Enel Chile Q1 2025 Earnings Report

Enel Chile EPS Results

• Actual EPS: $0.13
• Consensus EPS: $0.08
• Beat/Miss: Beat by +$0.05
• One Year Ago EPS: N/A

Enel Chile Revenue Results

• Actual Revenue: $1,054.59 billion
• Expected Revenue: $1,095.67 billion
• Beat/Miss: Missed by -$41.08 billion
• YoY Revenue Growth: N/A

Enel Chile Announcement Details

• Quarter: Q1 2025
• Date: 4/29/2025
• Time: After Market Closes
• Conference Call Date: Wednesday, April 30, 2025
• Conference Call Time: 12:00PM ET

Enel Chile (NYSE:ENIC), an electricity utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company operates through Generation, and Distribution and Networks Segments. It generates electricity through various sources, such as hydroelectric, thermal, wind, solar, and geothermal power plants. It distributes electricity in various municipalities of the Santiago metropolitan region. The company also engages in the sale and transportation of natural gas, and provision of engineering consulting services. It serves residential, commercial, industrial, and other customers. The company was formerly known as Enersis Chile S.A. and changed its name to Enel Chile S.A. in October 2016. The company was incorporated in 2016 and is headquartered in Santiago, Chile. Enel Chile S.A. (SNSE:ENELCHILE) operates as a subsidiary of Enel SpA (BIT:ENEL).

Enel Chile Q1 2025 Earnings Call Transcript

Key Takeaways

• The Los Condores 153 MW hydro plant commenced commercial operations in February, contributing ~100 GWh in Q1 and bringing Enel Chile’s net installed capacity to 8.9 GW (28% renewables).
• Following severe climate events in 2024, Enel Chile launched a grid resilience plan—boosting quality, digitalization and CapEx—to fortify distribution infrastructure against rising climate risks.
• The April publication of the VAD 2024 decree and the ongoing VAD 2024–28 review, plus upcoming ancillary services and National Electric System regulation updates, are expected to enhance distribution remuneration.
• Q1 results showed net income of $175 million (up 11% y/y) and EBITDA growth in USD terms despite an 8% drop in generation and 9% decline in sales due to lower hydro output, plant maintenance and expired regulated contracts.
• Financially, FFO reached $109 million, gross debt stood at $4 billion (4.9% average cost), liquidity remains strong, and the FY 2024 dividend was set at 4.24 CLP per share while reaffirming ~$800 million CapEx guidance for 2025.

Presentation

[Operator]

Good afternoon, ladies and gentlemen, and welcome to Enochila's First Quarter twenty twenty five Results Conference Call. My name is Victor, and I'll 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 and answer session. To ask a question during the session, you will need to press +1 on your telephone.

[Operator]

You will then hear an automated message advising your hand is raised. To withdraw your question, please press 11 again. Please be advised that today's conference is being recorded. 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 on our current expectations, are not guarantees of future performance, and involve risks and uncertainties.

[Operator]

Actual results may differ materially from those anticipated in the forward looking statements as a result of various factors. These factors are described in NL Chile's press release reporting its first quarter twenty twenty five results. The presentation accompanying this conference call and NL Chan's annual report on Form 20 F included under Risk Factors. You may access our first quarter twenty twenty five results, press release and presentation on our website, www.no.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.

[Operator]

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. Isabel Glemis, Head of Investor Relations of Enel Chile. Please proceed.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Good afternoon, and welcome to Enel Chile's First Quarter Results Presentation. We greatly appreciate you taking time to join us today. My name is Isabella Cremes. I'm the Head of Investor Relations. Joining me today are our CEO, Giuseppe Tucciarelli and CFO, Simone Conticelli.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Our presentation and related financial information are available on our website, www.pnel.cl, in the Investors section as well as through our Investors app. In addition, a replay of the call will soon be available. At the end of this presentation, there will be an opportunity to ask questions via phone or web chat through the Ask a Link question. Media participants are connected in listening mode. Giuseppe will kick off the presentation by covering key highlights of the period.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

He will also delve into our portfolio management actions and provide updates on the regulatory context. Following that, Simone will offer an overview of our business economic and financial performance. Thank you for your attention. Giuseppe will now take over the call.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Thank you, Isabella. Good afternoon, and thanks for joining us. Let's start the presentation with our main highlights of the period. Regarding our portfolio management, the Los Condores hydro power plant successfully achieved its commercial operation date in February, recording approximately 100 gigawatt hour of production in the first quarter, demonstrating its solid performance. In response to the climate event of May and August 2024, which severely impacted our distribution concession area, we have launched a resilient plan aimed at strengthening our grid infrastructure against the already proved increase in climate risk.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Despite the always more frequent extreme climate events, as of today, we don't foresee any imminent changes in the regulatory framework. Turning to the country and regulatory context, I would like to highlight that the VAD '20 '20 '20 '20 '4 decree was finally published in April. I will also share updates on the progress of the VAD '20 '20 '4 '20 '20 '8 process. Furthermore, we expect to receive updates next quarter on the regulation of best ancillary service as well as the public consultation to update the National Electric System operational regulation. Finally, regarding business profitability, I'm pleased to report that we have had an exceptional start to the year.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

With our books now US dominated, we achieved strong EBITDA and net income level, further reinforcing confidence in our strategic plan. To conclude this slide regarding shareholder remuneration, the AE AGM held on Monday this week approved the final and eventual dividend amounting to approximate approximately 3.34 Chilean pesos per share, bringing the total to 4.24 Chilean peso per share for the 2024 fiscal year. Now let's review some updates regarding our generation sourcing as outlined on the next slide. I would like to highlight that we have started 2025 with a solid and diversified portfolio comprising a total net installed capacity of 8.9 gigawatts. 28% of our capacity coming from renewable energy sources and battery energy storage systems.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

In the first quarter of twenty twenty five, we received authorization from the National Electricity Coordinator to begin commercial operation of the Los Condres Hydro power Plant, which has a capacity of 153 megawatts. With the inclusion of Los Condres, we have secured approximately 2.1 gigawatts of capacity since January 2023 covering solar, wind, hydro, and storage technology. Net electricity generation totaled 5.6 terawatt hours as of March 2025, reflecting an 8% decrease compared to the production in 2024. This decline was primarily driven by lower hydro and renewable generation due to higher contribution from snow melt in 2024, the maintenance at two of our solar plants, and network restriction caused by the transmission line limitation following the blackout. However, this was partially offset by higher contribution from wind plants, notably La Cabana and Renyco two.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

In the first quarter, our energy sales totaled 7.7 terawatt hour, marking a 9% reduction compared to the previous year. This decrease stems from lower sales to regulated customers following the expiration of regulated contracts. Despite the challenging condition caused by the blackout on February 23, transmission line restriction, and lower water availability compared to 2024, we successfully fulfilled our commitment to our clients. This quarter, we reduced our purchases from third parties by 0.2 terawatt hours and decreased spot market purchases by 0.1 terawatt hours. Now I would like to take a moment to discuss the energy regulatory framework and share important upcoming updates.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

In the coming months, we anticipate significant announcements regarding changes and updates to the regulatory framework. In this slide, we have a brief summary of the key topics currently under discussion. As you may recall during the last call, we reviewed the key aspects of the government proposed law to increase electricity subsidies. At the present, the subsidies benefit approximately 1,800,000 family, and the new proposal aims to expand support to nearly 4,700,000 family, focusing on Chile's Forty Percent most vulnerable household. In January 25, the chamber of deputy approved the government proposed tax with certain modification.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

The proposal remains under discussion in congress, and the second legislative review in the Senate is expected to be finalized during Q2. We are also expecting a regulatory update in the second quarter twenty twenty five regarding the remuneration of facility services called PACE. The storage storage system plays a critical role mitigating renewable energy curtailment while enhancing the security and flexibility of the electric system. To promote investment in this technology, it is essential to establish clear rules governing the participation and remuneration of bets in the energy capacity ancillary services market. In April 2025, the minister of energy initiated a public consultation on proposed amendment to the regulation for the coordination and operation of the National Electric System.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Main proposed changes include inclusion of small distribution generation unity, the so called PAMEKD, in the allocation process for zero variable cost generation. That means the PAMEKD will be part of the good state. Determination of opportunity cost or BEST to ensure efficient dispatch. The system operator will establish BEST charging schedule and introduce a tab rating rules for situation where multiple best units are operational. Potential exclusion of insurance policy as valid guarantees, implementation of automatic dispatch for all power plants.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

The public consultation will be available until May 8. The processing of the publication of the new regulation is expected to begin in the second quarter twenty twenty five. Let's now move to the right side of the slide to review the distribution regulatory cycle. In relation to the twenty twenty-twenty twenty four VAT process, in April 2025, the office of controller general of the republic approved and published the decree. An important step to enabling the recovery of the outstanding balances from the tariff cycle.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Following this approval, the superintendency of electricity fuel is expected to issue a resolution in the coming months to determine the process and timeline for settling the pending debt in favor of the distribution company Regarding the process for the VAD twenty twenty four twenty twenty, according to the estimated time length, the consultant final report shall be delivered and officially published in the next quarter. By the last quarter of this year, we anticipate the regulator may publish the final technical report for this cycle. Finally, we reiterate our expectation that this new process will result in an improved remuneration, reflecting the newly approved Ballot Nuevo del Emplazo, BNR, and all the economic and technical assumption as of December 2022 included in the record. We remain confident that these elements will be upheld throughout the various stages of this process. I will now hand over to Simone, who will guide us through the economic and financial results.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

Many thanks, Giuseppe, and good afternoon, everyone. I will begin my presentation with an overview of the key results for the period. Let me remind you that since the January 1, energy returned to the functional currency from pesos chilens to US dollar. For comparative purpose in today's presentation, the first quarter twenty twenty four figures are converted using the average exchange rate of the figure. Expiration.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

This is mainly explained by the systemic optimization driven by higher G and A availability and improved commercial sourcing and the increase in risk margin mainly due to the provision related to the beginning of the eighty two thousand twenty four two thousand twenty eight. The FFO reached $109,000,000 20 9 percent amounting to $20,000,000 went to renewable and storage. Regarding Greece, the focus is on the resilient plan to strengthen grid infrastructure. Turning to thermal, we focused on the food maintenance. Concerning renewables, we focused on activity to finalize PMGD program, improve hydro facilities performance, and maintain increase the reliability of our fleet.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

Asset management CapEx reached $35,000,000 representing The main development investment for 2,025 in the at building storage system will be concentrated in the second half of the year in line with the expected improvement in. Let's now move on to the next slide that were yet the beginning of the first quarter EBITDA breakdown. This growth is primarily due to the following factors. Starting from generation business, we recorded a $49,000,000 decrease in PPA sales. This was partially offset by the positive effects that related to new contract industry market sectors and the offset of 2,024 negative easing factor from exchange rate hedges, thanks to the change of functional currency.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

Regarding sourcing, we recorded an increase of $66,000,000 due to positive performance in our industrial sourcing. This is mainly explained by commodity hedges, reduction in sufficient costs, and lower regasification costs versus last year. Then we recorded an increase of $31,000,000 in commercial sourcing mainly due to energy settlement from previous periods and the execution of a guarantee related to a by BPA designation. These factors more than offset the negative impact of higher spot market prices caused by the lower order availability And now let's move on to the next slide where we will review the net income evolution. As per quarter twenty twenty five net income reached $175,000,000 with an increase of 11% compared to the last year figure.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

Higher depreciation in energy power due to the newly added renewable capacity and higher debt debt approvals in Greece, mainly driven by an increase in the average invoice amount due to higher tariffs. Regarding financial results, we reported a $26,000,000 negative variation versus last year, mainly explained by higher interest and positive exchange rate differences in the first quarter two thousand twenty four. Finally, we recorded a $50,000,000 increase in income taxes essentially due to better results. And now let's move on to the FFO analysis on the next slide. Let's analyze the FFO composition for the first quarter two thousand twenty five and the main effects compared to 02/2024.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

In the first quarter two thousand twenty five, FFO reached $109,000,000, showing a slight decrease of $5,000,000 compared to 02/2024. This is due to the following factors. First, the EBITDA of the quarter reached the $365,000,000 reflecting a positive variation and the increase in energy distribution receivables due to an increase in the lives. These effects were partially offset by negative impact of the Fed mechanism in mainly due to tax payment related to the generation business. Comparing income taxes paid in the first quarter twenty twenty five versus first quarter twenty twenty four, we observed a negative impact of $12,000,000.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

The difference is mainly due to higher tax payments in the generation business, driven by higher income and higher tax rates. Finally, financial expenses had a negative impact of $13,000,000 mainly due to the debt related costs. Compared to the same period last year, our financial expenses are slightly lower, thanks to a lower average debt in the period. And now let's review our liquidity and leverage position. During the first quarter twenty twenty five, our gross debt added to a slight increase of 2% reaching $4,000,000,000 This increase was related to a new credit line with and the fixed rate of around 88% by the March 2025, in line with 2,024 figures.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

The average cost of our debt continues to be very competitive at 4.9%, thanks to a good mix between long and short term, in line with our continuous effort to optimize the financial cost. Regarding liquidity, we are in a comfortable position to support our capital needs for the upcoming months and cope with the next year maturities. Finally, as of March 2025, available committed deadline amounted $640,000,000, and the cash equivalent to $460,000,000. So thanks everybody for your attention, and now I will pass

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Thank you, Simone. To conclude, I would like to share the following closing remarks. Despite a challenging environment, our resilient and diversified business model continue to deliver solid results. These achievements underscore our strategic vision, adaptability, and commitment to our goals. Looking ahead to 2025, we remain committed in advocating for comprehensive distribution reform and the modernization of the regulatory framework to significantly strengthen asset rate resilience.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

By promoting these changes, we aim to build more robust and adaptable grid capable of meeting future challenges and uncertainties. A modernized regulatory framework will foster an environment that support innovation, efficiency, and economic competitiveness to the country. As demonstrated in today's presentation, the first quarter began with solid economic and financial performance, fully aligned with the targets and strategic pillars outlined during our last investor day. We remain confident in our ability to achieve these objectives, and we'll ensure we keep you informed about our progress and accomplishments. Now let me hand over to Isabella for the Q and A section.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Thank you, Giuseppe. Now let's move on the Q and A session. We will be taking questions via phone and chat through the webcast. The Q and A session is now open. Operator, please proceed.

[Operator]

Thank you. Our first question comes from

[Operator]

the line of Martin Baranzet from Valens. Your line is open.

[Martín Arancet, Equity & Credit Research Analyst at Balanz Capital]

Hi. Thank you for the presentation and for taking my questions. I have three questions, and I would like to run them one by one if that's okay. First, I was regarding distribution, I was wondering if you could give us some additional color on the resilience program for that segment. And also, during the Investor Day, you mentioned that you were thinking about investing all of the EBITDA of the distribution business back into the into the grid.

[Martín Arancet, Equity & Credit Research Analyst at Balanz Capital]

So just to know if this new resilience program is related to that.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Thank you, Martin.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Okay. So we started already

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

since the end

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

of last year to put in place a very strong resilience program in order to face these extreme climate events that are occurring always more frequent, at least in comparison with the previous year. In several action, especially for what concern the quality of the grid and also on the digitalization of our network. All this CapEx has been already included in the presentation made last year in our Capital Investor Day. So, basically, we are just increasing our CapEx in comparison to the previous year, again, in order to face the new new situation in which the extreme events are always more prevalent. So, basically, quality of the grid, digitalization through the telecontrol, and also several other action covering the day to day operation and of that.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Thank you, Jacoby Martin.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

Okay. Thank you.

[Martín Arancet, Equity & Credit Research Analyst at Balanz Capital]

Regarding my second question, CapEx during the first quarter, I think it was a little bit low. But if I understood correctly, you plan to, well, be more in terms in terms of CapEx during the second half of the year, mostly in batteries. So could we assume that the $800,000,000 guidance on CapEx for this year is still in place?

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Good morning.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

Martin, thanks for the for the question.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

So you are right at

[Simone Conticelli, Chief Financial Officer at Enel Chile]

the beginning of the the year. We have a a little bit lower level of CapEx. And what we are doing now, we are taking such a way finalizing the the MTD program that we started last year. The main part of the CapEx for the year will be in the second half. In this moment, we will start some of the bigger projects that we planned and we talk about this kind of investment in the last one.

[Martín Arancet, Equity & Credit Research Analyst at Balanz Capital]

Okay. Okay. So Okay. So now you up to now you maintain the the CapEx guidance?

[Simone Conticelli, Chief Financial Officer at Enel Chile]

CapEx guidance. Yes. For sure.

[Martín Arancet, Equity & Credit Research Analyst at Balanz Capital]

Okay. Okay. Thank you. And my final question then, I was wondering what effect or how much do you think it will affect your results? The new regulatory changes, and you have several fronts there.

[Martín Arancet, Equity & Credit Research Analyst at Balanz Capital]

First, the best ancillary services. I don't know if how much do you expect that for from that in terms of dollars per megawatt hour. And, also, with the new subsidy, I guess, you will have a bit of additional c o two taxes. And this new and sorry. This new battery operational performance.

[Martín Arancet, Equity & Credit Research Analyst at Balanz Capital]

I don't know if that affects also your expected results.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Giuseppe?

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Yeah. So talking about the regulatory related density, it's a bit for VAT. It's still early to talk about that because we don't know, basically, which are the idea of the regulator. We assume we are going to have some benefit because the idea is to improve the regulatory rules in order to facilitate and to stimulate the ancillary services coming from the battery. But as of today, it's too early to to discuss and to have an idea about the impact on our battery project.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

You have also to consider that most part of our renew revenue income coming is coming from the capacity and the energy shifting. So we believe that the ancillary services is gonna be a good complement for the remuneration of the battery, but we don't know yet how much and how will be the improvement in terms of profitability for this project. For what concern there, the new possible law about the subsidies, basically, two most important measure are the usage of VAT coming from the increase of the tariff fund that, of course, is neutral for for our company, for everybody. And for what concern is Q2, I would say that as of today, at least according to the production that we had in 2023 with the impact in 2024, we used to pay around $15,000,000 in terms of c o two taxes. So we could have an additional $15,000,000 if the c o two is gonna be doubled, so moved from five c

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

o two emission.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

But we don't know yet how it's going to be the result because the law the proposal of the law is still in the

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay. Thank you, Giuseppe. Do you have more questions? Or that was the three, Martin.

[Martín Arancet, Equity & Credit Research Analyst at Balanz Capital]

That was it

[Martín Arancet, Equity & Credit Research Analyst at Balanz Capital]

for you.

[Martín Arancet, Equity & Credit Research Analyst at Balanz Capital]

Thank you very much.

[Martín Arancet, Equity & Credit Research Analyst at Balanz Capital]

That was

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

it me.

[Martín Arancet, Equity & Credit Research Analyst at Balanz Capital]

Thank you very much.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay. Thank you very much. So, Perito, do we have more questions coming from the line? Otherwise, I go for the chat.

[Operator]

I'm not showing any further questions on the line. Okay.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

So, I will go through the chat. So the first question that we have comes from Beatrix Gianna Gianna Gianna sorry, from Mediobanca. So she has several questions. I go one by one. I think it's easy to to go through.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay. So the first question is, how do you expect hydrology to evolve in the rest of the year? You target 10.7 terawatts water for 02/2025. Is still this number valid?

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Yes. It is. It's still valid. We have to consider that hydrological that started right now at the April and becoming the the May. So we need to wait at least June, end of July, or to have a better view of the the hydrology impact.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

So as of today, the 10.7 terawatt hour for 2025 are still valid.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay. Thank you, Joseph. So the second question is for you, Simone. It's coming from the fact. So the question is relating to the factoring of the factory.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Can you remind us how much you are expecting to receive and when?

[Simone Conticelli, Chief Financial Officer at Enel Chile]

Okay. Thank you, Patricia, for this question. Let let me, before say that it's very important to stress that starting from the end of twenty twenty four, the tariffs are in line of higher than the cost of energy, and so we will not increment in the future the the credit forecast. So starting from the position at the February, we had created around $500,000,000, and we plan to recover all these credit through the 02/2025, '2 thousand '20 '6, and '1 02/1927. The recovery will not go through two factor in.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

But in any case, first, for example, step one, the the recovery will come from the time. In any case, this year, we have already cashed in from the factoring process around 260 millions for the effective treatment mechanism, and we plan to recover a larger part of the remaining in the next two year. But also in this year, we can given the the the next EMP decrease cash in to other meetings.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay. Thank you, Simone. So let me go to the other question from Viatrix. So regarding the new regulatory framework from distribution, which are the latest updates on the consultation report?

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Okay. The consultant is expected to deliver the final report in the coming weeks when it's gonna be officially published. Following to that, the CNE has three months to issue its first technical report with the proposed remuneration for the distribution company that should occur in the second semester of twenty twenty five, basically.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay. So in the the last question here from her is, do you feel comfortable with the current 02/2025 guidance?

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Yes. It is. Yeah. Yeah. According to our projection, the the guidance is gonna to be expected.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Yeah.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay. Thank you, Giuseppe. So now moving on the questions on the the the chat. So now we have a question from Andre McCartney from Larenvial, also on distribution. So Andrew is asking, what should be the economic impact for the distribution business and on distribution Chile of receiving the outstanding debt only from the delay in the publication of the 02/2024 VAT decree.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

But let me clarify. I mean, we are not going to have any economic impact, but only cash impact because the tariff from twenty twenty, twenty twenty four has been already provisioned. We have already made the provision. So no economic impact. On the other side, we are going to recover the cash according to the information that the tech should deliver in the following weeks.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

So, basically, the sector should give us into all the distribution company details on how the spending that will be included in the next part. So we are assuming to receive around 500 sorry, $50,000,000 in the following eighteen twenty four months.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay. Thank you, Giuseppe. Still on the on the distribution side, also from Andrew McCartney. So he's asking what is the economic impact of the resilient program resilient, sorry, program designed to strengthen grid infrastructure in the distribution segment. Does this impact CapEx or EBITDA targets announced in the last strategic plan for 02/2025, '2 thousand '20 '7 period?

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Yeah. As I said before, I mean, all these CapEx has been already included in the last industrial plan 2025, '20 '20 '7. To understand how much will be the impact in EBITDA is really difficult to estimate right now. I believe that in the next in that time, we can have a little bit better view about that.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay. Thank you. So also on distribution, just a follow-up question coming from Beatrix on the grid's EBITDA. And in relation to Slide nine, when we show the EBITDA in slide, not compared to twenty twenty five to twenty twenty four, you are already factoring in the impact coming from the new regulatory framework. Is that correct?

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Can you please clarify, Simone? Beatrice is asking about the variance between the EBITDA distribution segment. So she's asking if we are already including, the the new band related to the cycle 02/2024, '2 thousand '20 '8.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

Okay. Thanks. And, yes, considering that this year, the process for determining the new PAP for the next period, the 2022 2028 is moving fast, you know, faster than what happened in the last period. We have already a good estimation on what could be the increase in the EAP remuneration, and so we can position this amount.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay. Thank you, Simone. So continue on on the questions here. So now we have a question coming from Rodrigo Mora from Moneda. Rodrigo had seven questions, so I'll go one by one.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay? So Rodrigo, say thank you for the presentation. My question is relating to the gas supply from Argentina and LNG cargoes. I would like to know whether Enel Chile has signed Argentina gas contracts with take or pay clauses and now so we maintain the LNG cargoes to use in Michiliones LNG Terminal for Gazeta Tacoma. He's mentioned about the Shell LNG contract.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Yes. Our current Argentinian gas contract portfolio of 2025 includes take or pay clauses, which at the moment, we have a. So we do not we do not expect the related issue on the for the rest of the year.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay. Thank you. Another follow-up question from Rodrigo. Now this question is coming, related to distribution. No?

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Rodrigo is asking, in relation to Enel distribution, could you give us some color about the EBITDA for 2024 sorry, 2025, whether this good first quarter was incorporated at the projections for the EBITDA guidance for the conference in money?

[Simone Conticelli, Chief Financial Officer at Enel Chile]

Thank you,

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay. Thank you. Now the the last question of, Rodrigo, please. I have a question relation to potential sale of solar, plants association with the PPA contracts of FGP Chile. You've mentioned about news.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

No? That was in the press. I would like to know whether this process is going on. Thank you very much.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Okay. Well, we are as you know, we are constantly looking for opportunity in the market to maximize the value of our footprint, including rotating certain assets to unlock value for the. For the time being, we don't have any any news on that.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Thank you, Giuseppe. So moving on, we have questions from Ruben Alvarado from BIS. Ruben also have three questions. So, I go one by one. Okay?

[Isabela Klemes, Head - Investor Relations at Enel Chile]

So, the first one is, it's regarding the insurance we covered that was included on distribution business. So he's asking about, what is, is this insurance related to, if we can clarify about it, and if we are expecting any other recoveries. And then I'll go for all the questions there. And then the second one is about the regulated contracts that was expired by the end of twenty twenty four in this generation segment. He's asking about which are these contracts that was expired?

[Isabela Klemes, Head - Investor Relations at Enel Chile]

And also the last question is, why do you see around minus 9% year over year decrease in Enel Chile's renewable generation, while system wide renewable generation actually was up around 7%. So starting with the the insurance, Simone.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

So, the issue that we provision on the first quarter is related to the agreement on the voluntary payment with the. So we have an insurance in Enel Chile that cover, in general, this kind of event. And so starting from the beginning of the year, we start analyzing if if you know, there is a clear correspondence between the perimeter of the the the the the the Based on this analysis, the the analysis was very early stage at the end of the year. So, in this moment, we we did not position anything. But then in this moment, even if we have not closed the the final analysis, the progress is, you know, much better.

[Simone Conticelli, Chief Financial Officer at Enel Chile]

And so given this progress, given also our experience for similar events in the past,

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Okay. Thank you. So, Giuseppe, the second question was about the generation. No? Sorry.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

The about the PPA that was expired and the third about the generation.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Yep. So for what's concerned, the PPA, the regulated one that has expired at the end of twenty twenty four was related to the tender process of '28 and 2013, which were indexed to the commodity and had a price higher than $100 per megawatt hour. For what concern the question about the renewable generation, the reduction is basically associated to the maintenance in two of our solar power plants, Guangzhou and Solvina. In hydro generation reduction that was covered by other type of generation, coal and.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Thank you. So the last question that I have here is coming from Constanza Gonzales from Quest. Thanks for the presentation. She's asking if we have more available guests from Argentina and if we are expecting to sell more gas, treating gas in the second quarter.

[Giuseppe Turchiarelli, Chief Executive Officer at Enel Chile]

Well, we have already sold one cargo in February for the second quarter twenty twenty five, taking profits from the high gas level prices in February. Of course, the the case of the transaction are confidential right now. For the rest of the year, we are always looking for new opportunities. We maintain our guidance for the year that is to to trade around $50,000,000 60 million dollars.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Thank you, Josephine. So we do not have any more questions from the here from the chat. So also from the line, considering this, I would like to thank you all for having the call with us today. Let me remind you that the Investor Relations team remain available to address any questions you may have. Thank you for your attention, and we look forward to seeing you soon again.

[Isabela Klemes, Head - Investor Relations at Enel Chile]

Thank you very much.

[Operator]

Thank you for your participation in today's This does conclude the program. You may now disconnect. Everyone, have a great day.

Participants

Executives

• Isabela Klemes, Head - Investor Relations
• Giuseppe Turchiarelli, Chief Executive Officer
• Simone Conticelli, Chief Financial Officer

Analysts

• Martín Arancet, Equity & Credit Research Analyst at Balanz Capital