Enel Chile SA (ENIC) Q3 2024 Earnings Call Highlights: Strong Financial Performance Amid Challenges

GuruFocus.com10-31

Hydro Generation Increase: 20% increase in hydro generation compared to last year. Factoring Executed: $630 million in factoring related to receivables. EBITDA: $1 billion for the first nine months, a...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEnel Chile SA (ENIC) Q3 2024 Earnings Call Highlights: Strong Financial Performance Amid Challenges\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-31 15:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/enel-chile-sa-enic-q3-071541539.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Hydro Generation Increase: 20% increase in hydro generation compared to last year.\nFactoring Executed: $630 million in factoring related to receivables.\nEBITDA: $1 billion for the first nine months, a...</p>\n\n<a href=\"https://finance.yahoo.com/news/enel-chile-sa-enic-q3-071541539.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ENIC","symbol_name":"Enersis Chile S.A.","start_time":0,"source_url":"https://finance.yahoo.com/news/enel-chile-sa-enic-q3-071541539.html","article_id":"2479722686","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/OD8kw0I4uIYUCHK.mmH0cQ--~B/aD01MDA7dz01MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/d539837a4e4d460c4dbd7a7f44886082"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2479722686","pubTimestamp":1730358941,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Hydro Generation Increase: 20% increase in hydro generation compared to last year.Factoring Executed: $630 million in factoring related to receivables.EBITDA: $1 billion for the first nine months, a 46% improvement compared to last year.Net Income: $446 million for the first nine months, 62% higher than last year.Net Electricity Generation: 18.6 terawatt hours as of September 2024, a 6% increase.Energy Sales: 25.3 terawatt hours as of September 2024, 9% higher than last year.CapEx: $46 million during the first nine months, 16% lower than last year.Gross Debt: $4.8 billion by the end of September 2024, an 8% increase from December 2023.Net Debt-to-EBITDA Ratio: 2.9 as of September 2024.GuruFocus has detected 7 Warning Signs with ENIC.Enel Chile SA  reported a robust performance in hydro generation, increasing by 20% compared to the previous year due to favorable hydrological conditions.Q: Can you elaborate on the latest guidance provided to the market in terms of net income and net debt","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ENIC":"Enersis Chile S.A."},"translate_title":"Enel Chile SA(ENIC)2024年第三季度收益看涨期权亮点：挑战中强劲的财务业绩","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ENIC":1},"content_text":"Hydro Generation Increase: 20% increase in hydro generation compared to last year.\nFactoring Executed: $630 million in factoring related to receivables.\nEBITDA: $1 billion for the first nine months, a 46% improvement compared to last year.\nNet Income: $446 million for the first nine months, 62% higher than last year.\nNet Electricity Generation: 18.6 terawatt hours as of September 2024, a 6% increase.\nEnergy Sales: 25.3 terawatt hours as of September 2024, 9% higher than last year.\nCapEx: $46 million during the first nine months, 16% lower than last year.\nGross Debt: $4.8 billion by the end of September 2024, an 8% increase from December 2023.\nNet Debt-to-EBITDA Ratio: 2.9 as of September 2024.\n\n\nWarning! GuruFocus has detected 7 Warning Signs with ENIC.\n\nRelease Date: October 30, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nEnel Chile SA (NYSE:ENIC) reported a robust performance in hydro generation, increasing by 20% compared to the previous year due to favorable hydrological conditions.\nThe Los Condores project is nearing completion, with expectations to be connected by the end of the year, enhancing the company's generation capacity.\nEBITDA and net income results improved compared to last year, confirming the company's financial guidance for the year.\nThe company successfully executed a factoring of $630 million, improving liquidity and reducing short-term debt.\nEnel Chile SA (NYSE:ENIC) increased its renewable capacity, with 77% of its total net installed capacity being renewable, demonstrating a strong commitment to sustainable energy.\n\n Negative Points \n\nExtreme weather events in August caused significant damage to the electricity distribution network, leading to widespread power outages and increased operational expenses.\nThe company faces regulatory uncertainties, including ongoing discussions about electricity subsidies for vulnerable customers and potential impacts from proposed regulatory changes.\nDespite improvements, the company still has a significant amount of regulatory receivables, with expectations to recover the pending amount over the next few years.\nThe distribution business was negatively impacted by the extreme weather events, with potential fines or compensations for service interruptions still under evaluation.\nHigher financial expenses were reported due to exchange rate differences and increased tax payments, impacting the overall financial performance.\n\n Q & A Highlights \nQ: Can you elaborate on the latest guidance provided to the market in terms of net income and net debt, and the implications of increasing hydro guidance to 13 terawatt hours this year? A: We confirm our guidance for EBITDA to be in the upper side of the range between $1.3 billion and $1.5 billion. The net debt-to-EBITDA ratio will be below 3x. We expect to close the year with approximately 15 terawatt hours of hydro production.\nQ: What are your latest expectations for the recovery of regulatory receivables under the stabilization mechanism? A: We expect to end the year with receivables in the range of $500 million to $560 million. This amount should be recovered mainly in the next two years, with around $100 million in 2025 and most of the remaining in 2026.\nQ: What is the status of the new distribution tariff publication? A: There are no significant updates on the 2024-2028 distribution tariff process. We expect some news at the beginning of next year when the regulatory model will provide feedback.\nQ: What is the company's reasonable estimate of hydro generation in the medium to long term given the uncertainty of water availability? A: We do not consider the recent years' hydrological conditions as a proxy for the future. We project around 10 to 11 terawatt hours per year based on the last 10-11 years' average.\nQ: Do you expect the distribution business to return to normalized operating profit in the fourth quarter, or will there be more negative impacts from fines or compensations? A: We are still evaluating the period needed to restore operations to their original status and are in discussions regarding possible fines or compensations. More details will be provided during our Investor Day.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2479722686"}