Q2 2021 Enel Chile SA Earnings Call
[music].
Yeah.
Good day.
Ladies and gentlemen, and welcome to day in a Chile Q.
2 in first half 2021 results conference call.
My name is Philida and I will be your conference operator today.
During this conference call, we may make statements that constitute forward looking statements within the meaning of the private securities.
Litigation reform.
Form 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.
Various factors.
These factors are described in in a Chile's press release reporting in Q2.
And first half 2021results the presentation accompanying this conference call.
And in a Chile annual report on form 20-F.
Including under risk factors.
You may access our Q2 and first half 2021 results press release and presentation on our website.
W. W. W. Dot N E. That's C L and our 20-F on the S E.
CS website www Dot S E C that G O V.
Readers are cautioned not to place undue reliance on those forward looking statements, which speak only as of their dates Enel, Chile undertakes no obligation to update these.
<unk> looking statements or 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. Isabela Klein head of Investor Relations of in a Chile. Please proceed.
Thank you for lead time Windows, Yes, good morning, and welcome to Enel, Chile second half for 2021 results presentation. Thanks to you all for joining US today I am claiming they had doesn't investor relations. Let me remind you that our presentation and related financial information.
For Ala Moana are upsides, www dot and now the C O in the investors section and in our App investors in the final for the presentation, there will be an opportunity to ask questions via phone or shots for the link SK question. Joining me. This morning are CEO Pablo.
Our our velocity and our CFO, Joe that we took care of it in the following slides following won't bring the presentation with the main highlights on its strategy and operation performance then use that to walk you through our financial results. A replay of the call will also be available and always our team will continue.
And to be available to provide you with friends at Teva information you may need concerning the figures included in this presentation. Let me also remind you that media participants are connected only in listening mode. Thank you all for your attention and now let me hand over to Paul to follow.
Thanks Drew subway line.
Good morning, and thanks for joining us.
And then Chile.
Sure.
As a leading position in renewables and it's driving the and as you can see.
We of course, just about good forecast for both of US advantage in the energy transition from the country.
In Chile, where our resources and technology may support the implementation of the true path towards the Phytoclimate, Chile, and the expansion of the user of electricity in the industry.
This atone transforming the client the Cds and quality of life.
These.
Your line. Therefore, we multiple benefits that also requires a quick reaction by the several parties involved to truly understand that for those changes.
During this quarter.
Advancing the construction of more than 1.2 gigabits per book over renewable capacity 7 approach.
The tough part of the $2.4 gigawatt additional other renewables debt.
We will the jewelry.
2021 'twenty 2 'twenty 3 period.
As you will see in the RSR slides percentage, but as you said, our 2021for itself.
They have been impacted.
By non structural elements like liquid gas availability.
And commodities items.
Yes.
Looking at sustainability commitment.
Recently, we have been included for the first time in the standard for EPS.
ESG type of index.
Lunch.
Early this year by Santiago stock could change the standard <unk> titled Index, and the Chile now.
1 of the 27 companies did in the first with local operation on this index with the rebalancing executed during July from towards.
Also I would like to highlight.
The new FTSE Russell score for our company recently announced.
They've been achieved for zero point, while were total of 5 point too.
Versus 3.4 in the previous year.
This recognition reflects our sustainability strategy and our commitment.
It was just the energy transition.
We are growing along our strategy together with our clients energy requirements.
In addition to supply electricity via our retail operations and the leaks are signed several agreements with the kind of sector remain the mining companies.
As a starting point and then service companies.
To promote electric mobility and energy efficiency solutions.
Additionally, we continue to support the contamination of the other cities participating in the implementation of several programs.
Push on on the other.
Option.
<unk> 2 you can see some interchange of a more contemporary big ones.
Finally, consistent with our strategy, we have signed an agreement with Banco Santander.
For our first is did you linked instrument.
This law is linked directly to tackle the climate action.
Digital team and Israel.
<unk> altered to visit of action of our guidance for year 2 emissions by 2033.
And in Chile in the first local utility and securing this kind of instrument linked to the United Nation is digital.
Now on our capacity under construction page number 4.
Let me give you some updates on our projects under construction.
As important pillar for our positioning in the market and for implementation of the energy transition.
As already commented with you.
The last 12 or 15 months I've been quite complex managing the construction of the new plan.
The effects of the.
Is it a linear causing the lockdown restriction and closure of the country's bartlett's jointly with the initial delays on our close you confirm it's caused by bureaucracy and lack of pessimism.
Require in some cases rescheduled some of our project time line.
Notwithstanding debow.
We are continuing.
If 1 day bonds on constructing our other newer portfolio.
You can see in the chart 2 considering the capacity under construction by the end of this year, we reported operation a significant percentage of debt amount.
Let's move to slide 5.
Today.
Our clients are acquiring our support to be provided we they're not going to get the services related to the use of the green energy and to the contamination therapies.
We have signed different partnership and agreements to promote sustainable transportation and more in general innovative services.
Towards the use of the average.
Recent example is the agreement we followed our growth 1 of the largest of interest in Latin America.
After the private tender and have been awarded to sell energy to their operations and at the same time to incorporate more than 500 electric channel.
This will be points through the accounts.
With those agreements.
We are providing a complete solution to our clients coping with the path to de carbonization.
For the same time.
We have increased analytics market share and denounce leadership, Indiana.
As to your efficiency and Electromobility and accounts.
Finally.
In line or contributing to the development for smart cities.
We then Alex again.
We have developed security projects line monitoring and these are sort of items.
And just kind of project includes security cameras.
Energy or commodity Caribbean countries for color pattern.
And delaying of optical fiber definitely accordingly.
Today, we will have more than 1.1002 on the security camera historically, Chile.
Complementing the plants of citizens securities contribute to preventing crime center.
Royalty and friction.
Customers are becoming more aware of the system and the efficient use of your image.
And Alex is our clients first choice and Azure or change.
Yeah.
Now on page number 6.
With reference to our network during.
During the second quarter.
We have seen a partial recovery in the energy demand compared to the previous period.
As a result, the aggregated energy distribution reached 7.9 Terawatt hour.
<unk>, 2% versus last year's periods.
We have increased the quality.
Our service and reduce our distribution loss rate from 521% to 5 person.
Despite all the challenges we are facing.
With reference to our actions towards the digitization of our processes and our distribution reach more.
For the 94000 downloads, 30% higher than June 2020 cumulative figures.
Our digital interaction having.
Have increased to 86% from 75 per cent in the same period of the last year.
On the rate growth.
More than that the final report.
On the distribution referenced.
Shall be published in the following weeks.
And the following growth are enforced is expected to be issued by November <unk>.
As we have mentioned any discrepancy between regulators and companies positions can be.
Challenge the expert panel Easter.
We expect that debt or greater was released the final distributions during 2022.
Regarding transmission tariff cycle 2000.22023.
The Regulator's report fixing the new tariff cycle will be published during the next weeks.
We saw it could be channel engine expert panel at least depending on the results of the several comments percentage by different countries.
During the evaluation phase.
We're expecting debt the transmission tie for the trees to be published at the end of this year for.
Very early 2020.
On slide number 7.
The application of the basic service flow is affecting the level of new debt.
We're continuing to push in providing alternatives for payment for our clients and to promote the adoption for payment agreement.
By June 'twenty 1.
We are fine.
It's more than 62000 payments agreements.
Each 50% correspond to basic service flow and the other of corresponds to voluntary agreement promoted by energy.
Due to our net for our collection level remains stable with a slightly.
Underlying growth in training in second quarter 'twenty 1.
As of day end of June the net overdue debt reached.
100, <unk> million dollars representing more than.
543000 clients.
20% increase versus.
Lighting up the year.
Yeah.
On a monthly basis, we have factor is around that $32 million supporting part of our liquidity in the period.
In our view as already commented with you the net.
Overdue accounts is going to materially increase during the next months and.
<unk> be sustainable in the long term for the most vulnerable families whilst the conditional payments we've come to a month.
In defense our solution involving the state is crucial in this process.
Yeah.
Now I will ask 2 receptor.
Sure.
Thanks.
Thanks Paolo.
Let me start with the summary of our financial highlights on slide 9.
Where should we go through details in the following slides, but before starting the presentation, let me explain the extraordinary.
The effect of the theater.
But the first half 2021 we have adjusted EBITDA.
And the net income growth.
See that in the effects of rising from the cold stock impairment associated to book a tool and the balloon for the retirement program that the company has offered to their employees, which we're enabling for the SA.
H.
The call stock impairment and the voluntary retirement program.
Logan had an aggregate effect so put it in the first half for anyone.
And $31 million.
At the bottom line.
In the second quarter this effect amounted to $31 million from the EBITDA and 21 in Angola and the growth connecting.
For the previous.
Yeah.
We have adjusted the figures by the coast talking impairment of $17 million in EBITDA and domestic fixed of the impairment of the book I mean not to all 6.
$672 million other bottom line.
Oh, the things I've described in the Boston on this line.
Now, let's start with a lot of Capex allocation.
Out of which <unk> 96 per cent is linked to the is the gene.
On slide things.
First half 2021 capex reached $510 million, mainly devoted to the construction for the new England, even was cut off.
Customer Capex was mainly allocated to the new.
And you can make channel, reaching a total of $33 million with an increase of 13% versus a lot yeah.
Asset management, Capex reached $62 million 45 higher than first.
'twenty 'twenty, mainly due to the higher maintenance activity and disabled from higher maintenance work you know what no call 10, my facility and Digitalization project debt.
Government Capex reached almost $415 million.
The 1 on day $23 million.
Other higher than for stopped doing the training largely driven by our renewable expansion.
And development of our receivables from business to continue did these studies day from all of our net growth.
Let's now start will be the second to adjusted EBITDA, but down on July 11.
Accounts.
Counted plus the $3 million up 22% below what about 2020 figures.
Mainly due to a seasonal recovery of hydrology in our busy our load out strength is our either for generation.
0.3, Dawah R 23 per cent of assets.
I think from Q2.
On the 20th he goes.
They continue to do all the lack of gas from the system and they increase of international market price is the main thing very high spot price in comparison with 2022nd 2.
And consequently increase the coastal vintage apostrophes, particularly.
So it's doing they're not solid time required to supply our PPA.
And they've got the P. P E marketing effect is mainly associated to depreciation all the Chile and base I mean, 2021 versus 'twenty 'twenty, considering that our book currencies in Chilean pesos and our PPA.
Are you at the minute.
These effect that was.
All set by the new agreement started in 2020, 1 as Anglo American and the new contract coming from and in distribution for the market.
But for your other many of the AR and the PPA price.
Update mainly by the CPI indexation.
And the higher price each of our regulated PPA due to the commodities and CPI index fish.
The net commodity coverage resulted in a positive effect into the EBITDA due to the higher commodity price in the market in line.
With our aging thuggish.
The negative effect of the status of second line due to and sorry for the monetization of ink to green.
Due to the recovery of supply cost in the reported PPA in this at Mong made simple shouldn't be then second through 2020.1.
The net for the business finances are coming from a recovery of the second 2.2021day mom.
Mainly COVID-19 related cost due to the flexibility.
On the lockdown measures and the step by step government planes.
Other regionals on lower remuneration on the distribution side.
It will be retroactive to November 'twenty, Queen and loitering munition on the transmission tariff book.
As a result of the.
The valuation of steel and item basis babies that each cycle.
Other effect.
Counts for $15 million mainly related.
2.
Our headquarter reinsurance for the quality with you during 'twenty Queenie transplant. They book 3 agreement ex security the old thing 20 Sweeny hub.
With lightning concept celebrating during second Q, 'twenty, 'twenty and additional insurance cost something new about.
Yes.
Let's move on to slide 12, but where do we have the summary of house for staff adjusted EBITDA book down.
Accounts.
For 450 for a minimum.
20% lower to buy so sweeney for any figures as you can.
See the main effect of the same debt.
We presented in the second quarter.
58 million dollar relative to commodity or will it be an idea of commodity price. So now you've got the tpa margin effect, mainly associated with the naked antibodies coming from depreciation of the Chilean pesos in the field basis for style Twenty-twenty Quincy.
Again, that's our book currencies in Chile, and in pesos and our P. P. R U S mi.
He was a factor.
It was also offset by the new agreement stuffing the periods those Anglo American new concepts coming from distribution customer portfolio other minions.
It for.
Those with you.
$56 million on the net comose coverage there.
You already mentioned $26 million on that is that the month in both generation and distribution.
And then you've got the $80 million from network remuneration related to the expected lower distributions.
He didn't meet your own tonnage.
Other.
Accounted for $8 million, mainly due to our core for insurance for their quality received last year and plus some debt book 3 agreement executed in 2020.
Let me now give you more detail about the main generation keep your eye.
And 315.
Even though our first summit.
Generation is being affected by poor hydrology.
Hydrology in the accounts during the second quarter, especially in June.
Was there a slight improvement from rainfall reaching.
Which enabled an increase in our hydro generation.
Well as you know our total production when compared to the same period of the last year. Therefore.
Second quarter production reached 4.7 Star War.
Increasing 10% versus doing the Queen.
India, our production reached 9.2.
Net of a thousand babies seem you know versus last year and also supported by several generations.
Our energy sales increased 18% during the first out for it in 'twenty, 1 primarily explained by new contract with the free cash, including younger makeup and retail clients.
Non.
Onset of from any distribution distinguished from Trina as part of unbundling regulation requirement.
For what's going to send our sourcing.
On top of the already mentioned production balances during the first style for 2020..1 we accounted a total increase of 1.8.
The power of boxes, which include Cedar 0.7 on the spot market and 1 for 1 terawatt hour from other journey for us.
Really stupid thing regulated customer portfolio of conquer coming from and then.
Does he book.
On slide 14.
As a recap of deferred from them so a lot of water.
Cash from Beaver, including N from Cheetah.
And anything balance sheet.
She is largely explained by profitable idled hydrology higher commodity price, they're not yet spot market price when compared to the last.
Yeah.
EBITDA is mean adjusted the buys clothing, they started doing it affect on the coal consumption costs really each of the day.
They shouldn't process and the voluntary retirement program.
And finally comes the line.
Skiing I'm sure somebody.
The adjusted.
John So blah blah networks business, including energy simple soon ciena and it just doesn't seem to treat them.
The second Q, 'twenty, 'twenty, 1, which could be $5 million decreasing 27% for regarding the compute join the team.
Mainly due to the lower regulated.
Okay.
Innovation in both distribution cause me from business.
Settlement book and second 2 things when you 1 relates to 2020 that feed them.
Free market clients plus it could be generated from beasley to accomplish their Monday, low partially offset by higher volume.
Accumulated adjusted.
The EBITDA reached $71 million or 34 per cent compared with debt.
Yeah.
For 2020 EBITDA.
Mainly due to the lower demand related.
They did not get in the provision of the new distribution because its interest.
Free market clients with plans for.
Business to accomplish than lending at all.
And finally zooming on agreement.
Runoff in basketball in the first quarter of 'twenty 'twenty 1.
Now on slide 16 fiscal 2 the main driver of our group and that team.
DNA and bad debt.
Mm $151 million.
The balance of $37 million, mainly related to the lower being eaten in Chile.
Due to the impediment made in book, 2 and 2020 and lower do you mean, you'd you'd be up due to the cessation of Chilean.
So from the video.
Net financial results total and ex <unk>.
$129 million, an increase of 45.
Million dollar mainly due to higher cost book.
Due to the factoring executed in generation business from the subsidy is stabilization make any of the dot com.
Higher costs regarding the new debt issued during the 20th training.
Hi, Yeah exchange differences, mainly in accounts receivable of subunits from Mick any engineers from visa visa.
This effect was partially offset by the higher financial expense capitalized interest dogs thing for anybody.
Yeah.
Income tax reflects the impacts related to the lower EBITDA and higher financial expense due to debt factoring costs. So like accounts.
As a result, the adjusted for style 21, net income reached $119 million 45 per cent.
For the law for us.
The adjusted second quarter 'twenty for anyone.
Net income reached $48 million and 59% lower than the second through 'twenty 'twenty results.
This was mainly explained by the lower EBITDA result.
Losses for the reason mentioned in the previous slides.
Lower D&A, mainly related to the lower meaning in Chile.
Due to the impediments meeting book them, you're not doing 20 twin increase of 29.
Millions of dollars I mean financial results, mainly explained by the factory execute in the second quarter total finished.
The feedback.
Lower income tax mainly due to lower adjusted EBITDA.
They are yet a financial expense at the Congress away from factoring cost of debt. They can count in the quarter matched effect of earnings.
Green power.
Group book and lower taxes accounted English.
From there.
Moving to the cash flow on slide 17.
First half 2021 that fulfill reached.
2.1 net savings of $2 million higher than previous Feagles, mostly due to.
Higher net working capital that's 'twenty 'twenty, mainly.
Mainly explore.
Are you seeing by factoring from both generation and distribution business accounted for almost family minimum NOLA.
Interest niche online sales.
In 'twenty, 1 with a cash impact of 29 million dollar purchases of buses during first quarter of last.
<unk>.
Lower impact.
Oh.
Amortization price mechanism for any 1 vessels for any queen due to the protection of children and pets.
These effects were offset by <unk>.
<unk> net income tax doing for stop 2021 that's what's left.
Italy.
Related to COVID-19, major doing 20 twin debt postpone part of the corporate tax payment to 'twenty, 'twenty, 1 and lower fiscal tax payments be.
During the 20th cleaning.
And how do you get a financial thing.
Blaine by the.
Maybe the factoring the subsidies they shouldn't make any accounts.
Let me now go through our debt on slide 18.
Our gross debt increased by $405 million versus December.
2020 amounting to poll for import volume.
As of June 2020.1.
The balance is.
Mainly associated with our Capex plan in particular.
In the period that we have executed a $400 million found a good day.
She'll upset by the amortization of the N and asked him Chile 11, therefore.
Our net debt net increase.
That's from $14 million.
The average cost of a lot of debt in the period remains stable at $4.6 per cent as of June 2021.
It's Paolo highlighted we are focusing now on sustainable is the drilling.
When we issue our price.
As the day linked to this day.
So $50 million with Banco Santander, Chile, with a maturity of 3 years with the baby competitive in their 3 demonstrating the recognition of our de risking strategy.
The newest did you alone consider.
Either is keep your eye.
Total emission of our generation fleet by 2023.
As of June around from that a minimum dollar of our debt is did you linked with consider from the minimum dialogue in the company as the drilling debt issue all book.
In June.
'twenty 'twenty 1.
These figures do not consider the peak demand in the U S dollar starting in July we from the net.
In terms of debt amortization, our schedule remains very smooth, we then EBIT drove 6 year and around $300 million.
As old net to eating up to December 23.
In terms of liquidity, we maintain the level of zero point $8 billion, giving us flexibility to face what day.
Initial headwind from tomorrow.
Yes.
And now on page 19, let me conclude this part.
The presentation with the guidance up day, driven by the recent events already.
<unk> already discussed.
It's usually the number net of cold stocking retirement plan.
During our presentation, we have highlighted the main factors that stand up in the last month.
We changed.
So what if scenario.
For busy, particularly the complex hydrological scenario.
Commodity about immediately, especially lack of Argentina, and that's what I've got and hiking of commodity price.
She is clearly not a structural effect in our market.
To be transparent with.
Our best for them and all day parts, we have around several scenarios.
To reflect the evolution of somebody about driving us to predict the second half adjusted EBITDA in a range between zero point seek since day, $1.7 million.
Consequently, our EBITDA should be nearing.
Range of 1.1 to $1.2 billion for 2021the value.
So from 302 for on that.
There was a lot of guidance reported in November 23.
We're not yet anticipating our view on the net income of $8 per.
As.
We are running several actions to offset at the most of the devaluation of all of our EBITDA.
On Capex, we don't see important deviation is the larger part of our development Capex is expected to be deployed now on the second half for this year.
Let me remind again.
Jocelyn is not a structural 1 is the part of day they've got these headwinds that all utilities are facing this year.
We strongly believe that our strategy of increasing renewable capacity will reduce significantly the exposure to commodity and I don't mean differently.
Then I will hand over to you for closing remarks.
Thank you for yourself.
Implementation of our investment plan and the execution of our renewable growth project, we continue to be 1 of our priority in this necessary to support the country on the acceleration of the other companies issue.
Some book than discussion, we need to evolve with the tour.
The ratio for about 3 for instance.
Our strategy will continue to be deployed on the day high guess he as you stand up towards the other companies issue and energy transition for.
For the full benefit of our clients and communities.
Digital operations.
Got it okay will be key to develop a long term relation with our clients.
Our strategy is reported by our long term vision and balance sheet strength targeting U S did you linked instrument.
Thank you for your attention and let's now open the Q&A section.
<unk>.
And similar.
Okay.
Thank you Paolo.
So operator do we have a question.
At this time, if people would like to ask a question press star 1 on your telephone keypad that star 1 to ask a question.
Yeah.
Okay.
To effect, so I received here from the chat.
Questions from little Teeny from Samsung then so the first question from Woody Law Colleges that then is how do you evaluate that.
The expansion of the transmission system.
These be enough.
For the relevant incorporation of renewable capacity in our point of view, New York point of view or could we expect a higher level of losses due to co injection, how do you plan to handle this issue.
So I.
Think we could Smbs and then and go for day, others follow and has that been.
Okay.
Hi, Thank you for your question.
Regarding the extension of the price of Mistras systems at the connection between the 2.
And especially for the center.
And consumption.
He's always.
<unk>.
Interest in the larger debate between the different play yesterday for the doctors in the sector.
Okay.
Now there is that these are project for improving the day connection using high voltage.
Connection.
But clearly he's a very.
Impacting project in the sense that it will take lifetimes.
There are 2 elements to take into consideration the full commitment to a world of RFP involved in net beating GAAP. These interconnection system is key for for Chile for sure.
And second.
Cash and also our reactions.
In the sense that we are let's say defining our portfolio of plants and also.
For clients in order to avoid to be let's say take hold bar. These a bottleneck in.
I can debt we have.
Important contracts in the north.
Yes.
Developing our potential contract in the same area and the same time, we are also developing interest and positioning in the sand.
Debt.
The way in which we can copel.
Since the trough midterm, but.
I agree with you that these key honestly I think that's it.
So essentially in the in the evolution of other come through this kind of the connection.
It will it will have all positive, possibly don't ask me to bet about.
The right ear to entering into into operation because.
It could be.
To answer, but I'm I'm positive R&D attention the authority on this at.
At the same time.
As a company we are trying to.
To counter measure in order to avoid to be eaten by the system.
Looking like.
Okay. Thank you Paolo.
The second question from Marty Louie.
I have seen the performance of the day.
Strength in the concession area of Enel, Chile shown in July any signs of recovery with the low restriction measures.
Okay.
Yes.
We are evaluating clearly.
Period of 6.
6 months, if we focus on the very recent months.
The effect.
Negative effect.
The contango.
Metropolitan region in locked down and so.
Many of the.
Our clients I'm, referring to the.
Mesh upsides.
More.
Thanks.
Good day.
From an affected.
So.
All in all other what we see the recovery in the.
Last for 1 month of data even if it's early.
Early too.
To provide you a figure.
The same time.
We have.
Jim.
An evaluation in terms of.
Consumptions in the in the concession area and the first 6 months compared to the for.
For the first 6 months for last year.
Is likely decrease but you are taking to take into consideration also putting into effect in the sense that.
To be movement, even if not so big.
And that all clients that are entitled to move from.
Got it.
Eastern into a free market.
Alexei choosing to be free.
To be out over the water system and gives us an impact.
In the regulated segment, if you look at the specific area there is.
All in all.
Decrees.
<unk>, 2 and 3% all in or considering the all the effects that I mentioned, so the perimeter effect.
The locked down debt suffer some cargo in the index let's.
Let's say in the Central Valley other periods between.
March and.
We don't book Jordan.
Perfect. Thank you Paolo and then last question from what do you look for instance in debt is a why is the number of overdue clients decreasing versus first half 2020.
Could you provide more details on DS and on their discussions being held to.
For <unk>.
<unk>.
Okay.
This is a little bit larger.
Large are discussed.
Discussion because.
For 1 side.
VF measure.
Lets focus for at least for a for a second on the domestic segment that is the most affected by the recent regulations.
Started in August for 2002 items.
If we see major debt segment.
We have not seen very improvement and tell them all with number of clients.
It's not big.
But let's say the mechanism that we have seen is debt.
The deep client.
Net debt.
During the.
We will have periods of the year.
Used to let's say.
Third into the overdue debt segment.
And then start to pay in the periods of let's say aging between 40 and 60 days because these is they are they are where.
The caps.
We.
And turning to the cut off for you.
We will enter into production by the distribution in this case.
Net amount.
The clients are not paying so they remain in the segment of overdue, but.
Beijing, increasing.
And this is happening.
Also for Unfortunately, and this is something that we have.
Let's say announced the price. This is something also to large domestic clients.
Other consumptions.
I gotcha.
Then.
1000 kilowatt hour per months.
<unk>.
<unk> 4 times the average Joseph yes.
But also for clients are between let's say 500.700.
Claude book.
Mountain debt.
They are not paying if we look at debt number.
For instance, the LASA.
The loss of the large client segments, if they were to do debt or large client segment.
More than doubled between March March 'twenty.
June 'twenty.
1 so there is an effect.
That is driven.
By the impossibility.
For the distributor to let's say cut off the non.
Rune level clients, because we are talking about non who never play.
Clearly all debt.
Insurance all day care for the same debt cannot afford to pay the debt.
This is different from discussion.
The focus and also our analysis is focused on.
Debt category of clients debt us I consumption.
Are things of course.
Sources to pay by them not paying because nobody can cut.
Cut them off.
And this is an important element of discussion that we're having with authorities.
On the general basis there is.
There have been these announcements in early June for them are correct.
Regarding the.
The seamless.
Yeah.
Payable negotiation table between different parties goal.
<unk>.
And <unk>.
Where to find.
A solution that for.
Sure.
Families.
They want to apply to our forward.
The period once.
The system will come to normality.
The real issue because if we look at today.
We'll give our clients the avalanche.
The average debt.
Just.
Using a number that we have eased in the range of 100000.101000 basis, Chile places if we add this.
On top for the railroad.
Paying on a monthly basis this is very difficult.
We manage also if we.
We use a 48 quarters without interest. So this is it.
We have to focus and <unk>.
Lever <unk>.
The distributor work with clients that can pay but they do not.
Okay.
Thank you.
And so the I didn't know operator, if you have any questions on line other ones. They have won from a whole debt equal would have put him on it they can do it now.
There was a question on the phone line.
Yes.
Can you open the line. Please okay. The question comes from the line of Rodrigo.
Oh, Okay. Sorry are you called Regal well did you go ahead and send me the questions. He has a problem on the line so the.
The first question for Regal and the first 1 is that.
So do you think the drought situation in the country.
And then evaluating to postpone the closure of book coming not show in our debt to preserve the electrical <unk> of the system.
This is the first question Paul I'm just asking.
Yes.
Hi.
Regal.
Clearly has.
Randy.
Highlight.
These analyses we are not dealing with the structural.
Structural changes.
So what's happened this year is something debt.
Is it a coincidence of different elements.
In the past.
Sure.
<unk>.
We do not see.
Let's say.
Any any reason or the effect for change our strategy and our decision.
2.
Let's say cash.
Back on the phase.
Phase out of book Amina considering that.
By next year.
At least the 1.3 plaza more megawatts coming on line only.
<unk> R&D.
<unk> side, if we look at generic feature.
The effect and the evolution of this year has been driven also by.
Important delay on many other projects.
Renewable projects.
Net.
Colbert.
In the short mid term.
Energy requirements or the system on the accounts.
Therefore from our point here is to allow the system to work properly for instance.
US together with.
The outsource for comfort.
Yeah.
We heard we are focusing on the development.
Regulation on the storage.
Debt will be key for the broker function.
And then we hope is something that will take place by during December.
Second value.
This year in order to be appropriately in place and monitoring to book the.
Until like I said, we see pay.
Package of system.
And that to a recognition of the capacity payments.
In order to allow to enter.
To the extent with renewables plus storage.
And to fulfill all the requirements for this season.
Perfect. Thank you so the second question.
For the Eagle from <unk> Richie.
The hydro generation that you.
You are estimating for the second half of the year, considering the guidance update it really bad debt.
Company today.
Yeah.
Yes from this.
It will.
Answer to Seth.
That can be more precise in terms of number.
In terms of concept.
As you know other legal how difficult is to to make for some.
It's a little bit.
In terms of awards.
What are your top end in the in.
A couple of a couple of weeks ago.
<unk> debt after the first 6 months of draught period.
Very important storms.
Net COVID-19 older requirement from.
During the second enough steroids.
Quite difficult to predict.
What cannot especially the second half.
You should have.
Potential.
Potential no still potential no other.
And the time and then the masking all day all of this is Noah.
So David.
Thank you.
I'll leave it to get used to be.
Something appealing.
Okay.
Yes.
But basically we are let's say.
Around 6 months.
So.
In order to close the Oh.
Round standpoint for that other towers.
Power.
The projections that we have right now.
Thank you is that day then.
The next question from Diego, whether he was asking more details about this total ordinary effects that we booked during the period. So he's asking more of a day is about the impact of $46 million.
From them and if we can ease that breakdown.
Then we add voluntary retirement program that we announced it for 4 day group for it and moving in Chile in this in this period. Thank you.
While the lead Youssef for the answer.
Yeah.
So the $46 million, we can speak into park from there.
The first 1 is around 21 million non non interest today and monetization effect.
And then the remaining part of these around $24 million.
Yes.
2 day requirement playing now.
Where.
1 thing, but additional that's down $24 million 50 per cent and see what we see on.
$9 million for them and so on.
Around $3 million for and in Chile.
So I think from these basically the breakdown that we have.
Yeah.
Yeah.
Okay. Thank you does that free so operator do you have any more questions.
No ma'am.
Okay. Then so as we are we do not have any more questions here, we would like to thank Dan your presence in our call today and our nation debt tower, a team from Investor Relations will be available for any other questions or doubts that you may have during this period. So.
So many thanks for your attention, thanks, Paolo and xanthe it for a nice day bye bye. Thank you. Thank you because everybody EQM assets.
<unk>.
Right right right.
This concludes today's conference call you may now disconnect.
[music].
Yeah.
[music].
[music].
[music].
Good day, ladies and gentlemen, and welcome to the NIH, Chile, Q2, and first half 2021results conference call.
My name is Philida and I will be your conference operator today.
During this conference call, we may make statements.
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 risk and uncertainty.
Ts.
Actual results may differ materially from those anticipated in the forward looking statements as a result of various factors.
These factors are described in in a Chile's press release reporting in Q2.
In first half 2021results.
That cruise Dentation accompanying this conference call.
And in a Chile annual report on form 20-F, including under risk factors.
Yeah.
You may access our Q2 and first half 2021 results press release and presentation on our website W.
W. W Dot N a debt.
CL and our 20-F all this.
He sees website www dot if you see that G O V.
Readers are cautioned not to 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 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 president.
Cash and over to Mrs. Isabela Klein head of <unk>.
Investor Relations of N a Chile. Please proceed.
Thank you for lead time Windows, Yeah, Good morning, and welcome to Enel Chile's second half for 2021 results presentation.
Thanks to you all for joining us today.
Today I am Sabella claim is they had doesn't investor relations. Let me remind you that our presentation and related financial information are available on our website www dot and now the C O in the investors section and in our App investors in the final for the presentation.
There will be an opportunity to ask questions via phone or shots for the link S. Kept question. Joining me. This morning, our CEO Paolo Palazzi NRC of Folgers episodes Kennedy in the following slides following won't bring the presentation with the main highlights on its strength it and operation performance than.
Let me walk you through our financial results a replay of the call will also be available and always our team will continue to be available to provide you with friends at Teva information you may need concerning the figures included in this presentation. Let me also remind you that media partnership.
Events are connected only in listening mode.
You all for attention and now let me hand over to Paul the volatile.
Thanks Drew subway line.
Good morning, and thanks for joining us.
And then Chile is consolidating is a leading position in renewables and is there.
Sipping.
And as you can.
We our Congress just about the forecast for growth of drugs advances in the energy from the country like treason.
Resources and technology.
For both implementation to book towards the fact climate change and the expansion of it.
User.
We're obviously in the industry.
This atone performing the client for the citizens quality or line.
This isn't there for it with multiple benefits that also requires a quick reaction by the several doctors involved to truly understand that support those changes.
During.
And the quicker we are advancing the construction of more than 1.2 gigabits per book over renewable capacity from 7 approach.
But apart from the $2 for G go up additional renewables.
We will the jewelry.
The 2021 'twenty 2 'twenty 3 period.
This quarter as you will see in their SaaS for slides percentage by Giuseppe <unk>, our 2021 for itself.
By non structural elements like local guests.
And commodities prices.
Prices.
Looking at sustainability commitment.
We have been included for the first time in the standard for EPS.
ESG title index.
Launched early this year by Santiago stock could change the standard <unk> titled Index, and the Chile now.
1 of the 27 companies did in the first week.
Local operation on this index with the rebalancing executed during July from towards.
Also I would like to highlight the new FTSE Russell score for our company recently announced.
We have been achieved for zero points or a total of 5 zero.
Versus.
3 for or in the previous year.
These recognitions reflect our sustainability strategy and our commitment towards just for the energy transition.
We are growing along our strategy.
Together with our clients energy requirements.
In addition to suppliers.
<unk> via our retail operations and leaks.
<unk> several agreements with the kind of sector remained mining companies other stopping point and then service companies.
To promote electric mobility and energy efficiency solutions.
Additionally, we continue to support the.
The contamination of the day Synthes participating in the implementation of several programs to push on.
Adoption of electric <unk> in exchange for more contaminating ones.
Finally, consistent with our strategy, we have signed an agreement with Banco Santander for our first.
SPG linked instruments.
This law is linked directly to tackle the climate action DSD G 13, and is related to visit of action of our diluted share 2 emissions by 2023.
And in Chile in the first local utility and securing this kind of instrument linked to a United.
Our nation is digital.
Now on our capacity under construction page number 4.
Let me give you some update on our projects under construction as important pillar for our positioning in the market and for implementation of the energy transition.
As already commented with.
The last 12.15 months I've been quite complex managing the construction of the new plan.
The effect for the con dania, causing the lockdown restrictions and closure of the countless bartlett's jointly with the initial delays on our corrosion calc permits caused by bureaucracy and lack of vessels.
With you.
Require in some cases rescheduled all our project time line.
Notwithstanding level, we are continuing to advance on constructing our other.
From a portfolio.
As you can see in the chart 2 considering the capacity under construction by the end of this year, we will book an operation is significant.
Good day to that amount.
Let's move to slide 5.
Today.
Our clients are requiring our support to be provided with an aggregate of services related to the use of the green energy and to the contamination therapy.
We have signed different partnership and agreements to promote sustainable transportation and more in general innovative services and the use of the outage.
Recent example is the agreement we followed our growth 1 of the largest retailers in Latin America.
After a private tender and.
Our debt to sell energy to their operations and at same time to incorporate more than 500 electric.
<unk> points through the accounts.
With those agreements.
We are providing a complete solution to our clients copying.
Coping with the path to recovery.
Amortization.
For the same time.
GAAP increase analytics market share and denounce leadership in the energy efficiency and Electromobility and accounts.
Finally.
In line are contributing to the development of smart cities.
We then Alex again.
We have developed security projects line monitoring and be there sort of items.
This kind of project includes security cameras automatic reading countries for patent and delaying of optical fiber that interest.
Today, we will have more than 1.
10200 security camera historically, Chile.
Complementing the plants of Cds insecurity contribute to preventing climbs and royalty friction.
Customers are becoming more aware of the system.
The efficient use of the image.
And Alex is our clients first choice and Azure or change.
<unk>.
Now on page number 6.
With reference to our network during the second quarter.
We have seen a partial recovery in the energy demand compared to the previous period.
The result, the aggregated energy distribution reached 7.9 Terawatt hour income.
Was it 2% versus last year's period.
We will increase the quality of our service and reduce.
Our distribution loss rate from 521% to 5%. Despite all the challenges we're faced.
With reference.
Increase our actions towards the Digitization of our processes and a distribution app reached more than for under 94000 downloads, 30% higher than June 2020, cumulated figures.
Our digital interaction.
Have increased to ADC.
<unk>, 2% from 75% in the same period of the last year.
On the other grocery side the final report.
On the distribution referenced some other.
Shall be published in the following weeks.
And the following royalty reports is expected to be issued by November 21.
As we have mentioned any discrepancy between regulators and companies positions can be challenged in the expert panel Easton.
We expect debt that letter was released the final distribution.
During 2022.
Regarding transmission tariff cycle 2000.22020.
ADC.
The Regulator's report fixing the new tariff cycle will be published during the next weeks.
It could be challenging.
Per pound at least depending on the results of the several comments percentage by the to income.
During the evaluation phase.
We're expecting debt.
Particularly mission tie for the free.
To be published at the end of this year or very early 2020.
On slide number 7.
The application of the basic service load is affecting the level of new debt.
We are continuing to push in providing.
Ill turn it for use of payment to our clients and to promote the adoption for payment agreement.
By June 21.
We have finalized more than 62000 payments agreements of which 50% correspond to basic service flow and the other of corresponds to.
It is a voluntary agreement promote by energy.
Due to our net for our collection level remains stable with a slight improve in training in second quarter 'twenty 1.
As of day end of June the net overdue debt reached.
1 other efficacy.
U S dollars.
Representing more than that.
543000 clients.
20% increase versus last year.
On a monthly basis.
We have factor is around that $32 million supporting path for our liquidity in the period.
In.
Our view as already commented with you.
I noted all overdue accounts is going to materially increase during the next months.
And we will not be sustainable in the long term for the most vulnerable families..1 for the conditional payments we've come to a month.
In defense our solution at Gorgon. This day it is crucial.
In this process.
Now I will <unk> 2 receptor.
Justin Thanks.
Thanks Paolo.
Let me start with the summary of our financial highlights on slide 9.
Where should we go through details in the following slides.
But before starting independent.
Let me explain the other.
Effect of the theater.
For the first half 2021 we have adjusted the EBITDA and then at income.
Considering the effects of rising from the cold stock impairment associated to book, I mean up to and the balloon for the retirement program that the company is off for.
I think they net employees, which we're enabling for the rest of day.
H.
The cold stock impairment and the voluntary retirement program had an aggregate effect of politics in Angola, and the first thing for anyone.
And $31 million at the bottom line.
In the second quarter.
This effect amounted to 31 million dollar from the EBITDA and 21 million dollar index.
Okay.
For the previous year.
We have adjusted the figures by the cold stocking requirements for $17 million in EBITDA and the net the effects of the impairment book I mean not too.
$672 million other bottom line.
Oh.
As I'll describe in the bottom of that line.
Now, let's start with a lot of Capex allocation.
Out of which <unk> 96 per cent is linked to the is the gene.
On slide 10.
First.
2021 capex reached $510 million, mainly devoted to the construction for the new renewables capacity.
Customer Capex was mainly allocated for the.
New connect channel, reaching a total of $33 million with an increase of 13%.
Southwest is a lot yeah.
Asset management, Capex reached $62 million 45 higher than first half 2020.
Mainly due to the higher maintenance activity in the single channel higher maintenance work in our non call 10 months ICT and digital edition of intelligence.
Development Capex reached almost $415 million.
The 1 on day $23 million higher than first half 'twenty 'twenty, largely driven by our renewable expansion and development of our distinguished from business to continue these studies from a lot what net growth.
Let's now start with the second 2 adjusted EBITDA breakdown on slide 11.
That accounted plunder.
$3 million up 22% below what vessels for 2020 figures.
Mainly due to seasonal COVID-19 of hydrology in our amazing a load out.
What is our either for generation.
0.3, instead of a tower or 23 per cent debates the second Q2 thousand 20 figures.
They continue to do all the lack of gas from the system.
The increase of international market price is to maintain a very high spot price income.
Based on 2022nd 2 income.
And of course, they're waiting for me increase that coastal vintage apostrophes, particularly is doing they're not solid time required to supply our tpa.
And they've got the P. P E marketing effect that is mainly associated to debt British and all the Chile and base I mean 2021.
<unk> 20th training considering that our book is in Chilean pesos and our PPA are you at in a minute.
These effects.
Yes.
All set by the New agreement started in 2021 is ungrammatical.
And the new contract.
Coming from and then it moves from free market.
Portfolio other meeting of the AR and the PPA price.
The main me by the CPI indexation.
And the higher price each of our regulated PPA due to the commodity teams and CPI indexation.
The net commodity coverage.
Average resulted in a positive effect in the EBITDA due to the higher commodity price in the market in line with our hedging strategy.
And negative effect of the settlement due to I'm, sorry for the monetization of ink to green.
Related to the recovery of supply.
In the regulated PPA and assessments made in simple shouldn't be things that come through 2020.1.
The net for business finances are coming from a recovery of the second 2.2021day mom.
Mainly it related costs due to the flexibility.
On the lockdown measures.
And the step by step government line.
For the regionals on lower remuneration of own distribution tariff, which shall be retroactive to November 'twenty, Queen and lowered rumination on the transmission tariff for it.
As a result of the devaluation of steel and item basis babies studies.
Cycle.
Other effects accounts for $15 million, mainly related to <unk>.
Our headquarter reinsurance for the quality received during between Acquainting Samsung They book 3 agreement executed the old thing between clean.
With lightning contract.
Celebrating doing in second Q, 'twenty training and additional insurance call something from you about.
Let's move on to slide 12, but where do we have the summary of house for staff adjusted EBITDA book down.
Accounts.
For 454 million.
But 20% lower to buy so screening for any fevers.
As you can see the main assets out of the same that we presented in the second quarter.
The $8 million relative to commodity availability and idea of commodity price.
They've got to D. P. A margin effect, mainly associated with the Navy.
They've got the bodies coming from depreciation of the Chilean pesos in the field. That's us for solid 2020, considering again that our book currencies Internet in pesos and our P. P. A R U S mi.
The effect.
It was also offset by the new agreement stuck in the period.
It's a new concept coming from this evolution.
Portfolio other mediums.
It goes with the $56 million.
On the net from a coverage.
You already mentioned 26 million dollar on debt, that's a month in both generation and distribution.
And they've got.
I mean $3 million from network remuneration related to the expected lower distributions.
Interest in mutual parish.
Other.
Accounted for $50 million, mainly due to our core for insurance inequality received last year and transforms debt free agreement executed also.
So in 2020.
Let me now give you more detail about the main generation keep your eye on page 13.
Even though our first summit.
Generation has been affected by poor hydrology.
For the origin the accounts during the second quarter, especially in June.
It's there was a slight improvement from rainfall.
Which enabled an increase in our hydro generation as well as in our total production when compared to the same period of the last year. Therefore.
For a second quarter production reached 4.7 Star War.
Income.
Increasing 10% versus clinically.
India. Our production reached 9.2 net of a thousand babies seem you know versus last year and also supported by several generations.
Our energy sales increased 18% during the first stop for in 'twenty 1.
Mainly explained by new contract with the free cash when including Young America and retail clients.
Sales from any distribution distribution treater as part of unbundling regulation requirement.
For what's going to send our sourcing on top of the already mentioned production.
Prior to doing the first style for 2020, 1 we accounted a total increase of 1.8 net about power or boxes, which include 0.7 on the spot market and 1 for 1 terawatt hour from other journey for us.
Really stupid thing regulated customer portfolio.
But it from and then the.
Simple.
Yes.
On slide 14, just a recap of deferred for months of our.
Joining us from Beaver, including analyst from Chile.
And and then getting power share.
<unk>, which is largely explained by profitable.
Titled Hydrology, higher commodity price, they're not yet spot market price when compared to the last year.
EBITDA is mean adjusted the buys clothing, they started doing it effect from the coal consumption costs related to the de carbonization process and the volume that it threats that are in the program.
And finally on slide 16.
Skiing I'm sure somebody.
Adjusted for months or about 1 net book business, including anti leasable soon Ciena and then it does makes in Chile.
The second Q2021 reached <unk> 5.
$5 billion decreasing 27% regarding.
From Q2 thousand 20.
Mainly due to the lower rig rates.
Remuneration in both distribution automation.
Business.
That settlement book, and secondly to 2021 related to 2020 that feed them for.
Free market clients concept could be generated from visa.
For accomplished unbundling low partial offset by higher volume.
Consolidated adjusted EBITDA reached.
Moving to $1 million or city for per cent compared with the.
Right.
2020 EBITDA.
Mainly due to the lower demand from the regulated market and the.
The simple journey of the new targeting distribution growth.
For the market clients with concept for generation business to accomplish them Monday moodle.
And finally Union agreement.
1 off impact book in the first quarter of 'twenty 'twenty 1.
Now on slide 6.
<unk> fiscal 2 the main driver of our group Inc.
Danny and bad debt reached $151 million.
And so there is $7 million mainly related to the lower <unk> no no.
I assume due to the impediment maybe book I mean, it's 2 in 2020.
And lower do you mean, it you'd be up due to debt position of Chilean and B just from the video.
Net financial results.
And ex installed 1 other and between $9 million an increase of 45.
Moving on dollar mainly due to higher cost book.
Yeah.
Due to the factoring executed the origination business on the subsidy.
Musician, Nick any dot com.
Higher costs regarding the new debt issued during the 20th training.
Exchange differences, mainly in accounts receivable of subunits from Nick any interest from visa.
This effect was partially offset by the higher financial expense capitalized interest stock during 'twenty 1.
Income tax reflects the impact related to the lower EBITDA and higher financial expense due to debt factoring costs. So they kept calling.
As a result adjusted.
Adjusted for started 21, net income reached $119 million above 45% lower than that for us.
The adjusted second floor for 'twenty 'twenty 1.
Net income reached $48 million, a 59% lower than.
The second through 'twenty 'twenty results.
This was mainly explained by the lower EBITDA result for the quarter for the reasons I mentioned in the previous slides lower D&A, mainly related to the lower meaning in the center.
2 the impediments meeting book 2 in 'twenty twin.
Increase of 29.
$9 million I mean financial results, mainly explained by the stocks I mean execute in the second quarter total finished from business.
Lower income tax mainly due to lower adjusted EBITDA.
The idea of financial expense as it comes away from factoring costs. So that they can accounts in the quarter matched effect.
Yeah.
Getting power.
Grupo and lower taxes accounted independencia.
Moving to the cash flow on slide 17.
First off when you want it to Phil reached 2.
1 day $72 million higher than previously S Feagles mode.
And due to.
Higher net working capital that's just when you're training mainly.
Mainly explained by factoring in both generation and distribution business accounted for almost family minimum NOLA.
It's a niche online sales.
In 'twenty, 1 with the cash.
Cash impact of $29 million Parachutists E buses during first quarter of last year.
Lower impact.
Oh yeah.
Amortization price mechanism in 'twenty for anyone that's a screening queen due to depreciation of children and pets.
These effects were offset.
Mostly saia.
<unk> net income tax during for stop 2021 versus last year mainly related.
Related to COVID-19 majors doing 20 twin debt postpone part of the corporate tax payment to 'twenty, 'twenty, 1 and lower fiscal tax payments they do.
During.
Green cuisine.
And how do you get a financial explained mainly explained by the cost of the factoring the subsidies they shouldn't make any accounts.
Let me now go through our debt on slide 18.
Our gross debt increased by $405 million.
Hey, Bobby its December 2020, amounting to <unk> 4 billion as of June 2020.1.
The balance sheet.
Mainly associated with our Capex plan next day cushion.
In the period that we have executed a $400 million founded Desi.
Partially upset by the amortization of the earn in and asked him Chile 11, therefore, our net debt in the field increased from $14 million.
The average cost of a lot of debt in the field remains stable at $4.6 per cent as of June 2021.
Paolo highlighted we are focusing now on sustainable is digitally easterly.
Jeff issue.
This is the G linked debt probably day for home.
She is the million dollar with Banco Santander, Chile with them.
2 to 3 years with the baby competitive in their 3 the most strength.
As per the recognition of our de risking strategy.
The newest did you don't consider is keep your eyes.
Sales to emission of our generation fleet by 2023.
As of June around from that a minimum dollar of our debt is did you linked with.
Consumer.
Either from the minimum dollar of inter company debt using debt issue all book as of June.
'twenty 'twenty 1.
These figures do not consider the 50 million U S dollar starting in July we from the net.
In terms of debt amortization our.
Our schedule remains very smooth with an EBIT drove 6 year and around $300 million annually much everything up.
23.
In terms of liquidity, we maintain the level of zero point $8 billion, giving us flexibility to face.
Headwinds from the market.
And now on page 19, let me conclude this part of the presentation with the guidance that day driven by the recent events already discussed ex.
As usual the number net of Cold Stockholm Academy plane.
During our presentation, we have highlighted.
In fact, all debt stand up in the last month.
We changed our scenario for.
D var, particularly the complex hydrological scenario commodity about amenity space for the lack of Argentina, and that's what I've got and hiking of commodity price, which is clearly not.
A structural effect in our market.
To be transparent with our investing and all day parts, we have around several scenarios.
To reflect the evolution of somebody about driving us to predict the second half adjusted EBITDA in a range between 0.60 point $7 million.
Consequently, our EBITDA should be in the range of 1.1 to $1.2 billion dollar for 2021 the devaluation from 302 for him but non dollar.
There was a lot of guidance reported in November 23.
We're not yet anticipating.
See you on the net income of $8.
It's we are running say, but I'm a chunk to upset at the most the devaluation of all other.
On Capex, we don't see Boston deviation is the larger part of our development Capex is expected to be deployed now on the second half from.
This year.
Let me remind again that these adjustments is not a structural 1 is the part of them they've got these headwinds that OLED Tvs are facing this year.
We strongly believe that our strategy of increasing renewable capacity will reduce significantly.
Our proposal to commodity and I don't mean differently.
Paolo I will hand over to you for closing remarks.
Thank you for your separate.
Implementation of our investment plan and the execution of our renewable growth project. We continue to be 1 of our priority in this first study to support the country.
On the acceleration of the other companies issue.
Some important discussion needs to evolve with the tour.
The ratio for about 3 for instance.
Our strategy will continue to be deployed on the day I guess he is just standard towards the other companies issue and energy transition for.
For the full banner.
For our clients and communities.
Digital operations and customer care will be key to develop a long term relation with our clients.
Our strategy is reported by our long term vision and balance sheet strength.
Good thing you as did you leak instrument.
Thank you for your attention.
And let's now open the Q&A section.
2 sabella.
Thank you Paolo and so for.
Do we have a question.
At this time, if you would like to ask a question press star 1 on your telephone keypad that star 1 to ask.
Sure.
Okay perfect. So I received here from the chat questions from really Teeny for instance, and then so the first question from what he law colleges that then is how do you evaluate the expansion.
Ask a question on for the transmission system.
These be enough for a day relevant incorporation of renewable capacity in our point of you know our point of view or could we expect a higher level of losses due to congestion how do you plan to handle this issue.
Issue.
So I think we could answer these and then angle for day, others follow engines that have been.
Okay.
Hi, Thank you for your question.
Regarding the extension of the price Mr system at the commission between the north for them.
Especially.
For the centers I don't mind consumption.
As always.
Interest in the larger debate between the different players for diesel.
Those are in the cycle.
Now there is that these are project for improving the connection using high voltage.
<unk>.
Okay.
Clearly it is a very a impacting project in the sense that it will take lifetimes.
There are 2 elements to take into consideration the full commitment total won't be involved in the bidding GAAP. These interconnection system.
Key for.
For achievement for sure.
And second I can mention also our actions.
The sense debt.
We are let's say refining our portfolio of plants and also of clients in order to avoid to be let's say.
Net checkered bar these a bottleneck in the sense that we have.
Important contracts in the north.
Developing our potential conflict in the same area and the same time, we are also developing interest in positioning.
So.
A debt.
That's the way in which we can copel in the short to midterm, but.
I agree with you that these key honestly I think debt being.
Being so essentially in the in the evolution of the accounts through this kind of the connection.
It will it will have all positive.
Possibly don't ask me to bet about the right ear to entering into inspiration because.
It could be.
But I'm I'm positive OMB attention the authority on this.
At the same time.
We as a company we are trying to drive a counter measure in order to avoid to buy the system element of looking like.
Okay. Thank you Paolo.
The second question from Marty Louie.
Oh are you seeing the performance of the demand in the concession area of Enel, Chile Young in July.
Any signs of recovery.
With the low restriction measures.
Yeah.
Okay.
We are evaluating.
Yes.
Period of 6 months, if we focus on the very recent months.
The effect the net.
Negative effect.
The contango.
Metropolitan region in locked down and so many.
Many of.
Clearly.
Our clients I'm, referring to the commercial sites.
As more.
Thanks.
From the affected.
No.
All in all other what we see the recovery in the.
Last for.
For the month of data even if it's.
Early to provide you a figure.
At the same time.
Yes.
General and.
Question in terms of.
Consumptions in the in the concession area and the first 6 months compared to the.
The 1 for.
For the first 6 months of last year.
Is likely decreased but you're taking to take into consideration also putting into effect in defense debt continues to be a movement, even if not so big.
And that.
The clients that are entitled to move from an aggressive system into a free market debt.
Let's say choosing to be free.
To be out of the system and this has an impact.
Indeed.
The segment, if you look at the specifics.
There is.
All in all.
Kris.
Between 2 and 3% all in or considering the or the effect of this dimension. So.
Perfect.
The locked down debt suffered from Thiago.
And the let's say the center.
Got it the period between March and.
Jordan.
Perfect. Thank you Paolo and then last question from when you look for instance in debt.
1 is the number of sales or do clients decreased.
Crazy.
Sales first half 2020 could you provide more details on <unk> and on the discussions being held to.
Sure.
<unk>.
Okay.
Is it a little bit larger this cash.
Cash and because it for.
For 1 side, what we measure.
<unk>, let's focus for a need for it for a second on the domestic set.
Segment that is the most affected by the recent regulations.
After the non growth for 2002 items.
If we measure net segment.
We have not seen very improvement in term of number of clients.
They cannot bank.
But let's say the mechanism that we have seen is debt.
The decline.
<unk> debt.
During the day will a period of the year.
Used to let's say.
Into the overall view.
<unk> segment, and then start to pay in the periods of let's say aging between 46.
2 days because this is where the caps.
We.
Turning to the cut off.
We will enter into production by the distribution in this case debt.
For my answer.
The clients are.
Not paying so.
We remain in the segment of overdue, but they're aging increasing.
And this is happening.
Also for Unfortunately, and this is something that we have a net.
They announced the price this is something also to large.
Domestic clients with the Consumptions.
Then.
1000 kilowatt hour per months.
It means approx 4 times the average of Santiago.
But also for clients that between let's say 500.700.
Claude.
Per mouth debt.
They are not paying if we look at debt numbers.
For instance, the LASA.
The last the largest client segments available to do debt or large client segment.
More than doubled.
Between March March 'twenty.
June 'twenty 1 so there is an effect.
That is driven by.
By the impossibility.
For the distributor to let's say cut off the non.
A good level clients because.
Talking about non op side clearly all their patients all day care for the fame that cannot afford to pay the debt, but this is different from discussion.
The focus and also our analysis is focused on.
Debt category of clients that us I consumption.
Of course.
Sources to pay but they are not paying because nobody can cut.
Demos.
And this is an important element of discussion that we're having with.
With that thought.
On the general basis there is.
Yes.
There have been these announcements in early June and for them correctly regarding <unk>.
Seamless.
Yeah.
Payable negotiation table between different party called the Golar winter.
The <unk>.
Where to find.
Our solution.
The net.
Sure.
The vulnerable families.
To afford that.
But once.
The system, we've come to normality.
The real issue because if we look at today.
And.
Good number of clients.
Average.
The average depth.
Yes.
Using a number that we have eased in the range of 101 other.
1000 vessels generic basis, if we add this on.
On top of the range that they're paying on a monthly basis.
This is very difficult to be.
Maintenance sportswear if we.
We use a 48 quarters without interest. So this is it.
We have to focus and leave.
<unk>.
The distributor work with clients that can pay but they do not.
Perfect. Thank you all of them and so the I didn't know operator, you free we have any questions on line otherwise I have 1 from a whole debt equal would have put them on that they can do it now.
There was a question on the phone line.
Yes.
Can you open the line. Please okay. Other question comes from the line of Rodrigo.
Oh, sorry, sorry.
But for you guys.
The question he has a problem or underlying so.
The first question.
For the legal and the first 1 is debt.
Given the drought situation in the country east than they are evaluating to postpone the closure of book coming now true in order to preserve the electrical security of the system.
This is the first question fall into that thing.
Yes.
<unk>.
That is other regal.
Clearly has.
I'm ready.
Highlight.
This analysis, we are not dealing with the.
Structural changes.
So.
What's happened this year is something.
Debt is a coincidental difference Adam.
In the past.
Sure.
We do not see.
Let's say.
Any any reason or the effect for change our strategy and our decision to.
<unk>.
Let's say.
Come back on the.
Phase out of book Amina considering that.
By next year.
At least the 1.3 plaza more megawatts with comment on line.
Oddly R&D.
Our site is.
If we look at generic feature.
The effect and the evolution of this year has been driven also by.
Important delay on or many other projects.
For renewable projects.
Net should cover in the short mid term.
<unk>.
Energy requirements or the system other accounts.
Therefore for the point here is to allow the system to work properly for these.
<unk>.
US together with.
The outsource for comfort.
For us.
We heard we are focusing on the development or debt.
In relation of the storage.
Debt will be key for appropriate function.
And listen we hope with something that will take place by enduring.
During the second value.
This year in order to be propylene in place and monitoring to book.
The ancillary services.
Package of system and 2 the recognition of the capacity payments.
In order to allow us to enter.
Uh huh.
To the extent with renewables plus storage and.
And to fulfill all the requirement for this season.
Perfect. Thank you so the second question.
But the Eagle from <unk> Richie.
The hydro generation debt.
That you're estimating for the second half of the year, considering the guidance update it really by the company today.
Yes on this.
It will.
Answer to Seth.
That can be more precise in terms of.
Because in terms of concept.
You know the legal how difficulties to to make some.
It's a prediction in terms of.
Awards ideology is top line.
In a couple of a couple of years.
A number for that.
After the first 6 months of graph theory.
Very important storms.
The COVID-19 older requirement from.
During the second half story.
Quite difficult to predict.
What cannot especially the second.
So were you should ever.
Let's say.
Thanks, Sean Snow still potential no that's up in the time and then.
The masking of the all the snow and ice.
So.
I'll leave a separate to give us to give.
The government beat England number.
Yes.
Basically we are projecting to have.
Around 6 months instead of a thorough so.
I wanted to close theory around pain points for that other tower.
That was.
For the projection that we have right now.
Yeah.
Thank you does that then.
The next question from 1 day ago, what he was asking more in detail about it.
In fact that we booked during these periods. So he's asking more of a day is about the impact of $46 million.
And if we can give a breakdown on the Riyadh voluntary retirement program that we announced that for for the group for it and moving in Chile in this in this period. Thank you.
While I'll leave yourself the answer yes.
Yeah.
So the $46 million.
We can see it in 2 parts from there.
The first 1 is around 21 million of non non insulated to a day and monetization effect.
And then the remaining Boston these around $24 million.
Yeah.
It was related to day, we're very proud of them in play now.
Where.
1 thing, but additional breakdown on the $24 million is 50% day in and you can see what we see on.
$9 million for them and an interest.
And around $3 million for and in Chile debt.
It won't be from these basically the breakdown that we have.
Yeah.
Yeah.
Okay. Thank you does that free so operator do you have any more questions.
No ma'am.
Okay. Then so as we are we do not have any more questions here, we would like to thank Dan your presence in our call today and Asian debt tower, a team from an investor relations will be available for any other questions or doubts that you may have during the spirit. So.
Thanks for your attention, thanks, Paolo and zippy.
For a nice day bye bye. Thank you. Thank you. Thank you for everybody.
Bye Bye bye.
This concludes today's conference call you may now disconnect.