Edenor(US:EDN)2024-08-07 18:29Financial Data and Key Metrics Changes - The company reported an EBITDA of ARS 77.4 billion for Q2 2024, a significant increase from a loss of ARS 27.3 billion in the same quarter last year, driven by a 319.2% tariff increase implemented in February 2024 [6][11] - Sales rose by 28% year-on-year in constant currency pesos to ARS 436.721 million in Q2 2024, primarily due to the tariff adjustment and a 1.9% increase in residential customer consumption [9][10] - Net income for Q2 2024 was ARS 47.3 billion, compared to a loss of ARS 17.9 billion in the previous year, reflecting improved operating results [11] Business Line Data and Key Metrics Changes - The distribution margin for the first half of 2024 increased by 76% to ARS 354 million, with a notable rise of 94% in Q2 2024 compared to the same quarter last year [10] - Energy losses decreased to 14.1% from 15.3% year-on-year, indicating effective measures to reduce inefficiencies [13] Market Data and Key Metrics Changes - The customer base reached 3.3 million, a 1% increase from Q2 2023, attributed to the installation of smart meters and conversion of clandestine connections [10] - The company has been paying its energy purchase costs to CAMMESA on schedule since April, which is crucial for maintaining operational stability [8] Company Strategy and Development Direction - The company is focused on developing a sustainable business model and positioning itself as a leader in the energy sector through technology and innovation [4] - A five-year tariff review process is underway, expected to enhance financial performance and growth opportunities, with completion anticipated by year-end 2024 [5][6] - The company aims to adapt its distribution business to the energy transition and explore investments in renewables, conventional generation, and critical minerals [5][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the positive impact of tariff adjustments and improved financial metrics as indicators of potential growth [11][16] - The company is working closely with regulatory entities to finalize tariff increases, aiming for a stable and predictable financial plan moving forward [17] Other Important Information - The Argentine Congress approved a law known as "Ley Bases," which is expected to provide significant investment opportunities in the energy and infrastructure sectors [9] - The company issued $100 million in Class 5 and Class 6 notes at attractive rates, following a previous issuance of $124 million, improving its debt profile [6][14] Q&A Session Summary Question: What are the proceeds of the $100 million debt issuance intended for? - The proceeds are primarily allocated for infrastructure improvements [17] Question: What is the EBITDA estimate for 2024? - The CFO indicated that the full EBITDA for 2024 would be somewhat less due to a weaker quarter earlier in the year, with estimates from rating agencies aligning with the company's numbers [18] Question: Will there be an increase in the value-added distribution? - An increase of 3% in value-added distribution was confirmed, effective August 1 [19]