Enel Chile(US:ENIC)2020-11-01 12:40Financial Data and Key Metrics Changes - The adjusted EBITDA for 2020, net of COVID-19 impact, would have reached $866 million, which is $58 million higher than the previous year [58] - The reported net income for the nine months of 2020 was $282 million, with adjusted figures totaling $324 million, reflecting a 16% decrease compared to the same period in 2019 [74] Business Line Data and Key Metrics Changes - The total net production for the nine-month period decreased by 12.1%, amounting to 14 terawatt hours, with 61% of generation coming from renewable sources [44] - Physical energy sales decreased by 5.5% or 1 terawatt hour, primarily due to lower demand from distribution companies related to the termination of regulatory PPAs [48] Market Data and Key Metrics Changes - The lockdown measures significantly impacted electricity demand across various economic sectors, particularly in industrial and commercial segments [18] - The collection rate during 2020 reached 96%, down from historical levels of around 99%, mainly due to the economic situation and regulatory measures [22] Company Strategy and Development Direction - The company is focused on accelerating the development of renewable projects to support economic recovery and has created approximately 3,600 new jobs in construction [16] - The company announced the start of construction for the 204-megawatt Domeyko solar plant and plans to disconnect the Bocamina 1 coal plant by the end of the year [9][30] Management Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges posed by COVID-19 but emphasized the company's operational resilience and commitment to supporting clients [12] - The company expects gradual improvements in demand as regions begin to reopen, with a focus on the green economy and renewable energy [15][18] Other Important Information - The company is participating in a pilot project for green hydrogen production, which is expected to be one of the largest of its kind in Latin America [11][38] - The gross debt increased to $4.15 billion as of September 2020, primarily due to new funding to support CapEx plans [77] Q&A Session Summary Question: Impact of bad debt on working capital - Management indicated that the working capital was significantly impacted by lower collections due to COVID-19, amounting to $99 million, and the energy stabilization mechanism [90] Question: Guidance on EBITDA - Management expressed confidence in meeting the previously provided guidance of $1.2 billion to $1.3 billion for EBITDA, potentially leaning towards the lower end depending on external factors [86] Question: Strategy behind renewable projects - The company is focusing on a portfolio approach for renewable projects, ensuring that they are not linked to single clients, thus minimizing pricing risk [88] Question: Gas sales performance - Management noted that gas sales margins were affected by lower international commodity prices, and they do not expect to achieve the same margins as in the previous year [100] Question: CapEx expectations for the year - Management anticipates that while they may not reach the full CapEx amount planned for the year, they do not foresee a significant gap in investments for ongoing projects [99]