ENIC - Earnings call transcript Q4 2020

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Operator

Good day, ladies and gentlemen and welcome to Enel Chile Fiscal Year 2020 Results Conference Call. My name is Carmen and I will be your operator for today. After the speakers’ presentation there will be a question and answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] 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. only and expectations, involve reflect of not statements performance future risks forward-looking our are current guarantees Such and uncertainties. differ a factors. may forward-looking results materially anticipated those Actual in statements as result various of from the its These factors Enel Chile's conference XXXX in Risk are annual this report the accompanying and XX-F, fiscal including Factors. release presentation under Chile's results, call year press described reporting Enel on Form

statements on www.enel.cl, those the update undue press to to You website, required may statements release or results as Chile and Investor access our these now as as by our Please on disclose reliance which law. undertakes XXXX are to Enel XX-F our I Readers a Enel only Klemes, and to Isabela website, forward-looking Relations SEC's over place inaccurate, which www.sec.gov. presentation become of their turn cautioned forward-looking fiscal the Chile. would except development, presentation obligation of to date. of no forward-looking Head speak year like Mrs. not statements, on any result of proceed.

Isabela Klemes

gentlemen your ladies well stay all today. and for healthy. hope us to you full year Enel and doing XXXX to results joining morning, Good I finds this you family Chile's is presentation. and Thanks welcome and

to link are will be after Ask also questions Our chat in presentation be information available. A the via phone call ask the and via There related website available opportunity A www.enel.cl our an section. on through of financial the the Investors or replay will Question. presentation Relations

with our and will Paolo targets, Turchiarelli. Pallotti; will CFO walk on business Giuseppe slides, and In operational following are you the today Joining highlights CEO Giuseppe Paolo our results through main me open performance. financial the presentation then the and

in listen-only Let you only are that media mode. me connected remind participants

patience for detailed presentation. you IR figures you call our Paolo. the all in continue you hand me need this included will now provide Thank information let concerning and may always over with to your be to team to available any the As

Paolo Pallotti

joining Thank us. you, for Isabela. thanks Good morning and

the X. according at Last year of Let and country level to industry-wise Chile, as period X% during consequence reference With Chilean global and mining being green GDP to the our start one estimate, highlights outbreak. of level on have sectors in last with a the the A double-digits. COVID support me the clients. to unprecedented main this of was is operations challenging XXXX. was the demand country were certain a the decreased areas almost some at continued and a by Slide by reported scenario, flat such the our a larger like decrease Despite shown sectors certain number

other the review estimates. to of We billion our our we adjustments over several basis. and for of income have billion company have achieved volatility, a amounts guidance With decided our regulatory new measures XXXX to surprising and target it US$X.X EBITDA market net US$X.X conditions and reaching implementation lockdown on effort adjusted weren’t that consistent commodities adjusting all our to

core facility our on construction. at we new capacity Today, to under accelerating onboard continue generation X.X in additions. than advancing in more the be same the We the to GW decarbonization projects discontinued time have

action focus to climate change. fight our We to continue

in compared is reach announced actually Enel committed a in COX to our XXXX XX% We XXXX making have targets that ambition electricity one carbon to already free. direct electricity Chile emissions meaning our to its of by our of XX% business generation reduction generation

indexes. Our in ranking several reflected effort our is ESG in

the as one recognized performing best America. ESG been in of Latin have We

affect dividend comply per the our effects regarding Meeting best process strategy at our thousand decarbonization accounting of $X.X our of dividend Shareholder Finally, to propose shares avoid and eventual Board of Annual our will policy, Directors with will to shareholder an remuneration. approximately

main effects our XXXX results. the despite – the at net the Let’s our XXXX located guidance. and deployment, lockdown where with income revised line already ecological have our capital EBITDA for a the mentioned delays of several by the were On processes I projects are look and that in adjusted now affected our areas have permits.

to the XXXX sites our at field. able of been our construction time people have advance in on same contracts the We in of CapEx in XXXX our works safety doubling versus the working guaranteeing the

Chile the decarbonization, successfully in process advanced company contributing Bocamina cent first and country. to Finally, making the we scenario X.X the unit decarbonization of of Enel on the targets increase disconnect most

strategy of the some Let’s is at shows final to move electrification of decarbonization our our aimed and Sustainability consumption. strategy. backbone the now data that of the consistency

showing plan Our value maintaining transmission and for all. our secondaries, to compromise sustainable is our accelerating the energy delivering

its in company the year. core ratings the previous of trend During XXXX, positive all maintaining ESG main improved our the

As Class this most rating as being an distinguished approach as in Silver received you in reflected the been sustainability can the ESG IFS main see, have and has as well a of indexes, by prime that American Standard meaning company and in that Yearbook companies X% Global, most looking which is Chile utilities our X% only from Sustainability the within position. Poor’s Latin the Enel of & sustainable industry’s is worldwide.

more some on Page our details strategy decarbonization on X. have now Let’s

we consolidate reaching capacity portfolio within will Chilean in our XXXX, of generation our During market position XX% the renewable assets.

but sustainable on seeking opportunities execution new developing higher only not sizable the focused results. is that features, on of targeting project the also team best and projects Our this

to GW reference of today, decarbonization goal our a our XX releasing gives portfolio generation flexibility have from enough different and which hydrology. more development, we than in continue and in pipeline our us commodities stages As

of of new the energy systems, by As that, use contribute to expected after National the have than process in Assets, solar MW plants the were X,XXX of more that country. we hectares with confirmed an example over development clean been to we recently X,XXX competitive awarded and storage of Ministry bid organized to

on on under GW we we our more status capacity XXXX. in our already would overall the solar As weeks on details in Today, has details at net MW with more A to the more to project the than the in you you On first the Vientos. each supply. Valle a coping during X, X.X under can project of produces the like see give the average, I part material continued more project large to hydrogen help equipment the On renewable reach construction. sites of new emission year, have strive the located project us would market process farm Chile, see, wind target project XX of opportunities site than by which of XX in Page XX%. los de same of construction.

projects third year. The an The the are during plants hydrogen example balance projects, and de project which of year. efficiency our Campos Lila, of our and we of land We five of are on bringing first Domeyko in Sol are CD connection expected Sol del quarter finalized increasing quarter expected of our usage to the be this this The works the solar into is during be of continued to December. during the funnels platform. have projects to competitiveness operation more

of total the last fourth will you hour the KPIs continue the on to mainly of hydrogenation projects. keep During status X% for The terawatt to melting net on to reflecting the construction industrial a go quarter main X. due Still higher XXXX. quarter on our I the X.X increased next of fourth Page generation of production season updated through me quarter call, amounting the our let

X.X sales to lower the production new the partially auction securing the lockdown we market by primarily new energy terms X.X different as buyers country. lower market spot a On hour the regulated with demand hour spot recently Endesa from a mainly increased the XXXX terawatt in terawatt terawatt lower the next in of our energy the higher in remain measures strategy X.X fourth and companies related related purchase as terawatt price, to offset to immigrated or consequence of cities displaced or and market, spot demand with minus energy sales, of of established higher quarter the including Enel balance, ones by of X.X we of hour than free XXXX. capture termination In clients plus physical X% part and sales hour the to that PPAs this

terawatt with figures and X. marginal came from low XXXX for decreased hour terawatt the X.X minus terawatt In to full full XXXX hydrology over than XXXX, total equivalent power in of to plants market our lower first core lower higher terawatt hydro in hour. XX.X the of hour plants the system Tarapaca XXXX. due we closure XXXX power the buyer the lower terawatt fire net remain lead impact reflecting Net the our plus costs. purchase half plus Minus XXst, Slide marginal or to XXXX the Now generation very drought of X.X XX% costs. spot X.X a mainly X.X amounting mainly thermal in due a to The hour in XXXX a between of on production year hour production and year, December lower year variance may and plant during

On the X.X X.X to relating free X.X national This hour associated higher energy lower market lockdown our and hand, hour, termination by lower regulatory demand X% sales hour spot physical other PPAs the strategy offset part every of decreased with minus restrictions. terawatt by of companies, our to terawatt primarily partially including sales from as explained and Endesa mainly the demand terawatt distribution and or was plus of market. to of Enel economic and

now, the our new to cumulative generation the business materials. line for that over the Slide our river hydrology, Maule, Since years. average most can are XX. this under on hydro basins, cumulative rainfall we the last and reference Now chart, Bio-Bio, we our presenting find the referenced new ten significant really took you rainfall power Rapel. In Laja green the metrics, highlights We

half and to quarter rather our rainfall the XXXX, higher X have reach recorded anticipated XXXX fourth in generation XXXX Therefore, July periods. was during XXXX may was meeting expectations quarter XXXX feasible quarter in the the fourth XXXX hour hydro conference to of performance, during call. we explaining XXXX we which hydro in better second X% lightly June us the same approximately a terawatt of the the result be performance generation recovery in you turn the led months in was of in quarter during hydrology nine as poor the If

move continuing based to of southern La For Pacific rainfall half condition will temperature XXXX, rainfalls to phenomena the current for Nevertheless, winds are in conditions the quarter. should second during the available improvement imply modest expected which remain natural XXXX. the the an a until according on Nina information that second should today,

the a the been overall been the important last of a the frequent infrastructure review discussion. of increase gas. goals source, In of the plants terrible decarbonization. hydrology considering our which experienced During has on may and has volatility and current stability country the of efficient the contaminate a during the opposite the weeks, generation regulation the the avoid of in where will is recent cost years NSG of the less under gaps view, availability is Argentina of the to high to in the situation dispatching country’s This is create with in on data that induction

lockdown line the Now, slightly concession distributed the in on network increase measures Energy segment Slide by reflects in the the in our business household consumption. period XX. offset area,

Our expand. customer base continue to

end the logistic losses. with restriction around had XXXX, convenience the our by of The increase investment X.XXX new XX.XXXX, points performance networks. exceeding services the with The basis digitalization in total increase indexes, the clients two million end. an effect SAIFI SAIDI faced year is area had a During of clients, and of despite to associated in we the improve XX,XXX of our our explained and and will XXXX the unrest continue concession social our at our that we made XXXX quality commercial

to We these continue periodical working level. KPIs recover to

of of to digitalization services our and efficiency XXXX. more provide the our in the digital app, improve interaction XX% to continue XX% in to customer rise agility from to supported nearing We we XXXX

downloads, Distribución in XXX,XXX Enel higher cumulative XX% than App of XXXX December December, figures. As reached approximately

decrease payments Slide maintained We In payment our XX% are to show levels the channels digital still increase XXXX growth executed with digital the agreement the as in in The higher in last at digital of quarter XX. more almost channel clients calls, the X collection XXXX, new a SMS other communicate main the On executed communication level historical direct supported Giuseppe the executed during we in way XXX%. debt during which average, contacts our By million XX,XXX with agreements supported as the than will and December through clients has show than we we bad XXXX, with been of and we clients. as forecast will versus channels. later.

secured with on to Moving lighting electro-mobility efficiencies to country, and In Despite municipalities. and ElectroRuta via us partnership local favorable Only X continue lighting have new of with to leadership and the Today, on with outbreaks on XXXX Enex in more XX. this signed Project. we Enel Enel the bringing among pandemic in the X XXXX, partners development XX of electrification. than area McDonalds and mobility Electrification others Shell, contracts in in Slide we ISA our COVID-XX upgrading consolidate concession continue Saba infrastructure the more public the the joined initiative.

secured the projects. in based In provide industrial X, and Enel in the services estate new as retail a the last of project with are to Chile boosting the my use at standard transportation. also first energy clean e-trucks contracts real with on reaffirming commitment we groups Additionally, infrastructure energy new the large transition their our for to to solution XXXX, energy the towards have we efficiency developing logistic sector challenging

with – the projects as storage. the During several of electric energy this are such with and promoting which solar use mining buses of year, use we combined

The the days. begin mining sector developed will operation few AngloAmerican next the in with first project in

Finally, the with partners, all and public and thanks agreement private forty have with to Enel. participated companies

We devices already been have XX,XXX continue executing we year. restored promote tons and since the energy further estimate use to these substitute to our automation, or that use public a zero efficient have and XXX X,XXX XXXX effort

more support clients us. until the to before to that Now line of on services COVID offer vulnerable from are vulnerable benefit their up Enel quick Xth main capturing on period. payment regulatory of clients Starting the option Slide the households. this a service May the distribution, ongoing for most under XX. to basic of January our time the companies voluntary contingent to XXXX installments other without been support presentation, original conclude intends and this to of all special extended had keep will postpone already to valid included to volume which in a the on they they way has clients products discussion part expanded its to The with the the bills with offered XX loan interest. more institutions on Nevertheless, view company

XX the distribution by be the present which expert expense. have tariff be we XXXX. in second with to transmission report deal distribution, a be As release study have Consequently, year On programs. fourth published the voluntary under network the agreements value expected under On its we panel on expert tariffs in decreased final and additional of the expect challenged can the in on tariff, quarter of letter to followed be today, expecting released transmission, XX.XXXX us. XX.XXXX early quarter we the November to can by which final to drafting basic the our during the final almost according XXXX-XXXX, report an XXXX regulators the second shall to panel the government tariff also regulatory challenged are are in Transmission XXXX. cycle by the quarter we

during XXXX December mechanism accrual tariff our Chilean September show Commission XX the of the Earl year, as totaling by total $XXX the receivable By this liabilities sales this million. the balance structured end of secured mechanism million balance totaled entire that stabilization Energy market the to the XXXX for December Chilean under mechanism government published on by the the Moving $XXX were the stabilization around with total XXXX. on updates, Slide $XXX around recent report and current of Chilean million. generated

achievement energy. established rational implementation efficient of regulatory new needs management during rules. to with energy developing. as towards certain their for are law lights transition initiative year the energy all The efficiency or February to meeting consumption was use the target defines energy at were has important system this levels been recently $XX framework to our on the first new – we support which currently tranche energy of government in of Enel and new have This government we and at efficiency requirements on a clients rules comply on our and this A around been the million the required these for In is like published the the rank year. the energy view, Chile

the open of to public in are in regulation this hearing implementation phase passed a this be year. and We expectation related law now the the shall for during process

over Now, to turn Giuseppe. I will

Operator

Ladies and stand gentlemen, please by.

call conference Your resume momentarily. will

Giuseppe Turchiarelli

Okay. Paolo. Thanks,

with start highlights, through a figures financial we our following XXXX. we'll summary XXXX But the details of slides. me first, explain go our let Let the adjustment which in in for both me made and

and income last our As strategic net Paolo event. accomplished mentioned EBITDA of the in before, goal we committed

and and X plants. EBITDA adjusted have impact we excluding net termination in XXXX power impairments the PPA of and income Tarapaca For effect the Bocamina of early

rising and the each income address the from In X will adjusted Bocamina figures. of and bottom the following organization associated of the the unit the asset the are in For detail considering consumption EBITDA details plant in of costs, described both Bocamina have current slide, of the effects the these slide. XXXX, all of power we more impairment and the I

custom both in higher $XX demand Let bottom-line Net distribution the related me of million the related adjusted million million net the to other the sales mainly giving OpEx would adjusted than figures this energy EBIT. XXXX. contingency $XXX needed and impact, reduction of a COVID passes of X you around net EBITDA are; impact lower period. $XXXX behind face of of and transmission and Factors our detail COVID-XX million. to impacting EBITDA to XXXX been of about reaching and start some our care energy $XX higher in business losses Enel cost extraordinary total have the

historical have the reached net collection negative COVID-XX profit related adjusted income XXXX recorded the of expansion million. by our would debt mainly of million $XXX provision we a net period. loss, and $X down to of Moving bad the temporary impact driven Therefore,

XX. $XX million XXXX development base; $XXX In of to our million customers almost around a commercial XXXX, processes. for increase on new associated million, in period. XQ our an due total to of million $XXX our total in reached with to $XXX increase CapEx commercial our let's to go our with a and CapEx mainly reached slide efficiency follows: allocated the clients as client to interface for Now Consequently, CapEx to that investments the allocated connection a our XX% CapEx amounted CapEx to in guarantee better our system build significant the improvement internal customer

lower maintenance spare XX% for of purchases than and activity $XXX lower activity of in and reached Bocamina business. in XXXX CapEx unit parts rescheduled and management million, XXXX in lower San Tarapaca to due coal-fired distribution Asset maintenance in activities our Isidro

of development December and largely reached our network. As development by almost CapEx XXXX, million XXXX, digitalization of business million, to driven $XXX higher our distribution $XXX the expansion continue renewable of than

better adjusted by transmission year $X previous Let's Slide dollar services by the QX and than XX. to million dollar-denominated condition million start hydrological quarter distribution higher EBITDA to a in our impetus; is of currency better season QX OpEx lower ancillary US mainly EBITDA on partially last $XX other loan Adjusted which due with our is figures from to; business, business. million XX% translation mainly our order to maintained year in and breakdown improvement related generation depreciation $X hydro increased our losses due explained currency XXXX on PPA include higher higher in quality positive system effects spot commodity $XX and on account a safety; lower equivalent the impact CPI million impact in for the on of revenue booked cost terawatt has cost coming versus and local from settlement transmission provide X.X of of functional offset of PPA the by of US price, hour the the $XX effect million positive million $X of FX recognition to margin that post the

and to Let's it’s on XX. accommodated now move Page figures

in lower dollar local and million higher in on in during variances the translation of already of XXXX system main XXXX XXXX losses slides status early $XX I the compares effects table positive and of results depreciation All our XX% first Enel our ancillary positive remind both the I we adjusted the for impacts with EBITA the pandemic million transmission the energy the higher like generation public $XX distribution $XX on the $XX versus raising our million full impacting XQ measures CPI of detailed cost U.S. during FX. by impact six effects; in In termination million and include mainly monetization net hydro business distribution XXXX preliminary generation termination higher than periods XXXX related of with PPA and for to half commodities, Power me XXXX affect dollar-denominated services year by adjusted Moreover, LNG $XX lower margin were $XXX cargos PPA. Chile. the lockdown of to these on let related COVID-XX highlight and million Enel the the the will FX million, lower EBITDA that to increased adjusted figures following generation million of EBITDA currency books XXXX; wasn’t EBITDA due mainly X that tariffs. that sales an in EBITDA to lower Enel impact of and incorporated EBITDA, business and that Chile the of US Our XX% in includes this higher demand the of due million. offset of performance The due of loan to year market only of adjusted and the that $XX international by Green would energy and $XX by XX, summary executed previous reached new spot distribution the show including to transmission prices, and margin impacted of the the still items: the effects sale electric Slide $XX with in in impact adjusted a lower bathrooms PPA price have million to X%. in our resulted positive commodity by businesses you generation basis between

measures the reached market of of $X in regulated EBITDA consumption clients Now, due $X lower same of as on XXXX energy lockdown million distribution XX. network lower period or the to; energy and business a higher $XX result a and provision in distribution which maintain of the the COVID-XX the in order of on OpEx safety annualized of new previous on and the that finally, in million cutting Enel’s to COVID-XX; the as higher both energy XX% the $X and adjusted third economy; result logistic effects to the to XXXX million contain distribution losses effects government higher activity spread activity the applied compared on offset restriction to by QX quarter; Page on measure quarter; following effects. million amounted

higher figures, million On recognition XXX by and was EBITDA from $X Enel of of sites of association public the $XX the to accommodated due network, the distribution through in maintain effective order energy low and impact which season. incorporated of losses, $XX negative On deducted demand, provision the mainly two lower to million X new of coming management level to; OpEx millionmainly were the in from higher tariff. reduction

related higher relating XXXX. provision the in XXXX lower $XX and Now, Slide to reached Chile million income. net closure D&A variance our due outbreak; results of distribution in an bad Tarapaca devaluation partially million and totaled mainly go to depreciation due Bocamina mainly of to $XXX a [Indiscernible] million, XX, from and of million, and the on due XXXX. of and for the in XXXX. pesos; cost June lower mainly and debt due trending coming mainly higher of XXXX from average mainly through debt impairment of by reached to $XXX equity the offset the mentioned Financial increased to lower EGP exchange of both higher let’s to due in adjusted Chilean power in $XXX D&A by accounting Finance due Atacama tax to $XXXX XXXX net bad expense scheduled of The X result mainly group reflects merger driver capitalized Bocamina X of million the plant the year the business X% to EFI, debt adjusted impact Generación, of impact XXXX a development of main decrease EGP from on related Chile to due net both higher depreciation and December net the as $X in investment. COVID suspension results Gas income International, into renegotiation profile in to by impairment offset in the Enel Results – with foreign line last XXXX. interest, in expense energy investments Chile primarily million, a service higher internal Bocamina income. duration related project, decrease increased stabilization renewable financial debt Income depreciation The of than energy and to rate the debt minorities our higher Enel Generación the net Enel

of Moving tax to billion, as of Power to; of XXXX by of million, XXXX the COVID-XX to payment due on lower the the and tax action due mainly by explained capital income LNG payments rates due Lower cash of in the last flow higher than of program, financial versus of by initiatives, to around expense mostly $XX decarbonization and COVID postponement quarter, expenses inter-company loan EBITDA $XXX Plant around sales receivables working net FFO in cash offset partially the $XXX between to capital reduction slide lower the AMP results company explained year government around XXXX during Tarapaca and higher million EGP management million. lower capital, explained in previous by which XXXX a company lower interest consequence compensation EFI, XX. the initiatives. and totaled reached $XXX working other $X.XX net million and higher mainly

XX. debt through go now on me Slide Let our

Finance the million decarbonization and approximately of XXXX EFI increased versus our to amortization finance to the Chile the and with by gross EGP’s plan, due debt Our debt. $XXX by energy Enel partially offset

XXXX of optimize to a important financial our as to as X.X% December of showing average on reduced compared XXXX our as As a spend cost December X.X% our The average of over expense. of to debt debt The peso was net result result of XXXX XXXX us condition December our our improvement in debt, financial $XXX an increased cost million. in million. by $X of our

on Finally, on XX. Slide amortization our debt

enabling us billion we plan to and liquidity, economic a of have comfortable of $X terms maintained with current the scenario. finance In our CapEx a position level

in we amortization this small. debt been as Our slide, very see have can

will I Now, Paolo hand over to

Paolo Pallotti

Giuseppe. you, Thank

Despite note the work client center change, and them and strength drive achieved to at Let’s challenges fleets of remarks. confirmed the against the leading go the and focus to position to resilience of to clients with and decarbonization, we a renewables needs the to the support fight contributing applies in and the in them. remain we on push continue in and path closing concentrating the represented for Chile, will our strategy climate electrification strategy the this continue

resilience Our our Isabela. and and long-term promoting patience over to will sheet sustaining the Q&A hand Thank strategy supported for your to and I strength, open by business now you work. is creation value let’s session. vision balance

Isabela Klemes

you, Thank all you attention. for Paolo. Thank your

have we you start. phone chat received may section webcast questions and via on The have in this please the occasion. we anticipated Q&A is Operator, As open.

Operator

Instructions] first question Our Suarez from is [Operator Mediobanca. with Javier

Your question please.

Javier Suarez

the thanks Good I and for Hi. presentation. questions. many morning have several

one regulatory first The recent is regulatory on changes. review and the

of interested changing the service that So company capacity basically on to deal I with is the bills. basic the am law the

general be that you Then, your trying how is, your efficiency – flows, in Chile’s do hydrogen and do that for you seen clearance opportunity energy profitability to of and on energy see to hydrogen updates see rational working the approval, sources, significant of So us in presentation can here How the you question has of and promote in the you if come? so would affecting do new is that, XXXX question these you is that business? been in law have appreciated. how profitability business that any years and that the the on going update think capital the the to be So, cash is the of model the law hydrogen utilization XXXX? on next the your affecting Enel in I

third The the the on is market market. – to free question the free service

it your free on So of on letter part markets. seems the clearance

in expectation impact question working you one should And on the final and and free expect market fourth So, is evolution evolving the the in how capital. XXXX? your on do profitability? be How free XXXX on market

why this positive us fourth fourth Many happened in new impact the impact So been thanks. during saying year. has there quarter, the positive has quarter a of the companies

Paolo Pallotti

Thank for questions. your you, Javier

probably lot Let’s say interesting of things. and very

regulatory start for over to on clarification me aspects hand Let and I then will the numbers. on Giuseppe

an basic crisis since that, more in law service that would regulatory of was the clients. of category the I is beginning believing say say, let’s is remarkable approached of that the not is This is during I company. that, let’s a, period issue Regarding for a clients this the the support economic managing manager something law, say to

extension The the the sector. we the minting in of expected payment In can end. let’s whole said, to Once, was the offering exposure. and the debt element moving agree consumer at clearly, the, agreement we efficiently are terms. to talking or law this of installment the if a work. up XX, who that cover the payments, clearly – year capability the decision, should time is and to also cover in not was the reasonable, less because question, or adding law have expected – honestly we our is this to about client in time likely the up quite change the let’s of are year by one more our on say clients larger all we people’s do been often to XX the this decision approach cap say people but – considering debt off payment expected and that is of was now of our the that payers, extension choose same domestic We but the means energy law exclusion the for taken large letting first has is the this the say, more What an honestly for that all designed the generally it ramp

the have clearly, the during influence to law Xth they say what say let’s to the May. it the the client to that of have let’s waiting choose their they of pay – So, an will period have resulted the till contingency the bill, they end expire by bill so and pay may of – of

the we order to confirmed XX we for in So, when start this our will let’s is the earnings exposures, push order much published let’s the expire. possible situation that with agreement client is say recording to law have, say and in

later said it this say we situation, you the, is how give can So, our let’s we in numbers. reflected in

in tied to I let’s we, think order as we five these, this the expect that years. say, process country of – by energy let’s to that let’s we now this step crazy because present, say, the - efficiency think year sometimes in plans in next are real is, law, we had say during Chilean the couple an Regarding important it we develop is

that have winning in this the cover. our for give, of say, generation construct for the a think place significant economy. a it the in and X.X fleets we upsize generation the part that strong volume of a and that much as the first available let’s is opportunity, had us is is the a of you vector green evaluating are a agreement and this be as are is this of say, what very we but as of using for south wind our changing possible Regarding focusing adopting partners. are, pipeline. of And part it have the by producing project energy. use production Clearly, may can we and Chile the the in turbine say, consortium we that a an plan we strategy player regarding let’s – We hydrogen, green plant evolution let’s – as through think important we could hydrogen of process volume pilot we GW green opportunity. we are part monitoring energy This in XXXX, And we the in hydrogen we and as to know are given be large

demand the can in to Chile in in we add for all potential to So, the increase order hydrogen. green capability a cope

evolution, that’s an different opening let’s people these conditions senate. the this. debating in has to the ongoing. for discussion. certain are free base Regarding under market a hearing across is, law about of touch know is This There commission say, are question this portability And that is They the been presented you because the market.

we For contracts a have from conditions to X conventional in side, the seeing are to clients full two that is is, the than they XXX [Indiscernible] from for to we client the the regulators that on the and the time MW switching kilo are track XXX capacity so the based various other because clients kilowatt provide into the green plan them for are energy. see free market that moving are subscription have being time us, elements to moving signed these for with one that possibility a regulated good And clients being the they pre-market. being, due you green that that are or we And know what with recent are requiring are create to energy.

are our are, clients mean, are in the to into service informed that I we free capital. concession working on markets say, the area markets regulated and reach our and an answer let’s agreement basic Giuseppe, regarding further the Some to area. and concession the law more on targeting details outside

Giuseppe Turchiarelli

of from factoring million people of net of the Well, as the and Slide on very XX last one, important I – – taking in capital quarter. a CapEx terms and in. quarter the in the in basically, especially are action place in $XXX the some put indicated we action for in around And that that’s last been into factored account working the the we amount has second of putting

net see recovering of to following considering would I the we following issue be in we going we are say months that the are that, to – basically year, percent [Indiscernible] of first what And action these have concerning in of to accessories. the So, in terms working an and this capital. the the see additional this on that how the impact the now, all of impact for depreciation lay the believe

Paolo Pallotti

here of Chile. the also and Yes, the impact of in pandemic evolution the

the that volume. could in the we so, is seasonal, following hope the that’s say, to, months, going from affordable cost be, the submitted what that let’s the know – vaccine there recovery a and next You

Javier Suarez

Interesting. Many thanks.

Operator

Thank you.

Bartoli Our from Enrico next Stifel. with question comes

Your please. question

Enrico Bartoli

Hi. Good taking afternoon my and questions. thanks for

business. A We in generation outlook saw a So have business, few. also of recovery distribution is electricity the first on I power one production the the on demand a XXXX. for

expecting You and are of the improvement indicating hydrology.

if for possible, elaborate bit a So, for the EBITDA expecting And you this, in renewable you XXXX. of indication some X.X level can additional of this year? can you t related capacity. the see that you are give if detail you us also expect And GW scenario more that of

the transmission. regulatory of year an indication of new you EBITDA have the can level full capacity. I a regarding environment, well give the for the likely presentation a and deadlines from as from Then framework that if have regulatory So, us that distribution you for you expect some question

related this PPA. impact your two If for last distribution from you on new that the can is the models us to expect you And one update the business.

us provide this from from to this mechanism and commodities, are impact on work can positive taxation CPI, ForEx, you. You to likely if can impact XXXX. had – PPA Thank on in the if remind you you some details how you that

Paolo Pallotti

with the some the the is questions. what of how people’s details we have evolving issues say XXXX. country let’s XXXX, plan say, our, key from Enrico gap let’s during that you, would the here The may regarding, for Thank outlook say say, is, your discussed confirm in I Okay. let’s

the key not so economy. can very the and for paying is, the our in am management of wealth in a in the adding growth support contracts XX consequence referring our country any I we in people small, the the side, with the the indicator recovery doing the movement as be can of lockdown I we clients. So, infection do. case medium – On working clients mean, are and new the ability to what how positive strong in a is limiting demand, a on

come this them from let targeting to situation. agreement out with are in order We to them

resilience. the side, other the the clients On advanced confirmed

don’t we see impact any on So this. negative

the the of our, nation based we, hydrology, on say, sold average and – the evolution. let’s confirm a number say, Regarding analogy units of in let’s

the okay, month, during see So, in - and weather order we next can during next calls, and be the to the to more sustaining country change the may specific conditions numbers. how effectively

manage more things we say to the power made work impact very the that in XXXX, projects, a working generating in the would projects, difficult Regarding movement teams I by our and the of people, pent-up situation. response appreciated much very sites, during of a we linear

We balance in all projects the have were site. on a that

working both areas the our We the have to sites affected for and we during of working in managed the people projects, lockdown especially opened has north new Chile. new have

under – think the timing during operating I in process balanced, from, conditions, the that the mentioned the much of these lengthy mentioned also as second say have X.X half let’s as for the situation we where projects arriving so people where any we the In office again, XXXX and large projects our I and the – us. kind So, have construction. – today, with GW working of we lengthy

different – we but on year advance, so the is managed advancing, the last outbreaks advancing past sites. measures case, our we will keep tolerate company. we with of expect There to the are are steps year, we that during time say any We people this plants. of closing we construction the COVID doing let’s for let’s the number And affected on well we with we Also especially work but are, don’t very quite also plant. today, are what updated we year of have clearly limited on very positive say, very, in of managed some, also in but this have and and the very,

some final are regulators, do the the with a month target of see in impact plan. on have the of regulatory, I yes, do not of projected until expect first, can the I to the with the we number say difference expect We get according we work from terms that information consultants. doing that – legal, delay business what not a of received distribution our definition we we that, because that may very the Regarding tariffs in process is now,

as So, neither it in well transmission. as distribution, in is

the with shipped we aligning is, is say, a So, this all lengthy let’s but data at don’t beginning. it have the on all parameters it problem, think, the as and and going defined as units

let some you this. give to Giuseppe Regarding discussion will I level the on rough PPA

Giuseppe Turchiarelli

Yes. about Well, the US by essentially are leaning we PPA, through in like the law certainly PPA commodities. or

PPA. of paying the mentioned we notion in the have the our commodity So off

the of PPA, a example, not it’s of through, to indexation the be is impact of , the the commodity easy month and train the lean we for course paying that so commodity. the trends because for the trend explain previous the the Of for have commodity to six coming example, months, rate for

on period each are the[Indiscernible]. the have different drivers through of indexation reference periods kinds these basically, But we PPA. or So, our of a and

Enrico Bartoli

Okay. Thank you very much.

Operator

is Instructions] you. Our [Operator Santander. Riccini from next with question Thank Murilo

Your question please.

Murilo Riccini

we’d CapEx good you to to is on Thanks for specifically, Riccini you system? Hi, increase the could My share the could one one. understand you order renewable next storage supply the that. in mainly That’s is your And about XXXX And are your Giuseppe This expect be half a Chile? and on gas know and gas of provision and now is systems energy what terms if situation from – Enel renewable all Santander. supply in us prices? during regarding the pandemic than and during Could handle morning from more strategy Murilo we in provide Thanks. expecting expectations collection focused benefiting oversupply gas negotiating that could the winter This avoid first capacity? you for How in CapEx should for - And provisions, like for gas and of the field? the – the are we finally, more from first are details And you availability you long can Isabela. side. for how and my more call. spot of Chile? guys. Hi, in that Enel Paolo, you us Chile, dynamics availability

Paolo Pallotti

from of Murilo, look interesting being, first gas question, in you the areas – say, the on Argentinean currently the in sense the you of Because, in of supply let’s are also providing supply, And is Argentina. in manner can the gas questions. the not for is LNG a periods by very we for facility, terms be interrupted north start let’s - easy we two, of all government use with the gas sense time there from know certain especially the that a that two the by gas the gas different, coming gas say, actually in and very the a supply, interconnection the on Chile, is let’s let’s seasonality. let’s elements, then, the seller, And thank quite say, by But can two to in especially in of did Hi, agency. because managing you that know in that center, year. and that reduction your

a until the gas. mechanism from go On planning both quite except dispatching if one important during February, gas order The that are system to availability coming from and quiet the to let’s coming is often are is these the the spring is period the January, in hand the coming and LNG usual, imports to manage the time, the on Argentina. and is other say, to these Argentina, we manage that,

receive During is so, LNG. to – gas there have we from it planning – winter is we to have we purchase Argentina time, are difficult gas – year planning from and every

– in in in certain What water have gas coming So, unavailability plan – where January always both happen, of happen the condition the adding this let’s let’s can for during will in gas see, from and from general let’s deriving winter available and is our problem we summer. general, availability for On gas country. plan and mix scenario, time from also Argentina to us lack availability the February, time say, players. Argentina drop in reaching of a from some we spring we mean, plan of gas there LNG. and say, using during, in side, I we can do because both required not – and say, gas, for the the

we also So clear. problem we don’t see especially, the is year this of see a don’t plan LNG a March also problem, from starting receiving

have manage and of months. the Argentina, lack to coming to mills connection due especially during February, January cover recent gas the the that’s from we been our During to and

don’t our position, long-term problem In terms say, of LNG is our a a let’s contract we see contract. a, because

from in Argentina we to can availability we needs needs, benefit several from a so our have cover also over so and every Argentina. our And also signed book we way. place course we can the plan can in And contracts with

especially on and we Regarding supply oil supply renewables. of, in regarding of let’s mentioned say, the next oil terms CapEx, question

elements here some share. have We to

For instance, quite we year. sense you which that let’s that the in have ongoing project – say this a we have from we starting are mover to know connected a first the agreement

is client ongoing short, is That let’s important, switching at in time availability in Chile. of process enquiries capacity. same months also that, of that the are three very that the in it’s element a decarbonization north in second The some sense in also companies we there is the they LNG fall the the say, is clients – and linking we more the considering more our have portfolio of contract, located aspect

avoid of in with storage impact our agreement may The of element advantage bottlenecks provide good with those interesting point a price. plants the an advantage, the we order renewable also adding it’s element. to is on very in very and So, considering

We based our the plant are developing also on strategy.

investment planning. to say, way, let’s the discussion it our a the technologists closing. and The we collection solar regulators earnest let’s – we But the also towards We are we or regularize order best the to in are very the, in manage in is with to that plants. that with on with say in possibility the – of have especially partners, working monitoring are are together

– and Regarding the to collection the let’s answer take Giuseppe.

Giuseppe Turchiarelli

be is lower I going I XXXX it’s for on we what in than the reasons. as of pieces second said, had to several half what Yes, three believe bidding that

to believe that and linked year, consumption to government clients the be because sales new also the get and I is last [Indiscernible] order scheme all, we planned some anticipation can of than layoffs excluding the better in the going high where Chile is the to looking also payment. to companies with last First the as manage in in is

today. better of as that So, will be

be closed how be. center on So really it the could

Operator

you. for Thank will I right. All to questions. And Isabela back Klemes the now the call webcast turn

Isabela Klemes

you. Thank Okay.

our here. we So, have chat on questions some

net in first in So So his from what we Should market could the power way declared appear second into we to opinion the for have to Chile XXXX, purchase that implications is, is, question gas is be this? the long-term costs Enel’s higher authorities Chile been resume by early Paolo. first XXXX. So, for be on prices spot expect higher company? over hand question to And And generators. business? What is expenses translate [Indiscernible] seeing will in one I the are

Paolo Pallotti

is mentioned as is would LNG stable situation the imported the supply from Argentina contaminating both with have, availability in I say, gas can and gas cash way the that have less and flexibility system say the first requires planning, answering is for the our system by, the most And normal the produce we because gas. say, contaminating, gas will polluting of – clearly, require to question, Chile. gas the And is important this coming are let’s because, and the the in facility less is is is technical order the it the that, imposes some to that there of the I on in to which where for second, to one one system in providing economicity the And reviewing are questions. And we the the it is the and define what gas there regasification. most in of a we forced important most Andrew kind And overall. in the assets. in recommend interrupts time have of any – optimizing Chile, cash expensive through same generational chain uninterruptable the the for two sense source to let’s for avoid gas from is economic, providing the, to coming you, in in In city costly to or the system for regulator based touching here in the of made the system some system the to with add Thank of discharging LNG point I channel to things regarding goals is go but have most use this called to importing and fuel. the ongoing if some in we LNG, your of the in And in the gas it of some import flexibility most regimes Chile. most honestly the LNG, view the also that bang are ready that Chile that consequence

back on to our question position. the so, And first coming your –

be the this Bocamina. we of cost if say of coal buyer production importing have can We well gas, very situation, have let’s our cost our contract mix and large started energy one as gas capacity. hydro in well long-term year just technology can for and LNG. and below the, is of and In we We are spot by the use the of of or cost of we renewable production

also So better gas. we the of need are the we have –

on contract, to not have going long-term players are to side, spot So, of go price. the in gas pushing And they of system, LNG. because in are both it regarding is are adding stop better on higher do we again important but other – in any next to that condition that run, but that the we our facilities norma also our spot the the have gas technica for managing allow availability

let’s it’s the on period basis weekly so to by or power And may year. generated. LNG to of system on let’s coal lot and the other the base all an in of or planning important of say, constrain based say the include some have, impact a These gas the some

look avoid situation overall So, the a have to at to in system. but of we economicity be should the

Isabela Klemes

Paolo. you, Thank

questions So, now from we Morales also have Vanessa. Rodrigo from some

ability related second country. was the you question that explain agreement Sachs an is factorization the much the to answer to tranche? the the LNG season is, do expect receive face that question believe and How I Then Goldman to the first drop with we So, first for this could with you in have that IDB?

related Enel one - the so projects Los second project Cóndores The concluded the to is third Generación, that is repowering now project. if the about one related and were

company So one it Then to forecasting how is wondering at How X. past? this the to conclude and much spent what to Bocamina the in in was of invest much XXXX the the project? related the other project end

question gas, conditions then, questions. the May and of considering lack of Cóndores possibility postponement the to the now And Bocamina hydro of to the Los that evaluate for we the is So Argentinean there of of the XXXX? X company are the XXXX? final So is on the is, facing that a TOD postponement in of sales closure this the Yes.

Paolo Pallotti

no, yes, some the Okay. Yes, let’s it, we start from, yes, of plans. so let’s – cover not all, can

Isabela Klemes

Okay.

Paolo Pallotti

So, let’s what start Los of look, Cóndores. – all, first about from

Isabela Klemes

Yes.

Paolo Pallotti

amount are the difficult and as pandemial effect because situation, Well, say very of balance end – management CapEx. expense of of in made July, let has the a Okay, announced but the XXXX analysis are because a range Los of me related published total The the by this in is they have what we working our at that what reported a the the was in in million. million US$XXX amounts the that of – any been range approach, their during not works. today, announced our Cóndores, until – considering we of $X,XXXX in

we going deeper say, the, let’s recent a that, so, during element with time. let’s for let’s the have, say, higher say, create requirement studies the And

the managing also sites, safety regarding…. the elements So the well, the overcome other the and safety working we in we What the are the regards a pandemic. so, details, have on on was of on, people have the regarding that – these balance construction in clearly on elements safety all and work

Isabela Klemes

The project… of Generación Enel refining

Paolo Pallotti

is there Cóndores, Los no Regarding, other questions?

Isabela Klemes

It’s in. included CapEx the okay. Of

other So, one is repowering is project about already the – that which the concluded.

Paolo Pallotti

Yes.

Isabela Klemes

And let’s go question to the then. LNG

the drop think So, I our ability have LNG season contract, in to already. country, concerning you the face the

Paolo Pallotti

mentioned. I already Yes,

period. from have receiving the the So, that you required starting of let’s ship for to the, winter through consider the deliver all will we March, going the say gas are that

for all kind So spring dependency for from period starting. Argentina have of the and any we don’t summer

from gas say, with So, let’s we this don’t Argentina. see of, starting to-date a problem coming kind lack of from

Isabela Klemes

Sachs the on up And then last the and one just the Goldman IDB. standing credits with

Giuseppe Turchiarelli

Yes.

present are million to And to matter with the of we results it. performed are $XX a as in already that issue we will in factoring, that to expect along already finance the the everything have have well, quarter and see meaning We the the - the first base million another Fed’s cashed are regulator fact going going the when reflecting $XXX decreases for is year. we if you going

Isabela Klemes

Okay. Giuseppe. Thank you,

questions the Credit from from we So, have Corp. webcast through

you one, could intercompany the with And EBITDA are pay XXXX. for first going if then have you loan short-term? second So, the is, the – and the Giuseppe? in that guidance to for question CapEx revenues, share you

Giuseppe Turchiarelli

guidance, to been Yes. going we presented with Day. are Markets our confirm Well, we for what Capital have comes the what during

of EBITDA on going the in and going recap, to same just So, the $X.X billion, for range be billion CapEx. $X.X what’s is to

expect to going comes intercompany loan, intercompany have $X.X by the the And spend this are we loan on we don’t - what spend or billion. we So to year. expiration end of any in

line and we have in June or of is in it sense to We just part be a going total renew to credit that are evaluating just makes expire it. whether a

loan some We December. on the a am have expiration amortization that that’s have expire is we in is loan only top that the loan on equity to I paying - of going

to And XXXX. are set so, we going out

Isabela Klemes

Okay. Thank Giuseppe. you,

the question now last with Scotiabank. from we Tomas Gonzalez have So,

CapEx So, Tomas the what would is we company and leverages be facing asking if to XXXX the leverage expecting more also are details alternate. of on on an the on and

on is, last recognition more that you $XX Chilean we if reduced this. asking the the this is color Tomas services year. on can And So then that give details million question

and So, asking what expecting he company. are for for XXXX our is we

Okay, so I am…

Giuseppe Turchiarelli

concerned going EBITDA going are how Capital This we are a on are we around confirm concerned or services. bit. Day. EBITDA, to going to decision But be, the was on like little case, during is changed be to going net in to this end Markets times also but we our we We the that are see the net of X.X year the extent to of is quarter are

lower bit as we a – It it’s believe in be don’t same going is So, had going to – by believe we we amount to be that similar the we level. as that are and we by little going the see today, don’t of XXXX.

Isabela Klemes

you, that, With thank Giuseppe.

today that may have for be to relations going Now, so you other to joining mention us – is do other also not our so for I have. all would available like team questions you any and investor to questions, any team we thank

you questions. thank you all. Stay your to Many safe Okay. for

Giuseppe Turchiarelli

Thank you.

Paolo Pallotti

you, thank today’s gentlemen you. ladies program. your Thank and in participation Operator for And

Have a now may disconnect. You wonderful day.

Enel Chile (ENIC) 1 Mar 212020 Q4 Earnings call transcript