Sprouts Farmers Market closes $600 million revolving credit facility
Ecolab Inc (NYSE:ECL). reported its fourth-quarter 2024 earnings, meeting analysts’ expectations with an earnings per share (EPS) of $1.81, matching the forecast. The company’s revenue of $4.01 billion slightly exceeded the anticipated $4 billion, contributing to its impressive trailing twelve-month revenue of $15.7 billion. Following the earnings announcement, Ecolab’s stock rose by 6.54% in pre-market trading, reflecting investor optimism. According to InvestingPro data, the company maintains strong financial health with an overall score of "GREAT."
Key Takeaways
- Ecolab’s EPS matched the forecast at $1.81.
- Revenue slightly surpassed expectations at $4.01 billion.
- Stock price increased by 6.54% in pre-market trading.
- Company continues to focus on renewable energy projects.
- Ecolab plans significant investment in renewable capacity by 2027.
Company Performance
Ecolab demonstrated a solid performance in the fourth quarter of 2024, maintaining its earnings per share (EPS) at $1.81, in line with market expectations. The company’s revenue slightly exceeded projections, reaching $4.01 billion. This performance underscores Ecolab’s steady growth trajectory amid a competitive energy market transitioning towards renewables.
Financial Highlights
- Revenue: $4.01 billion, slightly above the forecast of $4 billion.
- Earnings per share: $1.81, meeting the forecast.
- EBITDA increased by 28% to $515 million.
- Net income improved to $228 million from a loss of $411 million in the previous year.
Earnings vs. Forecast
Ecolab’s actual EPS of $1.81 matched the forecast, while its revenue of $4.01 billion slightly surpassed expectations. The minimal revenue beat suggests a stable market position and effective cost management strategies.
Market Reaction
Following the earnings announcement, Ecolab’s stock price surged by 6.54% in pre-market trading, reaching $262.03 from $245.94. This positive market reaction reflects investor confidence in the company’s ability to meet earnings expectations and its commitment to renewable energy projects. The stock’s performance is notable, as InvestingPro analysis indicates it’s trading near its 52-week high of $268, with an RSI suggesting overbought territory. The company has demonstrated remarkable shareholder value, maintaining dividend payments for 54 consecutive years with a current yield of ~1%. For deeper insights into Ecolab’s valuation and 12+ additional ProTips, consider exploring InvestingPro’s comprehensive research report.
Outlook & Guidance
Looking ahead, Ecolab has outlined ambitious plans for 2025, including a $900 million investment in renewable energy projects. The company aims to achieve an EBITDA between $525 million and $575 million and maintain a net debt to EBITDA ratio below 4x. With a current EBITDA of $3.6 billion and operating with moderate debt levels, Ecolab maintains a strong financial position to support these initiatives. InvestingPro analysis reveals the company’s solid profitability metrics, including a gross profit margin of 43.5% and a return on equity of 25%. By 2027, Ecolab targets the development of 2.5 gigawatts of renewables and battery storage, positioning itself as a leader in the energy transition.
Executive Commentary
Eduardo Milligan, an executive at Ecolab, emphasized the company’s commitment to renewable energy, stating, "By 2027, we will be fully balanced, developing 2.5 gigawatts of renewables and batteries." Melanie Willeder, Head of ESG, highlighted Ecolab’s role in the energy transition, saying, "We are a transition maker, enabling our customers in the decarbonization of their operations."
Risks and Challenges
- Transition to renewables: Ecolab’s shift from coal to renewable energy sources presents operational and financial challenges.
- Market volatility: Fluctuations in energy prices could impact financial performance.
- Regulatory changes: Evolving environmental regulations may affect project timelines and costs.
- Competition: Increased competition in the renewable energy sector could pressure margins.
- Investment risks: Large-scale investments in new projects carry inherent risks related to execution and returns.
Full transcript - Ecolab (ECL) Q4 2024:
Conference Operator/Moderator: Good afternoon, everyone, and welcome to NG Energia’s Gilay’s Fourth Quarter twenty twenty four Results Conference Call. If you need a copy of the press release issued on January 29, it is available on the company’s website at www.ng.cl. Before we begin, I would like to remind you that this call is being recorded and that information discussed today may include forward looking statements regarding the company’s financial and operating performance. All projections are subject to risks and uncertainties, and actual results may differ materially. Please refer to the detailed note in the company’s press release regarding forward looking statements or contact Investor Relations Officer, Marcela Munoz.
We would like to advise participants that this call is dedicated to investors and market analysts, not for the press. We ask all journalists to contact NG Energia Chile’s PR department for details. I will now turn the call over to Mr. Eduardo Milligan. Please go ahead, sir.
Eduardo Milligan, Executive (Likely CEO or Senior Executive), ENGIE Energia Chile: Thank you. Good afternoon, everyone. Today, I’m here with Alison Safri, Head of Corporate Finance and Investor Relations and Melanie Willeder, Head of ESG. And we are pleased to present ENGIE Chile’s full year results for 2024. So let’s start with the presentation.
As described on Page two, we have organized this updated presentation into two sections. In the first part, we will briefly go through 2024 performance and results. And then in Part two, we will provide an updated vision of the medium term outlook for ECL. So we can start directly on Page three, where we share the main highlights for 2024. So first, the company delivered strong results in 2024.
Initial guidance was updated by mid-twenty twenty four and confirmed, and we reached the high end of the range that we provided during such update. Second, as we will confirm in Section two, we accelerated the development of batteries, which will be key to support our ’20 fourseven downstream PPAs. Third, the successful implementation of the securitization program for PEC and MPC in 2024 improved the liquidity and triggered new investments while keeping ECL’s leverage under control. Fourth, we confirmed a total exit of coal fired generation between the end of twenty twenty five and mid twenty twenty six. And fifth, we start to see the ramp up on volumes coming from the new renewals, which together with the upstream or what we call backup PPAs are reducing ECL’s short position and exposure to the market volatility.
Then on page four, we can see the current progress and the execution plan for renewables. As of today, we have already implemented 0.9 gigawatts and the Tata wind farm is also ready. We are just waiting the formal COD. This means ECL already has between one point three and one point four gigawatts of renewal capacity in its portfolio. Importantly, these projects were developed on time and on budget.
Next (LON:NXT), Page five presents the 12 renewals that ECL added to its portfolio in the last five years to gradually replace the thermal power plants that we are that were the end of their economic life. Then on page six, we present the bold move into batteries to boost our flexible generation capacity. We already have two zero five megawatts in operation. And in 2025, we will add an additional 164 megawatts to reach three sixty nine megawatts of gas capacity by the end of this year, with a total investment of approximately $560,000,000 And this is NARO in renewables and batteries. We’ll come back to them in a few minutes when we present the medium term outlook.
On page seven, we highlight three developments linked to the decarbonization plan and the key role of natural gas for the portfolio. First, linked to optimizing existing infrastructure, we successfully won an auction to provide ancillary services to the system through the installation of a synchronous condenser using part of the equipment of the former coal power plant named Unit 15, giving this asset a second economic life. The required economic investment for this conversion is $25,000,000 and the COD is expected in the first quarter of twenty twenty seven. Hello?
Alison Safri, Head of Corporate Finance and Investor Relations, ENGIE Energia Chile: Hello?
Eduardo Milligan, Executive (Likely CEO or Senior Executive), ENGIE Energia Chile: Can you hear us?
Conference Operator/Moderator: Yes, your lines are still live.
Eduardo Milligan, Executive (Likely CEO or Senior Executive), ENGIE Energia Chile: Hello, operator, can you hear us? So it’s
Conference Operator/Moderator: yes your lines are still live.
Eduardo Milligan, Executive (Likely CEO or Senior Executive), ENGIE Energia Chile: Okay good so let’s continue on page number seven in which we highlight three developments linked to the organization plan and the key role of natural gas to the portfolio. And as I was mentioning before we are converting Power Plant Unit 16 to a synchronous condenser. And second, we have implemented two projects for both CCTTs running with natural gas to improve their efficiency and increasing their economic life. So these CCTTs will be crucial in the North Of Chile to support the system mainly during non solar hours. Third, we’ll be converting the IEM coal power plant to natural gas with a 75,000,000 investment.
The power plant will be ready to operate with gas by the third quarter of twenty twenty six and will act as a backup for our two CCTDs in the Northern Region. On page eight, we show the full path of our coal power plants and we will have in the year to come basically the exit of two of them by December 2025. IEM will be converted by mid-twenty twenty six and CTA and CTH will also be disconnected during May 2026. Another relevant business for ECL is transmission. On Page nine, we present the main figures of our power networks business.
We aim to grow in power networks with a special focus on regulated assets. Total (EPA:TTEF) revenues from the transmission business reached $56,000,000 in total $24,000,000 of which approximately 50% were regulated revenues. On the other hand, we have a stronger pipeline of regulated projects for which we will need to deploy CapEx of approximately $250,000,000 in the next three years. Once these projects are ready by 02/30, our regulated revenues are expected to reach around $40,000,000 Besides the development of new regulated projects in line with the energy transition, we have the opportunity to reclassify some existing dedicated assets as regulated. Now please continue on page 10.
I have a few things to say here. We reached the high end of the updated guidance while ECL invested SEK655 million in CapEx and the structural net debt to EBITDA reached 3.8 times during an intense period of capital expenditures that of course will bring higher revenues in the future. This is also explained on next page 11 where we show the 28% increase in EBITDA compared to the previous year and the $228,000,000 net result achieved thanks to operational performance and the monetization of PEC receivables. Now moving forward, Page 12 explains in detail the evolution of ECL’s energy margin. This chart shows the total energy sales of 2024 reaching 12.6 terawatts hour and how these energy sales were supplied with different sources.
The energy margin increased from $48 in 2023 to $54 in 2024. This additional margin together with higher volumes explains the 28% increase in EBITDA, thanks to renewal generation, lower fuel prices and lower spot prices too, which on average allow ECL to keep its average supply costs under control. And now I will leave you with Alison, who will present the detailed evolution of ECL financials and capital structure.
Alison Safri, Head of Corporate Finance and Investor Relations, ENGIE Energia Chile: Hello everyone. Thanks Eduardo. Good afternoon. Let’s go to slide 13, which shows the main reasons behind the EBITDA recovery in 2024 lower fuel costs and lower average price of our energy purchases and the increase of physical sales. These positive factors offset the decrease in average realized prices.
EBITDA increased by 28% compared to 2023 and reached $515,000,000 Total revenues dropped 16% to 1,800,000,000, mainly as a result of 13% decrease in average realized PPA prices to $125 per megawatt hour, reflecting the return of fuel prices to more normal levels. This price decrease caused an estimated $230,000,000 EBITDA reduction, which was offset by lower costs as well as by the 3% increase in physical energy sales. Energy sales reached 12.5 TWh with growth driven by both free clients and regulated clients, demand but more evidently in the regulated space as a result of natural growth and increase in our pro rata share of regulated supply. The increase in physical energy sales had a 64,000,000 positive effect on EBITDA. Our EBITDA margin advanced by 9.8 points to 28% due to a significant cost reduction, mainly explained by the drop in fuel costs and lower spot energy prices resulting from better hydrological conditions, lower fuel prices and great availability of natural gas.
In 2024, we reported a 9% increase in energy purchases to 7.5 TWh, although we reduced our exposure to a spot market during non solar hours. Energy purchases from the spot market climbed 7% to 3.9 TWh, while purchases under backup PPAs increased by 11% to 3.7 TWh. These purchases were made at much lower average prices. Indeed, the average realized price of our energy purchases was 32% lower than the price reported in 2023. In slide 13 there is an orange bar showing a net effect of minus 50,000,000 which combines a 33,000,000 positive effect of the lower average price of our energy purchases with an 82,000,000 negative impact of higher purchase volumes.
The greater volume of energy purchases was offset by the decrease in our own generation. On the one hand, coal generation increased 37% to 1.77 TWh because of the failure of IEM plant in the first half of twenty twenty three. And on the other hand, gas generation fell by 34% to 1.8 TWh because in 2023 we had a tolling agreement with Keller which was not in effect in 2024. Our renewable generation including the output of our new Beskoya storage plant increased by 2% to 1.7 TWh accounting for approximately one third of our own generation. The 11% decrease in our thermal generation combined with lower average fuel prices explains the SEK280 million positive impact on EBITDA in 2024.
All this explains the SEK112 million increase in EBITDA to SEK315 million which ended up in line with the high end of our EBITDA guidance for 2024. In slide 14, we can see the complete turnaround of our net results, which went from a negative SEK $411,000,000 to a positive SEK $228,000,000. In 2023 we reported a 9,000,000 after tax effect of the last sale of PEC one receivables and a $491,000,000 after tax effect from additional asset impairments related to coal assets, which will stop working under their current conditions beyond 2026. Excluding the one off effects, the 2023 net income would have reached €89,000,000 in 2023. In 2024 net income reached the mentioned $228,000,000, a significant improvement from twenty twenty three’s recurring results mainly due to: The strong EBITDA recovery A reduction in depreciation expenses explained by the impairments made in the last quarter of last year and an increase in the financial income The increase in net financial income is in turn explained by interest accrued on delayed collections from regulated customers, as recognized by the January 24 PMP tariff decree.
Interest earned on the sale of PEC accounts, receivables and an 18,000,000 increase in capitalized interests. All this offset an increase in interest expense triggered by higher debt balances and higher average interest rates. In slide 15, we see the status of our net debt, which increased by 97,000,000 to CHF 1,900,000,000.0, a modest increase considering that we financed CHF $626,000,000 and an CHF 127,000,000 build up of accounts receivable resulting from price stabilization laws. The modest increase in the net debt compared to the investing activity was possible due to the strong operating cash generation which reached $459,000,000 plus €415,000,000 in proceeds from the sale of PEC2 and PEC3 receivables in 2024. In slide 16 we are showing a summary of cash flows resulting from price stabilization laws.
Over the four year period ended December 2024, the company accumulated accounts receivable for a total amount of SEK793 million on top of the SEK142 million initial balance reported in year end twenty twenty. All this represented sales revenues that could not be collected because of the enactment of the price stabilization for regulated customers. Thanks to the PEC one monetization program, the company could collect cash proceeds amounting to 193,000,000 between the first quarter of twenty twenty one and the second quarter of twenty twenty three and it had to bear financing costs of NOK 79,000,000 because these receivables were sold at a discount. PEG2 notes began to be sold in 2023. Under this program between 2023 and 2024 we collected $278,000,000 in cash plus 13,000,000 in interest income which alleviated liquidity pressures especially in 2023.
In 2024 the account receivable build up amounted to $227,000,000 or $200,000,000 including the interest and inflation adjustments. The gap between PPA tariffs and the stabilized prices began to decrease upon the full implementation of the PEC3 law. In 2024 we completed the sale of certificates of payment issued by under PEC2 two in an aggregate amount of 57,000,000 and we received 1,500,000.0 in interest income. On October 24, we completed the first sale of certificates of payment under PEC three in an aggregate amount of approximately $356,000,000. A second and last sale of certificates is expected to occur on April 2025, which should amount to approximately 109,000,000 plus interest.
As tariffs to regulated customers increase following the publication of the last tariffs decrease, PEC receivables will no longer accrue and the second PEC3 monetization schedule for April 2025 will mark the end of PEC receivables built up and related monetization programs. All in all, once the April 2020 ’5 sale is completed, NTU will have sold accounts receivable in an aggregate amount of approximately SEK1 billion over the last four years. The three PEC monetization programs contributed to alleviate the heavy financial pressure in terms of leverage, liquidity and funding compression to finance investments required for the energy transition. Now let’s move to slide 17. Our BBB stable outlook ratings have been confirmed by both Fitch and Standard and Poor’s (NYSE:SPY) Net financial debt reached SEK1.9 billion at the December with net debt to EBITDA down to 3.8 times.
We have made progress in our debt profile objectives: First to reduce net debt to EBITDA through EBITDA recovery Second to find the construction of Lomas De Talstal wind farm and the best charge projects whose objectives are to reduce the costs, our exposure to the spot market and the curtailment and intermittency associated with renewables and the third to extend the maturity profile of our debt. The first sale of PEG3 receivables in October also allowed us to reduce our net debt to EBITDA ratios. On the bottom left corner of the slide you can see the maturity schedule of our debt as of the December, which shows a reduction in refinancing risk and a 5.5 average coupon rate of our debt. At the January 2025 following the full repayment of our remainder of our 144A bond the average remaining life of our debt was extended to five point two years from three point eight years at the December 2023. Now I’ll leave you with Eduardo, who will brief us on the investment plans and guidance for the year.
Eduardo Milligan, Executive (Likely CEO or Senior Executive), ENGIE Energia Chile: Thank you, Allison. So now please let’s go directly to page 19 in which we will start with the second part of this presentation and present the medium term outlook for ECL. If we move directly to page 20, we can see that we are presenting an updated development plan to be executed between 02/25 and 02/27. This is no longer a potential plan. These are the concrete projects that have been under construction for a few weeks and will be delivered in the next two years.
So these new projects will add around 1.1 gigawatts of additional renewables and best capacity to the portfolio and will allow ACL to be fully balanced from both business and risk perspectives. To implement these additional projects, we will need to deploy approximately $1,400,000,000 in the next three years. On page 21, we present the seven projects that we have now under construction, which will bring, as I was mentioning before, 1.1 gigawatts of additional capacity to our portfolio in Chile. And these projects are located in different regions. As we can see in the graph on the right side, five will be located in the North where we have an important volume of energy sales, one in the center and one in the South.
Let’s see them in detail starting from the top left. So BES ARICA is a 30 megawatt BES project located on an existing site, So we are taking advantage of existing synergies. Then VESTOKOPIA is the only project that was already announced during 2024 and is located on the same site where we had two coal power plants. So we are building these batteries in the same square meters where we used to run Unit 12 and Unit 13. Then Beslil is a 140 megawatt BESS project located at the Mexiones site, optimizing again the project by using an existing site and existing connections.
Then Pampa Fidelia is a large wind project located in the North that will require total CapEx of around $475,000,000 And this project will also be key to balancing our position in the North where most of our unregulated clients are. Then we continue with Besse Los Lunos, which is a co located project in an existing PV solar plant. So this means we are adding again batteries to an existing PV solar plant and we are again taking advantage of the site and connections. Then we have PV plus BES L Ibelula, which is a total three fifty four megawatt project located in the Central region of Chile close to Santiago and will become our first project in this important region. Then we can continue with the wind Pemuco, which is a 165 megawatt wind farm located in the Southern region and this project will be ECL’s first greenfield project to be developed in that region.
Both Libellula and Pemuco will be key to reinforce our regional presence with different generation sources all across the country and this will of course improve our competitiveness for future growth. So now we are basically sharing that we will have seven projects under construction. So this is a material progress in our transformation plan. Then if we move to page 22, we can see a good number of power networks projects that are new works and also expansions, which as I mentioned before will bring additional regulated revenues to the portfolio. These projects will require ECL to invest around $250,000,000 in the next three years or between two or twenty four in the next three years.
Then page 23 shows consolidated snapshot of the investment plan mainly concentrated in renewables and BESS with a total investment of $1,400,000,000 to be deployed between 2025 and 2027. This investment includes the seven projects that I mentioned a few minutes ago. Now please let’s continue on Page 24. As a result of the investment plan we just explained, ECL’s average supply cost should continue decreasing and this positive effect should be captured by a positive evolution in ECL’s EBITDA while keeping ECL’s leverage under control during this intensive CapEx phase. So this is why the net debt to EBITDA ratio is expected to remain at current levels during this period.
Then moving to Page 25, in summary and also as a consequence of the updated investment plan, we are pleased to confirm that we are right on track to deliver the transformation plan that we announced some years ago. By 2027, we will be fully balanced, developing 2.5 gigawatts of renewables and batteries, disconnecting 1.2 gigawatts of coal power plants, converting the IEM coal power plant to natural gas, and this will also add 0.4 gigawatts of gas capacity to the portfolio. The positive impact of these new projects can be seen on next page 26, where we present the yearly average position of the portfolio. By $2.27, ECL will reach full balance considering the new investments and the end of the regulated PPA that we have in the North. This also means that ECL is now ready to resume its commercial activity and sign new PPAs and trigger additional investments in the future.
We can now move forward also with the guidance for 2025 and talk about the short term. This is presented in next page 27. So in 2025, we plan to invest approximately $900,000,000 and we expect an EBITDA in the range of $525,000,000 to $575,000,000 keeping the net debt to EBITDA ratio below four times. As usual, there are some upsides and downsides related to the variables described on the left side of this page. However, the exposure to spot prices is not as relevant as in previous year, so meaning lower upsides and downsides linked to the spot price volatility.
Now I will be pleased to leave you for some minutes and also to invite Melanie who will brief us on our ESG strategy and accomplishments.
Melanie Willeder, Head of ESG, ENGIE Energia Chile: Thank you, Eduardo, and hello everyone. If we move to slide 29, as shown here, if you have seen our 2023 report or also attended this call last year, you might recognize our approach to sustainability maintaining the same four pillars, the triple bottom line, performance, planet, and people, as well as a supporting governance structure. This is all to support our purpose of being a transition maker, enabling our customers in the decarbonization of their operations. The head of ESG role in which I am only exists since the October 1. So this year, we will be developing our first local sustainability strategy reflecting and adapting the group strategy for Chile.
We will have a vision for 02/1930 and 02/1935, which will cover all elements of the group strategy, which is being updated as we speak. And that will be doing a double click by region and business unit as required, considering the wide geographic, industrial, and social diversity across a company across a country as large and extensive as Chile. So with that context, let’s focus on some of our key results for 2024. We’ll cover, planet and people in more depth on one of the next slides and you’ve just heard the financial results in a lot of depth. So focusing on governance on the slide ’29, there are three achievements that stand out primarily from improving our processes in procurement, our code of conduct.
We implemented a human rights surveillance plan in the value chain. We also reinforced our due diligence process around ethics for our new supplier contracts. And we updated our ethics code of conduct in our business and, crime prevention approaches. With that, moving on to page 30 and sustainable finance. This has been increasingly key for us.
The IFC has issued their first sustainability linked loan in Chile to NG Chile. And with 400,000,000 US dollars over a ten year term, the loan is available to refinance debt and finance other green projects in line with our transformation plan. We’re removing away from fossil fuel based power generation to renewable energy generation and best systems. So this is this loan is linked to our ESG performance, meaning our commitments and targets on the non financial indicators, such as reducing our residual GHG emissions, installing renewable energy capacity, and supporting gender diversity. For the IFC, as per the regional director for Latin America quoted here in Spanish on the slide, this loan sets a precedent, and they consider us as a leader in tackling climate related challenges efficiently.
We’re also working with the IDB, and we look forward to expanding on these forms of financing and collaboration as both institutions have become valued partners of ours, as we have seen in our on sites visits with them in the preparation leading up to the visits and the follow-up conversations we’ve had with them. Moving on to slide 31, this is where we focus on the planet and people pillars and contrast some of our local and group targets, considering that, as we said in the beginning of the section, they will be reviewed during the next weeks and months as part of our first local strategy. Two key environmental indicators are the share of renewables as part of our total installed capacity and also how emissions intensive that generation is, meaning our scope one emissions covering all the non electric, stationary and mobile fuel consumption, as well as fugitive gases. These are mainly driven by the remaining operating core capacity that we have, as well as construction related emissions for the new projects. Our target for 2024 was to be below 3.9 megatons, which we have achieved with 2.2, even though emissions have increased from 2023.
Here, we need to point out that the decrease in 2023 was due to the units CTM3 and Red Dragon Gong offline for three or four months. And in reality, last year, our production went back to business as usual and we still managed to reduce overall emissions compared to 2022. So the relevant comparison here is between 2024 and 2022. On installed renewable capacity, our target for Chile in 2026 is 1% higher than the group’s 02/1930 target and with 42% in 2024 and the projected progress of our pipeline development and everything you have heard before from Eduardo and Alison, we are on track to achieve our 02/1930 targets. For gender diversity, we have met our national target, but the target itself that we set ourselves for last year was still lower than the group’s 2,030 target.
And this for context reflects dynamics and availability of talent in the Chilean market specifically. We continue to implement initiatives to attract and retain female talent. And in this context, it is also worth pointing out that we have a new benefit of paternity leave extending the five days stipulated by Chilean law to four weeks. And last but not least and absolutely critical in our sector, we maintained our lost time injury frequency rate at 0.1 as we did last year and below the trillion target that we have at 1.1, which in turn is lower than the group’s 2.3 target for 2.3. So this is something that is incredibly important to us.
On page 32, we provide an overview of rankings and certification. Nationally and the group level, we participate in a wide range of initiatives and ranking as relevant and as efficiently as possible avoiding duplication with our headquarters. The group has approved a science based target for 02/1945 and is a member of United Nations Global Compact. We continue to follow the 11 TCFD recommendations. And at a practical level, we are looking at climate risks at GBU level in each country and have adaptation plans in place at site level that we keep improving year on year.
We participate in the Ecovadis rankings as a supplier where where we are ranked in the ninety seventh percentile and we also use it for our own key suppliers globally and in Chile. We are ISO and EDGE certified and will be pursuing our recertification of the internal set label, which applies to our project development and is aligned with sustainable energy transition. It is externally audited and we participated and qualified for the first time last year. In Chile, we participate in the assessment of Accsoon Empresas, which is the local chapter of the WBCSD as well as Safofa and Merco rankings. And we take our suppliers on this journey with us and have 25 suppliers participating in our sustainable procurement program.
The selection of emissions intensive local key suppliers also participate in the Chilean national program that allows companies to report their carbon footprint for free. And if they choose to be audited, they get a corresponding certificate. And with that, to come to a close on page 33 and to leave space for questions, while we are driving a shift to renewable energy at full speed, we recognize that we need to go beyond just the quantity of our installed capacity. With our legacy coal assets, we need to ensure a just transition for our communities that considers employment opportunities and new skills, territorial development and irresponsible dismantling. As we accelerate this development of new capacity, especially in the South Of Chile, we need to establish constructive relationships with local communities via a permanent presence.
And we pride ourselves on our associativity policy that has been in place for years and that we continue to improve and add to during the existing strategy development. Thank you very much. And I will now leave you with Eduardo for the closing remarks of this presentation and any questions.
Eduardo Milligan, Executive (Likely CEO or Senior Executive), ENGIE Energia Chile: Thank you, Melanie, for this interesting update on our sustainability strategy and the recent achievements. So to conclude this presentation, it is confirmed that the completion of ECL’s transformation plan is on schedule with today’s new investments and these investments will require a $1,400,000,000 CapEx between 2025 and 2022. Also the company achieved a 28% increase in EBITDA reaching $515,000,000 and a net income of $228,000,000 in 2024. And future expectations include continued positive EBITDA growth accompanied by lower volatility and also improved risk control. So thank you for your attention and now we are open for any questions and suggestions that you may have for us.
Conference Operator/Moderator: Thank you. The floor is now open for questions. At this time, I would like to turn the floor back to ENGIE Energia, Chile, for any closing remarks.
Eduardo Milligan, Executive (Likely CEO or Senior Executive), ENGIE Energia Chile: Well, thank you, operator, and thank you, everyone, for being with us today. And of course, we remain, as always, available for any future questions that you may have in the next weeks. Thank you very much and have a very good day.
Conference Operator/Moderator: The conference has now concluded. Thank you for attending today’s presentation and you may now disconnect.
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