Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Enel Chile SA (NYSE:ENIC) successfully achieved the commercial operation date for the Los Condores power plant, adding significant capacity to its portfolio.
• The company has a strong and diversified portfolio with 88% of its capacity coming from renewable energy sources and battery energy storage systems.
• Enel Chile SA (NYSE:ENIC) reported a strong start to the year with solid EBITDA and net income levels, reinforcing confidence in its strategic plan.
• The company has implemented a resilience plan to strengthen grid infrastructure against increasing climate risks.
• Enel Chile SA (NYSE:ENIC) maintains a competitive average cost of debt at 2.9%, supporting its financial stability.

Negative Points

• Net electricity generation decreased by 8% compared to the previous year, primarily due to lower hydro and renewable generation.
• Energy sales saw a 9% reduction compared to the previous year, attributed to lower state-regulated costs and the expiration of regulated contracts.
• The company faces challenges from transmission line restrictions and lower water availability, impacting its operations.
• There is uncertainty regarding the impact of new regulatory changes, particularly concerning ancillary services and CO2 taxes.
• The maintenance of solar plants and network restrictions following a blackout have contributed to operational challenges.

Q & A Highlights

• Warning! GuruFocus has detected 10 Warning Signs with ENIC.

Q: Can you provide more details on the resilience program for the distribution segment and whether it involves reinvesting all EBITDA back into the grid? A: We initiated a strong resilience program at the end of last year to address increasingly frequent extreme climate events. This includes actions to improve grid quality and digitalization. The CapEx for this program was already included in last year's capital investor day presentation, and we are increasing our CapEx compared to previous years to address these new challenges. Giuseppe Cuciarelli, CEO

Q: The CapEx in the first quarter seemed low. Is the $800 million CapEx guidance for the year still valid? A: Yes, the $800 million CapEx guidance remains in place. The main part of our CapEx for the year will occur in the second half as we start some of the bigger projects planned. Simon Conticelli, CFO

Q: How will the new regulatory changes, such as best ancillary services and CO2 taxes, affect your results? A: It's too early to determine the exact impact of the regulatory changes on our battery projects. However, we expect some benefits as the regulations aim to improve services from batteries. Regarding CO2 taxes, if they double, we could see an additional $150 million impact, but the law is still under discussion in the Senate. Giuseppe Cuciarelli, CEO

Q: Is the target of 10.7 terawatt-hours for hydrology in 2025 still valid? A: Yes, the target remains valid. We need to wait until the end of June or July to have a better view of the hydrology impact, but as of now, the target is still in place. Giuseppe Cuciarelli, CEO

Q: What is the economic impact of the resilience program on CapEx or EBITDA targets for 2025-2027? A: The CapEx for the resilience program has already been included in the last industrial plan for 2025-2027. It's difficult to estimate the exact impact on EBITDA at this time, but we will have a better view in the future. Giuseppe Cuciarelli, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.