Enel Chile(US:ENIC)2025-11-04 14:02Financial Data and Key Metrics Changes - The company closed the first nine months of 2025 with stable EBITDA compared to the previous year, despite lower hydrology conditions [8] - Net income for the nine months of 2025 reached $352 million, a 21% decrease compared to the previous year, primarily due to higher depreciation and bad debt expenses [24] - FFO reached $615 million, representing an improvement of $248 million compared to the previous year, driven by the recovery of PEC receivables [26] Business Line Data and Key Metrics Changes - Net production decreased by 9% in the first nine months of 2025 compared to the same period in 2024, driven by lower hydro dispatch and maintenance of solar plants [10][11] - Energy sales reached 22.7 terawatt-hour, mainly due to lower sales to regulated customers following the expiration of contracts [11] - EBITDA for the last quarter totaled $345 million, a decrease of $63 million compared to the same period in 2024, mainly due to decreased PPA sales [18] Market Data and Key Metrics Changes - The company maintained its hydrology guidance despite a particularly dry year in 2025, thanks to the flexibility of its hydro plants [9] - The gas business saw an increase in margin during the first nine months of 2025, adding $74 million due to favorable trading opportunities [10] - The average cost of debt reached 4.8% as of September 2025, down from 5.0% in December 2024, reflecting efforts to optimize financial costs [29] Company Strategy and Development Direction - The company is focused on operational excellence and sustainable growth, aiming to deliver long-term value to shareholders while advancing in energy transition [8] - Significant regulatory updates are expected that will clarify tariffs and market mechanisms, which are essential for refining long-term strategy [30] - The company is implementing proactive initiatives to address portfolio dynamics and climate challenges, including strengthening generation and distribution businesses [30] Management's Comments on Operating Environment and Future Outlook - Management confirmed that despite a tough hydrological situation, the company showed flexibility and maintained high production levels [46] - The company expects to improve FFO performance in the last quarter of 2025, driven by higher ordinary cash flow and efficient management of working capital [47][48] - Management remains committed to investing in strategic renewable projects and delivering sustainable returns for shareholders [30] Other Important Information - Total CAPEX reached $245 million during the first nine months of 2025, with a focus on grid investments and thermal power projects [17] - The company is awaiting settlement of outstanding debt related to the VAD decree for 2020-2024, expected to be settled in 2026 [14] Q&A Session Summary Question: What is the amount that Enel Chile must return to customers due to the miscalculation of the CNE? - The estimated amount is between $40 million and $45 million, expected to be accrued in 2025 and paid back in the first half of 2026 [33] Question: What is the amount owed to Enel distribution Chile in connection to the VAD 2020-2025 freeze? - The amount is around $50 million to $55 million, with potential cashback starting in mid-2026 [35][36] Question: Could you explain your strategy regarding LNG and Argentinian gas? - The company has a long-term gas contract for LNG and is negotiating a new contract for Argentinian gas, with ongoing discussions [39] Question: Could you provide an update on CAPEX for the generation business? - CAPEX for 2025 is expected to be around $150 million to $160 million, with at least $50 million allocated for BESS projects [41][42] Question: What measures are being taken to address increasing energy losses? - The company is increasing recovery activities and launching flexible payment plans for customers, while also working with regulators to address the issue [44] Question: Is the company confirming its latest guidance? - Yes, despite a tough year, the company has shown flexibility and can confirm the results for the year [46] Question: Could you explain the dynamics of FFO during the nine months of this year? - FFO is usually concentrated in the second half of the year, with expectations for improved performance in the last quarter [47][48] Question: Do you have any news for unregulated PPA contracts? - Currently, there are no updates regarding unregulated PPA contracts [58]