ENIC - Earnings call transcript Q2 2022

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Operator

Good afternoon, ladies and gentlemen, and welcome to Second Quarter and First Half 2022 Results Conference Call. My name is Victor, and I will be your operator for today. [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. Such forward-looking statements reflect only our current expectations, are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those anticipated in the forward-looking statements as a result of various factors. Chile’s in first press presentation Factors. half conference and described second reporting accompanying are Form call and on quarter XXXX Enel factors Enel under release Chile’s its this XX-F, These including Report Risk Annual results, the

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

Isabela Klemes

Good presentation. Thank Enel afternoon, results for us joining semester all Chile’s and today. first and second you XXXX quarter welcome to

is this our Fabrizio our CFO, Barderi afternoon Giuseppe Turchiarelli. me Joining and CEO,

section website, presentation in Let on me available financial the investors. our our in our information remind Investor are related and ask you that Relations and www.enel.cl

now questions all fact In over highlights financial you [Operator for and ask question. of via Giuseppe walk our will presentation of Thank available. the a slides, results let attention, Fabrizio. phone this through Fabrizio addition, and soon to webcast link then will material recent us an open the In and time ask to me a your or strategy replay And In regarding following presentation, hand updates. be the the call our be through will release. opportunity there the Instructions] will chat

Fabrizio Barderi

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

Let me Slide period the start highlights with the X. of on now

over pressure market the know, to remained quarter. during year you the As second

will of advantage following contribution offset sustainable actions we strategy take pressure assets, for proving that of give our detailed Given our the the several the up and the view taking have resilient. [Indiscernible] in slide. management a been is I to first of these this and actions

several Also, to the been first updates, the XXXX the have the us some perspective to semester. like some during manage related second have and semester, second the right XXXX there for they the regulatory ideological subdivision We force recent distribution [Indiscernible] energy report. update approved bringing

in half Regarding thanks our will pressure. margin have comfortable performance, guidance, financial economic and our ideological commodity XXXX this in for place the perspective in second say the as put we actions positive some we to to presentation. temporary But over that the faced the many have execute we headwind we are related w

released growth proposals asset as ongoing $X,XXX requisition as equity our company timing in of by allocation evolving Finally, value both balance confirming the by [Indiscernible]. quality we the the terms the everything hope million just and our part a They with process We an of for agreement end the sustainable [Indiscernible] in with and for investors unlocking owned shareholders. sheet value our our multiple and supplies to of with year [Indiscernible]. have stations, as assets fully expected of different for

and income the electrical and correlated with to about market been factors energy that in due a resulted particularly [Indiscernible] actions decreased prices the rush force place. of to were briefly also last impacted move by thermal in in the of several five were the situation. terms and place in been year optimization natural negatively and maintenance period. for the to we sharp uptrend, actions be coal continue by April are national let’s slide $XXX the put Unfortunately, must contribute the that have measures to million coal impacted put spot Now Argentina to price. set talk to up transmissions. it The system. in This in has of around adverse that scenario the of some the prices a Despite lower has in gas Commodities the been There the strong presence the system associated able of scenario, increase outages critical. --

$XX Our half. later supply half of year solid volume more operating contributing our and generation drilling to contributed in natural the that long gas supply, position, $XX ask LNG optimize with this third will million it some without the natural which delivered first increase successfully [Indiscernible] our than the the to year contract gas million include includes which term LNG and was up

the with transition. term an addition, move In to been having into short first then contributed strategy main configuration also new Renewable also the in our half. portfolio term in decided known market long the enter reduce actions mind in position. PPAs the renewal million $XX these some the of and development, of renewable our additional to commodity hedging growth of we has instruments and energy fuel pillars anticipated over hedge one our Complementing

that renewable So for six. consolidating sector. renewables And with to we the One energy I in leadership, mentioned of adapt we important megawatts as position look our forces system the this group our our the how have position than The we process let’s means current where been in necessary challenge in slide at to energy an context account. on renewable new principal capacity environment. are sense, now is we’ve unquestionably XXXX. In or X,XXX of the have one market, the connecting strong consolidated effort more in driving acted

our until of end of our connect significant more exemplified parts solar connected to and already year as projects years in construction in this efforts slide. these During have capacity. Moreover, megawatts we committed are XXX

about for to in consolidate of the And potential as a are contributing strongly convinced metric. we board position development clean We region. renewable will energy aiming a this continue Chile the

year. seven, and a the the take of page for let’s on illogical half at condition look outlook Now, an the second

July, has country. of in and the and been increase rainfall south significant especially a the June in there During [Indiscernible]

where -- haven’t we eight the [Indiscernible] of rainfall seen regions in while to for located, in the a to-date that years. basis recorded equivalent the is something are a in fact, three one recorded In year

can see for side clearly scenario over very therefore you on than last situation, a the is rest us better figures to the for this As [Indiscernible] left the highlights allowing quarter. of in an and ideal good slide, mountains the especially year no optimistic perceive fourth of the the

been resilience, of out the we thanks portfolio actions other to our availability hand, maintain also gas. On carrying the mainly to higher have various

our able [Indiscernible]. activities This part generation. During this deliveries been trading to year, reroute optimizing we year, LNG our from LNG and thermal have increasing rescheduled of our have capacity, our we

cubic full All worst behind, In and convinced both bids, from in the are allow our focused April traveled half to gas, of going the is us three these were gas On that X.X the natural forward presence targets the two of year. June second in XXXX that several feet which is the year, during meters optimization. that the which For seconds, auctions permit of Argentinean electrical the a deliver will and auctions suppliers of prices ‘XX, of we all, us performance interests recovering leaving confirming July, with our Argentina the gas for million organized competitive time October natural have on gas us resilient to portfolio. to we government Argentina the maintain the participated continue system. gas to

whole for regulatory those this of approval The approved. highlight and slide funds rationality, not -- financing subsidization let this for was bring continue July that to established also sector, generators a since and company [Indiscernible] stabilization means as some for a for and sector it Regarding on sectors. second low the and mechanism energy system XX, the projects eight. new our back other positive will the topics energy mechanism on matters new the On the emergency me

by Now mechanism, we the the receivables cash with subsidization shall and reduce on making. be expect to new the energy flow, the new impact our backed

the arguments panel company on shall be who week. review. the in be the sectors the the concessioner in the regulator in per and direct And Any report be discrepancies the reviewed review. benefited, the new of to of partners a August. the February replacing we the by already to the is ‘XX. performances month [Indiscernible] in published XXX was between debt The ‘XX XXX early vulnerable we the to distribution On and hour problem criteria to expect were was consumption solve largest begin the profiles next that law In than collection half. second published companies the limit offended of have pretty Regarding expert December by process June, kilowatt established between addressed service March other And the law was and accumulated consultant approved XXXX of shall our of regulator potential define shall during basic a customers more new institutions. completed law permission the system the this and in experts will

recap its me temporary strategy our let on the our decarburization. Despite goal. headwinds our long foreseeing we market, Now, term continue within all depreciation based and

Now on slide nine.

the of will for the of you our enabler As and sustainability. why a our quality That is electrification remain best key and know, visualization network customers. strategy our decarburization final

and our indices a in on can structure recognized transparency decarburization strategy is all see leadership is all are and network UN ESG we as and demonstrated you in energy backbone main the digitalization, ending that aligned replication As ex-businesses, our main and by KPIs, quality, by well confirming reporting. solid improving our the the indicator with is

over Let hand our to Turchiarelli presentation now me the Giuseppe CFO.

Giuseppe Turchiarelli

bottom $XX XXXX of to $XX and in we the the Good amounted quarter. stock and effect to a in the In second slide of same the my $XX the which and Many $XX respectively. $XX we million At million the $XX to of $XX the quarter line the the I due in first half $XX stock half thanks, voluntary the Fabrizio. the million bottom -- the retirement the EBITDA due second of for in amounted to connected. evening summary period, million, in in investors the period. million had amounted these an the quick presentation half applied of an which apply million Sorry second in first XX respectively. adjusted made cost effects in our first problem. coal period quarter the million To fourth. of and the on the adjustment adjustments impairment and to adjustment the These the an with and start applied the million will first XXXX line

higher the company. reflecting XXXX EBITDA XXXX period, adjusted which first of a adjusted lower before. X%, during XX% mainly XX% also of These the coming increase costs EBITDA or the The financial impacted first of made the in accounts decrease variable the of and by lower increase first due to XXXX. million, the income income an net by the half liquidity or the adjusted costs second decreased has In $XX quarter $XXX [Indiscernible] decrease XXXX improve the affected of of terms factory to This half the million decrease reason from of which in second had has commodity was prices half prices, which EBITDA performance, the deal. spot same the the quarter net due the offset the the of mentioned to XX% the in

subsidization million, In first almost to the new previous XX% the the the mechanism the higher First reached $XXX million mainly second representing coming capacity. to the second reduction half renewable $XXX at due $XXX XXXX, in period our half half minus quarter, construction the mainly reached XXXX FFO CapEx CapEx of the reached in million, the than effect same XXXX of than first XX% significant from a higher XXXX. year.

more the mainly year, the been last primary focused trend In Now, consistent effects our have boosting our country’s CapEx a XX. slide review about energy transition. let’s throughout on on efforts

half enhancing As to during mainly connections XXXX was $XXX which our building the was totaled accumulated the of customer a CapEx related our million mainly $XX new networks, -- customer. reached million and result, improving and first XX CapEx for experience allocated

of reducing under is XX%, resilience million reached our mainly projects representing development CapEx construction Asset the unavailability million, order maintenance thermal expansion CapEx a capacity, our still on to management renewable clear mostly related the is of our an plan due to reached that activity of to the $XXX rate, $XX track. activity signal increase increase in

XX, the mainly sales to CPA variation million. against slide summary the higher to our second the in adjusted was explained pesos $XX increase Let’s have EBITDA million primarily breakdown, dollar. by $XXX for now of we of quarter accounting the valuation related of This move an where Chilean

costs selling sales New December GAAP higher XXXX, and due were connected during and of renewable and mainly driven offset that and slide variable availability due was aging by offset on Argentina effects to during This commodity were that the mentioned that by the field the XXXX to by capacity, price negative is several All mainly $XX gas natural of partially in the efficient just XXXX, commodity million million higher lower $XX consequence a to effects the more hydrology price, and spot in the a the XXXX. in costs higher mainly which price. termination $XX trading coverage during the thermal by increment in these second gas to adding outages system in due was EBITDA. on the due quarter activities commodity in margin, into the generated of million the higher facilities XQ period. system in generation I’ve

relative period accounting million for the about to last to talk business. $X other positive compared elements me regulated million, our a The Network QX that of period, associated pre-pandemic of the in demand recovery accounting remuneration increased [Indiscernible] aging Other impact in EBITDA. demand explain the let X% reaching $XX and effects the a slide, to the this XXXX on mainly with year level. which the for related bond. Following

EBITDA where exchange the slide first sales was by first move have $XXX million summary the against XXXX, lower XX% versus for the half Pesos $XXX XX, of XXXX figures. PPA million higher the accounting we valuations to explained of foreign breakdown Chilean Let’s to These now related primarily the higher dollar. in mainly of

trading XXXX. the by demand mainly issued taken due our EBITDA comes million explained by added the in consequence release of network the by offset activity and XXXX from which the generation $XX by a that million $XX EBITDA natural reaching million, to the transmission on to the in an $XX the and generated effects demand of business due XXXX period, to of by the to offset to in $XX variable -- during ties remuneration due lower capacity, XXXX. as XXXX million to the The due before the a the final and ties that the mainly pandemic signed increased availability LNG the partially volume have the report related re-gasification impact GAAP agreement into effects regulators largely margin the compensated side in Argentina was This partially a stock $XXX instrument union million new in network lower more beginning gas field. quarter, accounted first of both Other the first the the All XXXX. price of just aging aging first December due of gas which of first the $XX for and indexation and started in in thermal cycle we first mainly renewable mainly quarter these OPEX period, higher and in in X% us to to recovery the impact XXXX the generation efficient higher costs the with negative second prices the costs higher business the mentioned New sales remaining level. were final that $XX of million cut And of in by in million in half. to million, variation half provision since connecting reduce first to regulatory explained of half costs during I’ve related due and commodity of January made quarter negative instrument due generation $XXX allowed higher XXXX commodity to $X in been to the network the coverage compare field million

solar the grew power on first Net of the mainly result more in generation to electricity a you XX% division of from [Indiscernible] on cycle in half of as generation give coming combined XXXX XX.X new XX. capacity higher period. now by our KPI page detail dispatch during Let’s the plants unit our

half level. in hydrology, mainly system, reservoir with is belongs During September affected a since community’s quarter, better variance to the year. in second the there’s reserve out was of increased perspective due our enforcement our quarter, the was for since that is new generation. sales. the in brings natural higher the dispatch of though to net first full higher X% the in water return during are a impacts rationing enabled no new to XX, -- generation the water XXXX, which hours in rainfall due Even in our for semester XXXX there recovery these that And reservoir. coupled second to by the into system -- X.X Nevertheless project generation of improvement second proportion in of the a payment a reserve the electricity decree the solar mountain an to generated The also solar, our wind COVID X.X basically nation oil there electricity X.X water the

increase Our to due XXXX the to contract regulated cluster. primarily of of both during sales related to with as increased half second customer, the quarter, result sales XX% first sales, energy in physical the during to sales coupled sales XXXX. Mostly regulated XX% three improvement an new the higher a higher

Let’s [Indiscernible] on business performance business quickly the the line see page by on XX.

it decreased production that generation costs market. the the XX% mainly affected country first half has worldwide by of these was affected EBITDA and and add previously, increase due business, prices in to effects spot the XXXX which and mentioned commodity our As into was into have the consequence performance our the by the

consequence Union status quarter business million in mainly recovery the the network add XXXX to [Indiscernible]. demand of of period of first an side, as this first year. published the and of mainly provision agreement $XX the one effect in made the the this reflect reduction quarter XXXX. holding during the effects of of Besides Others in technical a positive a report the OpEx the XXXX these of the OpEx due On the had in effects the increase affected, off the the the

you ‘XX will Now, be accomplished. how on slide guidance EBITDA show XX, let me our

Fabrizio goals us presentation, for our our current shall indicated reasonable guidance portfolio not term headwinds assets this During long or either our that jeopardize and make center confident in that strengths elements the Chile. our

Let EBITDA give end. on me adjusted year you words the few guidance for our a

associated country is quite June to with seasonality generation that our spring, of return period will in the at is portfolio the of of place, August that the spot Argentina to Chile associated to have in expected during the versus As natural mainly with on better second That starting EBITDA active and and the with result first the [Indiscernible] beginning introduced the just our we snowing support know fact to have be with from All a reduction higher seasonal. here start prices you of our hydro the the business the related Decent hydro melting season these melting gas the in several we the the generating in one. October, start in management generation guidance. generation higher generation year country a higher this on year October, tackle have view than with to we in these associated All that sea. able sea. our the hydro the associated associated effects semester

should detail give the I EBITDA and our action. of quarter, our on Next evolution performance you more

of go our main let’s XX, through slide on drivers Now, net group the income.

affecting market plants. in financial power a higher the of last debts to and higher by periods commodity related impairment related and variable net debt the lower had and primarily generation bad project bad XX% of in decreased recently mainly by commercial to year, $XX spot adjusted the the energy remaining from $XXX period the costs of segment distribution, adjusted we by initial million new Higher coming the higher new to provision system up. exchange explained income the amortization the prices Also balances new mainly assets, the half in DNA to rate the related versus are its business. in $XX amounted EBITDA, consequences power assets the In intangible depreciation updated effects explained solar year, a and which higher million, representing the income arose slight variation distribution the commissioning million and depth or depreciation amortization in $XX in mainly of first versus increase last million a results Our million $XX lower the the to million, declining Financial in the half by the a business business net the on subsidization mainly XXXX. to receivable tax first to The from accounting related which correction results adjusted clients. the with due company mainly of second quarter $XX due the million, Income quarter the higher reached expenses decrease same tariffs the on the explained generation period executing first the to the overview a in half first the the a the XXXX to investments million in represents by higher of lower the of low. [Indiscernible]. tax in factoring retail in among of aspect $XX $XX half XXXX reduction by related in mainly in due monetary embedded recorded XXXX accounts that credit higher

on the to first slide of half XX. Moving XXXX

cost these other of impacts to the $XX lower Most payment period mainly million the to the CapEx to to associated the accounting The of coming the during execution. $XXX to due period. energy this XXXX in XXXX the period system the million has debt to distribution explained related $XXX a correlated including working EBITDA first the in of half cash the related collection first quarter million this amounted by million million, $XX accounted for The not $XX mainly payables mainly mainly a half accounts year. of recovered reduce significant the in our impact in conversion million negative as adjusted. Mainly of effect the $XXX million the within And negative for impact should of deal update. out of the XXXX. the from XXXX in June in second mechanism in be $XXX a referring the effects capital related

So debt. as bad mentioned, provision in

by -- the recall variation I amounting like $XXX period. million the to factoring executing underline was last Let to versus impacted working me taxes XXXX last with the the FX regarding year $XX the a income year that would costs instrument to capital number But totaling regard losses just in with included million million it to that of tax. years, the the expense period. expenses payment resulting mentioned. related the And fact the payment last just in related factoring few which in I lower concern $XXX financial to finally, what debt include the

debt to page XX. on our Moving

debt increased million, gross XXXX by by offset Our $XXX to June $XXX as $XXX $X.X million and the for third on to in amounting amortization, provided of financing and of NL QX, loans [Indiscernible] contracts. intercompany termination parties million [Indiscernible] Due billion XXXX. by the amortization leasing

XXXX our linked June of debt XX% XXXX is and for production of to our As [Indiscernible] XXXX.

of terms five amortization, comfortable scale our debt an remain In of will with average year.

in year international local current has million and the debt to at the renegotiate December, in that markets. and have maturity both $XXX we looking For a opportunities aim we around

debt the the sale Regarding of from maturity. we proceeds will repay XXXX this in transmission the to use

in our average debt, during In our costs X.X% coming of debt terms XXXX Despite available possible in comfortable some conflict of headwinds versus X.X% management a liquidity, in committed we month. international Europe. increase the continue June considering in to carry of position, December the market as lines result its have from last are as out a the decreased Eastern the financial XXXX, reserving we to

strategy sustainability in sheet, our asset of ineptness, goal for an value As a in our on increase we rotation the place put strengthen all have optimizing the shareholders. of part our to focusing balance

facts on XX. material the Let regarding sales me spend slide on recent words the few

transition with to Enel XX XXX% have assigned its of Chile entire market sales, by a out just energy sell the metropolitan to carried share Capacity of controlled public $XXXX lead a in authority tender XXX substations. transmission kilometers a for be for today of this company we of capital. approval -- the value. equal state [Indiscernible] provides In managing precedent value customer a the XX.XX% the lines, As agreements by pay Santiago economy, financial $X.XXX capital [Indiscernible] informed the of area operate will offer and million equity by equal to state group of from enterprise national agreement subject will fiscally the an entire transition. to a Like million conditions trust certain The our through gain the is kind XXXX group transaction the of from this offer of tender January to This our estimated launch subject recycling continuous this this part pricing pricing, to rotation and leverage. as of of we our of end embedded income mentioned. price of transaction of our is and the impact our portfolio contributing until net capital shall is expected the a the closing on timing on of the on generate rate the of express million. company reached initiatives, assets negotiation focusing the XXXX year. the date our an in The optimize based adjustment value The Enel X, clearly mechanism interest transaction unlock have the quality and in to public path $XXX of Chile. The

But in an that this update in we are now for to can Fabrizio. the process further is the we of what next obtain I Enel be And management used shall you as give operation over focusing hand call. dissipate about quarter liability input a to going are the will We I Chile. an sources

Fabrizio Barderi

thanks Many Giuseppe.

some remarks. out point to closing Just

the have starting behaved taken we we conflict in several face presentation, series a the from to of our of commodities the [Indiscernible] international an have During actions market. impact

to messages All of us. these scenario led main for

First, we our magic consumption. decarburization conducting are to on the right to the the the path transition of the electrification energy in continue of

bring reshape stakeholders. to action continue and plan to will we guidance. [Indiscernible] our reach our value our actions Second, XXXX confidence gives us that our to

portfolio. we are and right resilient path. there that on we be this our hanging low know are value fruits world no clear we that Let trading and of quality continue the me But to the unlock

hand Let it to Isabela. now over me

Isabela Klemes

anticipated. Q&A Thank as you the Fabrizio open now section and let us

via questions webcast receive the will can We please, the you during start Q&A chat section. today. phone or in Operator

Operator

of first Santander. [Operator the Instructions] Riccini question comes from from Our Murilo line

is line Your open.

Murilo Riccini

today. for information Many the thanks here provided call and

currently after us the possibility water pay the provider of of is, any shipments do example? you be are if year. we question. Thank generate your view level in a hour in reservoir and analysis? second This first for the my have year, of prices so provide need mountains, even And and possible is this lower your And you Do rotation you. under assets or the you that they in guests terawatt or the start generation far, can second it that this Europe? believe the any cancel fuel Europe, process the seeing could So this and do considering of no half to see the availability question to fine, is, during during one hybrid ships third use other the you winter on to guests approximately XX

Fabrizio Barderi

go with let This first we one. yes, and this year. hydro answer is the could reach production on me questions. second semester, quite third of estimation the we our And today. Let that the optimistic two are we think all Well, Giuseppe

known not XX this our also course, Of is week. it best season that how on goes the finished. yet on today, terawatt It estimation in depends is the to next close mentioned. be But of to as as we

no, any question, Second our we gas don’t supply. problems in foresee

very in this professing in Our case. favor tight contract our many with is clauses

not potential are worried we no, consideration. any about So

Giuseppe Turchiarelli

to company. to this to unlock process going find share is value to our order we anything we assets We Possible for the from have opportunity are regular look always but on whatever rotation, with the will don’t other but mean we’re there for again, assets so looking, a market. far Murilo way up everybody it’s to information the sure a something table, I could consider, the come in

Operator

Our line is [Indiscernible] from your the next question open. is of line

Unidentified Analyst

not And afternoon, materials complete you much. if have I I mind. one one very you The always. very would as Thank everybody. go Hi, by like to four questions. do good

P&L an was tell behind The related first thing. you EBITDA. a the We what Could operational accounting little bit affected line jump not one unusual fuel, expenses, much to other an us saw which in pretty is this? please

Fabrizio Barderi

a line because? explain you May referring you’re second which to

Unidentified Analyst

Yes.

Before shut to the related getting you four expenses says have is to that EBITDA, And the on quarter-over-quarter operational latest second My the quarter, jumped And expenses, timing? one operational the other the the team in one last down. lines. question significantly. that second different what’s that’s [Indiscernible]

Fabrizio Barderi

[Indiscernible] [Indiscernible] then well to defined to schedule don’t energy don’t know, we the perform that see we at as with course, that And to that system September. to expected Lanka, going for end have honest, they And was as the not can the ones the workflow. we is also the conditions we it fulfill of of the minister back To May to integration ideological renewal of deeper forward on was need of be availability get of expected committed and be you anymore. rest the the

see don’t reason why postpone we any again. we should So

Unidentified Analyst

pay in to I the gain My transmission that and how pay or of when has for? sale to sale of with actually get you third of expect lines. actually Chile Enel sense the question a tax much the to wanted do topic

Giuseppe Turchiarelli

capital talking have is impact consider what next From concern that going we offset if to we gain the this some we amount. we in at paid The around the that But million. stock to are of have to year. can look order be you amount such $XXX losses about use

next $XXX year. - around million are estimating $XXX $XXX the talking short million about are million. we We $XXX million - In

Unidentified Analyst

of down from And we’ll pay much the intercompany billion due have also to are how that loans? -- proceeds wanted just that and sale XXXX amortization debt to I know $X mentioned

Fabrizio Barderi

the used Well, this be cost the expire basically, say select costs. they amount the rebate be expiration going we that to facility a repay the of the breakage to loan, portion let during the to credit the are all to fee going in that that busier they or going that is other year date year. we like I to of will are associated kinds loan to and the to next this good order loan, say with got me going revolving the to don’t the criteria of wish they’re fund and the it repeat repayment zone dedicate all are to

in We about of the credit. them are are company most talking

Unidentified Analyst

My final might level the injection question above selling the is you regarding also equity your be a debt, the about down group well, little the after of bit cash collecting think leverage. lines eventual I capital rates? thinking Enel an Is comfort still paying

Giuseppe Turchiarelli

now going is be to know there answer table. no injection to by -- today’s of the mean, on have the is is done of I what I course, of plan capital Well, isn’t,

Operator

Thank you.

on to move will next We our question.

comes Our JPMorgan. of next from line from [Indiscernible] question the

is line Your open.

Unidentified Analyst

have couple for Giuseppe of Fabrizio. question. ones. afternoon, you. Good Thank the and a Thanks I

tax so billion. about $XXX would The value is the million. X.X payment is over be, And first one this equity

headphones. $X.X about try was inflow billion. going cash I’m the the to correct? So again. that Is I’m was using sorry, I

value expect million, was, question we the inflows about cash if equity and of if billion tax XXX is the So, the can $X.X the is payment billion so $X.X about sale? asset

Giuseppe Turchiarelli

to little is amount because of the for is tender Yes, tax, a amount correct loan mechanism to a end the as of owned Again by yes, also the we about will giving are that correct out X.X going an of you there talking adjustment need the change intercompany wait roughly. offer have about of price to the course Chile, a event. amount be paid equity public consider that designed loan, basically we bit

roughly, is the that calculation you correct. So made

Unidentified Analyst

you. Thank

other about of you will the second would other the be Enel third arose. consider type they large would annual question My million stake to traditional could in mentioned selling if taken? measures be market The is or if $XX case question be opportunities would company what Chile the the with question be in still asset the of EBITDA have and rotation a business assets

Fabrizio Barderi

again together it’s Well, on together in generation clear easy and something come of the do. analyzing because renewable And it’s kinds we that everything. we split we all projects with are to are focused of model Their really that are having distribution of side it said opportunity that assets but the side is potential services the we’re renewable up, of the view going to out basically of -- used our guidance all and the to strategy new and Enel evaluate was we Enel. distribution so

Unidentified Analyst

to you just confirm the much. And EBITDA. so Thank

Giuseppe Turchiarelli

It wrong. million I not is around $XX if am

Operator

I’ll questions further the any any over Klemes or showing not Isabela webcast in call questions. I’m right. the to All for chat queue. turn

Isabela Klemes

all your you for thank Victor, questions.

Now I go and different through several the investor connected. we from questions chats that received analysts

questions analysis of the expecting One estimate requesting again, more the the would is how going to transaction and say debt reduction the the operation cashing. about much be the to like amount company details are an net be that of that are these just this considering numbers to some -- of of we of here the cashing of this

Giuseppe Turchiarelli

to the projection is have, $X.X payment payment we tax were debt of the the get billion $X.X dividend we’re to of and after to around is that billion. to related As of distribution going dividend the the the I that to policy. going to be dedicated the said, XX% the

$XXX about be loan million of be because of around going we’re we again million. debated the that dividend estimate paid we for amount receive, also to the debt, end around will at year be will So of around and talking that on the million they top $XXX the $XXX

going basically, So we’re significantly our reduce to debt.

Isabela Klemes

dividend. questions And still on the term, regarding we are missing

increase dividends the is related of these expecting So to sale assets. the to company

Giuseppe Turchiarelli

of not to we’re the because me value XX%. say will this increase not going going going the increase payout, let the have to off, but we’re capital we dividend remain Well, going dividends to are it we gain, are

So since the mandatory company okay, results. has XX% positive so is the

We are dividends after the associated gain distribute capital going to to the tax.

about We’re roughly talking $XXX million.

Isabela Klemes

to that if close still fresher the the are if question indeed, requesting energy made facilities expecting asking commodities. in thinking now these mechanism? strategic to [Indiscernible] more hydrology let the or September -- very by system you we’re reserve units was he’s is that And about the are and these in other Then details

Fabrizio Barderi

pretty we consistent like down reason the stress. under the it’s estimate And going the the clear already the I was are to since to use so with see also closure use postpone again, this plant be for [Indiscernible] the simply AMEA and shut an Yes, mentioned, more we strategic don’t and great were finding site. any the reserve as to no to system not beginning we that mechanism, there’s

Isabela Klemes

Fabrizio. you, thank Perfect,

more regarding also several have from here LNG. analysts We questions investors and the

potential gas second to what detail if we are, half of of and year, this trading year. was sales can has the So we’re deliver expecting all, or what in of first how Enel natural during of first half sold much we of on sold regarding this this sales

also yes, the questions LNG and is questions other So terms in of the commodities. this all

Fabrizio? So,

Fabrizio Barderi

to first XX about [Indiscernible] to an that part the the during what numbers expect were our I as year. basically is the with and order meant to data well piece of other I in think The approximately second manage we an during Yes, was XX LNG be about out the we contract the to -- states gas. year Argentinean the in [Indiscernible] while to challenges about term term last to surplus that combination presentation significant mentioned XX another with the was optimize least market I And the year they first and or expected and second, scenario good available sell to about very the availability done of of cope have continuous, at to was we of the last action long in to pulling. on output more mentioned have half were what during good gas and effective half short which as that so the and trying news opportunity are leverage that better Shell

Isabela Klemes

Fabrizio. you Thank

Chile for year? the CapEx We postponing regarding kind question this we have next regarding the if estimating CapEx or a reduction to of another the seeing are in What any CapEx. also year are we

Fabrizio Barderi

under committed. our of project as already the Well, are the projects under construction you CapEx most construction our probably project already and know all actually

year the that our we the because margins. to CapEx for are energy course, going project at confirming is this end need improve in So, the the produce order of we of to

the today, going of we our is be capital as confirm projection. line market to with that So, CapEx in

Isabela Klemes

we question you Thank here Perfect. agencies. the rating final regarding the and that have

So have with agencies the they discussions other the you of had company? and recently rating regarding moment are what anticipating

Giuseppe Turchiarelli

in the always the about progression about we message their believe that we in evolution the expectation in the needed agency. order and business line discuss are to deliver the debt. discussed we well, design rating needed with that the managerial We I all and the the touch are with Yes, them. pass of for we of that are terms in believe also We action of company.

negative rating don’t is have agencies give believe to that today. a the really situation we we going feedback about that So

fine with them. are So we

Isabela Klemes

our you Investor or any always us let have for Okay, thank you is need. Giuseppe please as know. team very you In Relations available connected and much going other you very a also you for may case doubts all thank other other to and be nice today. And Thank may and Fabrizio any information consultations any much day. being have

Operator

for This you concludes participating. today’s Thank conference.

a may You good Everyone day. now disconnect. have

Enel Chile (ENIC) 28 Jul 222022 Q2 Earnings call transcript