Q4 2023 Enel Chile SA Earnings Call

[music].

Operator: Sponsored ADR Good afternoon, ladies and gentlemen, and welcome to Enel Chile's full year and fourth quarter 2023 results conference call. My name is Carmen, and I will be your host for today.

Yes.

Okay.

Good afternoon, ladies and gentlemen, and welcome to Enel, Chile full year and fourth quarter 2023 results Conference call. My name is Carmen and I'll be your host for today.

Operator: At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear a message advising that your hand is raised. To withdraw the question, press star 11 again.

At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.

To ask a question. During this session you will need to press star one one on your telephone.

Dan here and message advising your hand this waste to withdraw the question Press Star one again please.

Operator: Please note that today's conference call is being recorded. During this conference call, we may make statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect only our current expectations, are not guarantees of future performance, and involve risks and uncertainties.

Please note that today's conference is being recorded.

During this conference call, we may make statements that constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, such forward looking statements reflect only our current expectations are not guarantees of future performance and involve risks and uncertainties.

Operator: Actual results may differ materially from those anticipated in the forward-looking statements as a result of various factors. These factors are described in Enel Chile's press release reporting its full year and fourth quarter 2023 results. The presentation accompanying this conference call and Enel Chile's annual report on Form 20-F, including the risk factors, included under risk factors. You may access our full year and fourth quarter 2023 results press release and presentation on our website www.enel.cl and our 20th on the SEC's website www.sec.gov. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of their dates.

Actual results may differ materially from those anticipated in the forward looking statements as a result of various factors.

These factors are described in Enel Chile's press release reporting its full year and fourth quarter 2023 results. The presentation accompanying this conference call and Enel Chile's annual report on form 20-F included under risk factors.

You may access our full year and fourth quarter 2023 results press release and presentation on our website www dot and now dot CL and our 20-F on the S. E. T. S website www Dot S E C Dot golf.

Readers are cautioned not to place undue reliance on those forward looking statements, which speak only as of their dates and they'll Chile undertakes no obligation to update these forward looking statements or to disclose any development as a result of which these forward looking statements become inaccurate, except as required by law.

Isabela Klemes: Enel Chile undertakes no obligation to update these forward-looking statements or to disclose any development as a result of which these forward-looking statements become inaccurate, except as required by law. I would now like to turn the presentation over to Ms. Isabela Klemes, Head of Investor Relations at Enel Chile. Please proceed. Buenas tardes, good afternoon, and welcome to Enel Chile's 2003 fourth quarter and full year results presentation. Thank you all for joining us today.

I would now like to turn the presentation over to MS. Isabela <unk> head of Investor Relations of Enel, Chile. Please proceed.

Yes.

We're not this good afternoon and welcome to Enel, Chile 2003.

Quarter and full year results presentation. Thank you all for joining US today. Joining me. This morning is our CEO, Danny and now coaches that we didn't get any as announced in yesterday by our board of directors. Today is the last day of our steel habitual bad Daddy optic Julia is in charge of our company.

Isabela Klemes: Joining me this morning is our CEO, Fabrizio Barderi, and our CFO, Giuseppe Turchiarelli. As announced yesterday by our board of directors, today is the last day of our CEO, Fabrizio Barderi, after two years in charge of our company, assuming a new position within Enel SPA in Italy. During the period that the new CEO is being designed, Giuseppe Turchiarelli will step in as interim CEO of Enel Chile.

Assuming a new position with being an SBA any journey during the period that the new CEO shall be design and just that piece of that being I think Denis you often achieving I think the opportunity. Thank you Fabrizio for all his contributions to our company over the years.

Isabela Klemes: I take this opportunity to thank Fabrizio for all his contributions to our company over the years. Now, our presentation and related financial information are available on our website www.enel.cl in the investor section and in our app Investors. In addition, a replay of the call will be soon available. At the end of this presentation, there will be an opportunity to ask questions via phone or webcast chat. Through the link, ask a question. However, media participants are connected only in listening mode.

Now our presentation and related financial information are available on our website.

Yeah.

Investors section any nowhere App investors. In addition, a replay of the call will be soon available at the end of this presentation. There will be an opportunity to ask questions via phone or webcast. Yet prudently asked your question media participants are connected only in these three mode in there.

Fabrizio Barderi: In the following slides, Fabrizio will open the presentation with our key highlights of the period, then go through our portfolio management actions, regulatory context updates, and guidance achievements. Finally, Giuseppe will give us a view of our business economic and financial performance. Thank you all for your attention, and now, Isabella, I will hand over the call to Fabrizio. Thank you, Isabella.

Following these lines Fabrizio you opened the presentation with our key highlights of the urine then go through airports following management actions regulatory context update and guidance achievements. Finally does that still gives us a view of our business economic and financial performance. Thank you all for your attention and now.

Let me handover the call to Fabrizio.

Okay.

Thank you Bella good afternoon, and thanks for joining us.

Fabrizio Barderi: Let's start our presentation with our main highlights on slide 3. I want to start with our Portfolio Management Highlights. During the year, we added around 600 megawatts of new renewable energy capacity, including our first batch. All these additions will support us in our long-term ambition of decarbonization and the continued optimization of our economy. As of today, we have received the commercial operation data, and the cost from the system operators, for around 1.4 gigawatts, which is in line with our expectations announced in our last two investments. This year, we had a remarkable performance in our generation.

Let's start our presentation with our main highlights on slide three.

Yeah.

I want to start with our portfolio management.

During the year, we added six.

600 megawatts of new renewable energy.

Including our first.

All of this addition will support our long term ambition of deconsolidation and the continued optimization of our portfolio.

As of today, we have received the aforementioned operation.

Both from the system, operator or <unk>.

One four gigawatt.

Which is in line with our expectations announced in our last two.

Okay.

This year, we had a remarkable performance of our generation.

Fabrizio Barderi: The better-than-expected hydrology, due to the El Nio phenomenon, and all the gas trading activities' outstanding performance supported the achievement of our goals and targets. On the regulatory side, we have some important news to share. First, the Chilean government presented a draft bill to Congress introducing the stabilization mechanism.

The better than expected the hydrology due to date Nino phenomenon and all the gas trading.

Indeed performance supported the achievement of our goals.

On the level of the <unk> side, we have some important news to share.

Third the Chilean government presented a draft bill to Congress introduced into stabilization.

Fabrizio Barderi: The FACT 3.0 is a very important positive and important sign of stability for energy. At the same time, the regulator has published the final technical distribution rate referring to the 2020-2024 cycle. This step was very important to reduce eventual uncertainty about the distribution business remuneration. I will deep dive into both topics. Finally, I am pleased to announce that we have beat all our financial targets for 2020-21, which reflects our confidence in Enel Chile's future and solutions. Giuseppe will give you more color.

The bank.

Three volumes.

There are important positive and important.

<unk>.

Hey, Dan.

At the same time, the regulator published the final technical distribution.

Referring to there is plenty plenty plenty plenty board.

This debt was very important to reduce events or uncertainties.

So visa.

I will deep dive into both.

Finally, I am pleased to announce that we meet all our financial targets for 2020.

Which reflects our confidence in energy that feature.

We'll definitely give you more color.

Fabrizio Barderi: To conclude, during 2023, we recovered around $358 million related to the stabilization mechanism and enclosed the Ascarias project, which represented around 180 million dollars as a positive impact on our network. Now, let us move to slide 4 to review how we have executed our goals and strategies towards a more efficient generation portfolio. Over the last few years, we have significantly increased our renewable capacity through a diversified pipeline across different areas of the world. Increasing our exposure to solar flow.

To conclude during 2023 really covered around the 350 advised.

$8 million related to the amortization.

And clothes that Roger which represented around $180 million.

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Albert.

Now, let us move to slide four to review, how we executed our goals and strategy towards the more efficient the generation portfolio.

Over the last few weeks, we have seen.

We've got to increase our renewable capacity through a diversified pipeline across different.

Well just to solar.

Fabrizio Barderi: Sponsored ADR, During 2023, we connected almost 600 megawatts of additional net capacity. In Q4, we connected 106 megawatts related to the last phase of our solar plant, Sierra Water. 64 megawatts of La Cabana base and 39 megawatts of Sun-Solar EMF. During the year, we have also secured some asset rotation in the form of the sale of 416 megawatts of solar generation assets to Solneses in the north of Chile and the sale of our Wasco gas turbines. Both were initiatives aimed at optimizing our portfolio and recycling our time. Regarding costs, since January 2023, we have received the authorization from the National Electricity Coordinators to begin commercial operations for 1.4 gigawatts. This includes projects such as Campos del Sol, Valle del Sol, Cimit Cerrai, Gonchoy, Reynald Podoc, and the recently announced El Manzano and La Cabana. Now let's look at some updates on the hydrological situation and gas optimization activities. On the line, fight!

Samsung.

And more recently.

During 2020, we connected almost 600 megawatts of additional net.

In Q4, we connected 100 megawatts related to the last piece of our current plan.

Sure.

34 megawatts of a lockup on a bed and 39 megawatts of solar.

During the year, we have also executed some asset rotation in the form of the state or other than the.

Megawatts of solar generation.

And then off of Chile, and the state of our buying power.

Both were the initiatives aimed at optimizing our portfolio and revising our guidance.

Regarding cost in January 2020, we haven't received the authorization for the nationally.

Nathan will begin commercial operation for one gig.

Hugo.

This includes Georgia, that's just simple.

All right.

One choice.

And the recently announced Manzanillo and lockup.

Now, let's look at some updates on the hydrological situation.

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On slide five.

Fabrizio Barderi: Favorable hydrological conditions during 2023 allowed us to reach higher-than-expected hydro production, succeeding by 25% the level recorded in 2022 and totaling 12.2 terawatt hours of hydrogen evasion. A scenario that we have not seen since.

Profitable ideological conditions during 2023 allowed us to reach a higher than expected hydro production.

Leading by 25% the level reported in 2022 and totaling one two terawatt hour of either generation is there.

We are the plaintiff.

Fabrizio Barderi: YP, The hydrological situation in our reservoir is also very positive. Yesterday..., was compared to last year's figure, especially in the, We have included an updated view of our server level in the annex of our project. Rainfall during 2023 surpassed the last 10-year average period, allowing us to have comfortable water availability until the end of the first quarter of 2021.

Pete.

They are the logical situation. Our February is also very positive yesterday.

Whilst compared to last year, especially in Brazil. We have included an updated view of our December levels in the analyst presentation.

Therefore during 2023 through Buster.

Average period, allowing us to have comparable water availability at the end of the third quarter of 2024.

Fabrizio Barderi: In fact, as of February the 1st, 2024, the water available for generation was equivalent to 1,800 gigawatts, 150 gigawatt-hour more than the same day in 2020. Regarding our gas optimization and trading activities, we have guaranteed natural gas and LNG supply to our fleet and executed some very profitable sales to local industrial and mining customers and also to foreign ones. The foreign market trade was negotiated during 2022 and was very attractive, and the deliveries were mainly concentrated during the first and fourth quarters of 2020. Total Import, Cargo, Sold, and Broke All the above contributed around $300 million as margins for 2020. For 2024, we also see the situation as very complex.

In fact as of February the first 2020 before water available for generation was that we went into.

1000 <unk>.

100 gigawatt.

150 gigawatt hour more than the same date in 2019.

Regarding our gas optimization and drilling activity, we have guaranteed natural gas and LNG supply to our fleet and if you did some very profitable.

Industrial and mining.

To support it.

The Florida market C Nichols.

Nichols Debbie during 2022 is very attractive.

And the deliveries were mainly a constant steady during the first and the fourth quarter of 2000.

Although these forward cargo towards the growth.

Order book contributed around $300 million margin.

But political before we also see the situation is very calm.

Fabrizio Barderi: For reference, we have already executed a new firm agreement with several Argentine gas suppliers for up to 4 million cubic meters per day that will be in operation from October 1st until the end of April 2024, allowing us to optimize our combined cycle generation. In addition, we have already secured new agreements for the 2024 winter period with Argentine suppliers for up to 2.6 million cubic meters per day from May to September 2024, giving us security to optimize our portfolio during 2020. Now, let's look at some important updates related to the regulatory context on slide 6. In January this year, the Ministry of Energy presented a draft bill related to the Stabilization Energy Mechanism with the purpose of continuing the PEC mechanism and mitigating the projected direct increases to final capital.

For reference that we have already executed new firm agreements with several as just being a supplier or absolute volume.

Meters per day that are already in operation from October 5th until April.

<unk>. Thank you. Thank you for a low industrial mines, our combined cycle generation.

In addition, we have already secured a new agreement.

For winter period with us.

Up to the median.

With me today from May to September 2020.

Given the fluidity to optimize our portfolio during 2019.

Okay.

Now, let's look at some important updates related to the regulatory.

Slide eight.

In January of this year, the Ministry of energy presented a drop is related to the stabilization and as we make any with the fire hose of continuing the best.

The mitigating the predicted that it increases the final customers.

Fabrizio Barderi: At the same time, they aim to improve the science protection mechanism known as the MPC mechanism to allow gradual repayment of accumulated debt with the generator and establish a transitory Subsidy for the most vulnerable clients. Also, during January, the draft bill was reviewed and approved by the Special Energy Commission of the Senate. And now, after the Congress's Annual Leave, which ends during the month of February, the drafts will be discussed first in the Senate Plenary and then in the Chamber.

At the same time, they aim to improve the bank protection make any known nolet.

So although gradually repayment of accumulated debt with the generator.

It's accurately subsidy for the more providing into first class.

Also during January the Billboards.

Bill was reviewed and approved by a special Jiggle mission understanding.

And now after the Congress and the leads that ended during the month of February.

We discussed the first in the Senate plenary and then in December.

Fabrizio Barderi: Let me say that we consider the government proposal very solid and aligned with Chile's position and goals in incentivizing investment towards that. I will quickly explain the PDF proposal, starting with how this mechanism is financed. The BDF considers three sources of finance. First, a temporary state subsidy until 2026 of a total of $20 million per year. Then, the public service charge, which involves regulated and pre-client charges, and that amounts to around $200 million. And finally, the Client Protection Mechanism charge, which will be applied only to regulated customers aged up to 20. Both charges have different fees depending on the consumption of each.

Let me say that we can see that the government proposal very solid and aligned we cheated position anymore.

Thank you by the investment towards the development stage.

Let me explain the pediatric quarter, starting with how this mechanism is finance.

The Bbs when theaters three sources of finance.

It's temporary state subsidy and its multiplicity of total $20 million per year.

Deposit service charge, which involves the regulated and pizza island and that amounts to around $200 million.

And finally, the type of extra maintenance charge that will be applied oilfield related customers.

Okay.

Both charges have different fees, depending on the consumption of each site.

Fabrizio Barderi: With this finance mechanism in place, and also the gradual increase in the tariff, which will depend on time consumption, Share to support the recovery of the generators that count the receivables generated since the importance of Pac-1 and Pac-2. In our case, on December 31st, we had an account receivable related to the PEC already in a topoxyny of $759 million. In addition, the BDL has confirmed that PEC 1 settlement shall occur up to 2020. Furthermore, the PDL modifies effect 2 by extending the settlement limit period from 2032 to 2013, and increasing the total amount of the funds. Bye.

We did finance mechanism in place and also the gradual increase in the value, which will depend on the time consumption.

Their support the recovery of the generator's accounts receivable generated.

Opex one.

In our case on December.

31st that we had in accounts receivable related to the bank already net earnings of $759 million.

In addition, the Bds has confirmed that.

One settlement shall of course absolutely.

Also the PDL modifies the best the best.

By extending.

The period from <unk>.

2035, and increasing the total amount of the panel.

By three.

<unk> 3000 $700 million.

Totaling 5000 and finance.

We expected EBITDA, we'd be approved and published in.

In the first domestic authentic before we'll see the urgent given the Easter and the fact that the next and then work with the auction is scheduled to be held during.

Fabrizio Barderi: $3,700,000,000 Token Link $5,500,000,000. We expect that the PDL will be approved and published soon, in the first semester of 2021. Considering the urgency of the decision and the fact that the next regulatory option is scheduled to be held during, Regarding the distribution tariff review, the regulatory final report for the 2020-2024 cycle was published early this month of February. A detailed decree on the Distribution 2020-2024 Remuneration Cycle shall be published within the next week, and let me say that we had a more positive view of the process once we compared it. Additionally, by November 2024, we should start the distributional regulatory cycle comprising the years 2024-2028. However, we are still at the very beginning of the... Currently, the external consultant responsible for realizing the reference model company studies has started. The details of his study shall be known in the following.

Regarding the distribution tariff review.

Final reports or the 2020 2024 cycle was published earlier this month of February.

In the direct degree on the distribution.

24, the Mauritian cycle should be published within the next year.

And let me say that we had been more positive view of the brokered one one.

Thank you.

Additionally by November 'twenty, one before we should start the distribution of regulatory typhon, comprising the 'twenty 'twenty four 'twenty eight.

We are still at the very beginning of this program.

External consultant responsible for realizing the reference model company.

It started in Florida.

Results of these studies have been on in the quarter.

Now, let us move to slide seven to review our main Kpis of 2023 vessels to our guidance.

In terms of renewables and bank institution.

<unk>, our goal, reaching 77% over renewables and best contribution in our metric.

That deferred December 2019.

Contributing to our commitment to the advances in our businesses.

And lastly, also enabled us to reach our goal of 74, we announced that the reproduction overdue during 2019.

Let me point out that our efforts intended to improve efficiency in Hawaii.

Sure.

And lead up to the agreed indicators such as <unk> and those have achieved our goal of adaptive network. Despite.

Despite the more complex markets.

On the duplication of effort we have also achieved our goal.

Fabrizio Barderi: Now let us move to slide 7 to review our main KBIs of 2023 versus our guide. In terms of renewables and best execution, we have achieved our goal, reaching 77% of renewables and best contribution in our metric on 31st December 2021, contributing to our commitment to the country's energy.

Now, let US review on slide eight our math, our main financial indicators.

Our 2023.

During 2023, we experienced a significant improvement in our operation.

And by the more efficient generation mix related to advanced ideological integration and the contribution of our innovation portfolio action plans developed and executed during the last year.

Fabrizio Barderi: The latter also enabled us to reach our goal of 74 greenhouse gases pre-production over the total during 2018. Let me point out that our efforts, intended to improve efficiency and quality of service in the distribution business, have led us to decrease indicators such as TIDI and also to achieve our goal regarding network losses despite a more complex market. In the electrification effort, we have also achieved.

The laughter gasoline to be the conclusion of optimization initiatives such as the data of our SCADA fulfilled it enabled us to achieve our EBITDA and net income.

On the last financial indicator, we have released the upper range of the guidance announced during 2020 EBIT.

EBIT.

Does that say, we provide details on our performance on EBITDA and net income in the policy.

All of the above guidance at our leverage our net debt to EBITDA.

Fabrizio Barderi: Now, let us review on slide 8 our main financial indicators for the rest of our 2023. During 2023, we experienced a significant improvement in our operation, mostly explained by a more efficient generation mix related to a better hydrological situation and the contribution of our optimization portfolio action plan developed and executed during the year. The latter, coupled with the conclusion of optimization initiatives such as the sale of Arcadia last October, enabled us to achieve our ABDA and net income commitment.

Meeting our comfortable recommending the maintenance of the committed payout, which was also the company's board of directors recommendation and Wolf and was also in line with our guidance.

Now I will handover the call to David does that deferred yet.

Many thanks good.

Good afternoon to all our investors.

I will start my presentation with a summary of our main results for this year.

To better evaluate our company earnings.

We presented that clinically egos at the performer that includes the following adjustments.

The full year 2022 EBITDA.

It's by the impairment of the coal and the write off of old generation profit totaling $134 million.

These are men reward $63 million ended Q4.

Fabrizio Barderi: On the last Financial Indicator, we have reached the upper range of the guidance announced for 2020. Giuseppe will provide details on our performance on ADDA and Net Income in the following days. All the above guaranteed our leverage and net debt to the EBITDA committee, making us comfortable, and recommending the maintenance of the committed payout, which was also the company's Board of Directors' recommendation and was also in line with our guidance. Now, I will hand over the floor to Giuseppe.

Why does that.

At the bottom.

Online by a total of $3 million and the full year.

And $41 million in the Cooper basin.

Additionally.

We have excluded from this figure in order to better evaluate the operational.

Of our company.

Okay.

The operational results and capital gain of the sale of <unk>.

And the impact of the equity method.

Both executed in December 2032.

$643 million in the full year.

Giuseppe Turchiarelli: Many thanks, Fabrizio. Good afternoon to all our investors who are connected. I will start my presentation with a summary of our main results. To better evaluate our company's earnings performance, we present the 2022 figures as a proforma that includes the following. First, the full-year 2022 BDA has been adjusted by the impairment of the cold stock in the right-to-hold generation project totaling $124 million. This adjustment is worth $63 million in Q4. Likewise, this adjustment affected the bottom line by a total of $83 million in the full year and $41 million in the Q4 of 2022. Additionally, we have excluded certain items from this figure in order to better evaluate the operational performance of our company through one-off testing.

$560 million.

Sure.

These adjustments affected the bottom line by a total of 1002 arm that $30 million and 1180 $5 million.

Julia.

And in the Q4.

Regarding the boat.

Figure for 2008 Infinity.

Only by these days.

It means that 2022 figures included.

Good evening.

In 2022 in terms of cash that adjustment amounted to $20 million in the full year and $2 million in Q4.

We have excluded $300 million.

Capital gains updating.

This does that.

Considering these adjustments lifts the.

Early indicators.

But for.

Giuseppe Turchiarelli: The operational results and capital gain on the sales of Enel Transmision and the impact of the agreement with Shell, both executed in December 2022, totaling $643 million in the full year and $568 million in the future. This adjustment affected the bottom line by a total of $1,230,000,000 and $1,185,000,000 in the full year. And in the queue for...

As you can see in the early period in the fourth quarter.

Our syndicated bank, an important improvement compared to the 23.

Regarding EBITDA.

The improvement is mainly explained by a more efficient generation mix, thanks to the outstanding either renewable.

And due to greater.

So I think.

We will see more detail in the following right.

Regarding the co tenancy is 340 ESP show a relevant improvement impacted mainly by the factory.

Giuseppe Turchiarelli: Regarding the FFO, the figures for 2023 and 2022 have been adjusted only by the sales of Enel's transmission, which means that 2022 figures include this baby again. In terms of cash, the adjustment amounted to $20 million for the full year and $2 million in Q4. In 2023, we had excluded $310 million paid-in taxes on capital gains obtained from this transaction.

Around $345 million.

Other cash management.

Awesome.

Let me remind you that the Q4.

Therefore improved by $120 million agreement.

We will see more detail later on.

Let's review now the progress on Capex.

Our 2023 topped by a capex reached $804 million basically in line with our guidance for the year.

I would like to highlight that.

8% of our total Capex was related to the renewable explorer in line with our strategy of rebalancing our portfolio.

Giuseppe Turchiarelli: Considering these adjustments, let's see how the Earnings Indicator and the FFO perform. As you can see, in the full year period and the fourth quarter of 2023, our earnings indicator shows an important improvement compared to the 2022 figure. Regarding EBITDA and net income, the improvement is mainly explained by a more efficient generation mix thanks to the outstanding hydro and renewable power generation, and you to create the gap. You will see more details in the following slides. Regarding the FSO, the 2023 full-year figures show a relevant improvement impacted mainly by the PEG-2 factoring executed for around $345 million and other cash management optimizations. Let me remind you that the Q4 2022-24 includes a $120 million share agreement. We will see more detail later on.

The linear market context.

15% of our Capex was mainly related to clients new connection and greet beginning with digital.

B.

Yes.

Copel <unk>.

$88 million.

7% higher than the previous year, mainly associated with the new well connections.

Asset management Capex reached $129 million.

It is 6% lower than previous year, mainly due to lower maintenance activity and compete.

Plain and difficult.

Devaluate Capex reached $597 million.

Representing a decrease of 33%.

Figure in line with the remaining renewable portfolio and of course.

Let's now take a look at the slide 12, where we have the summary of the fourth quarter.

EBITDA breakdown.

Thanks, Bob.

One.

First of all let me remind you that we have included the pro forma of our footprint.

Giuseppe Turchiarelli: Let's review the progress on CAF. Our 2023 total capex reached 804 million dollars, basically in line with our guidance for the year. I would like to highlight that 78% of our total capex was related to renewable energy and storage, in line with our strategy of rebalancing our portfolio to adapt it to the new market. In addition, 15% of our capex was mainly related to clients' new connections in Greece, considering the growth in our customer base. Customer capex totaled $78 million, 7% higher than the previous year, mainly associated with the new customer connection. Asset Management CapEx reached $129 million.

EBITDA for comparison.

We have been.

Diluted from the clinic to EBITDA impact of the one off effect from the region.

So in Chile in the agreement.

Taking these into consideration our fourth quarter EBITDA was around $71 million higher than 2003.

Mainly explained by the following.

A positive contribution from either a renewable assets totaling $41 million, mainly related with improved orders in the quarter.

Second the positive effect of <unk>.

$83 million on variable costs.

Wayne by lower withdrawal.

Lower fees.

Fees and saving you.

Lower fuel consumption, both as a consequence of the best retro look in the PEO.

In addition, a positive contribution of $80 million related to the cap.

Giuseppe Turchiarelli: 36% lower than the previous year, mainly due to lower maintenance activity in conventional generation plants and distribution business. Developing CapEx reached $597 million, representing a decrease of 33% versus last year's figure, in line with the remaining renewable portfolio under construction. Let's now take a look at slide 12, where we have the summary of the 4th quarter 2023 EVDA breakdown, accounting for $471 million. First of all, let me remind you that we have included the performance of our 4-4-3-2-3-2 EVGA for compilers on purpose. We have excluded from the 2022 ABDA the impact of the one-off effect from the sales of the transmission.

<unk> activity.

Mainly due to increased trading activity for the speedup or 90.

You made in Q4.

Great.

At the very end.

Price is negotiated at the end of 'twenty three.

The National Enterprises.

Yep.

The boat measurement effects were partially offset by $116 million from lower EBITDA.

In Q4, 2023, primarily due to lower average PPA price mainly related to lower commodity index in the regulated market.

$18 million in Opex and.

In other call mainly explained by our new renewable capacity inflection across the businesses and the negative effect.

Due to a higher recognition of gross margin increased to 32.

Partially offsetting the positive effect in distribution.

Giuseppe Turchiarelli: Transmissions, Chile, and agreements signed with Israel. Taking this into consideration, our fourth quarter 2023 ABDA was around $71 million higher than 2023, mainly explained by the poll.

Many different indications.

Let's move on to the next slide where we will review the full year EBITDA breakdown summary.

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The full year to increase our EBITDA increased $358 million.

As David Santee Cooper partner.

Giuseppe Turchiarelli: First, a positive contribution from Hydro, a renewable asset totaling $41 million, mainly related to improved hydrology in the Quad. Second, a positive effect of $83 million on variable costs, mainly explained by a lower withdrawal spot price, lower transmission speed, and savings due to lower fuel consumption, both as a consequence of the better hydraulics in the field. In addition, a positive contribution of $80 million related to the gas optimization activity, mainly due to increased gas trading activity for the 0.9 Tbq made in Q4 2023 at a very increasing price negotiated at the end of 2022 when the international prices were very high. The above measurement effects were partially offset by $115 million from lower PPA sales in Q4 2023, primarily due to a lower average PPA price, mainly related to lower commodity indexation in the regulated market.

Mainly explained by the following effect right.

The positive contribution from renewable power by 230.

May.

Mainly related to improvement in order before him.

Second a positive effect of 94 million variable cost mainly explained by lower spot price in the period due to a better idea.

Great.

One of the one off effect.

Or an agreement with one of our TBA supplier and lower strip ratio.

Partially offset by lower military for months.

In addition, the positive effect of <unk> 1 million related.

People they've got optimization activity.

Mainly due to increased trading yet.

One that I bet you in the full year.

Finally.

Positive contribution.

$7 million in grid margin, mainly due to grief Malaysia relate.

Related to <unk>.

Lower.

And higher demand.

The above mentioned effects were partially offset by $17 million from lower phased through the full year.

It could easily three mainly.

Mainly due to lower average PPA price.

Roofing liquidation, partially offset by higher capacity payments.

Giuseppe Turchiarelli: $18 million in OPEX and other costs mainly explained by our new renewable capacity, inflation across all the businesses, and negative attracts in energy due to a higher recognition of those margins in 2022. Partially offsetting the positive effect in distribution margin of $3 million, mainly due to the... Let's move on to the next slide, where we will review the full year EBDA breakdown summary. Counting for 1,237 years, In the full year 2023, our EBITDA increased $358 million versus 2022 performance, mainly due to the following effect.

$41 million in Opex and other costs mainly information.

Explained primarily by our new renewable capacity and maintains the plane.

Deflation across all the business.

Let's move on to slide 14.

Our finishing business kpis.

Net electricity totaled $24 one hour as of December.

Exceeding by 9% that production during 2022.

Mainly due to higher solar generation, resulting from improved hydrology and the addition of new projects respectively.

These are also the.

The lower thermal dispatch.

Early into the distillation of Alkermes is September 23, two.

Giuseppe Turchiarelli: This post is a contribution from Hydro, a renewable totaling $213 million, mainly related to improve hydrology. Second, a positive effect of 94 million dollars in variable costs, mainly explained by a lower spot price in the period due to a better hydrology since June 2023. It will not affect our agreement with one of our TPA suppliers and lower transmission costs. Partially Observed by a Lower Thelman Tineri, In addition, a positive effect of 81 million dollars related to the gas oxidation activity, mainly due to increased gas trading activities from, 1TBU in the pool. And finally...

If we exclude the production on book.

Let me sneak two real increase in the contract duration was equivalent to a growth of 15%.

Other hydro and renewable growth contributor.

During 2023 next generation grew by 16% to six six.

Mainly due to higher solid I think infinity.

Our energy sales.

Total 39 Terawatt hour in clinically available.

0.5.

Higher than the level reported in 'twenty three.

Primarily due to higher sales of BRCA.

It worked.

Mentioning that our commitment with our clients.

We had a higher portion of our renewable generation, which also laid out lower energy partners at least in the spot market, mainly the north solar.

Giuseppe Turchiarelli: A positive contribution of $27 million in grid margin, mainly due to grid remuneration related to indexation, lower fines and compensation, and higher debt. The above-mentioned effects were partially offset by $17 million from lower PPA sales in the full year 2023, mainly due to lower average PPA price. Due to indexation, partially offset by higher capacity payments indeed. $41 million in OPEC and other costs mainly in the nation's business, explained primarily by our new renewable capacity and maintenance of, and inflation across all the data. Let's move on to slide 14 to take a look at our Generation Business Mean KPI. Net electricity total 24.1 TWh as of December 2023, exceeding by 9% the production during 2023, mainly due to higher hydro and solar generation, resulting from improved hydrology and the addition of new projects expected, mostly relating to the disconnection of Boca Mino Tour in September 2022. If we exclude the production of DOC Amino 2, the real increase in the company's generation was equivalent to a growth of 15% coming mainly from hydro and renewable energy growth contributions.

Sure.

During Q4 2023.

With regard to energy sales increased by $2 two questions.

276.

Got it.

Mainly due to higher sales to BRCA Ltd.

Let me point out that during the last quarter of Q3, our increased renewable production also law to reach zero net Bob because we've seen this fall.

Now on slide eight let's go through the main driver of our growth.

Our net income increased by six.

Excluding the net impact.

$183 million versus pro.

Pro forma peak.

Let me drive you Dominik.

A greater EBITDA beyond that $58 million as already explained.

Higher depreciation and amortization of $22 million.

Mainly resulting from.

Our new renewable projects in operation, which was offset by lower depreciation.

Mainly as a consequence of new investment in our brands that increase the useful life.

Property plants and the heap.

Hi, yes amortization in tangible assets.

Due to the new APC and development, partially offset by lower depreciation and amortization due to the sale.

Giuseppe Turchiarelli: During 4Q 2023, net generation grew by 15% to 6.6 TWh, mainly due to higher hydrosolar intensity. Our energy sales totaled 30.9 TWh in 2023, 0.5% higher than the level recorded in 2032, primarily due to higher sales to pre-cut net. It was worth mentioning that our commitments with our clients were fulfilled with a higher portion of our renewable generation, which also led us to lower energy purchases in the stock market, mainly as I know solar is not an option. During Q4 2023, physical energy sales increased by 2.2% to 7.6 servasaurus. May lead you to higher things to become.

Visteon in December.

<unk>.

Lower bad debt, mainly related to the client net debt revpar due to seller reclamation.

Regarding financial results and made the investment we reported $35 million improvement.

Primarily explained by.

$98 million related to higher interest due to.

Back to recognition.

Mainly due to equity.

The income link will not close affiliated companies and capital gain.

Basically associated to the sales of watsco standby power plant.

All of the above effects were partially offset by lower income related to the monetary adjustment.

Net financial costs associated with the payment schedule optimization agreement with supplier and higher financial expense least positive so.

Giuseppe Turchiarelli: Let me point out that during the last quarter of 2023, our increased renewable production also allowed us to reach zero net purchases in the spot market. Now, on slide 15, let's go through the main drivers of our group netting. Our net income increased by $6.6 billion, percent, excluding the net impact of Ascadia phase of 183. $1,000,000 vs. La Fiat Performa FIAT. Let me drive you through the main act, a greater EBITDA of $358 million, as already explained Higher depreciation amortization of 2022 million dollars, mainly resulting from our new renewable project in operation, which was offset by lower depreciation in energy generation Property Plans, and the kitchen, higher amortization in tangible assets in Enel Distribucion due to the new IT system development, partially offset by lower depreciation and amortization due to the sale of an enterprise in December 2022.

So part of analytics.

Business.

Income tax increased by 100.

$38 million.

Related to the income tax.

Associated with this is Scott.

One of them.

Got $48 million.

During the fourth quarter of 2023 net income increased 44%.

Before.

$26 million primarily explained by.

Higher EBITDA.

The previous line higher depreciation and amortization of $10 million is mainly explained by the duration business.

New renewable energy project in operation.

Financial result, and liquid investment of $15 million.

This is explained by.

$84 million related to the previously mentioned baked to adjustment, partially offset by higher financial expenses linked to the state of Illinois.

Business, yes.

Yes franchise costs related to the payment schedule optimization agreement supplier.

Surplus mainly related to the higher cost of debt.

And basically slight variation on the quarter in terms of income taxes.

Moving to <unk>.

Next slide.

Giuseppe Turchiarelli: A lower bad debt, mainly related to the client's net debt recovery due to several conventionalities. Regarding financial results and native investment, we recorded a $35 million improvement. Primarily claimed by $98 million related to higher interest and adjustment due to, Back to recognition, $10 million mainly due to equity income linked to non-conservative companies and capital gains basically associated with the sales of Wasco thermal power plants. All the above effects were partially offset by lower income related to monetary adjustment, higher financial costs associated with payment schedule optimization agreements with suppliers, and higher financial expenses linked to the sales of parts of an electric bus built by, in contact increase by 100.

Let's review.

Our <unk> for this period.

<unk> the figure for 2023 two.

So it's been adopted only by this is Victor.

Not by digital agreement executed in 2022.

Here in terms of cash the adjustment.

Amounted to $20 million in the full year in phase III, we have excluded $310 million impact on capital gains.

Pulling back.

Our efforts in 2023.

$986 million, representing an improvement of $384 million.

The main effect.

This period up the follow up.

One $3 billion coming from EBITDA, driven by the stronger orders because of the motion.

Bidding activity and better adoption the disabled from bip.

406.

Negative impact from the cumulative stabilization mechanism affecting our receivable, reducing the cash conversion this year.

This situation has been improved by the impact of the execution of the ICD factoring relative to return it to $345 million.

Giuseppe Turchiarelli: $38 million, mainly related to the income tax associated with the state of Arcadia or Guadalajara. During the 4th quarter of 2023, net income increased 44% to $420 million, primarily due to buying. Higher EBDA, as detailed in the previous slide, higher depreciation and amortization for $10 million, is mainly explained by the generation bill due to the new renewable energy project in operation. Higher financial results and equity investment of $16 million. This is a training live. $84 million related to the previously mentioned tax adjustment Partial offset by higher financial expenses linked to the sales of an elective-active business Higher financial costs related to the payment of the Schedule Optimization Agreement with the supplier Higher financial costs mainly related to the higher... And basically, a slight variation on the quarter in terms of intensity.

Working capital reached a positive balance of $88 million as a consequence of cash.

As seen.

From the sales of Samsung is unparalleled ability and.

Cash management optimization, partially offset.

By BHP payments related to stabilization mechanism.

Working capital improvement was compared to last year sequels, mainly come from the sales of <unk>.

<unk> and other manipulation as well as collection on distribution business.

Have you got a million dollar income tax payments mainly related to tax.

Payments integration business in 2020.

Great.

Set by tax recovery from previous periods.

Both generation and distribution business.

Whilst compared to the income.

It goes back 33 three versus last.

The main difference come from the tax recovery.

Grace period octane during this year.

Giuseppe Turchiarelli: Moving to the FFO analysis on the next slide, let's review in detail our FFO for this example. Regarding the FSEO, the figures for 2023-2032 have been adjusted only by the sales of Enel. Last year, in terms of cash, the adjustment amounted to $20 million for the full year. In 2023, we have excluded $310 million paid in taxes on capital gains obtained from this.

To conclude regarding financial expense, we paid $299 million. This is explained mainly due to the debt interest related to David.

On the gross debt of four 9%.

That reflects also the new interest associated with the revolving credit facility.

Once we compare <unk> III financial expenses.

Last year we.

<unk> seen an increase also explained by higher average interest rates on the growth.

And monthly payment through into the revolving credit facility.

Giuseppe Turchiarelli: Our FFO in 2023 reached $986 million, representing an improvement of $334 million. The main effects that explain our FHTO in this period are the following. 1.3 billion dollars coming from ABDA driven by the strong hydrology contribution, gas trading activity, and better results in the distribution business. $406 million negative impact from the Cumulative Stabilization Mechanism effect on our receivables, reducing the cash conversion of the period. This situation has been improved by the impact of the execution of the IDB Factoring Related Effect II, which amounted to $345 million. Working capital reached a positive balance of $88 million as a consequence of cash, machining from the sale of the Santa Rosa building, and cash management optimization partially offset by VAT payment related to the stabilization mechanism. Working capital improvement, once compared to last year's figures, mainly comes from the sales of Santa Rosa buildings and other managerial actions, as well as better collections on the distribution business.

But the fact to delay.

Now let's look.

I'm proud of our liquidity and leverage positions.

Our gross debt decreased around zero point $3 billion to $4 4 billion.

The December 2023 compared to December 23, two.

This decrease was primarily due to the repayment of our revolving credit line partially.

The use of the proceeds from Africa.

<unk> concluded.

Great.

The average of our debt maturity increased to $6 one year as of December 2016.

Also improving the portion of the phase III, 288% over total debt from.

7% in September pretty quickly.

Average cost of our debt reached four 9% as of December 2000, clinically, mostly owing to the new profile of our debt refinance.

Financial market conditions, and the prepayment of some pretty sharp and easterly.

In terms of liquidity.

Comfortable position.

To support the economy.

Security in 2024, and also to cope with possible. It means that it's really the economic situation.

Talking about <unk>.

Giuseppe Turchiarelli: $34 million income tax net payment mainly related to tax payment in the generation business in 2023 offset by tax recovery from the previous period for both generation and distribution business. Once compared to the income tax paid in 2023 versus last year, the main difference comes from the tax recovery from... Previous videos obtained during the... To conclude, regarding financial expenses, we paid $299 million. This is explained mainly due to debt interest related to the average interest on the gross debt of 4.9% that also reflects the new interest curves associated with the revolving credit partitions.

Yes approximately.

$750 million maturing in 2024, including $400 million.

Of the Yankee bonds.

Alright.

In line with our finance financing strategy and according to our 2020 financial plan, we are evaluating the best alternative to pace.

Sure.

This will be done through the payment with cash.

Use of long term committed credit line.

Using a new financing.

Army between the alternative.

Currently we are in the bank conversation with several banks and financial institutions, which has shown great interest in participating possible new panel.

In the first quarter, we give you more color on that.

Now I will handover to somebody.

<unk> remarks.

Giuseppe Turchiarelli: Once we compare the 2023 financial expenses with last year's figures, we see an increase also explained by higher average interest rates on the gross debt and monthly payments relative to the revolving trade facility as a bridge instrument for the effect to delay inflation. Now, let's look at our Liquidity and Leverage positions. Our gross debt decreased around $0.3 billion to $4.4 billion as of December 2023, compared to December 2020. This decrease was primarily due to the repayment of revolving credit lines, partially thanks to the use of the proceeds from Arcadia State.

Thanks Suzanne.

And as gene a sustainable business model demonstrated is today.

And option.

And this outstanding operating and financial results David.

The management through to the company strategy towards Decarbonization electrification and <unk>.

As planned the iPad.

The transaction was concluded last October.

With this our asset rotation plan was successfully completed.

The 2023 without the assured a solid operating performance.

The better than expected I know others in the gas trading activity. During this year complemented by the similar managerial actions, we have taken over the last year.

Posted us in achieving our commitments to our shareholders.

Giuseppe Turchiarelli: Concluded last October 2023, the average of our death maturity increased to 6.1 years as of December 2020. Also, improving the portion of the fixed rate to 88% of a total debt from 27% in September 2020, the average cost of our debt reached 4.9% as of December 2023, mostly owing to the new profile of our tax. Sponsored ADR, In terms of liquidity, we have a comfortable position in order to support the coming debt maturity in 2024 and also to cope with possible headwinds in the debt market related to the economic situation, talking about 2020, or we are approximately $750 million maturing in 2024, including $400 million on the Yankee Bowl. In line with our financing strategy and according to our 2024 financial plan, we are evaluating the best alternatives to face this maturity. This could be done through payment with cash.

Finally, we would like to announce that the 2024 annual general meeting will be held on that recently.

During which our shareholders will deliberate on the final dividend.

Thank you.

Got it.

Let me now ended over two piece of it.

Thank you Fabrizio and thank you all for Europe. Thanks, Sean So now let's begin the Q&A session, we will receive questions via phone and shock and the webcast. The Q&A section is open operator. Please you may start. Thank you. So much MSR reminder, to our audience. Please crestar one one.

To get into queue and wait for your name to be announced until withdraw your question Press Star One again one moment.

And our first question comes from the line of Javier Suarez with Mediobanca. Please proceed.

Hi, Good afternoon. Thank you for the for the presentation several questions on the on the regulatory the regulatory side on slide six you detail several significant.

Giuseppe Turchiarelli: The use of long-term committed credit lines, executing a new financing at Enel Chile's level, or a mix between the alternatives. Currently, we are in advanced conversation with several banks and financial institutions, which have shown great interest in participating in possible new financial initiatives. In the first quarter, we will give you more color.

Improvement in the outlook for regulation when it comes to be.

Typically say sooner mechanism and also the regulation for distribution. So the question for you is if you can.

Fabrizio Barderi: Now I will hand over to Fabrizio for closing remarks. Thank you, Giuseppe. Enel Chile's sustainable business model demonstrated its resiliency and optionality, and this outstanding operating and financial result gave management room to pursue the company's strategy toward decarbonization, electrification, and propensity.

Clarify what the amount of receivables that you have on your balance sheet related to the stabilization mechanism and it relates to his expectations on the timeframe for the recovery of this amount and how DS Neil guidance May impact your guidance as presented in the Pizza business plan.

Fabrizio Barderi: As planned, the Arcadia transaction was concluded last October. With this, our asset rotation plan was successfully completed, and the 2023 results assure a solid operating system.

November 2020.

And a similar question for the distribution regulatory cycle.

You are expecting the publication of the decree by during the second half of 2024, you can share with us.

Fabrizio Barderi: The better-than-expected hydrology and gas trading activities during this year, complemented by the several managerial actions we have taken over the last year, have supported us in achieving our commitment to all our shares. Finally, we would like to announce that the 2024 Annual General Meeting will be held on April 26th at 9am, during which our shareholders will deliberate on the final dividends for the 2021 year. I will now hand it over to Isabella.

Latest expectations on these regulatory review on how these compare it with the assumptions embedded in your business and your business plan.

Glenn.

Then the third question is related to the.

The hydro production and I said what level you.

Kindly elaborate on that.

Yes, what I said why.

Isabela Klemes: Thank you, Fabrizio, and thank you all for your attention. So now we will begin the Q&A session. We will receive questions via phone and chat during the webcast. The Q&A section is open. Operator, please. You may start. Thank you so much.

That you have for 2024 compared with your assumption in the business plan for 2024.

What we expect in terms of additional contribution from these additional hydro hydro capacity I guess.

Operator: And as a reminder to our audience, please press star 1-1 to get in the queue and wait for your name to be announced. And to withdraw your question, press star 1-1 again.

And the final question is this year, we have seen on that.

A significant contribution as well from gas.

<unk> optimization opportunity you can set it with the expectation for 2020 for Manitex.

Javier Suarez Hernandez: And our first question comes from the line of Javier Suarez with Mediabanca. Please proceed. Hi. Good afternoon, and thank you for the presentation. There are several questions on the regulatory side. On slide 6, you detail several significant improvements in the outlook for regulation when it comes to the stabilization mechanism and also the regulation for distribution. So the question for you is if you can again clarify the amount of receivables that you have on your balance sheet related to the stabilization mechanism and your latest expectations for the timeframe for the recovery of this amount and how this new guidance may impact your guidance as presented in the patient business plan of November 2023. And a similar question arises for the distribution regulatory cycle.

Okay. Thank you very much.

Several questions. So let me try to answer.

Starting from the last one.

And I will probably.

We changed the order in my money.

Manny.

So best rating.

It is important in the end.

We.

Usually.

Okay.

Let me say between 30 and $40 million.

Margin in.

In a normal year.

And 2024 will be enormously.

Is the range in which you have to consider our gas trading margin activities for 2024.

<unk> you.

Usually experienced also in the past we have some.

Let me say growth in these studies.

$10 million that we have.

We are talking about that.

Order of magnitude.

Changes that figure in the last two years.

Because of the very difficult conditions, we experienced in the international LNG market in 2022 as.

Javier Suarez Hernandez: You are expecting the publication of the decree during the second half of 2024. You can share with us your latest expectations for this regulatory review and how this compares with the assumptions embedded in your business, in your business plan. Then the third question is related to hydro production and reservoir levels.

As well as the moment in which we message at all.

Our.

They said that the.

We benefited from in 2022 and 2023 performance.

Basically this is the.

Tom Let me say expectation for natural gas trading activity between 30 and $40 million.

Dan Hydro production.

As I said, we havent done through we have them.

Javier Suarez Hernandez: You can kindly elaborate on how these higher reservoirs that you have for 2024 compare with your assumption in the business plan for 2024 and what we may expect in terms of additional contributions from this additional hydro capacity. I guess. And the final question is this year we have seen a significant contribution as well from gas trading optimization opportunities. You can share with us your expectation for 2024. Many thanks.

Higher than expected.

It is.

In our reservoir.

And of course.

And fast too probably.

Before better than expectation in our third quarter.

It is difficult to project these days in terms of.

Yearly production because the.

Starting from the first evaporated this messaging.

<unk> will then and the new rainfall would affect the overall production of the year.

So what what.

What can I say it is that.

We are pretty confident that.

Fabrizio Barderi: Okay, thank you very much. There are several questions, so let me try to answer starting from the last one, and I will probably change the order in my answer. So, gas trading is pretty simple.

First quarter results will be boosted by these additional either production and additional.

Was it an hour sandblast debt.

Fabrizio Barderi: In the end, we usually have a, let me say, between 30 and 40 million dollars of margin in a normal year, and 2024 will be a normal year. So this is the range in which you have to consider our gas trading margin activities. Sponsored ADR, As we usually experience in the past, we have some, let me say, growth in this, but it's, as I say, some million dollars we are talking about. The Order of Magnitude has changed drastically in the last two years because of the very particular condition that we experienced in the international LNG market in 2020. That was the moment in which we materialized all our..., says that we benefited from in 2022 and 2023 performance. So basically, this is the standard, let me say, expectation for natural gas trading activities is between 30 and 40.

<unk>.

<unk> been experiencing in this.

Part of the of the year.

This is Sean.

Yes.

As I mentioned that.

This is.

Positive peso new of course.

We will still have to wait for the silent that we and the or the process. The review process on <unk> <unk>.

On slide <unk>.

Optimistic that this will be the final numbers for that.

For the VA.

While our distribution.

Our CVD and <unk>.

There are some upside compared to what we registered in the lab.

Because I remember that.

Yes, we have.

Of course.

Our P&L assumptions about.

The 2000 22024.

Distribution.

So we have some upside there and we have probably also some upside there compared to what we now can expect for 2024.

In the range of $20 million.

This is more or less what we can.

We expect as an upside in our distribution business as a consequence of this final report from the release.

And then and then your first question about the bank.

Fabrizio Barderi: Then, as a production, as I said, we have some, true, we have some higher than expected levels in our reservoir. And, of course, it would help us to probably perform better than expected in our work. It is difficult to project this in terms of yearly production because, starting from the 1st of April, the smelting period will end, and new rainfall would affect the overall production of the year. So, what can I say? It is that we are pretty confident that the first quarter results will be boosted by this additional hydro production and additional water in our reservoirs that we have been experiencing in this first part of the year. Distribution and regulation, yeah, well.

I'll give you a very general.

And then I will let Joe.

To add some more color on that as I mentioned during my speech the amount.

<unk>.

Receivables net of what we already popular is set.

$759 million.

This is the figures that we have in our.

Account.

This item of course.

Once the.

The drop.

Bill will be.

Hopefully.

Peru.

That would be a path that would evolve.

All this account receivable work that we already Rajeev said and of course also the evolution of what points accumulated in the next months until later.

So a little bit complex between what we are going to.

Fabrizio Barderi: As I mentioned, this is a positive piece of news. Of course, we still have to wait for the final degree and the whole process, the review process from Contralora. But we are quite satisfied.

Anyway.

And any payments that and what it is going to accumulate more and so I will give you I will leave you with that.

To add some more color on that.

Yes, thank you probably assume basically.

We believe that.

Fabrizio Barderi: We are optimistic that these will be the final numbers for..., for VAD for our distribution. Sponsored ADR. There are some differences compared to what we registered in the last three years because I remember that in the last three years, we had to, of course, make our P&L assumptions about the... 2020-2024, distribution tariffs. So we have some upside there, and we probably also have some upside compared to what we can expect for 2024. In the range of 20 million dollars more, this is more or less what we can... Sponsored ADR, And then your first question about PEC, I will give you a very general answer, and then I will let Giuseppe add some more color to that.

Hello is it going to be.

End of March beginning of AP seem to recall at $450 million approximately.

Is the amount that we expect them to be collected.

In 2000, and this what we put in our press.

For the year.

Okay.

Okay. Thank you does that get into subsidy issue I think we have reached the question Sean Yes. So now.

Do we have any other questions coming from the line of radar no. We don't have any more I can hand, it back to you for any questions. We have on the chat.

Lastly, we have received some questions here from the audience coming from the shot show.

Fabrizio Barderi: As I mentioned during my speech, the amount of receivables, net of what we already factor, is... $759 million. These are the figures that we have in our. For this item, of course... Once the draft bill is, hopefully, approved, there will be a path to recover all these accounts receivable that we have already registered and, of course, also the evolution of what is going to accumulate in the next month. It's quite a bit complex between what we are going to anyway have as a repayment and what is going to accumulate more, and so I will leave Giuseppe to add some more. Yeah, thank you, Fabrizio.

It all starts with spot.

First question here, that's all received strong.

Philippe Torres Joe Albi.

Because <unk> is asking about can you give us more detail regarding this tower generic shareholders' meeting to be held after the ordinary shareholders' meeting.

April 29, so <unk> answer this one here so strong that all of the topics of our shareholders meeting will be available in our website. Okay.

Giuseppe Turchiarelli: Basically, we believe that if the law is going to be approved at the end of March and the beginning of April, we are assumed to recover 450 million dollars, approximately. This is the amount that we expect to be collected and factorized in 2024, and this is what we put in our ADR. Projections for the, Okay, thank you Giuseppe, thank you Fabrizio. I think we have answered all the questions from Javier. So now, do we have any other questions coming from the line operator? No, we don't have any more. I can hand it back to you to mention any questions we have on the chat. Definitely, we have received some questions from the audience coming from the chat.

Dan once it is available we will be here to the Investor Relations team.

Available for your questions and Theyre all their requirements you may have.

So coming from the Satcom question now show margin items, that's from <unk> capital.

He is asking about the fact that we would the IDB offer.

Monetize the factory receivables as they did with back to do you expect any financial costs from generator, which is open.

Yes.

Consider that.

The new system.

<unk>.

Okay.

Isabela Klemes: So I will start with the first question here that we received from Felipe Torres from AFP Habitat. Felipe Torres is asking us, can you give us more detail regarding the Extraordinary Shareholders Meeting to be held after the Ordinary Shareholders Meeting on April 29th? So Felipe, I will answer this one here. So soon, all the topics of our Shareholders Meeting will be available on our website, okay?

Paul.

Pass through costs for Watsco said that variation every tender the <unk> going to do the the.

Our factories, except for the legal cost associated with the deal.

Yeah.

And I'd.

IBD IDB is going on.

Already got the demand from the Ghana in order to arrange the new co pack.

Isabela Klemes: And then once it's available, we will be here, the Investor Relations Team, available for your questions and other requirements you may have, okay? So coming from the second question, now from Martin Aronset from Balance Capital. Martin is asking about the PEC, Fabrizio, and Giuseppe. Will the IDB offer to monetize the PEC-3 receivables as it did with PEC-2? Do you expect any financial costs from generators, Giuseppe?

Doing so we believe that.

Relation is going to be smooth.

The biggest one so we do not expect significant cost associated with it.

Sure.

Okay. Thank you does that so now let's go to another question coming from physical box from Samsung.

The first question is from typically what level of guest <unk>.

Giuseppe Turchiarelli: Well, consider that the new system... full past two costs for what concerns the generation. Every candidate is going to do the factoring, except for the legal costs associated with the deal, and IBD has already got the mandate from the government in order to arrange the new factoring, so we believe that the situation is going to be smoother than the previous one, so we do not expect significant costs associated with the factoring. Okay, thank you, Giuseppe. So now let's go to another question coming from Francisco Paz from Santander. The first question from Francisco is, what level of gas commercialization do you expect this year? I think we have a red answer, not this one.

<unk>, we expect margins here I think we have already answered this one and the second one what level of hydro generation are you forecasting for this year in the context of El Nino Nino phenomenon did you see any kind of.

Changing the targets because of this.

Events that we may have this year. Thank you.

Yes, let me give you a very general answer for that.

We are already experiencing the pasta.

Having it.

Nino phenomenon all.

<unk>.

Doesn't that imply.

Direct consequence.

This change in hydrology future.

Some sometimes it happens sometimes not.

Isabela Klemes: And the second one, what level of hydrogeneration are you forecasting for this year in the context of the El Nio-La Nia phenomenon? If you see any kind of... change in the forecast because of these events that we may have this year. Thank you. I will give you a very general answer to that. We have already experienced in the past that... Having an El Nio phenomenon or La Nia phenomenon doesn't imply, as a direct consequence, a drastic change in hydrology. Sometimes it happens, sometimes it doesn't.

So.

Hydrology conditions in Chile.

As in other countries not that our constant rates of the spinoff and with of course.

Of this phenomenon and we also when.

When we have some strong evidence of.

This phenomenon.

<unk>.

Mineralogical footage.

So far we don't see any default.

Let me say impact on what we could expect.

Fabrizio Barderi: So, the hydrological condition in Chile had not..., as in other countries, a natural consequence of this phenomenon. So, of course, we monitor this phenomenon, and we also adjust when we have some strong evidence that... This phenomenon is affecting our water hydrological system. But so far, we don't see any particulars. Let me say impact on what we could expect in 2020. So, we have elaborated our budget, and we are still projecting an overall hydrology, an overall hydroelectric production for the year, in line with the last five years' average, so meaning 9.6 terawatts. This is the reason why we have not changed. This is our list so far of our assumptions about IP protection.

On 2024.

So we have elaborated.

Budget and we are still projecting.

And overall, either allergy and overall.

Interactive production for the year.

In line with the.

The last five years average until meaning nine six.

This is the reason why we have not changed.

At least.

Our assumptions about.

Hydro production for this year.

Okay. Thank you Fabrizio we have one more question coming from floating Mallorca.

Metlife So the question is.

From.

She is giving us the congrats on the results and then how much off back to receivables are you expected to mitek.

Fabrizio Barderi: Okay, thank you, Fabrizio. We have one more question coming from Florencia Mallorca from MetLife. So the question is from Florencia.

Wanted to design in 2020 for what's your plan for the 2024 notes due in April <unk> is asking about the young moms. Okay. Thank you gentlemen.

Isabela Klemes: First, she's giving us the congratulations on the results, and then how much of PEC2 receivables are you expected to monetize in 2024? What's your plan for the 2024 notes due in April? Florencia is asking about the yank bond.

Yes, I mean for what concern.

Clinging up between 'twenty 'twenty four basically.

I have already answered so we are talking about around parameters.

In the second half of this year.

Concerning the.

Giuseppe Turchiarelli: Okay, thank you Giuseppe. Yeah, I mean, for what concerns the factoring of phase 2 in 2024, basically. I've already answered, so we are talking about around 450 million dollars in the second half of the season.

Maturing of municipal bonds.

These are going to.

Repeat in the second.

Quarter of 2024.

Said in my speech, we are basically exploring all alternatives that we have in our hands. So.

Giuseppe Turchiarelli: Concerning the maturing of the linky bond that is going to... Sponsored ADR, As I said in my speech, we are basically exploring all the alternatives that we have in our hands, is going to be, we are going to use cache that is available, but also the committed lines that we have outstanding and not to be used of, and we are exploring also the possibility to, Nah. Issue a new loan.

It's going to be.

Going to use cash that is available but also.

The committed lines.

We have outstanding.

The U S and.

And we are exploring also the possibility tool.

No.

Issuing new loan now.

Giuseppe Turchiarelli: Now, we are, as I said already, in an advanced stage of negotiation with some banks and institutions. We are deciding this month, we are going to decide during the month, basically, which kind of alternative to apply benefits to our children. Again, the first quarter results, we are going to give you more color on... Okay, thank you, Giuseppe. Now, questions coming from Rodrigo Mora from Moneda. Rodrigo asked about Los Condo

We are.

I have said already advanced stage of negotiations with the main thing.

Sure.

And we are deciding this this month relevant to the timing during the month, basically which kind of alternative to apply basically.

But our focus.

Beginning in the first quarter the results were going to give you.

More color on that.

Okay. Thank you just that being now question is coming from Rodrigo Mora from Moneda.

How do you go ask about let's call them got it. So the first question Mohan Gigabits call me about how we have some news on the project with Congress.

Isabela Klemes: So, the first question, Rodrigo, is about how we have some news on the project Los Condores and also how much resources we will need to end the construction during this year of 2024. This is the first question. And then the second question that Rodrigo is asking is about the agreement with the Argentinian gas producers. So, he's asking for more details about what we have already signed with the Argentinian gas producers for 2024. Thank you, Rodrigo, for the question, Fabrizio. OK. Well, look.

And now so how much resources.

We'll need to wean the construction during this year of 2024.

The first question and then the second question that Regal.

Regal is asking is about the.

Women with the Argentinian gas.

He is asking more details.

About what we have already signed with the Argentinian gas predicted for 2024.

Thank you for the Eagle Ford the question Okay.

Well look.

Regarding loss content.

Fabrizio Barderi: We are finally at the end, at the final stage of this... Very particular project, very challenging project, and let me comment, first of all, on all the main civil works that were related to all the excavation in the mountains. So, I promise that we will experience this project and conclude it.

We are.

Finally.

At the end.

At the final stage of this.

Very particular project, but each LNG project.

Let me comment first of all that.

All.

The main CBD.

Stevie Awards.

That.

Weather related events.

Convention in demand.

Fabrizio Barderi: So, this is something that, of course, is really important for us to announce that the main work, which, well, like we say, is a little bit more risky from a juridical point of view, is final. They will finalize the... In the end, I'll... So, about the tie, the... The time we could expect Los Condores Online would be in the second semester.

The promise that we have.

The project is completed.

So this is something that of course, it's really important for us to announce that.

Maine.

Main wards.

Well, let me say a little bit more.

<unk> from a geological point of view.

They were finalized.

And then.

Okay.

So.

The di than.

The timing we could expect.

Responded online it would be in the second semester.

Fabrizio Barderi: This is some months, a little bit more of what we projected previously, and this is, Is it related to the big rainfall that we had last year, which of course, was really positive for our performance in 2023, but unfortunately, on the other hand, made it impossible for us in some months to continue working on the project. And so we have some months delay due to this unexpected stop that is related to the heavy rainfall that we experienced last year. In relation to how much investment we need to finalize the project, well, I would say... a relatively small amount because we are talking about... About 60 million dollars. This is our projection for 2024. CAPEX needs to conclude the meeting. Sponsored ADR, So, as I say, the... Finally, we are expecting this important project to be online this year, and we are also pretty optimistic since the main critical works have already been finalized. The second question will be now about the Argentinian guy. Yeah,

This is some months there is a bit more of what we projected previously and this is.

Is it related to that.

Be grateful that we had last year, but of course on the one that were really positive to our performance.

Great.

Posted on the other end.

Make us impossible in some months.

To confirm.

Continue the.

Working on the unlock on the project and so we have some months delayed due to this.

Unexpected itself, but that is related to the heavy rainfall that we experienced.

Matthew.

In relation with the.

How much investments, we need to finalize the project I would say.

The relatively small amount because we are talking to.

About $60 million.

Our projects.

For 2024.

Capex needs.

To conclude.

There are sponsored project, so as I say that.

Finally, we are.

Affecting.

<unk>.

Important projects to be online.

And we are appropriately optimistic.

The main critical awards were already.

Sure.

Second question.

Fabrizio Barderi: Well, I can repeat the numbers I gave you during the speech, but let me first make a general call. We are, we have been committing to sign several agreements with Argentina's suppliers because, we want to be, let me say, sure about gas availability. You know, the risk profile is really asymmetric in case hydrological conditions could change versus the ones that we projected in our budget. We wanted to be sure and to secure enough gas availability in order to be ready to face adverse hydrological conditions in case. Therefore, more gas production would be needed from our plant and also from competitors' power plants. So, the figures I was referring to are 4.1 cubic meters per day in the current period, so starting from October 23 to April 24. Then, in the winter period, we secured 2.6. Cubic meter per day, medium cubic meter per day, of course, sorry, and 2.6 million cubic meters per day.

Yes.

I can repeat.

The numbers.

We gave you was doing.

Speech.

But let me first.

Make a general comment.

We have been committing.

Sure.

Two side.

We remain the leader at least from the suppliers because the.

We want to be let me say Shaw about gas availability.

Because.

You know the risk.

It's really as a metric.

<unk> hydrological conditions could change that.

The ones that we projected in our market so of course.

We wanted to be sure into CQ in NAFTA.

Got the variability.

In order to be ready to face.

Hydrological conditions.

Hey.

More.

Gas production would be needed from our plants and from also from competitors.

Okay.

So the figures I was referring to is the <unk>.

0.1.

We will be committed.

Hi.

In the.

The current period.

And from October 23, two obvious before.

Then in the winter period.

We secured that to see.

Cubic meters per day.

The medium term.

Cubic meters per day of course.

And $2 6 million cubic meters, a day and then deployment period.

Fabrizio Barderi: And then in the following period, October 24, December 24, 3.5. Sponsored ADR, Transcribed by https://otter.ai, Fabrizio. Now we have a last question coming from Davi Parra, from Italy. Davi is asking about the transmission cost that we have during 2023, no? So he's asking, he's asking, I would like to ask about the transmission cost. In the fourth quarter, we can see a lower cost in comparison to the other quarters of this year. What explains this difference?

October.

For December 23.

Three five.

Medium cubic meter per day.

Okay.

Please turn now we have.

Next question coming from Duffy Baja from Italo.

David is asking about the transmission cost that we had during 2023 now.

Thank you for asking.

I would like to ask about the transmission costs in fourth quarter, we can see a lower cost in comparison to what they are.

Their quarter of this year.

Giuseppe Turchiarelli: Can we expect the same level going forward? Well, in the fourth quarter... The cost of transmission has been offset by the recovery of the decoupling cost to the transmission. So basically, it's a net cost that we registered for Cuba. It's difficult to predict whether we are going to have, again, this kind of recovery. So... The kind of stuff that requires

Explain this difference can we expect the same level going forward.

Well.

In the fourth quarter.

The cost of transmission has been offset by the recovery of the cost saving costs through the mutual importance. So basically is the net cost on that.

We reduced in the fourth Q.

It's difficult to predict whether we're going to have.

Again this is.

Okay.

Recovery.

So.

They kind of found that require.

Lauren it's one once we have that.

Giuseppe Turchiarelli: Sponsored ADR Okay, thank you, Giuseppe. Then we have the last question coming from Fernan Gonzalez from BTG. So, Fernando Gonzales is asking about the reservoirs. Now, the question is, given the current levels in the reservoirs and assuming dry conditions, do you see that they could support hydro generation beyond the first quarter and into the second quarter as well? So the question is about reservoirs throughout the next month. Well, of course, this is a very challenging question because it would depend, of course, also on the level of inflows generated by the last part of the smelting season. Of course, the inflows are decreasing as expected, of course, as always during the smelting season.

Closing of the books, so right now.

Ken.

See that we are going to repeat the Victoria.

Okay. Thank you.

And we have a last question coming from <unk> <unk> from BTG.

Fernando started asking about there was the warehouse and also the question is given the current levels at present.

So I mean dry conditions.

Do you see that it could support hydro generation beyond the first quarter and into the second quarter as well.

The question is on Cobalt reservoir well go next month.

Of course.

This is a very challenging.

Because it will depend of course also on the <unk>.

Level that we are going to experience in the next weeks about.

<unk> generated by the last part of the missing.

Of course.

The inflows are decreasing as expected of course as always they are getting the SEC matter. It is through the Dcs we are experiencing.

Giuseppe Turchiarelli: But it is true that this year we are experiencing a smoother netting season when compared to the last year. So that is the reason why we have been accumulating more water in our reservoirs, and we are generating more hydro production compared to our budget. Now, commenting if it's possible to predict if there will also be some comfort in April or during the second quarter is difficult to say. It will also depend on the level of inflows that will materialize in the next week. Anyway, as I said, of course, it's a very good piece of news for Q1. It's difficult to comment on that.

A move there.

Net did system when compared to the last year.

Is there is and why we have been accumulating more water in our February and we are generating more either production compared to our budget.

<unk>.

I'll say, commenting is it possible to predict.

Would be also of some comfort.

During the second quarter, it's difficult to say it will depend also on.

The level of inflows that will materialize in the index.

The way is a stage of course, it's a very good piece of news therefore, who won.

With the government about group.

Fabrizio Barderi: Thank you, Fabrizio. If there are no more questions, I will hand over to you, Fabrizio, for your final words. Thank you, Isabella. As you might know, today is my last day as CEO of Enel Chile. Tomorrow I will assume another position within the Enel Group. Back to Italy.

Okay. Thank you. Thank you and there are no more questions I'll handover to you know Martin Thank you.

Thank you Isabella while as you might know today is my last day as deal of an achievement.

Laura will assuming out a position within the energy group.

Mexico, Italy.

Fabrizio Barderi: And I would like to take this opportunity to thank all the colleagues in Enel Chile and the managing team who worked together with me for all the support during this year, during which we worked together to unlock the value of this asset and to reshape the financial sustainability of Enel Chile, being able to deliver all the commitments agreed to with our team. Also, I would like to sincerely thank all of you for all the engaging interactions we had during our calls and meetings. It has provided me with considerable professional, So. Thank you very much again and all the best. For more UN videos, visit www.un.org. Thank you, Fabrizio.

And I would like to take this opportunity to thank all the colleagues and in Chile, and the managers team working together with me.

Mark.

During which rewards together will unlock the value of this asset and to reshape the financial trusted sustainability of energy.

Being able to deliver all the maintenance that we do with our shield.

Also I would like to sincerely. Thank all of you for all the engaging directions, we added during our calls and meetings.

It has provided me with considerable professional growth.

So.

Thank you very much again and all the best.

Isabela Klemes: Thank you all. So, with this, we conclude our conference call. The investor relations team is available for any doubts you may have. Many thanks for your attention, and see you soon at our annual shareholders meeting at the end of April. Thank you. Bye-bye.

Thank you Joe and thank you all saw with D. We conclude our conference call. The Investor Relations team is available for any doubt you may have many thanks for your attention and diesel.

Our annual shareholders' meeting and then Jill. Thank you. Thank you bye bye. Thank you everybody for your participation and you may now disconnect.

Okay.

[music].