Enel Chile(US:ENIC)2024-03-01 00:20Financial Data and Key Metrics Changes - Financial expenses increased to $299 million, primarily due to higher average interest rates on gross debt and new interest from the revolving credit facility, reflecting a gross debt average impact of 4.9% [1] - Net income for Q4 2023 rose by 44% to $426 million, driven by higher EBITDA and improved financial results [23] - Full-year EBITDA increased by $358 million compared to 2022, totaling $1,237 million, mainly due to contributions from hydro and renewable sources [40] Business Line Data and Key Metrics Changes - Net electricity generation totaled 24.1 terawatt hours in 2023, a 9% increase from 2022, attributed to higher hydro and solar generation [41] - The company added approximately 600 megawatts of new renewable energy capacity during the year, including the first BESS project [9] - Energy sales for 2023 reached 3.9 terawatt hours, a 0.5% increase from 2022, primarily due to higher sales to pre-customers [22] Market Data and Key Metrics Changes - Favorable hydrological conditions in 2023 led to hydro production exceeding 12.2 terawatt hours, a 25% increase from 2022 [12] - The company expects to monetize approximately $450 million of PEC 2 receivables in 2024, reflecting a positive outlook for cash recovery [82][83] Company Strategy and Development Direction - The company aims to optimize its generation portfolio by increasing renewable capacity and enhancing gas trading activities, contributing to its decarbonization strategy [29][32] - The Chilean government introduced a draft bill for a stabilization mechanism, which is expected to provide stability to the energy market and improve client protection [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial targets for 2023, citing better-than-expected hydrology and successful gas trading activities [10][29] - The company anticipates a comfortable situation for gas supply and trading margins in 2024, projecting margins between $30 million and $40 million [51] Other Important Information - The company’s gross debt decreased to $4.4 billion as of December 2023, with an average debt maturity of 6.1 years [44] - Total CapEx for 2023 reached $804 million, with 78% allocated to renewables and storage [67] Q&A Session Summary Question: What is the expected amount of PEC 2 receivables to be monetized in 2024? - Management expects to recover approximately $450 million from PEC 2 in 2024 [82][83] Question: What is the forecast for gas trading margins in 2024? - Gas trading margins are expected to be between $30 million and $40 million in a normal year [51] Question: What is the status of the Los Condores project and required resources for 2024? - The Los Condores project is expected to be online in the second semester of 2024, with a projected CapEx of $60 million needed to complete it [58][97] Question: What are the expectations for hydro production in 2024 considering El Nino? - Management does not foresee significant changes in hydrology due to El Nino, maintaining projections in line with the last five years' average [56][81] Question: What explains the lower transmission costs in Q4 2023? - The lower transmission costs were offset by the recovery of costs related to transmission tools, making it difficult to predict future levels [91][99]