Enel Chile(US:ENIC)2021-11-01 16:36Financial Data and Key Metrics Changes - In Q3 2021, adjusted EBITDA was $93 million, a 71% decrease compared to 2020 figures, primarily due to higher PPA sales and increased costs from spot purchases and variable production costs [24][21][30] - For the first nine months of 2021, adjusted EBITDA totaled $536 million, a 39% decline from 2020, driven by similar factors affecting Q3 results [27][21] - Net income for the first nine months of 2021 reached $104 million, with Q3 showing a loss of $13 million, mainly due to lower EBITDA [30][31] Business Line Data and Key Metrics Changes - The distribution business saw a recovery in demand due to the easing of lockdown measures, contributing positively to EBITDA [25] - Enel X's EBITDA improved due to the public lighting business, with lower penalty and compensation costs in the distribution sector [27] Market Data and Key Metrics Changes - The company faced challenges due to the driest hydrological conditions in Chile's history, leading to increased reliance on thermal generation and higher LNG prices [7][9] - The lack of Argentinian natural gas and high international gas prices significantly impacted operational margins [9][41] Company Strategy and Development Direction - The company is prioritizing investments in renewable energy to diversify its generation matrix and reduce exposure to hydrological risks [9][10] - Enel Chile is advancing its green hydrogen projects and electric mobility initiatives, including the introduction of electric mining trucks and public transport electrification [10][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging external environment, including high commodity prices and adverse hydrological conditions, but remains optimistic about the long-term strategy focused on renewable energy [9][36] - The company expects adjusted EBITDA for 2021 to be between $0.8 billion and $0.9 billion, reflecting a significant downward revision from previous guidance [36] Other Important Information - The company has accumulated CapEx of $735 million in 2021, primarily for renewable capacity construction [23] - Gross debt increased to $4.7 billion, with 14% of total gross debt linked to SDG criteria [34] Q&A Session Summary Question: Update on gas supply strategy and outlook - Management indicated that Argentinian gas has become available for import since early October, with ongoing negotiations for LNG contracts to ensure supply stability [41][43][45] Question: Deterioration in collection metrics - The company is upgrading its systems, which has caused temporary delays in billing and collection processes [42][47] Question: Clarification on factoring strategy - The company has sold $226 million of receivables related to the price stabilization mechanism, with plans to sell up to $350 million, impacting interest expenses significantly [50][51] Question: Production of solar facilities and CapEx guidance - Management confirmed that solar facility production is on track, with expectations to connect 900 megawatts by year-end and no anticipated reduction in CapEx for the year [53][55][56]