Enel Chile(US:ENIC)2025-07-30 16:00Financial Data and Key Metrics Changes - In the first half of 2025, EBITDA reached $659 million, representing a 10% improvement compared to the previous year, driven by strong generation performance and improved gas trading activities [26][32] - Net income for the first half amounted to $246 million, an 8% decrease from the previous year, primarily due to higher general and administrative expenses [26][35] - The first half FFO showed significant improvement, reaching $403 million, 7.8 times the previous year's figure [26][27] Business Line Data and Key Metrics Changes - Hydro generation remained consistent with last year's levels, supported by higher thermal dispatch, despite a 5% decrease in net electricity generation compared to June 2024 [9][20] - The distribution segment has seen increased energy losses due to higher electricity prices and climate events, prompting the company to implement better payment plans and tools to manage debt [48][49] Market Data and Key Metrics Changes - The national electricity system faced challenges including poor hydrological conditions and maintenance issues, leading to increased spot prices in the Central Southern Zone of Chile [16][17] - Despite these challenges, the company maintained its hydrology guidance for the year, expecting hydro generation to reach around 11 terawatt hours [17][56] Company Strategy and Development Direction - The company is committed to its Resilient and Winter program to strengthen the grid and improve response to climate-related events, including deploying remote control systems and vegetation monitoring [11][12] - Plans to launch construction of battery energy storage projects in Northern Chile, adding around 0.5 gigawatts to the portfolio within the next two years, were announced [15][72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about hydro production for the second half of the year, despite a dry start in July, citing favorable conditions for snowmelt [56] - The company is actively advocating for a new regulatory model to recognize significant investments in the network to address climate change impacts [95][96] Other Important Information - The company changed its functional currency from Chilean pesos to US dollars as of January 1, 2025, for comparative purposes [25] - Capital expenditures in the first half reached $157 million, with a focus on Greece investments and thermal projects [27][28] Q&A Session Summary Question: What is the main reason behind the higher energy losses in the distribution business? - Management indicated that higher electricity prices and climate events contributed to increased energy losses, and they are working with regulators to improve the situation [49][50] Question: How sustainable are the higher gas sales in the generation business? - Current guidance for gas sales is between $80 million to $90 million for the year, with expectations for sustainability depending on market conditions [52] Question: How do you expect hydro volumes to evolve in the second half? - Management is optimistic about hydro production due to favorable conditions and expects to meet the full-year target of 10.7 terawatt hours [56] Question: What is the current average cost of debt? - The average cost of debt has decreased to 4.9%, reflecting favorable conditions from previous financing [57] Question: Are there plans to adjust the full-year guidance in light of market conditions? - Management remains confident in their ability to navigate challenges and does not anticipate adjusting the full-year guidance [59] Question: Will there be any additional impairments related to the SALINA project? - Management does not expect further impairments for the SALINA project after recent adjustments [63] Question: What are the expectations for the new battery investment plan? - The new battery investment plan aims to hybridize existing solar PV plants and is expected to enhance production during non-solar hours [88]