In This Article:
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EBITDA: Increased by 56% to $294 million.
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Total Revenue: Decreased by 22% to $934 million.
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Net Income: Reached $151 million, a significant improvement from the previous year.
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EBITDA Margin: Recovered to 32% due to significant cost reductions.
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Energy Sales: Increased by 6% to 6.3 terawatt hours.
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Average Realized Price: Decreased by 18% to $128 per megawatt hour.
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Net Debt: Increased by $158 million to $2.0 billion.
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Net Debt to EBITDA Ratio: Decreased to 3.9x.
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CapEx: $231 million financed, with a focus on renewables and batteries.
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Green Bond Issuance: $500 million issued to fund CapEx and refinance debt.
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Energy Margin: Increased from $46 to $55 per megawatt hour.
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Average Supply Cost: Decreased to $73 from $111 per megawatt hour.
Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Engie Energia Chile SA (XSGO:ECL) reported a significant 56% increase in EBITDA for the first half of 2024, reaching $294 million.
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The company successfully issued a 10-year $500 million green bond to fund CapEx and refinance short-term debt, reducing the net debt to EBITDA ratio to 3.9x.
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Engie Energia Chile SA (XSGO:ECL) has accelerated the implementation of battery energy storage systems (BESS), with a new project announced at the Tocopilla site, aiming for a total capacity of 370 megawatts.
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The company has seen a positive trend in sales, with a 6% increase in overall sales to customers, driven by an 11% increase in sales to regulated customers.
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Spot prices have decreased significantly, from an average of $87 per megawatt hour in 2023 to $62 in 2024, positively impacting the company's energy margin.
Negative Points
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Total revenues dropped by 22% to $934 million, primarily due to an 18% decrease in average realized prices.
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Engie Energia Chile SA (XSGO:ECL) experienced a 49% decrease in gas generation due to the absence of a tolling agreement with Keller.
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The company faced a 59% increase in energy purchases from the spot market, highlighting ongoing exposure to market volatility.
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Net debt increased by $158 million to $2.0 billion, driven by CapEx financing and accounts receivable buildup.
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The company is still working on monetizing $329 million in receivables under the PEC-3 program, which is crucial for liquidity and future investments.
Q & A Highlights
Q: Can you clarify the status of receivables under the PEC programs and when you expect to collect them? Also, how do the batteries work in terms of profitability? A: PEC-1 and PEC-2 receivables have been fully monetized. For PEC-3, we have $329 million in receivables and expect to collect around $337 million by year-end, with the remainder in early 2025. Regarding batteries, we decide when to charge and discharge them, aiming to charge during low-cost solar hours and discharge during higher-cost non-solar hours, capturing an arbitrage opportunity. The IRR is enhanced by capacity remuneration, bringing the total to around $100 per megawatt hour.