Enel Chile(US:ENIC)2023-07-26 19:11Financial Data and Key Metrics Changes - Net income for the first half of 2023 increased by 90% to $141 million, primarily due to greater EBITDA of $133 million [43] - EBITDA for the first half of 2023 reached $400 million, reflecting a 50% increase compared to the previous year [40] - Net debt increased to $5 billion as of June 2023, mainly due to delays in PEC 2 payments and other capital needs [46] Business Line Data and Key Metrics Changes - Net electricity generation totaled 10.6 terawatt hours in the first half of 2023, a 3% increase from the same period in 2022, driven by higher solar and hydro generation [42] - The company connected 98 megawatts of additional net capacity from renewable projects during the first semester [10] - Energy sales remained stable at 15.5 terawatt hours during the first half of 2023, with a 3% increase in physical sales in the last quarter [75] Market Data and Key Metrics Changes - The PEC 2 factoring process is nearing initiation, which could add $300 million to cash flow once executed [9] - The company expects to recover a significant portion of accounts receivable accumulated since the second half of 2022 through a new fee levied on final tariffs [64] - The government is proposing a storage auction in 2024 and a National Energy Plan to enhance transmission infrastructure [63] Company Strategy and Development Direction - The company is focusing on optimizing its portfolio and increasing exposure to renewable energy sources, with 76% of its portfolio now based on renewables [24] - The sale of non-strategic solar power plants is part of the asset rotation strategy aimed at unlocking value and optimizing the portfolio [22][49] - The company aims to enhance electrification and decarbonization efforts in both public and private sectors [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of 2023, anticipating at least 1 to 2 terawatt hours of additional hydro generation compared to previous forecasts [25][90] - The company expects to reach the upper range of its EBITDA guidance for 2023, with each additional terawatt hour potentially adding $50 million to EBITDA [100] - Management highlighted the positive impact of improved hydrology and gas availability on operational performance [104] Other Important Information - The company has replaced 1,420 wood stoves with efficient air conditioners, contributing to a reduction of approximately 2.6 thousand tons of CO2 emissions annually [60] - The company is actively expanding public and private charging points for electric vehicles [30] - The Arcadia transaction is expected to generate a cash impact of around $500 million, net of taxes [82] Q&A Session Summary Question: Confirmation of earnings guidance for 2023 and EBITDA expectations - Management confirmed the upper side of the EBITDA target for 2023, expecting at least 1 terawatt hour more in hydro generation than previously forecasted [54][100] Question: Details on long-term contract prices for free clients - Management noted positive trends in the market, with better prices for energy sold to free customers due to financial issues faced by some renewable players [87] Question: Expectations on leverage by year-end - Management projected that leverage would be below three times net debt-to-EBITDA by year-end, supported by cash inflow from asset sales [88]