Earnings call transcript: Engie Energia Chile’s Q2 2025 earnings beat expectations

Engie Energia Chile, with a market capitalization of $79.3 billion, reported strong financial results for the second quarter of 2025, with earnings per share (EPS) exceeding market expectations. The company achieved an EPS of $0.0578, surpassing the forecasted $0.0366 by 57.92%. Revenue also outperformed, totaling $582.1 million against a forecast of $481.1 million, marking a 20.99% surprise. Following the announcement, Engie Energia Chile’s stock rose by 2.86% to $1,215. According to InvestingPro analysis, the company is currently trading above its Fair Value, with analysts setting price targets between $240 and $315.

Key Takeaways

• EPS of $0.0578 beat forecasts by 57.92%.
• Revenue of $582.1 million exceeded expectations by 20.99%.
• Stock price increased by 2.86% post-earnings announcement.
• EBITDA guidance upgraded to $650-700 million.
• Significant progress in renewable energy projects.

Company Performance

Engie Energia Chile demonstrated robust performance in Q2 2025, with significant gains in earnings and revenue. The company’s EBITDA reached $362 million, a $67 million increase from the previous year, driven by improvements in electricity margins and contributions from new renewable projects. InvestingPro data shows the company maintains a healthy financial position with a Current Ratio of 1.44 and an impressive Return on Equity of 24%. The company is actively transitioning its energy mix, focusing on renewable energy and reducing reliance on coal. InvestingPro subscribers have access to 6 additional key insights about the company’s financial health, which currently rates as GOOD.

Financial Highlights

• Revenue: $582.1 million, up significantly from forecasts.
• Earnings per share: $0.0578, a substantial increase from expectations.
• EBITDA: $362 million, up $67 million year-over-year.
• Net income: $186 million, a $36 million increase from the previous year.

Earnings vs. Forecast

Engie Energia Chile’s actual EPS of $0.0578 surpassed the forecast of $0.0366 by 57.92%, indicating a strong quarter. Revenue also exceeded expectations, with a 20.99% surprise. This performance reflects the company’s successful execution of its strategic initiatives and operational efficiencies.

Market Reaction

Following the earnings announcement, Engie Energia Chile’s stock rose by 2.86% to $1,215. This increase reflects positive investor sentiment and confidence in the company’s strategic direction, particularly its focus on renewable energy and operational improvements.

Outlook & Guidance

The company has upgraded its EBITDA guidance to a range of $650-700 million and increased its capital expenditure guidance to $900-975 million. Engie Energia Chile plans to invest $1.4 billion in renewable projects between 2025 and 2027, aiming to achieve a total installed capacity of 3.7 gigawatts by 2027, with 71% dedicated to renewable and battery projects. For detailed analysis of the company’s growth trajectory and comprehensive financial metrics, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US equities with deep-dive analysis and actionable insights.

Executive Commentary

CEO Juan Villavicencio stated, "We continue moving forward with our intensive CapEx program in renewable transmission and conversion of coal power plant for the energy transition." CFO Vincent Sorel added, "Our efforts to reduce our exposure to the spot market, especially during nonsolar hours, proved very successful."

Risks and Challenges

• Potential contract renegotiations could impact future earnings.
• Higher energy purchase prices present a challenging market environment.
• Transitioning away from coal involves operational and financial risks.
• Market volatility and macroeconomic pressures could affect performance.

Q&A

During the earnings call, analysts inquired about the company’s plans to exit coal assets, which were confirmed as scheduled. Discussions also covered potential funding through senior debt issuance and the resolution of arbitration with Total Energies, resulting in a $100 million award.

Full transcript - Engie Energia Chile SA (ECL) Q2 2025:

Moderator/Operator, Engie Energia Chile: Good afternoon, and welcome to Engie Energia Chile Second Quarter twenty twenty five Results Conference Call. If you need a copy of the press release issued on July 30, it’s available on our company’s website at www.engi.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, Marcella Munoz.

We would like to advise that participant of this call is dedicated to investors and market analysts, not for the press. We ask all journalists to contact NG Energia Chile PR department for details. I’ll now turn the call over to Mr. Vincent Sorel. Please go ahead, sir.

Vincent Sorel, CFO, Engie Energia Chile: Hello. Good afternoon, everybody. So Vincent Sorel speaking, the CFO of ENGIE Energia Chile. And today, I’m here with Juan Villavicencio, our Chief Executive Officer Alison Safri, Head of Corporate Finance and Investor Relations Marcela Munoz, Investor Relations Officer and Bernard DiTa Infante, our Financial Advisor. We are very pleased to present today ENGIE Schileff’s first half results for 2025.

And without any further transition, I will give the floor to Juan, who will describe our operational performance for the six first months.

Juan Villavicencio, Chief Executive Officer, Engie Energia Chile: Good afternoon, everyone. As described in the on Page two, we have organized this presentation into two sections. In the first part, we will briefly go through first half twenty five performance. Then in part two, we will provide an updated vision of our financial results and medium terms of looking for in detail. We can start directly on page three where we share the main highlight for the ’25.

First, the company continued the trend of strong result in the first half of the year even in the challenging environment of our sector has been facing. Second, we continue to increase our renewable generation capacity. Three project reached COD during the first half, adding 468 megawatt of renewable capacity to our portfolio. Third, the high availability of our thermal plants during this period allowed us to secure high generation in this challenging environment we are facing, reducing our exposure to the spot market. And fourth, we are continuing in our path toward the energy transition by converting our coal asset, developing our renewable portfolio, and investing in transmission.

On page four, we show the main highlight of our financial performance, which Ansand will discuss later in more detail. We had an EBITDA generation of $362,000,000 Our CapEx reached 302,000,000 during the first half, while our net debt to twelve months EBITDA ratio continue with strong ground trend reaching 3.3 times. Our net income reached 186,000,000. We also share our upgraded guidance for the year. We’ve reached our EBITDA guidance from a range of $525,000,000 to $575,000,000 to 650 to 700 millions, mainly reflecting the recognition of the arbitration award for the breach of contract of our main LNG supplier during 2023 and 2024 as well as a good performance during the first half of the year.

On our CapEx guidance, we’ve increased from five from from 850 to $900,000,000 range to 900 to 975,000,000 range by the ’25. This is mainly due to the addition of a new base project as well as good implementation of our investment portfolio. As a result, our expected net debt to EBIT ratio should continue at the level of 3.3 times by December ’25. On page five, we can see the current progress on the execution plan for renewable. As of today, we have already implemented 1.4 gigawatt, including the addition of Windcalpa, Vesta Maya, and Vescapicorno, which together added 468 megawatt of capacity to our portfolio.

All of these projects were developed on time and on budget. With this, during the first half of the year, we generate a total of 1,094 gigawatt hour with all renewable assets. Now please let’s continue on page six where we show how we are giving new life to our coal based asset with the installation of a synchronous condenser in our former Unit 15, which was closed in 02/2022. At the same time, we improved, extended the life, and increased the capacity by 25 megawatt of our gas fired Combined Cycle Plant Unit 16 to ensure flexibility in origination and energy supply. We are all also working on the conversion of our EAM coal plant to general gas by which we will stop to operation with coal in December ’25 and finish its conversion to initiate operation with natural gas by the ’26.

Our thermal asset have shown high availability and operational excellence during the first half, providing the next generation required to secure the twenty four seven supply for our PPA contract and reducing our exposure to the spot market. This was especially relevant during the high price environment in the first half of the year, especially during nonsolar hours. The situation of our different coal plants is also explained on page seven showing that as well as the conversion mentioned in the previous slide, four of our remaining coal plants will be decommissioned by December 25 in the case of CTM one and CTM two, while CTA, CTAs will be closed in May 26. These four plants will be kept in month ball maintenance while the company decide if and how this asset could be used in the future. On page a, we describe how the company has embarked on a complete generation portfolio transformation.

Like you know, in 02/2019, coal generation represent represented 60% of our generation capacity, while renewable represented only 3%. Total generation capacity at the end of 2019 reached 2.2 gigawatt during 02/2025, and the Chile shown a generation capacity of two point 3.1 gigawatt, of which coal represent 34%, natural gas, 22, and renewable plus batteries represent 44%, a notable a notable increase during this period. On expectation for 02/1927, considering the renewable and best project currently under construction as well as the conversion of EAM and retirement of the other coal plant, it that we should reach a total installed capacity of approximately 3.7 gigawatt, of which 29% will be natural gas, and the remaining 71 will be renewable and batteries. Next, on slide nine, we show the eight renewable and batteries project we have currently under construction, which are deployed over five different region of Chile, including in the bottom left corner of the slide, the recently added Bescalpa, a 57 megawatt battery project being built, collocated within the Wind, Calpa site, which reached COD during the first half of this year. CapEx on Bescal by 69,000,000 and is expected to reach the COD in the ’26.

If we move directly to Page 10, we are presenting an update development plan of renewable and best project to be executed between ’27 and ’25 and ’27. These are the projects shown on slide nine that are currently under construction. This project should reach COD at different states between the ’26 and the ’27. This new project will add around 1.2 gigawatt of additional renewable and best capacity to the portfolio and will allow ENGIE to be full balanced from both business and risk perspective to the ’27. The contraction and implementation of this project will require approximately 1,400,000,000.0 US dollar between 2025 and ’27.

On the graph on page 11, we can see how the construction of the previously described project will have a positive impact in balancing our portfolio. We present here the yearly average position of the portfolio. This way, by ’27, we should reach a full balance considering the new investments and plant conversion on the generation side as well as the backup PPAs. And the the end of the regulated PPA in the North on the demand side. At the same time, we are already resuming the commercial effort to recontract our portfolio as from ’27 and forward and accompany the new demand with new generation and or backup PPA to maintain the balance of our portfolio.

And now I will leave with Manzan, who will present the details evolution of NGTL’s financial and capital structure as well as the detail of the guidance.

Vincent Sorel, CFO, Engie Energia Chile: Thank you, Rohan. So on page 12, we will start, with the second part of this presentation, to demonstrate the successful execution of our strategy and our ability to capture value. Moving to page 13. This page summarizes our financial performance during this first half of the year. We see EBITDA that reached $362,000,000 $67,000,000 increase compared to the 2024.

Main reason behind this EBITDA increase include the electricity margin that is improved and the generation margin of our asset. The award of the arbitration procedure related to the breach of one of our energy supply contract that Rohan mentioned in the beginning of presentation was also recognized as of June 2025. Net result reached $186,000,000 in the first half, dollars 36,000,000 higher than last year. The positive trend in our net debt to EBITDA ratio was also confirmed with a 3.3x ratio as of June 2025. I will now comment to the chart on Slide 14.

As mentioned, the increase of $67,000,000 for the EBITDA can be analyzed as follows: One of the reasons for this EBITDA improvement was the increase in the electricity margin, which rose by USD 13,000,000. The main positive effect driving this increase were, first, a EUR 37,000,000 positive effect of an increase in our own generation, roughly half of it from the three projects that reached COD this year, Wynncalpa, Besta Maya and Besta Pricornio. Also, our thermal assets were readily available and were dispatched. This allowed us to reduce energy purchases from the spot market. Second, we benefited from higher PPA revenue for 25,000,000.

This is mainly thanks to an increase in physical sales to distribution companies as a result notably of an increase in our pro rata share of regulated supply as other generating companies’ contracts were suspended or early terminated due to execution problem. This offset the 9% drop in physical sales to free current, explained by maintenance work at some mining and industrial operation. Those two positive effects allowed us to cope with the significant increase in energy purchase prices driven by lower availability of other thermal plants, lower availability of Argentine gas, lower hydro generation in the system. And this increase represents a €50,000,000 negative effect that we were able to offset. In short, our efforts to reduce our exposure to the spot market, especially during nonsolar hours, proved very successful in the 2025.

Outside of the electricity margin, we can also observe a EUR 13,000,000 increase in revenue from gas sales to third parties, in part due to the major maintenance and upgrade in our U16 combined CCGT in the first quarter. Our EBITDA also benefits year on year of $61,000,000 from one off. These were largely attributed to the recognition in 2025 approximately 100,000,000 related to the outcome of the arbitration with our main LNG supplier for the unfulfillment of one of our LNG supply contract in ’twenty three and ’twenty four. This was partially offset by positive impact reported last year, notably a $17,000,000 insurance compensation from a past loss at the CTA plant. Finally, we see a negative impact of million dollars coming mainly from increased operation and maintenance expense and higher transmission toll, leading to an EBITDA of $362,000,000 All the above explain the 23% increase in EBITDA as well as our upgraded EBITDA guidance for 2025.

Moving forward to Slide 15. This one illustrates in detail the evolution of our energy margin. This chart shows available energy for the 2025, which reached 6.5 terawatt hours, and how this energy was supplied. Notably, the spot purchases during this period were lower in a higher spot price environment, as we discussed, mainly due to the high performance of our generation assets as well from the addition of the new renewable and batteries project previously mentioned. Slide 16 shows how this increase in EBITDA, helped by foreign exchange gain, offset the increase in net financial cost, driving to a $36,000,000 increase in net income, which climbed to $186,000,000 in the first half of the year.

The increase that you see in net financial cost was mainly explained by the recognition last year of a one off on tech related accounts receivable in interest income in the 2020 for USD 50,000,000. Important to note that the recurrence of one off item above and below EBITDA, a different nature but roughly similar in total value, contributes to a stable year on year variance. In Slide 17, we see that our net debt decreased by $41,000,000 to $1,900,000,000 On the one hand, we reported strong cash generation as well as $112,000,000 proceeds from the last yearsale of PEG three documented this year. This allowed us to finance capital expenditure of $287,000,000 plus a EUR 54,000,000 dividend payment, the first one since late twenty twenty one as well as interest and so on. Important to see here is for this first half, our source and use of funds were balanced.

Also, our cash flow from operating activities after interest and tax amount to $382,000,000, significantly higher than last year for the same period that amounted to USD 71,000,000. Let’s move to Slide 18. As a reminder, our rating is BBB stable outlook confirmed by Fitch and S and Ps. Net financial debt reached $1,900,000,000 at June, with net debt to last twelve month EBITDA down to 3.3x. We continue to improve our debt profile.

We reduced our net debt to EBITDA, notably thanks to EBITDA recovery. The maturity profile of our debt is also strong with a reduced refinancing risk, and it leaves headroom for future financing. On the bottom part of the slide, you can see a 5.4% average coupon on our debt and the average remaining life of our debt of four point nine years. Note that we repaid $136,000,000 of The U. S.

Bond that was maturing in January, and we made other principal debt repayment for USD 78,000,000. That explained the reduction of the high level of cash that we were holding 2024. Slide 19 shows the evolution of our investment plan from 2029 to the estimated CapEx amount for ’25. Our investment should accelerate during the second half of the year compared to the first semester. During the last five years, it has been increasingly concentrated in renewable as well as best In the last three years, between ’twenty five and ’twenty seven, we will invest $1,400,000,000 in renewable and best projects that are currently under construction.

These projects are expected to reduce our exposure to the spot market and, thanks to the batteries, reduce as well the risk associated to renewables. We are also investing in conversion project on our coal fired plant as well as transmission projects needed for our portfolio. Please let’s continue on Slide 20. As a result of the investment plan we just explained, our EBITDA is increasing, notably positively impacted by a reduction of our average supply cost. Leverage remains under control during this intensive CapEx phase.

This is why the net debt to EBITDA ratio has been showing a downward trend, reaching a level of 3.3x at the end of the first half of the year, and it’s expected to stay at this level by the end of the year. Moving to Slide 21. As you can see, we have upgraded our guidance both for EBITDA and CapEx for the 2025. On the EBITDA front, we have increased the guidance from the previous $525,000,000 $575,000,000 range to $650,000,000 to $700,000,000 EBITDA range. The main reason for the increase is the recognition of the arbitration award for the related to the breach of contract with our main LNG supplier.

On the CapEx side, we have upgraded the guidance to $900,000,000 to $975,000,000 range. This upgrade is related to the addition of a new battery project that started construction during the second quarter and good execution of the construction of the project in the portfolio. The resulting net debt to EBITDA ratio should reach then 3.3x by the 2025. As usual, this guidance is considering the driver and assumption presented in the left side of the slide that can affect our business. I now hand over to Juan for the conclusion.

Juan Villavicencio, Chief Executive Officer, Engie Energia Chile: Thank you. Thank you, Vincent. Finally, on Slide 22, we summarize how we continue on track by working on rebalancing our portfolio by adding new renewable generation and storage, expanding the life and increasing capacity of our LNG generation asset, and adding backup PPAs. We continue moving forward with our intensive CapEx CapEx program in renewable transmission and conversion of coal power plant for the energy transition during the period of twenty five to ’27, and we leverage our asset by reaching high availability of our plant and excellence in in their operations. All of the above maintaining strong result and balancing sheet balance sheet.

Thank you for your attention, and we are now open to any question you may have.

Moderator/Operator, Engie Energia Chile: Thank you. The floor is now open for questions. If you have a question, please click on raise hand button. And if your question has already been answered, you can lower your hand by clicking on put your hand down. To ask written questions, please use the Q and A button.

Questions will be taken in the order they have received. Please hold while we’ll pull for questions. Our first question comes from Isabella Pacheco from Bank of America and is a written question. Can you give more color on how your energy transition is going to impact EBITDA and net leverage metrics in 2027? Thank you,

Vincent Sorel, CFO, Engie Energia Chile: Isabela. Indeed, we have a significant energy transition plan. This, as we’ve shown, is expected to happen in a context where we keep our balance sheet metrics under control. And notably, I would refer to the s and p notes that disclose it in bit more detail. But as a nutshell, I would say we target at this stage without giving any precise figure for 2027 because, you know, we don’t give guidance on that horizon.

I would target something around 4.5 times EBITDA or below.

Moderator/Operator, Engie Energia Chile: Raise hand button or type it down on the q and a field. Wait while we pull for questions. Our next question comes from Florencia Mayorga. Can you provide thoughts on recent headline about intention to renegotiate regulated contracts? Thank you.

Juan Villavicencio, Chief Executive Officer, Engie Energia Chile: Thank you very much for your question. From from NG perspective, we are in a clear position to to to descend or contact, obviously, and we have been very clear in our communication with the regulators and the different senate to secure that the contract will will be respected. We are seeing this like a red flag for for us. And we are seeing in the last days that the the progress in the congress has been in terms of the concept that has been discussed and how is evolving the proposal of the government. So the congress is improving a lot and in a way to respect our contact.

But, obviously, we are monitoring this very closely until the end of the discussion in the congress to understand how this will be addressed at the end of the process. From our side, obviously, our vision is we need to continue pushing and communicating the defendant for right in the contract. So so like we have done in all the period of this discussion in the congress.

Moderator/Operator, Engie Energia Chile: Just as a reminder, if you wish to ask a question, please use the raise hand button or type it down on the q and a field. Wait while I pull for questions. Our next question comes from Felipe Flores. Is the increase in CapEx mostly related to the new BESS CALPo project? Any guidance on 2026 CapEx?

Thanks

Vincent Sorel, CFO, Engie Energia Chile: a lot. The increasing guidance on CapEx reflects, first of all, I would say, a very good execution of our project that are on track, on time, on budget. And we are, I would say, progressing very quickly because the key for us is to execute according to this plan. This partially explained the increase. And on the other side, we also have indeed the best CALPA that is adding a bit less than 100,000,000 of CapEx to this year.

For 2026, we are I mean, we will be overreached to reestimate our entire CapEx schedule. But at this stage, I would prefer to not to give a precise figure for 2026. However, you note that we have presented in this presentation 1,400,000,000.0 of CapEx between ’25 and 2027 for the renewable investment that would be spread out over this year based on between ’22 the balance will be spread out between ’26 and ’27 according to the new execution schedules.

Moderator/Operator, Engie Energia Chile: Our next question comes from Fernando Gonzalez from BTG Pactual. I would like to understand the whole of coal going forward. In your view, is there a chance that the CNE will request CTM, CTH and CTA to remain operational for longer? And if so, for how long? Are we going to see more coal inventories provisions in the coming quarters?

Juan Villavicencio, Chief Executive Officer, Engie Energia Chile: Thank you very much for your question. We are following the rules of the regulation to request the call exit of our asset. This means that we need to request with two years of anticipation, and we did in the proper moment to say that c t CTM one and CTM two will exit at the end of this this year and and CTA, CTAs in May of of twenty six. And, obviously, the the authority has the right to extend the call exit of each asset per one gig or more depends of the systemic risk that they are evaluating. And we are continuously discussing and very closely reviewing what is the plan of the coordinator with the most anticipation that we can to manage properly the the storage of of the call in in our asset.

Obviously, depends of the how how the market is is going and how the risk of the coordinator is requesting the dispatch of the of the coal asset. Concretely, about the about the storage of coal, we are seeing that we will we will have to maintain some level because, like you can see, the asset has been dispatched and probably will continue being dispatched in the next month. And, however, about your question, yes, the authority can extend by one year. This is the limit. This means that CTA, CTAs could continue until May ’27, the the continuity of the operation.

Moderator/Operator, Engie Energia Chile: Our next question comes also from Fernando Gonzalez from BTG. Also, could you please update us on what your exposure to the spot market is today both in terms of geography and time of day? Thank you.

Juan Villavicencio, Chief Executive Officer, Engie Energia Chile: About the exposure today, you know that we have finalized the first package of project including the batteries that are are supporting our portfolio during the nine night, plus the relevant dispatch of gas and coal in the first semester and that is continuing today. This means that our our exposure during the night has been properly controlled in in in especially in the north of the country. And the the the main relevance is that we have some exposure during the solar hours that is the good exposure for the P and L that we are continuing continuing on that.

Moderator/Operator, Engie Energia Chile: Our next question also from Fernando Gonzalez. And finally, about the BESS culpa. In the CEN’s connection authorization report, it says the planned capacity is 160 megawatts and not 57 megawatts. Is there a plan to expand it at a larger later stage?

Juan Villavicencio, Chief Executive Officer, Engie Energia Chile: We have a development next development phase, but it’s not confirmed yet to to to concrete the final capacity of a next step of this asset. Today, the confirmed capacity that we have is 57 megawatt that is related to the business plan to secure the management of the curtailment in the node where the asset is connected.

Moderator/Operator, Engie Energia Chile: Our next question comes from Cristobal Mehdi from BTG Pactual. You mentioned that since 02/1927, you will need to start signing more PPAs. What kind of client is your focus? Distribution companies, free market clients? Could you give him some some color on that?

Thank you.

Juan Villavicencio, Chief Executive Officer, Engie Energia Chile: Like you know, historically, Engie has been the main provider for the mines, clients in the North of the country with the original for business more than one one hundred years ago. And, obviously, considering our strong position in the North of the country, our intention is to continue with a relevant commercial action there. About the disco tenders or the distribute distribution companies, we are in the process of evaluate, depends on what is happening with the market. It’s it’s something that is is part of the evaluation that we are having like other players in the market today.

Moderator/Operator, Engie Energia Chile: Our next question comes from Maria Pas Valenzuela from BCI. Could you give us more details on how are you planning to fund CapEx for the second half of the year?

Vincent Sorel, CFO, Engie Energia Chile: Thank you. So indeed, there will be a strong pickup in the investment activity over the next month. And so this will likely entail considering that you want to keep a certain minimum cash level on our balance sheet to secure our financing needs. This will require us to issue a senior debt over the next month. That being said, we intend to, obviously, recycle the CFFO, the cash flow from operation into our investment as we did over this semester.

Moderator/Operator, Engie Energia Chile: Just as a reminder, if you wish to ask a question, please use the raise hand button or type it down on the Q and A field. Wait while we pull for questions.

Juan Villavicencio, Chief Executive Officer, Engie Energia Chile: It’s a this is more a a legal question. Indeed, for sure, we can send you a more formal vision about if this can happen. Okay? It’s something that in terms of the energy regulation is not clear, but always could be a mechanism we can answer after the after the meeting if if you need.

Moderator/Operator, Engie Energia Chile: Our next question comes from Thomas Perugin from Balanced Capital. Please, Mr. Thomas, your microphone is open.

Vincent Sorel, CFO, Engie Energia Chile: Hi. Good morning. If I’m not mistaken, there was an increase in OpEx excluding fuels and energy purchases in the second quarter. Could you give us some color on the drivers for the for this high expenditure? Thank you very much.

Yes. So basically, the way, the EBITDA bridge, is built is we separate the electricity margin from the rest. Right? So so and as we said, we we have new assets that are coming online. So part of this 19,000,000 is due to the new the OpEx and O and M cost of these assets.

Also, we have had some maintenance activities this semester that also explained an increase in the OpEx. This increase has happened as expected. So it was not a surprise for us, and it was included in our forecast, obviously. And last but not least, there is always a bit of inflation that plays a role into it.

Moderator/Operator, Engie Energia Chile: Please, Mr. Martin, your microphone is open. Mister Martin, you can activate your microphone and ask your question.

: Oh, yes. Sorry. Sorry. Hi. Thank you for the presentation.

Well, probably it’s too soon, but I was wondering if you could share with us the options that you are considering for the, call units that you are thinking about the closing, at the end of the year or next year. And, also, well, the drivers, for for for for possible transformation. And if you decide now to transform those assets, if you could share with us what do you think the decommission cost it could be.

Juan Villavicencio, Chief Executive Officer, Engie Energia Chile: No. The the option, are more than one. One of them is to replicate what we are doing with EAM, like a cash conversion. Second one, ancillary services like we are doing with unit six 15 in Tocopedia, convert the asset for some synchronous condenser if there are some tenders. And, obviously, about the the future of the asset, We we are in the process of evaluating the total cost.

We we can answer after the meeting with more details about the quantification that we are evaluating for this in the case that we we don’t convert. But, obviously, the conversion depends of market drivers and technological consistency is something that take time to evaluate.

: Okay. Thank you.

Moderator/Operator, Engie Energia Chile: Our next question comes from Felipe Flores from Ban Chile. How much money should come from interest regarding the arbitration with Total Energies? Is this completely resolved considering it was included on the quarterly results? Thank you.

Vincent Sorel, CFO, Engie Energia Chile: So we have booked the in the half year financial result, the interest that we are entitled to from the arbitrage decision, but keep in mind that there were legal costs associated to that. And as such, I would say there’s approximately 100,000,000 US dollar figures can be seen as including both interest and legal cost. Besides on your question whether the situation is completely solved, the big advantage of an arbitrage is that it’s it’s final and enforceable, and we are moving forward, in the execution of it. However, the supplier can still challenge their work before the Paris Court of Appeal, but based on very limited means. And the remedies available and the legal grounds that can that can be invoked to challenge their work are just also very limited, and that’s why we booked the damages in our P and L June 2025.

Moderator/Operator, Engie Energia Chile: This does concludes the Q and A section. At this time, I would like to turn the floor back to Engenorgia Chile’s team for any closing remarks. Please go ahead.

Vincent Sorel, CFO, Engie Energia Chile: So thanks a lot for everybody who have attended this call. Thanks a lot to the team who have produced this excellent set of results because, again, I think we should keep in mind that it’s thanks to strong operating result that we are posting this net result increase. And I would say it was our first presentation for Juan and I, and we were delighted and very pleased to present this set of operational and financial result to you and look forward exchanging with you in the next future. Thanks a lot, and have a good day.

Moderator/Operator, Engie Energia Chile: Thank you. This does conclude today’s presentation. You may disconnect your line at this time, and have a wonderful day.

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