Edenor(US:EDN)2024-05-13 18:34Financial Data and Key Metrics Changes - Revenues increased by 2% in real terms to ARS 276 million in Q1 2024 compared to ARS 270.8 million in the prior year, driven by tariff increases effective from February 16, 2024 [11][5] - Distribution margin rose by 54% year-over-year to ARS 115.7 million, benefiting from tariff increases and lower volumes [13] - EBITDA improved significantly to ARS 4.4 million from a loss of ARS 20.1 million in the same period last year, primarily due to tariff adjustments and reduced energy losses [13] - Net income turned positive at ARS 50.9 million in Q1 2024, compared to a loss of ARS 38.6 million in the previous year [14] Business Line Data and Key Metrics Changes - Energy sales declined by 7.8% year-over-year to 5,981 GWh, mainly due to a significant drop in residential demand following unusually high temperatures in Q1 2023 [12] - The customer base increased by 1% to 3.3 million, attributed to market discipline measures [12] Market Data and Key Metrics Changes - The company’s debt profile improved significantly after issuing $124 million in Class 3 and Class 4 notes, enhancing the average maturity of its debt [19] - Rating agencies Standard & Poor's, FixSCR, and Moody's upgraded their ratings and outlooks for the company, reflecting improved risk profiles [20] Company Strategy and Development Direction - The company is transitioning from a leading electricity distribution company to a broader energy company, focusing on energy generation and critical minerals [10] - The change in corporate purpose allows the company to invest in new business areas linked to energy transition, including digitalization and artificial intelligence [10] - The integral tariff review process is expected to be completed by the end of 2024, which is anticipated to further stabilize the company's financial position [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting that recent regulatory changes have restored economic equilibrium and eliminated concerns about the company's ability to continue as a going concern [21] - The company is well-prepared to manage delinquency levels despite tariff increases, indicating confidence in its operational strategies [28] Other Important Information - The company invested ARS 49.1 million in Q1 2024, a 27% increase from the previous year, reflecting a strong commitment to improving service quality [14] - Energy losses were reduced to 14.4% in Q1 2024 from 15.9% in the same period last year, showcasing ongoing efforts to combat inefficiencies [16] Q&A Session Summary Question: Will the documents of the full term be available to investors? - Only the final documents will be available for investors, not the interim documents [24] Question: Can you provide additional details on regulatory work and utility rates? - Further information on regulatory work is currently under negotiation with the regulatory entity [27] Question: Are there concerns about energy losses and delinquency after tariff increases? - Management does not foresee significant increases in delinquency levels and is prepared to manage them effectively [28] Question: Will the company be making specific investments following the changes in By-laws? - No specific projects have been planned yet, but future investments will align with the company's transition goals [29] Question: Will there be monthly tariff updates starting in May? - Calculations for new tariffs have been sent to the regulatory entity, with discussions ongoing about potential postponements [30] Question: Is the company planning to go to the market in the near future? - The company is prepared to take advantage of market opportunities as they arise [33] Question: Will the tariff formula be publicly published? - Yes, the formula has already been published along with the tariff increase [34]