Enel Chile(US:ENIC)2021-08-01 03:50Financial Data and Key Metrics Changes - For the first half of 2021, adjusted EBITDA reached $454 million, a decrease of 20% compared to 2020 figures [27] - The adjusted net income for the first half of 2021 was $119 million, representing a 45% decline from the previous year [33] - The second quarter adjusted EBITDA was $233 million, down 22% year-over-year [23] Business Line Data and Key Metrics Changes - Energy sales increased by 18% during the first half of 2021, driven by new contracts with three customers, including AngloAmerican [29] - The network business adjusted EBITDA for the second quarter was $35 million, a decrease of 27% compared to the same period in 2020 [31] - The company’s CapEx for the first half of 2021 reached $510 million, primarily focused on renewable capacity construction [22] Market Data and Key Metrics Changes - The aggregated energy distribution reached 7.9 terawatt hours, a 2% increase compared to the previous year [16] - The net overdue debt as of June 2021 was $186 million, a 20% increase year-over-year, affecting over 543,000 clients [19] - Digital interactions increased to 86% from 75% in the same period last year [16] Company Strategy and Development Direction - The company is consolidating its leading position in renewables and driving the energy transition in Chile [7] - Enel Chile is focusing on increasing renewable capacity to reduce exposure to commodity price fluctuations [39] - The company has signed agreements to promote electric mobility and energy efficiency solutions, particularly in the mining sector [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the first half results were impacted by non-structural elements such as liquid gas availability and rising commodity prices [8] - The company anticipates a challenging hydrological scenario and commodity availability issues affecting the second half of 2021 [38] - Management expects adjusted EBITDA for the second half of 2021 to be between $0.6 billion and $0.7 billion [38] Other Important Information - Enel Chile was included in the Standard and Poor's IPSA ESG Titled Index, reflecting its commitment to sustainability [9] - The company achieved a FTSE Russell score of 4.0 out of 5.0, up from 3.4 the previous year [10] - The company has initiated a voluntary retirement program, impacting EBITDA by $31 million in the second quarter [21] Q&A Session Summary Question: How do you evaluate the expansion of the transmission system? - Management acknowledged the importance of improving the transmission system and is working on defining a portfolio to avoid bottlenecks [42][44] Question: How is the demand performance in the concession area of Enel Distribución in July? - Management noted a slight recovery in demand but indicated a decrease of 2% to 3% in the concession area compared to the previous year [46] Question: Why is the number of overdue clients decreasing versus the first half of 2020? - Management explained that while the number of clients not paying has not improved, the overdue debt segment has seen an increase among larger clients who are not being cut off due to regulations [50][52] Question: Is Enel evaluating to postpone the closure of Bocamina 2 due to drought? - Management confirmed that there are no plans to change the strategy regarding Bocamina 2, as renewable projects are expected to come online soon [55] Question: What is the hydro generation estimate for the second half of the year? - The company projects around 6.6 terawatt hours of hydro generation for the second half, aiming for a total of approximately 10.4 terawatt hours for the year [59] Question: Can you provide details on the extraordinary effects booked during this period? - The extraordinary effects of $46 million were split into $21 million related to decarbonization and $24 million for the voluntary retirement program [60]