Enel Chile Q3 2023 Earnings Call Transcript

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Provided by Quartr
November 2, 2023

There are 4 speakers on the call.

Operator

Good morning, ladies and gentlemen, and welcome to Enochile 9 Months and Third Quarter 2023 Results Conference Call. My name is Victor, and I will be your operator for today. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question advising your hand is raised. Please be advised that today's conference is being recorded.

Operator

During this conference call, we may make statements that constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements reflect only our current expectations, are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those anticipated in the forward looking statements as a result of various factors. These factors are described in Enel Chile's press release reporting its 9 months and Q3 2023 results. The presentation accompanying this conference call and Enochila's Annual Report on Form 20 F included under Risk factors.

Operator

You may access our 9 months and third quarter 2023 results press release and presentation on our website, www.nl.cl, and our 20 F on the SEC's website, www.sec.gov. Readers are cautioned not to place undue reliance on those forward looking statements, which speak only as of their dates. Enel Chile undertakes no obligation to update these forward looking statements or to disclose any development as a result of which these forward looking statements become inaccurate, except as required by law. I would now like to turn the presentation over to Ms. Isabella Clemens, Head of Investor Relations of Enel Chile.

Operator

Please proceed.

Speaker 1

Good afternoon, and welcome to Enel Chile 3rd Quarter 9 Months 2023 results presentation. Thank you all for joining us today. Joining me this morning is our CFO, Giuseppe Tortiarelli. All presentation and related financial information are available on our website, www.enel.cl, in the Investor Relations section and as well in our app, Investors. In addition, a replay of the call will be soon available.

Speaker 1

At the end of the presentation, there will be an opportunity to ask questions via phone or webcast chat Through the link, ask a question. Media participants are connected only in listen in mode. In the following slides, Giuseppe will open the presentation with our key highlights of the period, then go through our portfolio management actions and market context updates. And finally, give us a view of the business economic and financial performance. Thank you for your attention.

Speaker 1

And now let me hand over to Giuseppe. Giuseppe?

Speaker 2

Thank you, Isabella. Good afternoon and thanks for joining us. Let's start our presentation with our main highlights on Slide 2. I would like to start with our portfolio management highlights. During the year, We added around 400 megawatts of new renewable energy capacity, contributing to our long term ambition of for the capitalization and optimization of our portfolio.

Speaker 2

We are pleased to announce that the Arcada transaction was concluded last for October 24. The proceeds totaled $556,000,000 and shall be used also for delivery team and CapEx needs of our business. Let me remind you that the operation involves the selling of 4 non strategic solar power planes, amounting to 4 16 Megawatts. We will give you more color in the next Slide. This year, we had a very positive rainy season in the country, the rainiest year in the last few years.

Speaker 2

This is reflected in a 28% increase in our hydro production versus last year. For what concerns the market context on the distribution business, the final technical report of the VAC 2020 to 2024 has been already published. The process is not yet concluded, but I will give you more color on this Regarding the factoring of Phase 2, in August 2023, we received the 1st tranche of IDB issuance related to the Energen Energen Chile and Energen Power Chile of around $330,000,000 During October, we were able to collect an additional $17,000,000 and we expect to receive an additional $32,000,000 by the end of this year. Again, about the bank, I would like to mention that the government signed an agreement with the Congress based on which a draft bill should be presented during November to address spectrum related to the potential new price stabilization mechanism. Also in November, the government committed itself to presenting another draft bill to discuss topics such as the transmission planning process, storage adoption and renewable support.

Speaker 2

Ladies and gentlemen, our EBITDA rose reaching $783,000,000 or 60% higher compared to last year adjusted figures. And our FFO increased by $790,000,000 versus last year's figures showing an important recovery. We will have a deep dive into the economy and financial later. Now let's move to Slide 3. Let's now look at how we are consolidating our renewable leadership and optimizing our generation portfolio.

Speaker 2

During the last year, we have focused most of our efforts on developing a diversified renewable mix either in the north or in the center south region. In this 9 month period, We connected almost 0.4 Gigawatt additional net capacity, of which 0.3 Gigawatt were added in the last quarter. Among the projects already commencing in this period, I would like to call attention to Manzano, A 99 Megawatts solar power plant located very close to the consumption load In the center of Chile, and our wind farm in the south, Perenayco II and La Cabana, which allowed us to connect 72 megawatts and 106 megawatts of wind capacity to the National Electricity System. Therefore, Our renewable capacity continue increasing and in this period we have reached 6.7 Gigawatts out of 8.8 gigawatts of renewable installed capacity, representing 77% of the total. In terms of COBRA, we have received the operational convention certificate for 1.2 gigahertz in 2023 For more details, please see Diane next.

Speaker 2

As a part of our unlucky payment, we are focused on optimizing our portfolio, reinforcing the value of our assets, an important milestone was achieved a few days ago. We completed the sales of our subsidiary Arcadia, a transaction that was announced in July and was posted in our 2023, 2025 strategic plan. All the conditions established for this In line with the agreement, the buyer, Tony, paid a total amount of $406,000,000 We expect to record positive impact in both our net income of around $106,000,000 and our net debt of around $150,000,000 in the Q1 of 2023. Regarding the latter, I would like to point out that the staff Corresponding to the sales of Acadian, the total around $61,000,000 will be paid in April 2024, and therefore, it will not affect the 2023 cash flow. This pound will give us more room to execute our CapEx plan and strengthen our financial position.

Speaker 2

Now on the next slide, let's look at some updates on the hydrological situation and gas optimization activities. I would like to highlight that this year, we have benefited from the very favorable hydrological condition. Hydro production has been higher than 2022, both in the Q3 9 months period. As of September, we record 28% of additional hydro production, reaching 8.1 terabatawas. Considering this scenario, we expect to close the year with around 11.9 terawatt hour, 2.6 terawatt hour more than expected.

Speaker 2

As a result of the significant Increasing rainfall, the hydrological situation in all our reservoir is positive, especially in the south of the country. Greenfall exceeded the hydrological level of the last 10 years and in Laca And Rafael Beisis, the average level of hydrology of the last 60 years were surpassed. In addition, as you can see on the image at the center of the slide, snow cover in the mountains is better than last in Mauro and Laha Arena. Regarding our gas optimization activity and trading actions, We continue having a comfortable gas availability, thanks to the long term LNG agreement with Shell and the conference signed with our drinking and gas suppliers. Since October 1, new firm agreements with our drinking and gas suppliers for enabling us to optimize our CCTG generation costs.

Speaker 2

Thanks to the behaviors in oil and gas In this 9 months period, we diverted several gas shipments to the north totaling around 12 tera btu. In addition, we continue executing several trading activities with local industrial and mining customers and with foreign markets. In connection with the latter, we have scheduled the sale of 2 ships in the Q4 as we did in the Q1 this year. The total expected contribution margin for all these gas trading will be around $270,000,000 approximately for the full year 2020. Now on Page 5, let's review our performance and new initiatives in Distribution and Analysis Business.

Speaker 2

Let me highlight some indicators related to the distribution business. In our concession carrier, The number of customers and distributed energy continue to grow. Therefore, new opportunities and challenges continue to arise. On quality and efficiency, looking at the last 12 months, we see a significant improvement in the CAEI index of around $12,000,000 and the energy losses have remained flat compared to the same period last year. Before moving to an analyst, on the dissolution side review, Net Finance Technical Report of the VAT 2020-twenty 24 has already been published.

Speaker 2

These records already considered that several discrepancies raised by the distributor during the exoplanet stage. However, we are still waiting for the tariff breakdown by type of filing, which should be published by the end of this year. After that, we have a new stage of the process, debt rentability check. In this stage, the industry and the ability will be reviewed. After all these process, we would like we will have the final distribution title release.

Speaker 2

Considering all the steps I mentioned, we expect to have the process concluded during 2024. For what concerns the 2024, 2028 Distribution tariff process, the VAD process has already started and the components of the elevated value of The process is still ongoing, so next year, we shall have more update on the next step. Regarding NLS, we have some interesting milestone focus on the electrification and the organization of our clients Let me go through some examples. First, We have incorporated 2,200 e buses into the bus into the Santiago fleet or 36% higher than the previous year figures, mainly through 358 new e buses of Transantivo V to support public transportation and through the agreement signed with Goy to deliver another 2 14 kilowatts. 2nd, Regarding public lightning, the indicator rose by 18%, mainly as a consequence of new contract To conclude, we continue working to increase the number Public and private charging points for Deleksey by growth and to be awarded with more likely projects throughout the account, increasing in this way the diversification of the market.

Speaker 2

Now let me drive you through the financial Our main results for the period to better evaluate our company earnings performance will present the 2022 figures as a pro form a that includes 2 main adjustments. 1st, EBITDA has been adjusted by the impairment of also totaling $63,000,000 in the 9 months period of 2022 and $1,000,000 in the Q3 of 2020. This adjustment affected the bottom line of $43,000,000 in the $9,400,000 in the Q3 2022. The second adjustment and the most relevant one is related to the sale of Enen Traditio in December 2022. We excluded from our analysis the EBITDA of Enel Salvacion, which amounted to $77,000,000 in 9 in 9 months period and $24,000,000 in the Q3 2022.

Speaker 2

These adjustments affected the bottom line by $46,000,000 $16,000,000 in the 9 months period in the Q3, respectively. Now on the FFO, the 2022 figures are adjusted also by the EMEA submission perimeter in terms of cash by $18,000,000 in the 9 month period and $16,000,000 in the Q3. The 2023 figures also included $310,000,000 paid in tax due to the capital gains obtained from the EnerSys In the 9 month period and the Q3 of 2023, we see a relevant improvement in EBITDA and net income versus 2022. This is mainly explained by more efficient generation mix, especially during the last quarter due to the improvement in the neurological situation and better distribution pattern. We will see more detail in the following slide.

Speaker 2

Regarding the FX stock, the 2023 FIGO showed a relevant improvement impacted mainly by the EBITDA of this period and by the effect to Fast Permian's first tranche execution for around $330,000,000 We will see more details later. Let's review the progress on CapEx on Slide 7. Our 9 month 2023 total CapEx reached $537,000,000 74% of our total CapEx deployment was related to renewables and 94% of the total CapEx was linked to the SDG goal. Customer CapEx totaled $64,000,000 18% higher than the previous year, mainly associated with the new customer formation. Other investments reached $102,000,000 15% lower than previous year, mainly due to lower maintenance activity in conventional generation plants and distribution business.

Speaker 2

These effects were partially offset by new renewable plants in operation and the maintenance program in Rajco. Development CapEx reached $381,000,000 representing a decrease of 34% versus last year figures, in line with the remaining renewable portfolio under construction. Let's move now to Slide 8, where we have the summary of the 3rd quarter EBITDA breakdown accounting for $391,000,000 First of all, let me remind you again the changes in the company's consolidation perimeter, mainly due to the sales of Anelza's Brazil in Chile in December last year. We have included a performance of our EBITDA for the Q3 2022 for comparison quarters. 3rd quarter 2023 EBITDA is $162,000,000 higher than the 2022 pro form mainly explained by the following: a positive effect in Hydrope and Renewables contribution of $149,000,000 to our margin, mainly associated with the improved hydrology in the quarter and the positive in the quarter as a consequence of a better hydrology in the period.

Speaker 2

The above Next, the effect was partially offset by a lower GAAP optimization activity, which decreased by $109,000,000 mainly related to the lower gas margin prices and lower gas when compared to the same quarter last year. Dollars 36,000,000 of lower PPA sales in the Q3 2023, primarily due to lower average EBITDA price, mainly related to the valuation of The remaining variation of our EBITDA come from plus $16,000,000 due to the grid remuneration related to the indexation, client required services, lower fines and compensation partially offset by lower demand. Better effect in OpEx and other costs, mainly by the financial aging in the quarter and higher effects in Enel X due to the recognition of Trans Santiago's key buses. Let's move to slide 9, where we have the summary of the 9 months EBITDA breakdown accounting for $783,000,000 As we did in the Q3, we are excluding the 2020 to Energy field EBITDA increased by 60% or $293,000,000 mainly explained by The higher contribution of hydrocarbon renewables of $172,000,000 mainly related to the improved hydrology volume. $98,000,000 from higher TPA sales in 9 months 2023, primarily due to $38,000,000 mainly due to the higher capacity payment revenue, primarily due to 2 parts.

Speaker 2

1st, delay in the cost of some asset renewable projects, which increased the payment for all the project in operation and second, the new power plant connected and commissioned during the last quarter of 22 and within 2023. A better expense of $17,000,000 in variable costs, mainly related to $162,000,000 related to a lower spot price in the period due to a better metrology since June 2023, mainly during the no solar hour and one off effect of the agreement with 1 of our PPA Supply, partially offset by lower segment generation margin, which amounted to $144,000,000 mainly related to the lower segment generated. The remaining variation of our EBITDA comes from plus $24,000,000 to grid remuneration related to the indexation, lower fines and compensation and higher demand. The above mentioned effect was partially offset by higher OpEx and other, mainly intonation business by $20,000,000 associated with the new renewable capacity inflation across all the regions. Let's move now to Slide 10 to take a look at our generation KPI.

Speaker 2

Net electricity generation totaled 17.6 terawatt hour as of September 2023, 6% higher than the level recorded in the 1st 9 months period of 2022, mainly due to higher hydro and solar generation this year, reflecting better hydrology and the addition of new projects, in September 2022. During the Q3 of 2023, net generation grew 11 percentage to 7 teratawa, mainly due to higher hydro and solar generation. Our energy sales totaled 23.2 terawatt hours as of September 2023, maintaining the levels recorded as of September 2022. It is worth mentioning that our commitment To lower energy purchases, especially in the spot market, mainly on Enob Solar Agar. During the Q3, physical sales increased by 0.4 Let me call your attention to the fact that we end up next sellers in the spot market during the Now on Slide 11, let's go through the main driver of our group net income.

Speaker 2

Our net income increased 87% to $336,000,000 as of September 2023 when compared to September 20 2, mainly resulting from a greater EBITDA of $293,000,000 as I explained previously. This 9 month period, we had a higher depreciation And amortization of $12,000,000 mainly as a result of our new renewable project in operation, which is compensated by lower depreciation in Enercare, mainly a consequence of new investment in our plans that increase the average useful life of the projects, plans and achievements. A higher amortization of intangible assets in Nel Distribucion, partially compensated by lower bad debt mainly related to the client debt recovery due to several information actions. Regarding financial results and equity investments, we had a higher result than the previous year by $23,000,000 This is explained by lower financial costs associated to lower factors executed in the period versus 2022, mainly due to the PEG1 factoring interest income related to the PEG2 In this quarter of 2023, net income increased 85% to 190 Higher depreciation and amortization of $11,000,000 is mainly explained by the Generation business due to the new renewable energy project in operation. Higher financial results and equity investments of $24,000,000 This is explained by 2 positive aspects.

Speaker 2

First, we had higher financial income in the 3rd quarter, mainly explained by the greater interest income related to the implementation of the type of depreciation mechanism in effect too. 2nd, we had lower factoring costs in comparison to the previous quarter. This was partially offset by higher debt Higher income tax that increased by $83,000,000 Moving to the FX of analysis on the next slide. Let's review in detail our FFO for this period. As I mentioned before, in 2023, The pro form a SFO excludes $310,000,000 paid in taxes due to the capital gains obtained from the Energy Transmission sales.

Speaker 2

Therefore, after these adjustments, FFO amounts to $428,000,000 reflecting an improvement of $790,000,000 when compared The main effect that explains our FX for all in this period are the following: $783,000,000 coming from EBITDA driven by the strong ethrology contribution and better results This situation has been improved by the impact of the 1st branch of the IDB factory issuance, which amounted to $329,000,000 As I have already mentioned, we have already received additional $17,000,000 is the 2nd tranche during October, and we are expecting to receive additional 30 $5,000,000 and percent of this year. Working capital reached a negative balance $119,000,000 as a consequence of the EBAP payment, the e payment related to the Working capital improvement once compared to the last year's figures mainly come from the cities of Santander and other Income tax reached $17,000,000 mainly related to the payment Tax payment in Generation Business in the 9 months 2023, offset by the tax recovery from the previous period for both generation and distribution business contribution. Once compared to the income tax paid in 2023 versus last year, the main difference comes from the To conclude, regarding financial expense, we reached $220,000,000 This is explained mainly due to the debt interest related to the average Interest rate of the gross debt for 4.9 percentage that reflects also the new interest Once we compare the 2023 financial expense With the last year figures, we see an increase also explained by the higher average interest rate on the growth rate and the monthly payment related to the revolving credit facility as they bridge the issuance for the PACE 2 delays.

Speaker 2

Now let's take a look at our liquidity and leverage position. Our gross debt increased around $300,000,000 to $4,900,000,000 as of September compared to December 2022. This increase was primarily related to the tax payment relating to the enhanced sales in April 2023 and other net working capital needs. It should be noted that the debt increase is a temporary effect as we received the proceeds from in line with our operational performance and lower CapEx requirement. And we reflects a net debt to EBITDA of below 3x by the end of the Q3.

Speaker 2

The average of our debt maturity reached 5.7 years as of September 2023, maintaining the largest portion of the fixed rate with 77% of the total debt. Ebix caused our debt to reach 4.9% higher than December figures, mostly Owing to the new profile of our debt, the financial market condition, the prepayment of some reached off and east west. Now The closer math is on Page 14. The 9 month results show a solid operating impact. The elements that we have now capitalized by better than to achieve the upper range of our 2023 EBITDA guidance as mentioned during the last call.

Speaker 2

As planned, We successfully concluded the Acada transaction last October 24. The proceeds of this transaction and the continuous and exclude the opportunities that will materialize. Finally, we would like to invite you to our Investor Day, which will take place at the end of November, on which we will present our strategic plan update for the period 2024, 2026. Given the most updated strategic and financial figures for our businesses and business. Let me now hand over to Isabella.

Speaker 1

Thank you very much, Giuseppe. Now we will open the Q and A section, so you can ask questions through the chat or through the audio. Victor, could you please open the line for the next question that we have?

Operator

Yes. Our first question comes from the line of Javier Suarez from Mediobanca. Your line is open.

Speaker 3

Hi. Good morning and thank you for the presentation. 2 or 3 questions. The first one is On the one of the latest comments on the net debt to EBITDA by the end of the year, that should be around 3 times. And you are mentioning also that you will dedicate the closing of the Arcadia deal to reduce that.

Speaker 3

The question is, how do you see the optimal level of net debt to EBITDA For a company like Enel Chile, is that 3 times the level that you see as sustainable or optimal for a company like yours in current Environment, that would be the first question. The second question is related to your statement on the Proposal by the government in November on a measure to for the development of transmission asset, Storage facilities are new renewable energy asset. You can share with us your latest expectations based on latest conversation with the administration which may came out from that proposal. And then the third question is just a clarification again On the cash flow statement, we have seen a very good contribution from the factoring process, the first run. If you can help us to understand your net debt to EBITDA guidance at 3x, would you are expecting to collect from that factoring exercise?

Speaker 3

Thank you.

Speaker 1

Thank you, Javier, for the question. Now I'll hand over to Jose.

Speaker 2

Okay. Well, For what concerns the net debt to EBITDA level, we believe that being below 3 times is a comfortable level for the company. Clearly, it gives us the opportunity to possible invest in the future. But in general, Our target is to be below 3x, between 2.5x and 2.9x, something like that. For what concerns the proposal made by the government and the commitment Let me go and take versus the Congress.

Speaker 2

Well, Let me say that, is it clear that the pound of PEG2 is going It's going to be used entirely by the end of this year. So basically, now the point is How to handle the increase of tariffs according to the situation that we see today. The government postponed The submission of the draft, it was supposed to be by the end of October and during this month in November. We believe that at least the proposal could We are in line with our expectation in the meaning that we hope that everything is going in a positive way. So it's going to be neutral for the company.

Speaker 2

Now we're going to See how the Congress will receive the feedback and how the Congress will could changed the proposal of the government. But so far, we don't have any other detailed information about this We are confident, but we don't have yet anything else of that. For what concerns the factoring of Phase 2, We started to factorize the effect in the first France was at the end of August. As I said, we already made a second part In October, about $17,000,000 and we believe we have another pack It is around $40,000,000 at the end of December 2023. We think that if everything is going well to have another In February 2024, that is going to be The last one before the new decree that's going to be issued.

Speaker 2

What I mean is that In order to go ahead with the factoring of the fact, we need to have a new decree or we need a new No, that is going to be that is going to handle the situation in the country. So we are waiting The proposal from the government, but in the same time, we are confident about the following

Speaker 3

And therefore, to be 100 Thank you, Pierre. In your guidance for net debt to EBITDA, it is included a total collection from factoring just south of $400,000,000 is that correct, in 2023? Yes.

Speaker 2

Yes, yes.

Speaker 3

Fantastic. Many thanks.

Operator

Thank you. And I'm not showing any further questions in the queue. I'd like to turn the call back over to Isabella Clemens for any additional questions via chat.

Speaker 1

Thank you, Victor. Yes, we have some additional questions. The first one is that a question that All right. Into our shot, one of our investors are asking analysts how much is the earnings per share and when we The dividend related to the 9 months 2023.

Speaker 2

Well, We are going to have as already approved in the Shareholder assembly. The an interim dividend In January, this is going to be 15% of the September 2023 results. And the Board of Director is going to be approved and proposed to the shareholder meeting the final dividend payout. In general, what I can tell you is that I can confirm the 50% dividend payout that we proposed in the Capital Market Day last year.

Speaker 1

Thank you, Giuseppe. We have one more Question is also related to PAC-three, okay? A question from Andrew MacKarnay from Credicorp. Can you provide us with some color on what you think will happen with respect to factory mechanisms? Will this require finance from companies like Enel Chile?

Speaker 1

Giuseppe, now I pass it to you.

Speaker 2

Yes. I mean, what I can tell you is that what basically has been published in the newspaper. So Basically, the idea is to find a way in order on one side Increase the tariffs without big impact on the cash. But in the same time, to guarantee the recover of the debt that all the Genkol has been accumulated still to now. There is also another point that has We mentioned in the proposal that is the subsidy to a certain End of customer, so basically the customer with lower level of income.

Speaker 2

So we believe that Part of this debt is going to be subsidized through this method. But again, we don't have

Speaker 1

Thank you, Giuseppe. We have one more question. The other question that we just See if it's also related to Los Condos project that was done by David Parra. David, I will read the questions, okay? Hi, thank you for the presentation.

Speaker 1

I have two questions. The first one, Have there been any problems in Los Condos projects like the ones we have seen in our Ophthalmicore project? What is the total expected cost of Los Condos project? This is the first question. Then the second one is, is there any specific Len, from the revenue from the sale of Arcadia?

Speaker 1

Thank you.

Speaker 2

Okay. For what concerns the total cost of the Los Congrats. I mean, we don't have any update with respect to what we have already Declaring the past, so we have reached around $1,200,000,000 We had we prepared from some delay because of the rain season In July, that of course, as already mentioned in the last call, we Could mean some more delay in terms of COD, but I mean no major impact on the What concerns the proceeds Coming from the sales of Ascania, as I said, we are going to, on one side, We paid some loan bank loan and some revolving credit facility. On the other side, We're going to use the proceeds in order to finance our capital net working capital.

Speaker 1

Okay. Thank you, Giuseppe. And we have I think it's the final one that we just Received here is relating the purchases that we are doing with other generators, okay? So question is coming from Martin. Sorry, I don't know how to pronounce your surname, Martin.

Speaker 1

But the purchase from other generations line is connected to long term contracts with other Gencos. Can you give us a sense Operation and size.

Speaker 2

Well, a couple of years ago, we started to sign some PPA in mind in order to diversify our sourcing. So now this Energy Partners is becoming materializing. In terms of contracts, we are talking about around Of course, there is several kind of PPA. We have also 15 year

Speaker 1

Thank you, Giuseppe. Vito, do you have any other questions?

Operator

We have no further questions in the queue.

Speaker 1

Okay. So I would like to thank you all for your attention today in our call and conclude our results conference Also to remind you that our Investor Day is going to be held on November 27. It will be a hybrid event, so we will soon receive the invitation. Okay? Thank you very much.

Speaker 1

Have a great week.

Speaker 2

Thank you.

Operator

And this concludes today's conference call. Thank you for participating. You may now disconnect. Everyone have a great day.

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Key Takeaways

  • Renewable expansion: Enel Chile added ~400 MW of capacity in 9M 2023, lifting its renewable portfolio to 6.7 GW (77% of total) through projects like Manzano solar (99 MW) and Perenayco II/La Cabaña wind (178 MW).
  • Asset sale completed: The Arcadia transaction closed in October, divesting four non-strategic solar plants and generating $556 million in proceeds to fund CapEx and reduce net debt.
  • Hydro production surge: A record rainy season drove a 28% year-on-year rise to 8.1 TWh by September, with full-year hydro output now forecast at 11.9 TWh to lower generation costs.
  • Strong financial results: 9M 2023 EBITDA jumped 60% to $783 million, FFO rose by $790 million to $428 million, net income climbed 87% to $336 million, and net debt/EBITDA remains below 3x.
  • Liquidity and regulatory outlook: Enel Chile received $330 million from the first IDB-backed factoring tranche (with ~$49 million more expected) and awaits November draft bills on tariffs, transmission planning, and storage incentives.
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