Enel Chile NYSE: ENIC reported first-half 2026 EBITDA of $685 million, up 4% from a year earlier, and net income of $272 million, an 11% increase, as portfolio optimization, renewable output and gas-management initiatives helped offset weaker hydrological conditions.
Chief Executive Officer Gianluca Palumbo said lower rainfall reduced hydroelectric generation during the first half, although the company expects conditions to improve in the second half. Enel Chile maintained its full-year hydro-generation outlook of about 10.7 TWh, citing improved hydrological conditions in recent weeks, encouraging snow accumulation and forecasts for neutral or potentially wet conditions later in the year.
“Our first half 2026 results once again demonstrate the value of our diversified generation and distribution platform,” Palumbo said. He added that disciplined portfolio management, increased renewable generation and fuel flexibility supported results despite less favorable hydrology.
Generation mix and sourcing strategy
Net electricity generation declined from the first half of 2025, primarily because hydro generation fell by about 1.1 TWh. The decline was partly offset by higher renewable output and a stronger contribution from gas-fired combined-cycle plants.
Thermal generation increased 5% year over year to 3.6 TWh in the first half. Combined-cycle generation rose to 3.2 TWh from 2.9 TWh, while renewable generation increased to 3.0 TWh from 2.7 TWh. Enel Chile said 67% of its production remained emission-free.
Physical energy sales totaled 14.8 TWh, compared with 15.1 TWh in the prior-year period. The decline reflected lower free-market sales, including lower demand from mining customers. Chief Financial Officer Simone Conticelli said management did not view the mining-demand decline as structural, describing it as adjustments by certain customers tied to specific circumstances.
The company said it has a firm gas-supply agreement from Argentina covering fixed volumes from January 2026 through April 2027. It also secured additional short-term LNG volumes for the second half of 2026. Conticelli said the company’s portfolio includes Argentine natural gas contracts and LNG arrangements with Shell, and management believes it has sufficient supply under both base and stressed scenarios.
Enel Chile also signed a 15-year renewable power-purchase agreement that will provide as much as 1 TWh annually of non-solar energy beginning in the second half of 2026. Palumbo said the agreement supports the company’s “make or buy” strategy and does not alter its battery-storage plans.
Battery projects and capital investment
During the first half, Enel Chile invested $328 million, more than double its capital expenditures in the same period of 2025. Nearly two-thirds of spending was directed toward renewable generation and battery energy storage systems, while about 22% went toward strengthening and modernizing the distribution network.
The company has more than 450 MW of battery storage capacity under construction across the Las Salinas, Valle del Sol and Azabache projects. Palumbo said battery storage is intended to improve renewable integration, reduce curtailment, shift energy to higher-value periods and add flexibility to the portfolio.
Development capital expenditures totaled $196 million, or 60% of first-half spending, with BESS accounting for 80% of that category. Asset-management spending totaled $102 million, focused on thermal-plant maintenance, renewable fleet availability, grid maintenance and digitalization. Customer-related capital expenditures were $30 million.
Palumbo said average battery capital expenditures are estimated at roughly $0.9 million per MW, while noting that technology, commodity prices and global conditions continue to influence costs.
Regulatory developments in distribution
Chile’s Electricity Tariff Protection Bill received final approval from both chambers of Congress during July and was sent to the president for promulgation. The measure addresses the VAD 2020-2024 tariff settlement process, extends the current VAD tariff period through 2030 and establishes a framework for grid-resilience investments.
For Enel Chile, the VAD settlement mechanism is expected to result in approximately $65 million to $70 million of cash inflows, subject to the final implementation process. Palumbo said the company currently expects securitization and factoring to be completed by the end of 2026 or early 2027.
The company said the extension of the tariff cycle could provide greater regulatory predictability and reduce the risk of future settlement delays. However, management said implementation details for the new resilience-investment framework still must be defined, and it did not identify specific projects ready for submission.
Financial position and outlook
Second-quarter EBITDA was $262 million, down $32 million from the prior-year quarter. The decline reflected lower PPA sales following the expiration of older high-priced regulated contracts and a $36 million reduction in gas margin, partly offset by sourcing optimization and lower operating and maintenance costs.
For the first half, EBITDA growth was led by the integrated business, including more than $100 million of contribution from a gas optimization agreement with Shell, according to Conticelli. First-half funds from operations rose 24% to $499 million.
Gross debt stood at $3.8 billion at the end of June, down 1.4% from December 2025. Enel Chile had $640 million in available committed credit lines and $276 million in cash equivalents. The company said 85% of debt was fixed-rate, with an average cost of 4.9% and an average maturity of 5.5 years.
Management reaffirmed its 2026 guidance, saying first-half results were in line with or slightly above expectations despite dry conditions, gas-system challenges and higher prices late in the period.
About Enel Chile (NYSE:ENIC)
Enel Chile SA, traded as ENIC on the NYSE, is one of Chile's leading integrated electric utilities, with core businesses spanning electricity generation, transmission and distribution. The company serves a diverse customer base that includes residential, commercial and industrial users, striving to deliver reliable power across both urban and rural regions.
In its generation segment, Enel Chile operates a balanced portfolio of assets, including hydroelectric plants, thermal power stations and an expanding suite of renewable energy facilities such as wind and solar farms.
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