Earnings call transcript: Enel Chile Q2 2025 misses EPS, beats revenue

Enel Chile SA ADR (ENIC), with a market capitalization of $4.75 billion, reported its Q2 2025 financial results, revealing a significant earnings per share (EPS) miss but a strong revenue beat. The company posted an actual EPS of 0 against a forecast of 85.82, representing a notable shortfall. However, revenue reached $1,148.39 billion, surpassing expectations by 9.06%. Following the announcement, the stock price rose 0.95% to $3.18 in pre-market trading and closed at $3.38, reflecting a 0.3% increase from the previous close. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculations.

Key Takeaways

• Enel Chile missed EPS expectations significantly but exceeded revenue forecasts.
• The company’s stock price showed resilience, with a slight increase post-announcement.
• Strategic initiatives, including battery storage projects, signal future growth.
• Challenges in the national electricity system persist, affecting operational performance.
• Net income decreased by 8% year-over-year, impacting profitability.

Company Performance

Enel Chile’s overall performance in Q2 2025 was mixed. While the company missed EPS forecasts, it managed to deliver strong revenue growth, exceeding expectations by over 9%. This performance reflects the company’s strategic focus on expanding its renewable energy portfolio and enhancing its operational capabilities. Despite the challenges posed by poor hydrological conditions and transmission constraints, Enel Chile maintained consistent hydro generation levels and executed strategic gas trading operations.

Financial Highlights

• Revenue: $1,148.39 billion, up from the forecasted $1,052.97 billion.
• Earnings per share: 0, missing the forecast of 85.82.
• First Half 2025 EBITDA: $659 million, a 10% increase year-over-year.
• Net Income: $246 million, an 8% decrease year-over-year.
• Gross Debt: $3.9 billion, with an average debt cost of 4.9%.

Earnings vs. Forecast

Enel Chile’s EPS of 0 fell short of the anticipated 85.82, marking a significant miss. However, the company’s revenue performance was robust, exceeding forecasts by 9.06%. This revenue surprise highlights Enel Chile’s ability to capitalize on its diversified generation portfolio and strategic market positioning.

Market Reaction

Despite the EPS miss, Enel Chile’s stock price showed a positive reaction, increasing by 0.95% in pre-market trading and closing at $3.38, up 0.3% from the previous day. The stock remains within its 52-week range, indicating cautious investor optimism driven by strong revenue performance and growth initiatives.

Outlook & Guidance

Enel Chile confirmed its full-year EBITDA guidance and maintained its gas trading margin guidance of $80-90 million. The company continues to invest in distribution resilience and is awaiting regulatory updates on ancillary services. Future projects, including potential wind farm developments, are part of its strategic plan.

Executive Commentary

CEO Gianluca Palumbo emphasized operational flexibility, stating, "We are acting with flexibility and precision, identifying key operational actions and deploying solutions to safeguard value." CFO Simone Conticel highlighted financial strategies, noting, "We are continuously evaluating liability management alternatives to optimize our financial costs."

Risks and Challenges

• Supply chain issues and transmission constraints could impact operational efficiency.
• Poor hydrological conditions may affect hydro generation levels.
• Regulatory changes could influence future project approvals and profitability.
• Market saturation in the renewable energy sector may limit growth opportunities.

Q&A

During the earnings call, analysts inquired about energy losses in distribution, the sustainability of gas trading operations, and the strategic rationale behind battery storage investments. Executives addressed concerns about potential impairments and outlined cost reduction strategies to enhance financial performance.

Full transcript - Enel Chile SA ADR (ENIC) Q2 2025:

Victor, Conference Operator: Good morning, ladies and gentlemen, and welcome to the Enochilus First Half and Second Quarter twenty twenty five Results Conference Call. My name is Victor, and I’ll be your operator for today. 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.

These factors are described in Enel Chile’s press release reporting its first half and second quarter twenty twenty five results. The presentation accompanying this conference call and NOG List annual report on Form 20 F included under risk included under risk factors. You may access our first half and second quarter twenty twenty five results press release and presentation on our website, www.no.cl, and our 20 f on the SEC’s website, www.sec.gov. Readers are cautioned to not place undue reliance on those forward looking statements, which speak only as of their dates. Enel Chile undertakes no obligation to update these forward looking statements or to disclose any development as a result of which these forward looking statements become inaccurate, except as required by law.

I would now like to turn the presentation over to Mrs. Isabella Clemas, Head of Investor Relations of Enno Chile. Please proceed.

Isabella Clemas, Head of Investor Relations, Enel Chile: Good morning, and welcome to Enel Chile twenty twenty five Second Quarter and First Half Results Presentation. We greatly appreciate that you take time to join us today. My name is Isabella Clemiz. I’m the head of investor relations. Joining me this morning, our CEO, Gianluca Palumbo, and our CFO, Simone Conticel.

Before we begin, I’d like to take a moment to introduce Gianluca Palumbo, who assumed the role of chief executive officer of Enel Chile on July 1. Gianluca is an electrical engineer, a graduate of University of Naples, Federico II, and brings nearly three decades of experience within Enel Group. Throughout his career, he has held several strategic leadership positions, including head of global network development for all distribution business lines with Enel and General Manager, Rolfo Deszu, Enel Distribution Company Argentina. Most recently, Gianluca served as Head of Global Construction, Operation and Maintenance for the entire distribution of business across Enel Group. Our presentation and related financial information are available on our website, www.enel.cl, in the Investors section as well through our Investor app.

In addition, a replay of the call will soon be available. At the end of the presentation, there will be an opportunity to ask questions via webcast chat through the Ask a Question link. Media participants are connected in the listening mode. Gianluca will kick off the presentation by covering key highlights of the peers and the country energy content. He will also delve into our portfolio manager actions and provide updates on the regulatory context.

Following that, Simone will offer an overview of our business economic and financial performance. Thank you all for your attention. And now let me hand over to Gianluca.

Gianluca Palumbo, CEO, Enel Chile: Thank you, Isabella. Good morning, and thank you for your participation. I’m honored to be speaking with you today. Together with our senior leadership team, I’m committed to our core goals as we navigate both challenges and opportunities with clarity and determination. Let’s start the presentation with our main highlights of the period.

Let’s begin with portfolio management. Hydro generation remained consistent with the last year’s levels, supported by a higher than expected thermal dispatch. This was largely driven by transmission constraints throughout the period, as well as temporary unavailability of certain thermal units within the system. Our gas trading operations also performed well this quarter, playing a strategic role in complementing our portfolio and helping offset our spot market purchases. This activity continues to be a key tool in navigating current market dynamics and is expected to remain at a relevant level throughout the year.

Now moving on to our Distribution segment. At the same time, we have made solid progress with our Resilient and Winter program. This initiative is designed to strengthen our grid and improve our response to climate related events. As part of this effort, we have been deploying remote control systems across our network to significantly reduce average services restoration times. This is a key part of our strategy to ensure long term reliability and to improve our operational continuity.

We have also implemented a new vegetation monitoring and control program, carried out in close coordination with local municipality and relevant regulatory entities. This initiative aims to prevent surface disruption and further secure the stability of our infrastructure. Additionally, we have introduced new procedures for managing grid failures more efficiently. For instance, once applied, we are using generation units to support service restoration during network recovery. These enhancements are part of our broader strategy to boost system resilience and operational responsiveness.

Let’s now turn to the regulatory and country context, which continues to play a key role in shaping our strategic decisions and long term planning. This third quarter will be particularly relevant as we expect the release of the final VAD2428 Consultant Report and the publication of a new regulation on best ancillary services. I will share more details later. In the meantime, the P and P regulated tariff decree for the 2025 was published in July. This update adjusts the energy component of regulated tariffs.

As I will explain later, it enable us to begin recovering larger portion of PAC-one and provides greater visibility over cash flow for our generation business. Let’s now move on to our financial performance, which reflects the resilience of our operations and our ability to adapt to a changing environment. In the 2025, we delivered an EBITDA higher than the same period last year. This strong performance was further supported by a positive FFO driven by $261,000,000 received from Stabilitational Energy Mechanism Factoring. This inflow significantly improved our cash flow position.

As a result, we have maintained a solid liquidity position and allows us to navigate potential headwinds posed by evolving climate scenario, while also advancing our investment program across both our generation and distribution businesses. Now turning to generation investments. After gaining confidence in proposed ancillary services regulation and deeply analyzing several market scenarios for Chile and observing the cost evolution of the peso, We are ready to formally launch construction of our best investments. These projects will be deployed in the Northern Chile adding around 0.5 gigawatts of battery energy storage to our portfolio within the next two years. This marks a significant milestone.

It reinforces our commitment to Chile and demonstrates the strength of our strategy to continue serving both regulated and free market segments. Now let’s move to Slide four to talk about the country’s market situation. The national electricity system has been affected by several factors, including: poor hydrological conditions, both scheduled and unscheduled maintenance across various thermal power plants and the temporary unavailability of a transmission line connecting the northern and central regions of the country, mainly in April and June, which led to significantly system decoupling. All these factors combined led to increase in spot price in the Central Southern Zone of Chile, mainly during daytime hours, resulting in higher operating costs for the system, as we are showing in the left part of this slide. On the hydrology front, cumulative rainfall, as expected, has been lower than in the same period of 2024.

Nevertheless, the hydro generation during this period was close to last year’s levels. Therefore, we are maintaining our hydrology guidance for the year in line with the average observed over the past ten years. For the 2025, we expect hydro generation to reach around 11 terawatt hours. Despite this challenging scenario, we have managed to navigate it thanks to our solid and long gas supply position, which includes our long term LNG contract with Shell at Argentina Gas Supply, the full availability of our efficient thermal capacity and strategic water reserves from favorable rainfall in the 2024 storage in our dams. Thanks to our robust and diversified guide position, we were able to capitalize on favorable trading opportunities across both local and international markets during the period.

This demonstrates the effective complementarity within our portfolio. Now moving on to Slide five. Let’s review our generation portfolio and energy balance, taking into account the system constraints I just outlined. First of all, I would like to highlight that we have started 2025 with a solid diversified portfolio, which includes a total net installed capacity of 8.9 GW with 78 coming from renewable energy source and battery energy storage systems. Net electricity generation decreased 5% compared to production as of June 2024.

This decline was driven by lower hydro dispatch during the 2025, reduced renewable generation, increased the curtailment levels caused by transmission line limitation already mentioned. However, this was partially offset by higher contribution from our efficient thermal power plants. During the 2025, net generation declined to 5.9 terawatt hour, mainly due to the reduced renewable generation already mentioned. In the first half, our energy sales almost reached 15.1 terawatt hour, mainly due to lower sales to regulated customers following the expiration of regulated contracts. During the 2025, physical energy totaled 7.4 terawatt hour, lower than the 2024, mainly due to reduced sales to regulated customers and free clients.

In this first semester, as you can see in the slide, we reduced our purchases from third parties and also our spot market purchases mainly at non solar hours. Now I would like to take a moment to discuss the energy regulatory framework and share important upcoming updates on Slide seven. Regarding our distribution business, we are currently navigating a new regulatory cycle that incorporates a new replacement value of $2,100,000,000 The consultant’s final report on the twenty fourtwenty eight PAT is expected to be delivered and published in the coming weeks. We estimate the regulator will release the preliminary technical report for this new cycle in the 2025. In relation to the 2024 BAD process, we remain monitoring the resolution from the Superintendency of Electricity and Fuels, which will establish the timeline for defining the outstanding debt in favor of distribution companies, marking an important step towards improved regulatory.

Now on tariffs, in July 2025, the decree for the 2025 P and P was published. This decree allows the recovery of cash in our generation business for an amount of around $48,000,000 in the next six months. Related to the PEC accruals as of June 2025, we had an accounts receivable related to the PEC of around $164,000,000 These figures already include the factory executed in April for $261,000,000 Let’s now move to right hand side of the slide to review updates on important changes in the regulatory framework currently under discussion. The proposal to expand the electricity subsidy for the country’s most vulnerable households continues under discussion. So far, the measures approved to date are: additional net VAT related to the tariff increase, increase the amount of compensation that distribution companies must pay to clients in case of distribution power outages.

The discussion now moves to the Finance Commission before being voted in Senate plenary. Measures related to the CO2 tax and so called Bolsa Pima initiative are still under discussion. Regarding the remuneration of ancillary services for battery energy storage systems, we expect regulatory update in the 2025. The proposal presented by National Energy Commission seeks to encourage the participation of Baversa in the ancillary service market by recognizing the costs associated with their delivery, given the systemic benefits that their inclusion would entail. To this end, a calculation methodology for the opportunity cost is proposed to mitigate the risk of foregoing participation in energy arbitrage.

Next, our CFO, Simone Conticerli, will present a review of our financial and economical performance.

Simone Conticel, CFO, Enel Chile: Many thanks, Gianluca, and good morning, everyone. I will start by reviewing the highlights of our performance over the period. Before we start commenting the first half results, let me remind that as of 01/01/2025, Enel Chile changed its functional currency from 2,000 pesos to US dollar. For comparative purpose in today’s presentation, the first half and the second quarter thousand twenty four figures are converted using the average exchange rate of the figures. And now let’s take a look at a brief overview of our financial performance.

As shown on the slide, in the first half twenty twenty five, EBITDA reached $659,000,000 representing a 10% improvement compared to the last year figures. The improvement is mainly driven by strong success performance in generation and improved gas trading activities, which more than offset the negative impact of regulated PPA desperation and transmission line constraints. The June transmission line constraint particularly impacted the second quarter EBITDA that slightly decreased by US10 million dollars compared to the second quarter twenty twenty. Moving to the net income, the first half net income amounted to $246,000,000 representing a decrease of 8% compared to the previous year, mainly due to the higher G and A, while in the second quarter, income amounted to $71,000,000 The first half FFRO showed a significant improvement compared to the last year, reaching $03,000,000, 7.8 times the previous year’s figure. And the second quarter FFO reached $295,000,000.

That means $357,000,000 higher than the result of the same period of 2024. The increase is driven mainly by the previously mentioned improvement in FIBIDA and the recovery of funds associated with PEGA. We’ll go into more details later in the presentation. And so now moving, let’s move to the next slide to review the progress made on CapEx. Capital CapEx reached $157,000,000 in the first half, mostly centered on Greece and Powerpoint three’s performance.

Let’s take a closer look at the reallocation. 40% or $63,000,000 was directed towards Greece investments. 31% or $48,000,000 supported thermal projects. 29% or $45,000,000 was invested in renewable and storage. The brief focus, as previously explained by Gianluca, remains on the Residium programme reinforcing infrastructure to reduce vulnerability to climate driven disruptions.

A priority for Telman segment is the maintenance and performance enhancement of the power plant fleet. In the renewables segment, we have centered our efforts on finalizing the PMCD program, enhancing hydro facility performance and maintaining fleet availability. Fasting to breakdown by nature, asset management CapEx totaled $89,000,000, accounting for 57% of the total CapEx, mostly used for the maintenance of Atacama, Suintero, and San Isido CCGT, and Greece’s operating maintenance and digitalization. Development CapEx was $38,000,000 primarily driven by the complexion of 2024 investment program for PMGDs and investment for grid reliability enhancement and telecontrol deployment. The 2025 development CapEx set for battery related project has been partially deferred to 2026.

Customer CapEx totaled $30,000,000 mostly focused on low and medium bolt on connection projects and initiatives to support growth increase. And now let’s move to the next slide, which presents a detailed view of our second quarter EBIT. In the 2025, REBITDA reached $293,000,000, representing a slight decrease of $10,000,000 compared to the same period of 02/2024. Let’s go through the main reason for the performance differences. Starting with generation business, we recorded a decrease of $106,000,000 in PPA sales, primarily due to the termination of some high priced regulated contract that impacted on volume and average price of the regulated portfolio, partially offset by the negative impact of exchange rate hedges recorded in 02/2024.

Going to the sourcing, we recorded a positive effect of $92,000,000 despite the negative impact of $23,000,000 due to the transmission line for strength and introduction, particularly in June. The good performance is primarily explained by lower cost in the spot market, mainly due to lower energy volume for shape and lower third parties purchases. Regarding gas optimization activities, we achieved a positive contribution of $25,000,000. Thanks to increased gas trading volumes for the total of 6.4 therapy during the 2025. Regarding our business, we reported a positive impact of $7,000,000 mainly driven by a provision reflecting the higher tariff expected for the twenty twenty four, twenty twenty eight regulatory remuneration figures, offset by a higher tariff during the quarter, mainly due to increased maintenance activity and strengthening degrees.

We also recorded a negative impact of $14,000,000, mainly due to the generation cost related to the new development capacity that started operating after June 2024 and maintenance activities. Finally, in the 2025, we recorded personnel cost one off effect mainly for the incentivized early retirement plan to support the company’s organization aimed at improving internal performance. And now let’s move on to the next slide to review the main impacts on EBITDA during the first half. In the first half, RF beta reached $659,000,000, representing an improvement of $62,000,000 compared to the same period of 02/2024. Starting with the generation business.

We recorded a decrease of $155,000,000 in decreased sales, mainly due to the termination of high price related contracts, partially offset by the negative impact of exchange rate hedges recorded in 2024 and the positive price assets due due to the indexation of three market contracts. Regarding sourcing, we recorded a positive benefit of $189,000,000 despite the $34,000,000 negative impact due to the transmission line restriction following the February blackout and the additional second quarter issues. The result was obtained thanks to lower spot market and third parties energy purchase costs, energy settlement for previous periods, reduced transmission costs, and finally, lower production costs, thanks to the efficiency of our thermal power plants. In the 2025, gas optimization activities contributed for about $22,000,000, also thanks to an increase of 5.9 that are bit due in trading volumes versus the same the same period of 02/2024. On the Greece business, we recorded a positive impact of $34,000,000, primarily driven by two factors.

The provision reflecting the higher tariff expected for 02/2024, 2028 regulatory remuneration period and the favorable effect of tariff indexation. As outlined in the quarterly analysis, in the first half, we recorded an increase of generation costs due to the new level capacity and the maintenance activity. Finally, as previously explained, have a non recurring effect of $30,000,000 related to the company’s reorganization. And now let’s move on to the next slide where we will review the net income evolution. Our first half twenty twenty five net income reached $246,000,000, a decrease of 8% compared to the last year figure, mainly explained by improved EBITDA by $62,000,000, offset by higher depreciation, amortization, impairment, and bad debt expenses for $66,000,000, mainly due to the commissioning of new renewable capacity amounting to $20,000,000.

The $29,000,000 impairment followed our decision not to proceed with the new PMGB solar project initially planned for development in this area. And finally, the increase of risk bad debt provisions amounted $6,000,000 mainly driven by higher average invoice amount due to the rise of tariffs. Regarding financial result, we recorded a negative variation of $28,000,000 mainly explained by the lower capitalized expenses of renewable projects, the 2024 interest on tax receivables, partially offset by lower financial expenses and positive foreign exchange differences. We also recorded a $3,000,000 increase in the income taxes, mostly due to the improved results. Focusing on the quarter, net income decreased by $39,000,000 mainly due to $10,000,000 decline in EBITDA, $41,000,000 increase in depreciation and amortization and net debt primarily due to the operation of a a new renewable capacity and a commented impairment.

And finally, $12,000,000 decrease in income taxes mainly due to the lower results reported in the second quarter twenty twenty five versus the second quarter twenty twenty four. And now let’s move on to the FFO analysis on the next slide. Let’s analyze the FFO composition for the 2025 and the main effects compared to the same period in 02/2024. Our FFO reached 4 and $10,000,000 representing an improvement of 361,000,000 compared to the 2024. This is due to the following factors.

First, EBITDA amounted to $659,000,000 with a positive variation of $62,000,000 as previously explained. Second, the $269,000,000 recovery of PEC receivable in the 2025, mainly due to factoring executed in April in the 2025 related to PEC three. It’s worth mentioning that we offset a positive FF of variance of $46,016,000,000 dollars versus the 2024, Thanks to the end of accumulation of back receivable started in October 2024. Third, the the working capital increased by $256,000,000 mainly due to the development CapEx payment and seasonality on energy payments. The increase was higher by $116,000,000 versus the new signal, mainly due to the negative effect of energy payment scheduling and the increase in energy distribution receivables due to the increase in the tariff.

These effects were partially offset by lower CapEx payments related to the new renewable capacity. Fourth, the income taxes impacted on FFO by $187,000,000, mainly due to tax payment in the generation business. Income taxes paid in the first half two thousand twenty five were higher by $60,000,000 compared to the first half two thousand twenty four. This difference is mainly due to the increased tax payment in the generation of business driven by both higher results and higher monthly payment tax rates. And finally, financial expenses amounted to $82,000,000 mostly due to the credit related costs to the credit related costs.

This represents a reduction of $38,000,000 compared to the first half twenty twenty four, mainly driven by a lower average debt this year. And now let’s take a look to our liquidity and leverage position. Our gross debt increased slightly by $4,000,000,000 to $3,900,000,000 at the June 2025 compared to December 2024. This increase is mainly due to external effects related to the net working capital needs in the second quarter. The gross debt increased between December 2024 and June 2025 was driven by $100,000,000 drawn from the new credit line with the CAF Banco de Saporio de America Latina E and Calibre and $42,000,000 in new leasing liability offset by $102,000,000 debt amortization.

The average maturity of our debt portfolio slightly declined to five point nine years as of June 2025 compared to six point two years in December 2024. And the portion at fixed rate is the 86% of the total debt. The average cost of our debt reached 4.9 as of June 2025, in line with our effort to optimize the financial costs. Regarding liquidity, we are in a comfortable position to support our capital needs for the upcoming month and hope with the next year maturity. And finally, as of June 2025, we have available committed credit lines for $590,000,000 and cash equivalents for $320,000,000.

So thank you all for your attention. And now I will pass the floor to Gianluca for the closing remarks.

Gianluca Palumbo, CEO, Enel Chile: Thank you, Simone. As I take part in my first earnings call as COO, I’d like to extend my thanks to our shareholders and the broader investment community for your continued support of Enel Chile. I stepped into this role committed to working with the Enel Chile team through an agile, data driven approach, clarity in execution and deeply rooted in operational excellence. This mindset will guide how we identify the seek opportunities, design and scale innovative solutions, and lead our team with clarity, purpose, and accountability. I look forward to fostering our culture of agility, productivity, resilience and innovation, confident that this approach will generate consistent and sustainable value to all our stakeholders.

Now I would like to share the following closing remarks. We remain fully committed to our winter plan in the Distribution business with a clear focus on ensuring services continuity and reliability, especially during the most critical months of the year. The timely completion of all infrastructure projects is progressing as planned, strengthening our ability to respond effectively within a robust risk management framework. This approach includes a well defined risk prevention activities, improves organizational readiness, enhances our capacity to respond rapidly and supports a swift recovery. Also, now that we have greater clarity regarding the regulation, we are set to begin construction of our BEST pipeline in the coming months.

In parallel, we are proactively implementing managerial measures to mitigate impacts on our portfolio, those related to transmission constraints and asset unavailability. We are acting with flexibility and precision, identifying key operational actions and deploying solutions to safeguard value and maintain system stability and rentability. At the same time, we continue to improve the foundations of our business model, which has consistently proven resilient in face of external challenges. These ongoing managerial actions enhance our adaptability, reinforce our positioning and support the delivery of sustainable long term value. Now let me hand it over to Isabella for question and answer session.

Isabella Clemas, Head of Investor Relations, Enel Chile: Thank you, Gianluca. Thank you, Simone. So let’s now move on to the Q and A session. We will be taking questions this time via chat through the webcast. So the Q and A session is now open.

So I will start here Gianluca and Imani with the first question we have received. The first question comes from Florencia Mallorca from METRI. The first question of Florencia is Gianluca. Which is the main reason behind the higher energy losses in the distribution business? And she also the second question is regarding higher gas sales in the generation business, how sustainable they are?

Okay, Juanita? Yes.

Gianluca Palumbo, CEO, Enel Chile: Losses in distribution increased once comparing 2024 versus 2025. One reason is higher electricity prices starting in the mid-twenty twenty four, which led to more energy deaths and the last year climate events. Some changes in customer habits also added to the problem. To fix this, we have made payment plans easier for customers. We have also added better tools to find debt, and we are working with regulators to improve the rules and regulatory model.

Chile still has lower losses than other Latin American countries, but we are watching the situation closely and working with teams in other regions to share what’s working and reduce these losses.

Isabella Clemas, Head of Investor Relations, Enel Chile: Thank you, Gianluca. Then we have the second question regarding the gas.

Gianluca Palumbo, CEO, Enel Chile: Yes. Okay. Okay. Our current guidance is between $80,000,000 to $90,000,000 for this year. We expect that the sale of gas surplus could be sustainable in the next few years, considering our availability.

However, profitability and volume of gas trading will vary considering market conditions.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. Thank you very much, Gianluca. So now let’s go to our second question coming from Bertucci Giannola from Mediobanca. So she has several questions that go one by one this morning. So the first one is from hydrologists.

Okay. So she’s asking that in the first half, hydro production is slightly above 50% of the full year target, which gets confirmed. How do you expect hydro volumes to evolve in second half? Do we expect a slowdown? And if you are comfortable with the full year guidance, both in the hydrology and also in the we understand also in the EBITDA numbers, if you’re confirming.

Simone Conticel, CFO, Enel Chile: Okay. So the first half was very, but considering that we have many plans with reservoir and reservoir was at the highest level at the beginning of the year, we achieved a very high level of production. July was a little bit of surprise. It was it started a little bit dry. And but in this moment, it seems that the the rain season is has already come a little bit late.

So, also, considering that we are expecting the melting season, and there are a lot of snow on the mountains, we are quite optimistic about the the hydro production for the for the next month, but clear, we’ll go on monitoring the the situation. And so we we can confirm 10.7 terawatts hour that was our target in the first year of the.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. Thank you, Simone. So we are going to the the second question from Beatrix. It’s about the debt, a cost of energy. Can you share with us your current average cost of debt?

Simone Conticel, CFO, Enel Chile: We have a very good cost of debt coming from the the the the the we we made in the past in a more favorable condition. We would start the year with 5%, but in this moment, the the cost of that is slightly decreased to 4.9%, also due to our good news between long term and short term.

Isabella Clemas, Head of Investor Relations, Enel Chile: Thank you, Simone. So let me see now. We have question coming from Francisco Bayes from Santander. So the question of his is regarding the 2025 guidance as well. So considering the worst than expected energy market condition.

So he’s talking about the low hydrology and an available top generation plant, transmission with issues, which led to higher spot market prices. Are you considering to adjust your full year year end guidance in in terms of EBITDA, net income, and payout?

Simone Conticel, CFO, Enel Chile: So thank you for the question, Francisco. As we know, we are a very well So we have many possibility to react also to events. And so also in the first half, that as you commented, there was, you know, a negative out from the from the point of global external pressure, whether all the GIF price, product with the transmission line and everything. We reacted and reached good results in line with our expectation.

And so we are sure that we can continue on this trend, and so we hope for more. So the the guidelines for the.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. Thank you, Simone. So I’m checking here. Okay. The next one is coming from Ruby Alvarado from BC.

Thank you, Ruby, for your question. So he has three questions, Simone. So I think I go one by one. So he asking about, do you expect any additional impairment in the future related to SALINA’s project? Is this second one?

I think it’s one by one, Angela.

Simone Conticel, CFO, Enel Chile: Okay. Okay. So let’s talk about SALINA project. This is an important project, a power plant with 37 30 375 megawatts in the initial project. We built the first 205 megawatts in 02/2024, and then the condition in the market changed.

What happened that we moved the destination of our assets to two different projects, in particular to the construction of PMGD, so small power plant, solar power plant in the area. Considering that in the the market for this kind of quality is using, finally, we change the value of our assets to align the the the assets at the market level. And in this moment, the value of the asset up after the last impairment is quite low, and we are not expecting any other impairment.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. Thank you, Simone. So the second question is, could you give us more color on the reduction costs in the distribution segment? So yes, no, if sales in the distribution business were down, why do we see consolidated costs decreasing more than consolidated sales? Did you reach some additional efficiencies in terms of cost this year?

Simone Conticel, CFO, Enel Chile: So we are keep on working on distribution business. You know that this is for a core business. And for sure, we are looking at the possibility of reducing the cost. For this reason, we launched some of the short concepts and also some extraordinary activity to contain the cost. And this is the main reason for the cost reduction.

I think this is in line with our policy, you know, try to increment and the the the the value of this business.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. Thank you. So the last one is, what is the reason behind the year over year increase in the financial expenses in the quarter for NLG?

Simone Conticel, CFO, Enel Chile: The increase is related to also increase of amortization. The reason is that in the last year, we had a large amount of projects under construction, And so we we have the opportunity to capitalize on cost in the perfect way in these projects and considering that this project start producing energy, we we issued the COD in particular for the huge project of Los Converse this year. We have a little bit changed the possibility to capitalize the financial cost.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. Thank you, Simone. So the next one is coming from Felipe Torres from SSP Abita. Thank you, Felipe. So the question is, thank you for the presentation question.

August trading activities already made were booked, or can we expect further impact of gas trading already done in the next quarters? Can you give us guidance regarding future gas trading activities in the current context of lower availability of Argentinian gas? Gianluca?

Gianluca Palumbo, CEO, Enel Chile: Okay. Thank you. Thank you, Felipe, for the question. In in the 2025, we signed an agreement to sell sell two LNG cargoes for delivery in Europe. We are always looking for opportunities to trade LNG surpluses.

The margin of the first cargo was booked in the 2025 and accounted for $23,000,000 The second cargo will be sold and booked only in the fourth quarter of this year. As commented before, our current guidance for 2025 gas margin is between $80,000,000 to $90,000,000. And and at the end oh, okay. Yes. The the last is okay.

Regarding Argentina natural gas, we would like to clarify that we have we have a firm contract, and our demand has been successfully delivered. Expect during one week in June due to the extreme weather conditions in Vaca Muerta.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. Thank you, Gianluca. So let me check here. Okay. We have from next one coming from Martin, Aransas, Sanballans.

And now so from Rodrigo Mora from Moneda. Actually, it’s both are are quite the same. No? So they are asking questions about the the best. No?

They announced that best investment in the presentation. So I’m reading here the question. What is the difference between the new battery investment plan and the previous one? How much do you expect to invest in the following two years? What are your expectations in terms of additional revenues from ancillary services?

This is from the first one that is from Martin, and I read from Moneda as well from Ovi Gomorrah.

Gianluca Palumbo, CEO, Enel Chile: Okay. Thank you, Martin. So the best investment is in the same Enel Chile presented in the Capital Market Day twenty fivetwenty twenty seven. And so we are not considering in our numbers yet ancillary system revenues.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. Thank you. So from Rodrigo Mora, Moneda Patria. So thank you for your participation. Let me see here.

I have one question. Could you give us more color about the best program, the five fifty seven megawatts that you announced? Many hours is your battery that you’re considering and the schedule that this capacity will be ready? And could you give us more information about the new wind farm project announced during the strategic plan 02/2025, 02/1927? Thank you very much.

Gianluca Palumbo, CEO, Enel Chile: Okay. The investment is around 400,000,000 in three best projects. Four forty fifty three megawatts in total over four hours with the code in 2027. The wind farm projects announced during the strategic plan are still in the business plan, but with a further code that then best projects.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. Thank you, Gianluca. I’m going now to a new one from, for Lisa Mallorca from. She’s asking about Simone. So the the debt.

Now when you’re expecting to address the $20,272,028 bonds of an Chile, the 1,000,000,000 yen bond?

Simone Conticel, CFO, Enel Chile: So thank you for the question. And this is really not the the the gap maturity that we have in the medium test. But in this moment, that is a little bit early, you know, to to make plans about that. What we can say that in general, then we continuously evaluate liability management alternatives to optimize the the our financial costs. And so our analysis that already have been started include many of the financial option, like issuing bonds or, for example, security, long term loans, and so But maybe we will be more involved in this issue in the next months.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. And, Simone, we have another one for for you coming from Liliana Young from UBS. He she’s asking about the the investment. No? If we are seeing let me let me ask here the question.

Where do you see most attractive investment opportunities for a subsector standpoint? Renewables plus VAT or distribution on transmission? What about dividend share buyback? Do you have a a program of share buyback in your company? Thank you.

So I’m now so sorry, There is another one that I keep here. And if you can provide more color on the CapEx plan of this company as well.

Gianluca Palumbo, CEO, Enel Chile: Okay. So the first one, please, can you help me about where

Simone Conticel, CFO, Enel Chile: are Okay. Okay. Investment. Okay. I remember.

And then I will ask for the for the next For our investment, we try to optimize the investment in all areas, I mean, in generation, but also in distribution. In generation, for sure, at the center of our strategy, there are the projects for hybridized renewable power plants, mainly in the North, mainly solar power plant through base. But, also, we are considering many other opportunity, for example, also to to build or maybe to buy also power plants in other areas of the of the country. And talking about distribution, we are investing as much as we can, considering our cash flow that is impacted by by our current remuneration model. And these investments are mainly devoted to increase the resilience of the of the grids, also considering that this very disruptive climate event, it seems that will will be poor in in the future more often.

So all our efforts to be taking these tickets. Second, talking about share buyback, this is something that is not in the in the end of the management. It’s a decision of the assembly of the shareholders. Always is an opportunity for a company that has a very good solid leverage. So this is opportunity can be used, but in this moment, I don’t have any specific at all about that.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. Thank you, Simone. So the other question on Liliana is also about the CapEx plan of this of the company for confirming of the customer today, the CapEx plan.

Simone Conticel, CFO, Enel Chile: So we are confirming for the moment the the the the current plan as we have commented during the presentation. We have a little bit delay in 2025 CapEx. Of course, we started the digital investment in best. We expected that the very good news from the regulator about the participation of VETS on the the complementary services market, but we are going to start in the very next phase. But this batch be delivered with some more delay compared to the plan.

And we will talk about further opportunity in our plan presentation further.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. Thank you, Simone. So the next question is coming from Fernando Salis from BTG. So he is welcome you, Gianluca, from the from the company, and thank you for the presentation. He has two questions.

The first one is the proposal of ancillary services remuneration from energy storage for the CNE is a positive step, but it is far from ideal as it doesn’t see many incentives. Your decision, not as a company, to launch the new best project is because you expect the initial proposal to be improved before it has made public, considering all the comments that were spent over the coming weeks? The second one, have you gotten any feedback from the TNE? The other question is, the new best project will hybridize existing solar PVs in the North, or are you looking to develop a stand alone asset? Thank you for your questions, Fernando.

Gianluca?

Gianluca Palumbo, CEO, Enel Chile: First of all, thank you, Fernando. You’re well welcome. So the about the the first question. The new ancillary services proposal will allow capture higher spot prices with independency of the best dispatch by coordinator. And about the second question oh, okay.

We have so we have advanced battery storage project totaling 450 megawatts, like before, for four hour duration in Northern Chile, and we expect to share important updates in coming weeks. Our wind project remain on track and fully aligned with our current plan. Finally, the best projects will hybridize the existing PV plants in Northern Of Chile. The new best capacity main goal is to improve our non solar hour production rather than providing ancillary services.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. Thank you. Thank you, Gianluca. So we have the last question here. The last one is coming from Rodrigo Mora, Moneda Pasha.

Simone, question here. So so the first one is related to the incentivize the retirement plan included in this quarter for the company. Could you give us to investors more information about the split by subsidiaries, not by segment? And now so he asking question about the availability of some renewable assets of the company. The he’s he’s saying that Guangchon is generating less than one third of one year ago, and the geothermal plant, Cerro Pavilion, has lower reduction of energy generators.

So can you give more information about the actions that the company is taking to recover this capacity of generation?

Simone Conticel, CFO, Enel Chile: So, Rodrigo, thank you for your questions. First of all, let’s start talking about the reorganization of the company. It’s a very important project that that will improve our internal efficiency in the future. And so this plan go to all the group here in Chile. 5 millions of the impact are on generation area, more or less the same amount on distribution area, but we are also looking at the services areas.

Talking about our solar assets, it’s true. We are producing a little bit less than expected. And the reason is that we anticipate some maintenance activity especially on cross call measures. During this first half, we come to finish the the job in other few weeks, maybe in September, we should get ready. And this is due to some problems, but also I want to stress that this kind of of issue covered by the issuance, we have the initiative cover the cost of the maintenance, but also partially the the the the the lost production.

So it is very important. Then talking about several aryon, it’s true that we are producing a little bit less. We are producing two out of three combined, but the three combined are currently functioning. The fact is that we have a little bit less of fluid and this is the natural evolution of the wells, but we have planned already an intervention with a specific machine to be transported in the site to recover the full efficiency of the wells. And so by the end of the year, we we should be making this smarter.

Isabella Clemas, Head of Investor Relations, Enel Chile: Thank you, Simone. So now it’s our last question. So from Fernando Salis, BTG. On the distribution now, Gianluca, so has there been any progress on the change to execute investment in resilience in Greece and be recognized in the asset base earlier?

Gianluca Palumbo, CEO, Enel Chile: Okay. Thank you for your question. No. Progress so far. But SNL are actively advocating for for the need to transition to a new model based on real assets.

A significant investment in the network will be required to address the increasingly fragrant effects of climate change. And so the higher electrification expected and the growing penetration of renewables in the system. So this is our point.

Isabella Clemas, Head of Investor Relations, Enel Chile: Okay. Thank you very much, Gianluca. Thank you all connected. So if there is any other

Victor, Conference Operator: questions or any other information you may need, our Investor Relations team will be available. Luca,

Isabella Clemas, Head of Investor Relations, Enel Chile: Thank you very much. Have a good week.

Simone Conticel, CFO, Enel Chile: Thank you.

Victor, Conference Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect. Everyone, have a great day.

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