Enel Chile(US:ENIC)2025-07-30 18:22Financial 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].