of generation. Today we're going to be looking at Enel Chile S.A. (NYSE:ENIC), one of the largest energy utilities in Chile. We're going to be looking at the company, after its recent downturn, for its profitability, its value with respect to global peers, and importantly it ...

Group 1: Investment Opportunities - The article highlights three dividend stocks under $10 that present potential investment opportunities due to their attractive dividend yields and growth prospects [1][9] - Enel Chile (ENIC) has shown stable growth with a 33.28% revenue increase year-over-year for Q2 2024 and a remarkable 482% growth in net income, alongside an 8.83% dividend yield [4][5] - United Microelectronics (UMC) offers a 6.14% dividend yield, which has increased over 200% in the past five years, despite a nearly 9% decline in stock price year-to-date [11] - Granite Ridge Resources (GRNT) provides a 6.55% dividend yield and has achieved 10% growth year-to-date, making it an appealing option for investors seeking dividend stocks under $10 [16][17] Group 2: Market Context - The semiconductor industry is facing challenges, as evidenced by a technical semiconductor manufacturer experiencing a net income decrease of over 30% year-over-year in Q1 2024 [2] - The energy sector in Chile, represented by Enel Chile, is viewed positively due to the World Bank's recognition of Chile as one of South America's most stable economies [4] - The article suggests that stocks with low valuations may carry inherent risks, including low trading volumes and insufficient cash reserves, but can also present strong investment opportunities when they yield dividends [1][9]

Financial Data and Key Metrics - The company expects to recover $450 million to $600 million from the factoring process in the second half of the year, with total receivables currently at $1 billion [4][6] - Net income increased by 2.2x compared to the previous year, reaching $267 million, driven by strong EBITDA performance [32] - EBITDA for Q2 2024 reached $301 million, a 6.4x increase compared to Q2 2023 [46] - FFO improved by $27 million in 2024 versus 2023, reaching $52 million in the first half of 2024 [30][44] - Gross debt increased by 8% to $4.8 billion by June 2024, primarily due to higher working capital and CapEx needs [52] Business Line Data and Key Metrics - The distribution segment saw a tariff increase of 5% for the 2020-2024 regulatory period, contributing $15 million to the company's performance [10][28] - The generation segment achieved 12.1 terawatt hours of net electricity generation in the first half of 2024, a 15% increase compared to the same period in 2023 [68] - The company added 250 megawatts of new renewable energy capacity and BESS projects, supporting its decarbonization goals [89] - Hydro generation estimates for 2024 were updated to approximately 12 terawatt hours due to favorable hydrological conditions [53] Market Data and Key Metrics - The company expects a 5% tariff increase for the next regulatory period (2024-2028), with the final decree expected to be published in Q4 2024 [34][60] - Clients consuming less than 350 kilowatt hours will see a 16% tariff increase, while those consuming more than 350 kilowatt hours will face a 33% increase due to higher generation costs [10][134] - The company is awaiting the sovereign guarantee decree to enable the factoring process for PEC receivables, expected in Q3 2024 [40][90] Company Strategy and Industry Competition - The company is focusing on increasing renewable energy capacity and incorporating more batteries into its portfolio to improve flexibility and decarbonization [66][89] - The company is negotiating with customers to fulfill the 33 terawatt hours sales target for 2024-2026, with all contracts already in place [27] - The company is confident in its 2024 guidance, supported by solid operating and financial performance in the first half of the year [95][100] Management Commentary on Operating Environment and Future Outlook - Management highlighted the positive hydrological conditions and efficient generation mix as key drivers of strong performance in 2024 [74][53] - The company expects to recover the remaining PEC receivables by 2027, with $550 million to $650 million expected to be factored by the end of 2024 [41][117] - Management confirmed the 2024 guidance, with hydro output projections now pointing towards 12 terawatt hours, up from the initial assumption of 10 terawatt hours [96][100] Other Important Information - The company is working on improving client protection mechanisms and establishing transitory subsidies for vulnerable clients [57][59] - The company has a solid liquidity position, with $750 million in available committed credit lines and $305 million in cash and cash equivalents [92] - The company is awaiting regulatory updates on ancillary services for battery projects, which could provide additional revenue streams by the end of 2024 [130] Q&A Session Summary Question: PEC Mechanism and Receivables Recovery - The company has $1 billion in PEC receivables, including $150 million in interest, and expects to factorize $550 million to $650 million by the end of 2024, with the remaining amount to be recovered by 2027 [99][117][139] Question: Tariff Updates and Impact on Financials - The 5% tariff increase for the 2020-2024 regulatory period contributed $15 million to the company's performance, with $7 million related to previous year adjustments [127][124] Question: Guidance and Hydro Output - The company confirmed its 2024 guidance, with hydro output projections now at 12 terawatt hours, up from the initial 10 terawatt hours assumption [96][100] Question: Distribution Segment and Tariff Adjustments - The distribution segment saw a $15 million impact from the tariff adjustment, with half of it related to previous year adjustments [28][127] Question: Battery Projects and Revenue Streams - Battery projects like El Manzano and La Cabaña are expected to generate revenue from capacity payments and energy shifts, with potential additional revenue from ancillary services pending regulatory updates [130] Question: Medium to Long-Term Contracted Portfolio - The company is confident in its medium to long-term contracted portfolio and is actively negotiating new PPAs to fulfill its sales targets [141]

Hydro generation Net installed capacity H1 2024 40.2% 34.8% 16.8% 5.8% 8.7 GW 77% REN + BESS 2.3% Apr 2024 Apr 2024 Jul 2024 Q3 2024 Sovereign Guarantee decree Debt recovery Thermal Grids Others2 REN + BESS +6.4x Lower gas margin due to exceptional trading activities carried out in 2023 12 1. Comparisons between periods in the Financial Statements are made using the exchange rate at the end of the period: December 2023 (877.12 CLP/USD); June 2024 (944.34 CLP/USD). Main business EBITDA breakdown enel Enel Ch ...

Penny stocks often carry a stigma in the investment world for good reason — they tend to be associated with high risk and volatility. These stocks, priced under $5 per share, usually represent companies in the early stages of development or facing notable challenges. Most financial advisors will caution you against investing in penny stocks precisely due to their highly speculative nature and potential for abrupt losses — and they are right. However, along with the inherent risks linked to penny stocks, rar ...

Conference Call Participants Good morning, ladies and gentlemen, and welcome to Enel Chile's First Quarter 2024 Results Conference Call. My name is Victor and I will be your operator for today. The presentation accompanying this conference call and Enel Chile's annual report on Form 20-F include under Risk Factors. You may access our first quarter 2024 results press release and presentation on our website www.enel.cl and our 20-F on the SEC's website, www.sec.gov. Isabela Klemes Our presentation and related ...

SANTIAGO, Chile, April 30, 2024 /PRNewswire/ -- Enel Chile (NYSE: ENIC) announced that it filed its 2023 annual report on Form 20–F with the United States Securities and Exchange Commission on April 30, 2024. Enel Chile is an integrated utility company engaged in the electricity generation, distribution, and services businesses in Chile through Enel Generación Chile S.A., Enel Green Power Chile S.A., Enel Distribución Chile S.A., and Enel X Chile SpA, respectively. The Company is engaged in the decarbonizat ...

Debt Overview - As of December 31, 2023, the total outstanding debt amounted to 3,885,477 million Ch$ with a fair value of 3,842,177 million Ch$[700]. - 88% of the total outstanding debt had fixed interest rates, while 12% was subject to variable interest rates as of December 31, 2023[707]. - The total fixed-rate debt was 3,125,974 million Ch$ with a fair value of 3,066,441 million Ch$ as of December 31, 2023[700]. - The weighted average interest rate for fixed-rate debt was 4.5% as of December 31, 2023[700]. - The weighted average interest rate for variable-rate debt was 5.3% as of December 31, 2023[700]. Risk Management - The company has a commercial policy to mitigate risks during extreme drought conditions, aligning sale commitments with generation capacity[695]. - The company aims to manage foreign currency risk through financial derivatives, with a total hedge value of 405,564 million Ch$ as of December 31, 2023[714]. - The carrying value for financial instruments hedging interest rate risk was 43,856 million Ch$ with a fair value of 1,075 million Ch$ as of December 31, 2023[708]. - As of December 31, 2022, the total carrying value for financial instruments hedging foreign exchange risk was 468,227 million Ch$ with a fair value of 8,260 million Ch$[715]. - The company evaluates hedging strategies continuously to mitigate the impact of commodity price volatility on profits[696]. Financial Projections - The financial data includes expected maturities for the years 2023 to 2027, with significant amounts in 2024 (389,179 million Ch$) and 2025 (79,048 million Ch$)[715]. - The future cash flows used for fair value calculations were discounted based on current discount rates reflecting various risks[716]. Additional Information - The company has provided a detailed note (Note 22) in its consolidated financial statements for further information on market risk[717]. - The information includes forward-looking statements, which are subject to safe harbor provisions[719]. - The company held hedges for Brent oil at 551 kBbl for purchases and 217 kBbl for sales to be settled as of December 31, 2023[699].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of April, 2024. Commission File Number: 001-37723 ENEL CHILE ANNOUNCES CONSOLIDATED RESULTS FOR THE PERIOD ENDED MARCH 31, 2024 (Amounts expressed in millions of Chilean Pesos – Ch$ million) Enel Chile S.A. (Translation of Registrant's Name into English) Santa Rosa 76 Santiago, Chile (Address of principal e ...