Edenor(EDN)2024-11-11 16:25Financial Data and Key Metrics Changes - Revenues increased by 30% year-over-year in Q3 2024 to ARS 555.8 billion, despite a 1.6% decrease in sales volume [14] - Net income rose by 44% year-over-year, reaching ARS 144 billion [21] - EBITDA for the first nine months was ARS 134.3 billion, reflecting the impact of tariff adjustments [7] Business Line Data and Key Metrics Changes - The customer base reached 3.3 million, a 1% increase from Q3 2023, driven by growth in residential and industrial clients [15] - Energy sales volume totaled 6,005 GWh, down 1.6% compared to Q3 2023, primarily due to decreased demand in commercial and industrial segments [16] - Distribution margin for the nine months rose 53% to ARS 608.4 billion, with a 22% increase in Q1 to ARS 211.1 billion [17] Market Data and Key Metrics Changes - The company has seen a significant improvement in its debt profile, with recent ratings upgrades from Moody's and Standard & Poor's [11][28] - The regulatory framework is evolving, with a large transition tariff increase of 329.2% effective February 2024, followed by monthly adjustments [12] Company Strategy and Development Direction - The company aims to leverage opportunities in energy transition and expand into energy generation and critical minerals [30] - The completion of the five-year tariff review process is expected to enhance EBITDA and net income, while investments will continue to improve service quality [31] Management's Comments on Operating Environment and Future Outlook - Management anticipates some delays in the tariff review process due to changes in regulatory personnel but expects closure by the end of the year or early next year [34] - The company is optimistic about future cash flow generation and regulatory environment improvements post-tariff review [36] Other Important Information - Capital expenditures for the nine months ending September 30 were ARS 245.3 billion, a 30% increase year-over-year [22] - Energy losses were reduced to 15.04%, down from 15.3% in the previous year, reflecting ongoing efforts to combat inefficiencies [23] Q&A Session Summary Question: Timing of the full tariff review after the postponement of the public hearing - Management expects some delays but aims to close the process by the end of the year or early next year [34] Question: Reason for the uptick in energy losses in Q3 2024 - The increase in energy losses was attributed to higher energy prices due to reduced subsidies [35] Question: Plans for new debt issuance post five-year tariff review - The company is monitoring market conditions and may consider reopening the recent $184 million issuance if conditions allow [36] Question: Expectations for the new revision process to achieve cost of capital - The company is requesting additional considerations to reduce the gap between total and non-technical losses [37] Question: Penalties from evasion and recharges in Q3 2024 - The increase in charges is mainly due to the reduction of subsidies, and no adjustments to EBITDA calculations are planned [38]