Q3 2024 Enel Chile SA Earnings Call
Okay.
Operator: Good afternoon, ladies and gentlemen, and welcome to Enel Chile nine-month and third-quarter 2024 results conference call.
Speaker Change: Good afternoon, ladies and gentlemen, and welcome to Enel, Chile, nine months and third quarter 2024 results Conference call My.
Operator: My name is Carmen, and I will be your host for today. 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 participate, you will need to press star 11 on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, simply press star 11 again.
Carmen: My name is Carmen and I will be your host for today.
Carmen: 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 participate you will need to press star one on your telephone you will then hear and message advise senior Handzus raced to withdraw your question simply press Star one again please.
Operator: Please be advised 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. 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 nine months and third quarter 2024 results. The presentation accompanying this conference call and Enel Chile's annual report on Form 20-F included on the risk factors.
Carmen: Please be advised that today's conference is being recorded.
Speaker Change: 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.
Speaker Change: Such forward looking statements reflect only our current expectations are not guarantees of future performance and involve risks and uncertainties.
Speaker Change: Actual results may differ materially from those anticipated in the forward looking statements as a result of various factors.
Speaker Change: These factors are described in Enel Chile's press release reporting its nine months and third quarter 2024 results. The presentation accompanying this conference call and Enel Chile's annual report on form 20-F included under risk factors.
Operator: You may access our nine-month and third-quarter 2024 results press release and presentation on our website, www.enel.cl, and our 20-F on the FEC's website, www.fec.gov. 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 to disclose any development as a result of which these forward-looking statements become inaccurate except as required by law.
Speaker Change: You may access our nine months and third quarter 2024 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.
Speaker Change: Doug.
Speaker Change: S E C dot golf.
Speaker Change: <unk> are cautioned not to place undue reliance on those forward looking statements, which speaks 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.
Operator: I would now like to turn the presentation over to Ms. Isabela Klemes, Head of Investor Relations of Enel Chile. Please proceed.
Speaker Change: I would now like to turn the presentation over to MS. Isabela claim is head of Investor Relations of Enel, Chile. Please proceed.
Isabela Klemes: Buenas tardes, good afternoon and welcome to Enel Chile 2024 third quarter and nine month results presentation. Thanks to all joining us today. My name is Isabela Klemes, I'm the head of investor relations.
Speaker Change: We're not this good afternoon and welcome to Enel, Chile, 2020 for third quarter and nine months results presentation. Thanks to all joining US today My name is Isabella claim.
Speaker Change: Investor Relations joining me today are C E O.
Isabela Klemes: Join me today our CEO Giuseppe Turchiarelli and our new CFO Simone Conticelli. Moni is a nuclear physicist and holds an MEBA from Louis University of Rome. joining the Enel Group in 2006, working in the administration, finance, and control of Enel SBA. From 2018 to 2022, he was in Chile as the CFO of Enel Generaciones. before becoming CFO of Enel Chile, he held the position of CFO at Slovensky Elektron, another company within Enel Group.
Speaker Change: And now our new CFO.
Speaker Change: Chilean Sea Mani is that Nokia for music and holds an MBA from Louise.
Speaker Change: Your phone.
Speaker Change: They know we will be working in the admin.
Speaker Change: History has shown finance and control.
Speaker Change: From 2018 to 2022, he walk in Chile.
Speaker Change: So often.
Speaker Change: Chile, before becoming CFO of Genie <unk>.
Speaker Change: Was the issue not fearful.
Speaker Change: Lewinsky electron another company with being in that room.
Isabela Klemes: Our presentation and related financial information are available on our website, www.enel.cl, in the Investors section, in our app Investors. In addition, a replay of the call will soon be 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. Media participants are connected only in listening mode.
Speaker Change: Our breathing station and related financial information are available on our web site Www Dot and now docked in things that are section and now were investors in additional a replay of this call will be available at the end of this presentation.
Speaker Change: There will be an opportunity to ask questions via phone or webcast shot through the link ask your question media participants are connected only in listening mode. In the following slides we start the presentation with our key highlights of the euro.
Giuseppe Turchiarelli: In the following slides, Giuseppe will start the presentation with our key highlights of the Bureau. He will then cover updates on our portfolio and regulatory content.
Speaker Change: He will then colbert updates on our portfolio and regulatory.
Giuseppe Turchiarelli: Finally, Simone provides an overview of our business economic and financial performance. Thank you, you all.
Speaker Change: Finally, <unk> provides an overview of our business economic and financial performance. Thank you all and now let me handover the call to do that.
Giuseppe Turchiarelli: And now, let me hand over the call to do.
Giuseppe Turchiarelli: Thank you, Isabela, good afternoon, and thanks for joining us. Let's start the presentation with our main highlights of the period on slide 3. During the first nine months, our ideal portfolio performance was very robust. with hydrogenation increasing by 20% compared to last year. This improvement was due to higher reservoir levels at the beginning of the year, influenced by the El Niño phenomenon observed in the previous year, and a solid rainy season this year. This resulted in an efficient generation portfolio mix for...
Speaker Change: Thank you Amanda good afternoon, and thanks for joining us.
Speaker Change: Let's start the presentation with our main highlights of the period on slide two.
Speaker Change: During the first.
Speaker Change: Non mall, our Io portfolio.
Speaker Change: Very good.
Speaker Change: Idaho generation increasing by anybody.
Speaker Change: Yeah.
Speaker Change: This improvement was due to.
Speaker Change: While the later at the beginning of the implied by the El Nino phenomenon.
Speaker Change: And it's really you don't need.
Speaker Change: Yeah.
Speaker Change: As an adult.
Speaker Change: <unk> duration portfolio mix.
Giuseppe Turchiarelli: We are pleased to announce that the Los Condores project is nearing completion. After several years of construction, the project has reached the pre-commissioning stage. We expect Los Condores to be connected to the grid by the end of the year.
Speaker Change: We are pleased that the laws Congress.
Speaker Change: Is nearing completion.
Speaker Change: After several auction the project reached the pre commissioning.
Speaker Change: Yes.
Speaker Change: It can be connected to a degree.
Speaker Change: By the end of the year.
Giuseppe Turchiarelli: As everyone knows, an extreme climate event severely impacts the central and southern parts of the country, including our concession area in the metropolitan area. Further in the presentation, I will give you more detail to you regarding the unforeseeable and irresistible climatic events that affected our distribution set.
Speaker Change: Everyone knows.
Speaker Change: Dream climate again favorably impact.
In south part of the talents, including our competition.
Speaker Change: Reported.
Speaker Change: Further in the presentation I will give you more detail.
Speaker Change: Got it.
Speaker Change: People are possible.
Speaker Change: Plumbing.
Speaker Change: Hey, Ben that affected our distribution segment.
Giuseppe Turchiarelli: On the regulatory side, we have some important news to share. The factoring related to the PEC-3 receivable was successfully executed last week. We have carried out the factoring totaling $630 million. The PMP decree for the second semester was published on October 6th. which will result in a lower pack accumulation for the year. and the draft bill for the electricity subsidies for vulnerable customers is still under development. Today, the Energy Commission is renewed to evaluate government proposals. I will give you more color to this topic during the presentation.
Speaker Change: On the regulatory side.
Speaker Change: I'm in Boston Mr. Schott.
Speaker Change: The facts related to the street with Ebola.
Speaker Change: It will be executed the last week.
Speaker Change: We have periodically factory installed six standard medium.
Speaker Change: The decrease from the second thing they said it was published on October.
Speaker Change: Which would result in a lower combination.
Speaker Change: And the draft Bill.
Speaker Change: The subsidies are vulnerable.
Speaker Change: Under discussion.
Speaker Change: The Energy Commission.
Speaker Change: To evaluate.
Speaker Change: Government.
Speaker Change: I will give you more color at this during the presentation.
Giuseppe Turchiarelli: Regarding profitability, I'm glad to announce that our EBDA and net income results were better than last year's figures, fully confirming our guidance for the year. We achieved a positive outcome. Even though during the first nine months of this year we recovered only a small portion of receivables related to the pandemic. As I mentioned before, much of the recovery of the PEC-3 receivables was made through the factoring executed last week. so we will see them in the presentation of the full year results.
Speaker Change: Regarding profitability and less so now I've got the EBITDA and net income results were better than last year. She goes poorly confirming our guidance for the.
Speaker Change: We achieved it.
Speaker Change: Bill.
Speaker Change: Even though during the first nine months of DCF.
Speaker Change: Only a small portion of receivable related to the effect.
Speaker Change: As I mentioned before much of the recovery of the female.
Female was made through the factory executed last week.
Speaker Change: So we will see them in the presentation of the full year results.
Giuseppe Turchiarelli: And finally, for the 2024 nine-month result, we present a strong and sound level of liquidity. I will provide more details on these later.
Speaker Change: And finally for the 20th Guinea for nine month result, we presented strong and sound level of liquidity.
Speaker Change: Providing more detail on these later.
Giuseppe Turchiarelli: Now let's look at some updates on the hydrological situation on slide 3. In addition to the positive hydrological conditions during 2023 that allow us to have greater water availability this year, higher than expected rainfall recorded during 2024 has allowed us to increase our hydropower. exceeding 20% in the same period of 2023. Therefore, during the first nine months of 2024, we have accumulated 1.6 TWh of additional hydrogeneration compared to last year. The hydraulic field situation in our reservoir is also very positive year-to-date compared to the last year figure. particularly in the South. In fact, with the water accumulated in our reservoirs today, we have sufficient availability to supply our energy demand until the end of this year.
Speaker Change: Now, let's look at some data on the hydrological situation on slide three.
In addition to the positive hydrological conditions during clinical history the tullow.
Speaker Change: Great.
Well it'd be easier.
Speaker Change: Hi, Dennis.
Speaker Change: Rainfall recorded during any quarter is allow us to increase our either action.
Speaker Change: Feeding training.
Speaker Change: In the same period.
Speaker Change: Great.
Speaker Change: Therefore during the first nine months of.
Speaker Change: 24.
Accumulated one six.
Additionally, either generation compared to last year.
They can always get in situations that.
Speaker Change: What is also very closely at UBS.
Speaker Change: Compared to the last year figures.
Particularly in the south.
Speaker Change: Doctor, We then Walter our community do you know what I said.
Speaker Change: We have sufficient availability to supply a lot of energy demand until the end of this year.
Giuseppe Turchiarelli: even with the possibility of La Niña phenomenon in November and December. It is worth mentioning that the snow melting season has already started. Unfortunately, there has been rainfall and a rapid increase in the temperature in the south, generating increases in the affluent flows of the river. In fact, we had to carry out discharges in Paguencho Power Plants a few days ago, and on October 24 in the Rarico and the Pangue. Power Plants as well. Of course, these manuals were coordinated and previously informed to the competent authorities and the community. Based on this fact, we have updated our hydro generation estimate to approximately 13 TWh for 2024 and 3.3 TWh for the fourth quarter.
Even with the possibility of Logmein phenomenon in November.
Speaker Change: It is worth mentioning that there is no mating season has already started.
Speaker Change: Unfortunately.
Being a rainfall and are rapidly increasing the temperature.
Speaker Change: Generating an increase in the affluent flows.
Speaker Change: You bet.
Speaker Change: In fact, we had to carry out these charges in the range of power plants, a few days ago.
Speaker Change: No.
Speaker Change: On October 24 in the article.
Speaker Change: Yeah.
Speaker Change: Our plan says.
Speaker Change: Of course.
Speaker Change: Meanwhile, Manuel.
Well give me previously informed to the competent authority in the communities.
Based on this fact.
We have updated our hydro generation estimate to approximately 15 said about our 2024 and <unk> three terawatt hour for before.
Giuseppe Turchiarelli: of which we have already produced 1.3 terawatts.
Of which we have already produced one three.
Giuseppe Turchiarelli: Let's move to the next slide to review how we continue improving our portfolio on generational. We continue consolidating our renewable capacity through a diverse portfolio of projects distributed across various country regions. This year, we increased our exposure to battery energy storage. The best. In recent months, we received authorizations from the National Electricity Coordinator to begin conversion operation of 101 MW associated with the two projects, El Manzano Base located in the metropolitan region of Santiago and La Cabaña Base located in the south of Chile. Considering this latest authorization from the coordinator, in 2024 we initiated the commercial operation of a portfolio equivalent to 511 MW and 1735 MW since 2023.
Speaker Change: Yeah.
Speaker Change: Let's move to the next slide to review, how we continue improving our portfolio on generation.
We continue consolidating our renewable capacity through a diverse portfolio of projects distributed across various parts of.
Speaker Change: The region.
We increased our exposure to battery energy storage system.
Speaker Change: <unk>.
Griffin Mall, we received authorization from the mention of electricity coordinator to begin.
Commercial operation of 101, Meg about associated with the two projects.
Speaker Change: Located in the Metropolitan region of them, yes.
Lockup on base located in the south of Chile.
Speaker Change: Considering this latest authorization from the coordinator.
We initiated the commercial operation of our portfolio even to 511 megawatt.
Speaker Change: Yeah.
Speaker Change: 1735 megawatt <unk> III.
Giuseppe Turchiarelli: In this nine-month period, we reached a total nested soil capacity of 8.7 GW, of which 6.8 GW are renewable, representing 77% of the total.
In this nine month period, we reached a total net installed capacity of $8 seven you got up.
Speaker Change: Of which six.
You got the renewable representing 77% of the buildup.
Giuseppe Turchiarelli: As good news, the Los Condores hydropower plant had significant updates in this period. We have concluded the filling of the tunnels and started the pre-commissioning test. We expect to be connected by the end of the year.
It's good news in the last Congress, either a power plant had significant update in this period.
Speaker Change: We have concluded the feeling of the tunnels and started the pre commissioning.
We expect to be connected by the end of the year.
Giuseppe Turchiarelli: Now, on the next slide, we will review the performance of our Generation KPI. Net electricity generation totaled 18.6 TWh as of September 2024, exceeding by 6% the production during the first nine months of 2024. mainly due to higher hydro and renewable generation, resulting from the improved hydrology this year and the operation of new projects. During the third quarter of 2024, net generation decreased 8% to 6.5 TWh, mainly due to better hydrology recorded during the same period of 2023 and lower thermal dispatch during the third quarter of 2024, partially offset by greater wind generation. Our energy sales total 25.3 TWh as of September 2024.
Now on the next slide we will review the past few months about what generation give yet.
Speaker Change: Yes.
Speaker Change: Net electricity generation totaled $18 six hour is offset them opportunity to me far exceeding by but the production during the first nine months of 2024.
Mainly due to higher either renewable generation, resulting from the improved hydrology this year and the operation of New project.
Speaker Change: During the third quarter.
Speaker Change: Paul.
Generation decreased 8% to six five.
Speaker Change: Mainly due to better hydrology recorded during the same period of 2000.
And lower thermal dispatch during the third quarter.
Partially offset by greater generic.
Speaker Change: Our energy sales totaled $25 three terawatt hour as of September 24.
Giuseppe Turchiarelli: 9% higher than the level recorded in the first nine months last year, resulting from higher sales to both regulated customers and pre-customers. 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 spot. During the third quarter of 2024, physical energy sales grew by 8% to 8.4 TWh, mainly due to higher sales to regulated accounts in cash. In terms of our balance, during the first nine months of the year, we increased our purchases from third parties by two terawatt hours as part of our continued effort to diversify and optimize our energy source.
9% higher than the level reported in the first.
Speaker Change: Nine months.
Speaker Change: Resulting from higher system.
Speaker Change: Okay got it.
And then Africa.
Our commitment with our clients.
With a higher portion of our renewable generation.
Which also led to lower energy purchases.
Speaker Change: Yes.
During the third quarter of 2024, physical energy sales grew by 8%.
Speaker Change: Eight four.
Speaker Change: Mainly due to higher regulated customer.
And thanks, all of our borrowings during the first nine months of the year, we increased our purchases from.
Third part of it by two that's about towers as part of our effort to diversify and optimize our energy itself. So.
Giuseppe Turchiarelli: Now I would like to take a few minutes to talk about the extraordinary weather events of the last August. I would like to present this slide to discuss the extreme weather events that impacted the country and not just our concession area. which impact was higher than the earthquake occurred in 2010. On August 1st and 2nd, the metropolitan region of Santiago was severely hit by the earthquake. by an extraordinary and unpredictable storm with winds of up to 124 km per hour. significantly exceeding the forecast and warnings issued by authority and technical experts. This storm caused the fall of more than 2,000 trees.
Now I would like to take a few minutes to talk about.
Speaker Change: Rodney.
Speaker Change: Events of the last August.
Speaker Change: Okay.
Speaker Change: I would like to present this slide to discuss the extreme weather events that impact the talent and not just our transition out of there.
Speaker Change: Which impact was higher than the Ed week acute in 'twenty.
On August 1st and second the Metropolitan region of Santiago was favorably.
By an extraordinary and unpredictable thornburg.
When of up to 124 metals.
Speaker Change: Metals per hour.
Significantly exceeding the forecast.
Speaker Change: Morning issued by authorities and taken.
Speaker Change: This storm.
Caused the fall of more than 2003.
Giuseppe Turchiarelli: over 1,000 utility poles and a large range. which destroyed part of our electricity distribution network, causing widespread power outages. The damage is comparable only to death caused by the airport, as Quig already mentioned. Enel Distribucion Chile deployed all available resources, going much further than required by Chilean electrical legislation, and it adopted extraordinarily a special measure to restore power to its customers as quickly as possible. Reaching this amount of Q was only possible as part of a... We have requested support and received more than 100 technician experts in this type of event. coming from different parts of Latin America.
All of it in 1000 utility Poles and large.
Speaker Change: Range.
Speaker Change: Which destroyed part of our distribution network.
Speaker Change: Widespread hour outage.
The damage is comparable only to death caused by the airport at week already management.
And then if it goes down in Chile deployed all available resources going much farther than required by Chilean political legislation.
Speaker Change: Adopted.
<unk> efficient measure to restore power to gas.
It's possible.
Speaker Change: Reaching these amount of fuel was only possible as part of it.
Speaker Change: We have requested support.
Speaker Change: More than 100 technicians.
In this type of event.
Coming from different popular intermediate again.
Giuseppe Turchiarelli: Furthermore, it is worth noting that for this weather event, we spared no expense to recover and normalize the power supply as soon as possible. This is reflected in the number of field crews, 383 crews at the peak of the event versus 108, considered in the reference model company of the current tariff. Establishing the system was extremely difficult. and we have already submitted to the local regulator and the court the resistibility and unpredictability of this event. Therefore...
Speaker Change: But they're more.
Speaker Change: It is worth noting that this way that bank with <unk>.
Speaker Change: Aeronautics space to recover and normalize the power supply is possible.
Speaker Change: This is reflected in the number of field crews.
Speaker Change: And 80.
<unk> III crew at the peak book debate versus 108.
Speaker Change: Don't see that in the reference model company of the governing bodies.
We are establishing the system was mainly.
And we have already submitted to the local regulator and of course that with the stability and predictability of this debate.
Speaker Change: Therefore.
Giuseppe Turchiarelli: We clearly face a fourth major climatic event. the severity of which exceeded All Forcible measures to be adopted under the Chilean ELECTICS legislation It will appear clear to all the different stakeholders in Chile once the pertinent data will be disseminated As Enel, we have been working on proposing different kinds of regulatory models to make the regulatory and physical system more reliable. to future weather. We clearly understand that it is urgent to modernize and digitalize the Chilean electrical distribution.
We clearly faced a fourth mature domestic debate.
Speaker Change: The stability of which.
Speaker Change: Ceded.
Speaker Change: Thanks Gene.
Speaker Change: All the <unk>.
Speaker Change: Forcible measure to be adopted this year.
Speaker Change: [noise] legislature it will appear clear to all the different people that can treat at 115 and that will be.
Speaker Change: This decision.
And then we have been working on proposing different kinds of regulatory model to meet the regulatory piece them motivate them.
Speaker Change: To future weather debate.
We clearly understand that is huge.
Speaker Change: <unk> and digital.
David Let me take this.
Speaker Change: Sure.
Giuseppe Turchiarelli: Now, I would like to talk about some regulatory framework milestones in the next slide. As you may recall, during last call... We indicated that, in January this year, the Ministry of Energy presented a bill related to the Energy Stabilization Mechanism, which is the purpose of continuing the PACT mechanism in mitigating the projected tax increase for foreign countries. At the same time, they also aim to improve the client protection mechanism, known as the MPC mechanism, to allow gradual repayment and accumulated debt to the generator and establish a transitory subsidy for the most vulnerable clients. This new law was discussed and approved by the Chilean Congress in April and came into force at the end of April.
Now I would like to talk about some regulatory framework milestones in the next slide.
Speaker Change: As you may recall during last call.
Speaker Change: We indicated that in January this year the meeting present.
Did the beat relative to the energy stabilization mechanism.
The purpose of continuing effect.
Speaker Change: The projected decrease spot volume.
Speaker Change: At the same time, they also aim to improve the client patagium make any known as the MPC make any tunnel.
Speaker Change: Repayments and accumulated there.
Generator and establish a transistor is absolutely.
The most vulnerable clients.
Speaker Change: This new law.
And approved by the Senate and Congress.
Speaker Change: It came into force at the end of AEP.
Giuseppe Turchiarelli: Following this, the first half and the second half EMP decrease. were published and the regulated data was updated. After the publication of the second health decree, all clients, including those with a consumption of less than 350 kWh, which are basically also omission, are paying the regulated PPA real price. The consequence of this is that no further debt will be accumulated during the type stabilization. An outcome that has not been achieved since 2009.
Following this.
Speaker Change: First half and.
Speaker Change: And the second in PDP.
Speaker Change: The published in the deck.
Speaker Change: It started was updated.
Speaker Change: After the publication of the second largest equip our clients, including the with the consumption of less than 350 kilowatts hour.
Which are basically also upping the regulated PPA.
Speaker Change: Yes.
Speaker Change: The consequence of this is that not the vector.
Speaker Change: Okay.
Speaker Change: During this type of mutation.
An outcome that has not been achieved since 2019.
Giuseppe Turchiarelli: This shift marks a critical step towards financial stability, reflecting a significant change in management studies related to the economy. After the issuance of the sovereign guarantee decree, as well as a complementary set of rules and regulations to the new law, the factoring was executed. We were able to factor $630 million last October to this report. As of September 2024, we had an account receivable related to the PEC, already a net of factoring, and including readjustment and interest of around $1.1 billion approximately. So, taking into the new factory realized in October, we are expecting to the end of the year with accruals in the range of 500 up to $550 million.
Speaker Change: These sheep mark a critical step towards financial stability, reflecting significant change in managing and studies.
Speaker Change: The obligation.
After the issuance of discovery Garden.
The decrease as well as the complementary set of rules and regulations to the new law.
Speaker Change: The factory was executed.
Speaker Change: We were able to factor of $630 million.
Speaker Change: October.
Speaker Change: <unk>.
Speaker Change: Okay.
As of September <unk> product, we've had in accounts receivable related to the FX.
Speaker Change: Already net of factoring and including the adjustment of around $1 1 billion approximately.
Speaker Change: So thank.
Taking into the new factory realizing October we added <unk> to the end of the year with the accruals in the range of five and that up to $550 million.
Giuseppe Turchiarelli: Let me go to the right side of the slide where we will recall the main topic related to the proposed law the government is introducing to increase the subsidies, which currently cover 1.2 million families, to reach approximately 4.9 million families. representing the 40% most Vulnerable Feminine in Chile Now Congress is discussing with the executive authorities a potential increase in this benefit to increase the number of the families supported by this app. Currently, the Energy and Mining Committee of the Senate is deliberating on the matter, which includes in general terms Doubling the green tax emission from the current $5 per ton of CO2 emitted, for reference, last year we paid around $15 million related to it.
Let me go to the right side of this slide.
Speaker Change: Recall the main Tobey.
Due to the proposed law the government is introducing to increase the subsidies, which currently call. It a $1 2 million same unit to reach approximately four 9 million.
Speaker Change: Representing the 40%.
Speaker Change: <unk>.
Speaker Change: Vulnerable savvy engineer.
Speaker Change: Now Congress is disgusting.
Todd It is potentially increasing due mainly to increase the number of the same supported by these subsidies.
Speaker Change: Currently the AG and mining committee of the center is deliberating on demand, which including general sensor.
Speaker Change: Doubling the green tax emission from the current $5 per ton.
Speaker Change: Sue.
For reference last year, we paid around $15 million.
Giuseppe Turchiarelli: allocating the additional DST revenue. Due to the increase in the tariff Doubling the fines imposed by regulators and allocating them to support the subsidy fund Applying new charges to the small and medium distributed energy units known as P M G D As Enel, we support the government's efforts to find alternatives to assist the most vulnerable families in the country, especially... in light of potential economic change. However, we have observed that, over the years, government solutions have often disrupted the market. The same companies that have been impacted by various regulatory measures since 2019 are once again being called Apple.
Speaker Change: Allocating additional DSD revenue.
Speaker Change: The duration is lifting due to the increase in the salaries.
Speaker Change: Doubling the fines imposed by regulators and allocating them to support the subsidy will be found.
Applying new charges to the small and medium and distributed energy.
Speaker Change: Unit known as <unk>.
Speaker Change: Pete.
J D: J D.
And then we support the government efforts to find alternative to assist in most vulnerable families in the account, but especially.
In light of potential economic Chen.
J D: However.
We have said that over the year government solution often disrupted the market.
J D: The same company that they have been impacted by the Badr city will have to be measured since joining the team at <unk>.
J D: Once again being called Alpha to.
Giuseppe Turchiarelli: to support this subsidies mechanism. To maintain Chile's reputation as a quality marketplace, it is crucial that such measures are reconsidered. Otherwise, we risk severely impacting long-term investment, competitiveness, and the health of energy sectors. among the proposals. We believe that allocating the additional VAT revenue is the most viable and sustainable option.
J D: To support these subsidies.
J D: To maintain Sheila reputation as a quality marketplace. It is crucial that such.
Major breakthrough cedar otherwise favorably.
J D: Severally impacting long term investment pieces in the net and the head of energy.
J D: Among the proposal.
Measure we believe that allocating. The addition will be the revenue is the most viable and sustainable option.
Giuseppe Turchiarelli: To conclude, regarding distribution of the ADR 2024-2028, there have been no significant developments since our last call. Our Perspective on the Next Step And the process is detailed in the annex of our presentation.
J D: To conclude regarding distribution of <unk> 20 to report into me eight there.
Been no significant developments since our last call.
Our perspective on the next steps.
In the processes.
J D: Now next 12 hour.
Simone Conticelli: Now, I will hand over to our CFO, Simone Conticelli.
Speaker Change: Now I will handover to our CFO similar competition.
Simone Conticelli: Many thanks, Giuseppe, and good afternoon, everybody.
Speaker Change: Many thanks.
Speaker Change: Hey, good afternoon everybody.
Simone Conticelli: First of all, I would like to tell you that it's a pleasure for me to join you. And now, let's move to economic and financial performance. During this nine-month period and the third quarter of 2024, our results continue to demonstrate a solid economic and financial performance. Let me begin with a quick summary of the main figures, which I will detail in the following slides. Both 9MORE24 and 3RDQUARTER24 exceeded net income because of the important improvements when compared to last year's indicators. This is mainly explained by a more efficient generation mix, thanks to better hydrological situations.
First of all like to tell you that it's a pleasure for me to join <unk>.
Speaker Change: And now, let's move to economic and financial performance.
Speaker Change: During these nine months.
In the third quarter of consequence for our results continue to demonstrate solid economic and financial performance.
Let me begin with a quick summary of the main speaker, which I will detail in there Paul.
Speaker Change: On the slides.
Both nine multiple anti fourth and third quarters waiting for feedback.
Speaker Change: Net income because of the importance of improvement when compared with last year indicator.
This is mainly explained by and more efficient generation mix, thanks to better reach subsea question.
Simone Conticelli: Coupled with an increase in our energy sales and better pricing. Regarding the FSO, the nine-month 2024 figure... Show a slight reduction versus last year. particularly in the third quarter, mainly explained by Temporary negative assets from tax factoring operations and higher tax payment in 2024, primarily related to Arcadia transaction in October 2023.
Calculate the increase in our energy sales and better pricing.
Regarding the FX, so the nine months 2024th Seeger.
Speaker Change: So a slight reduction versus last year.
Particularly in the third quarter.
Speaker Change: <unk> explained by.
Speaker Change: A temporary negative effect from FX factored into operations.
Speaker Change: The higher tax payments in 2024, primarily created this auction.
Speaker Change: Sure.
Speaker Change: Great.
Simone Conticelli: This trend is expected to be reversed during the last quarter of this year. Now, on the next slide, let's review the process of CAVEX. Our total capex reached $406 million during the first nine months, 15% lower than last year, considering the conclusion of several renewable and storage projects over the year 2023 and beginning of 2021. 62% of the total capex amounting to $253 million was related mainly to renewable and storage capex deployment. And 22%, equivalent to $92 million, was related to Greece. Asset management capex reached $133 million, which represents 33% of our total capex. It increased by around 50% compared to the last year's figure.
This trend is expected to deliver during the last quarter.
Speaker Change: Sure.
Speaker Change: Now on the next slide lets review the progress on the Capex.
Speaker Change: Okay.
Total capex reached $406 million during the first nine months.
Percent lower than last year, considering the concludes I'll ask Sarah.
Speaker Change: And storage project.
The 2020 at the beginning of 2024.
Six 2% of the total capex amounted to $263 million.
Speaker Change: It was related mainly to renewables and storage capex deployment.
Speaker Change: Anna.
Speaker Change: 22%.
Speaker Change: Two nine.
The $92 million.
Speaker Change: Australia.
Speaker Change: Alright.
Speaker Change: Asset management Capex reached $133 million.
Speaker Change: Which represent 33% our total capex.
It increased by around 50%.
Compared to the last year.
Simone Conticelli: The reason for this increase can be found both in the generation and distribution risks. In the generation business, this increase of $29 million is mostly related to maintenance activities in the Atacama ETGP power plant and in solar and wind up. In the distribution business, the increase across $16 million is due to climate events, emergencies, and maintenance related to fault in the low and medium voltage lines.
Speaker Change: It is this increase can be filings with both the generation and distribution business.
Speaker Change: In the national lease that this increase of $29 million is mostly related to the maintenance activity in the economy.
Speaker Change: Our plan and in solar and wind assets.
Listeners should increase approximately $16 million.
Climate events emergency and one thing related to four in the low and medium voltage lines.
Simone Conticelli: Talking about development in Capex, they reached $227 million, a decrease of 32% compared to the last year's figure, mainly due to the conclusion of Renewable Embedded Projects And now let's move to the next slide, where we have a summary of the second quarter EPTA breakdown. In Q3 2024, R&D was $405 million, which is $63 million higher than the same period in 2020. By studying good generation business, we have an increase of $68 million, thanks to a significant contribution from EPA sales. This is mainly due to higher volume, especially in the regulated market, as mentioned by Giuseppe, and pricing effects mainly related to contract indexation.
Speaker Change: Looking at about the available with Capex, they reached $147 million, a decrease of 52% compared with last year, mainly due to the current group of renewable.
Speaker Change: Projects.
Speaker Change: And now let's move next slide.
Speaker Change: A summary of the second quarter EBITDA breakdown.
Speaker Change: Okay.
In third quarter, 2024, <unk> was $405 million, which is $63 million.
Higher than the same in 2023.
Is that international piece that we have an increase of $68 million.
Speaker Change: Thanks.
Speaker Change: He can contribute from EAC.
This is mainly due to higher volume, especially to regulated market sector as measured by sector.
Speaker Change: Pricing net sector, mainly related with construction index has shrunk.
Simone Conticelli: Going to gas trading, we had an 11 million dollar margin increase coming from additional trading activities in third quarter 2020. particularly the sale of LNG cargo to Europe. Referring to Greece, the margin is higher by $5 million, mainly due to the increase of remuneration linked to the publication of the EIB 2020-2024 regulatory report. This margin was totally offset by the extreme weather events, including the Forte Maggiore event of August 1st and 2nd. that affected our distribution segment. This generated $16 million of additional OPEX and other expenses, mainly related to an increased yield. Crew Dispatch, Call Center Facilities, and Generators, Rents, and Operations.
Speaker Change: Go into gas rate.
$11 million margin increase coming from additional training.
Speaker Change: Third quarter 2020.
Speaker Change: With particular EDC of LNG cargo.
Is that improving the margin is higher by $5 million mainly.
Speaker Change: We do believe fees over the internet.
Speaker Change: Sure.
Speaker Change: British summer update.
Speaker Change: 2000.
Speaker Change: 24 regulatory reports.
This margin was totally offset by the extreme weather events, improving the customer Shaw event August and.
Speaker Change: On the <unk>.
Speaker Change: Perfect.
Sub segment.
This generated $16 million.
Additional opex and other expenses, mainly related to an increasing everywhere.
Speaker Change: To dispatch.
Speaker Change: Center facility and generator.
Speaker Change: Innovation.
Simone Conticelli: Let's move now on the next slide to review the main impact on Ibiza during the 9 months period. Arevida reached $1 billion, an increase of $300 million, representing a 46% improvement compared to the last year.
Speaker Change: Now, let's move now on the next slide to review the main impact on EBITDA during the nine more eager.
I think that each $1 billion annually.
Speaker Change: An increase of $300 million representing <unk>.
Speaker Change: Thank you approval compared to the last year.
Simone Conticelli: I will stop explaining before she gives an F. First, we have a great contribution of $250 million in PPA sales, mainly related to higher volumes, particularly in the regulated markets, and PPA pricing in the free market, mainly due to the due to the indexation in line with the effect explained previously in the course. Second, industrial starch had a positive impact of 123 million solar. This is mainly explained by lower variable production costs due to lower thermal generation because of the remarkable hydrology of the environment. Third, a positive contribution of $70 million related to commercial subsidies, mainly exploited by lower parties associated with purchases in the Scottish market.
I will stop explains the positive.
First we had a brief follow.
$160 million.
This is mainly related to higher volumes, particularly in the regulated market and.
Speaker Change: <unk>.
Speaker Change: I think the industry.
Speaker Change: Mainly two big.
Due to the indexation in line with the FX explained previously in the quarter.
Speaker Change: Okay.
Speaker Change: Second industrial stuff.
And the positive impact of 102 I continue to be installed.
Speaker Change: This is mainly explained by lower variable production cost due to lower margin because of the remarkable hydrology of the.
The positive contribution of $17 million related to commercial Cynthia mainly explained by lower prices associated with those changes in the spot market.
Simone Conticelli: This aspect was partially offset by higher bookshelves from third parties and the impact of PTA renegotiation that benefitted us in 2020. Then, we have another positive effect of $23 million from Gripmap. This is mainly due to the brief remuneration linked to the publication of the ADR 2020-2024 by the Regulatory As we have seen in the quarterly analysis, this positive effect was offset by the impact of the extreme weather in Argentina. The aforementioned possible deaths were partially offset by... A negative impact of $113 million associated with notable gas trading activities carried out during the first nine months of 2021.
This effect was partially offset by higher shifted from third party and the impact of PPA negotiation that benefited us in 2020.
Speaker Change: Great.
Then we have another positive.
Speaker Change: Of $23 million.
Great March.
Speaker Change: It's mainly due the blistering rational lien Republic echelon cost.
Speaker Change: <unk> 2024.
It will be reached before.
As we have seen in the course of the analysis is positive FX was offset by the impact of weather.
Weather events.
Therefore mentioned that possibly that well.
Speaker Change: Partially offset by.
Speaker Change: And negative impact at all.
Speaker Change: 100 <unk>.
Speaker Change: Associated with the notable gas trading activities carried out during the first nine months of two.
Speaker Change: Asset quality.
Simone Conticelli: amounting to approximately 29 Tbq. and a negative net effort of $15 billion, mainly due to Higher OPEC associated with new renewable projects. Recognition of San Santiago E-Business in E-Buses in 2023 for NLX negative impact of inflection across all the business.
Approximately 29 data with you.
And a negative net debt of $16 million, mainly due to.
Higher opex associated with renewable projects.
Jacob condition of the Samsung geography business.
E buses in 2008 for analytics.
Negative impact of inflection across all the businesses.
Simone Conticelli: Let's move on to the next slide where we will review the net income of evolution. Our 9-month 2024 net income amounted to $446 million, 62% higher than the last year's figure, mainly explained by the VITA impact. Let me drive you through the additional assets for this nine-month period. Referring to the depreciation amortization adventure, we have a higher cost for 47 million dollars mainly resulting from higher depreciation in energy power due to the new renewable capacity coming into operation and Chilean peso devaluation in the higher the debt accrual in banks due to the rise in credit losses associated to the higher tariff.
Let's move on to the next slide where we will review the net income.
Speaker Change: Sure.
Speaker Change: Okay.
Nine month 2034, net income amounted to $146 million.
2% higher than the last name.
Mainly explained by the leap day improvement.
Let me try to be additionally for these nine months figure.
Speaker Change: The flooding related litigation and amortization.
The highest cost $47 million.
Speaker Change: Mainly resulting from higher visitation in empower.
Renewable capacity coming into operation and Chilean peso devaluation.
Speaker Change: Yes.
Speaker Change: Hi, Jeff.
Speaker Change: Sure.
Speaker Change: Yogurt is inflated losses associated to big high uptime.
Simone Conticelli: Regarding financial results and equity investments, we recorded a $63 million negative variation versus last year. May explain it by... Positive exchange rate differences in 2023 Higher financial expenses mainly due to effect variation and lower financial income linked to lower average interest rates partially offset by higher interest related to the tax receivable Talking about income taxes, we recorded an increase of $42 million, mainly due to the better results in the period. This was partially offset by a lower-cost related lyrical subjugation of archaic assets and for sale in 2020. Focusing on the quarter, our net income increased by 3%.
Speaker Change: Okay.
Regarding financial results and equity investments.
Speaker Change: Record.
At $3 million negative.
Speaker Change: The negative valuation versus last year.
Explain it by.
Positive exchange rate differences in 2023.
Higher financial expenses, mainly due to FX variation and lower financial income linked to lower average interest rates, partially offset by high yet.
Speaker Change: Related to FX.
Speaker Change: Reports.
Looking at about the income taxes.
Speaker Change: An increase of $42 million.
Mainly due to the better results in the Asia.
This was partially offset by lower costs related.
Speaker Change: Yes.
Speaker Change: Yes.
Fourth sale.
Speaker Change: <unk> language.
Speaker Change: Focusing on the core net income increased by 3%.
Simone Conticelli: This is mainly explained by rising EBITDA contributions, lower tax expenses of $15 million, mainly due to lower costs for the gratification of Ascari assets and for sales in 2023, and lower costs due to monetary protection. Dispositive assets were partially offset by, first, an increase in DNA embed depth of $12 million due to higher depreciation, mainly linked to the operation of new renewable capacities in EGP and an increase in debt mainly due to a rise in credit losses associated to the higher Second, higher financial expenses of $60 million mainly due to positive exchange rate differences in 2023 and lower interest recognition related to PEC 2.0 in Q3 2024 versus Q3 2024.
This is mainly explained by <unk>.
Speaker Change: <unk> Sean.
Lower tax expenses of $15 million.
Mainly due to lower cost for the classification of chaos.
And for savings deposit velocity and lower costs due to monetary progression.
Speaker Change: These positive events.
Partially offset by first an increase in DNA and <unk>.
Speaker Change: Yes.
$12 million.
Due to higher depreciation mainly linked to operation of the new revenue.
Speaker Change: Capacity.
Speaker Change: Thank you.
And any increase to bad debt, mainly due to a rise in credit losses associated with the high uptime.
Speaker Change: Second higher financial expenses of $60 million.
Mainly due to positive exchange rate differences in 2023 and older lower interest that Google Michelle related.
Two zero.
Speaker Change: Quarter 2024 vessels.
Speaker Change: For 2020.
Simone Conticelli: And now let's move to the effects of our analysis on the next slide. Let's review the composition of RFFO for the period and the main effects versus 2020. First, let me highlight that the 2023 FFA obsidians have been adjusted by $310 million due to tax paid on capital gains for the sale of Enel Transition in 2020. RFSEO, in this nine-month period of 2024, reached $366 million, nearly in line with the same period of 2024. Excluding the 2024 tax payment for the sale of Arcadia assets last year, RFFO did have shown an improvement in their business last year.
And now let's move the SSO analysis on the next slide.
Speaker Change: Let's review the composition of our.
Speaker Change: <unk> forward with Egypt and domain.
Speaker Change: 2020.
First let me highlight that the 2023.
Speaker Change: Adjusted by $310 million due.
Due to tax paid on capital gain.
Speaker Change: For the sake of NSW.
Speaker Change: Gwen.
Our asset sale in nine months.
Speaker Change: Consequently for each industry.
Speaker Change: 366 million.
Speaker Change: Nearly all lines with the same period of 2023.
Excluding the 2020 tax payments from the sale of our caddy offset last year, our asset sale.
Sure and improvement versus last year.
Simone Conticelli: A bid in this nine-month period amounted to more than $1 billion, showing a variation of $318 million compared to the last year's figure. This increase is mainly due to higher PPR sales and positive performance in commercial and industrial sourcing, as I previously explained. We have also already talked about the cumulative impact of the stabilization mechanism, which amounted to $313 million. This negative aspect was partially offset by the execution of the IEB Factor V2 Pax 2 and Pax 3, which amounted to $83 million in the nine months. When we compare the total aspect of net of factoring for the nine months of 2024 versus 2023, we see a decrease of $270 million this year.
It means that it is nine months amounted to more than $1 billion.
Speaker Change: <unk> 308.
Speaker Change: That's compared to the last year.
Seth: This is Seth.
Is mainly due to higher sales and positive performance.
Seth: Industrial sourcing.
Speaker Change: Yes.
We have also already talked about.
Speaker Change: Part of this.
Sure Matt.
Which amounted to $350 million.
Speaker Change: This negative.
Was partially upset by that sequential update I E B factor.
Speaker Change: With respect to <unk> study with <unk>.
Speaker Change: Amounts to $83 million.
Speaker Change: In the nine months.
When we compare the total et cetera. Thanks.
Net of tax for the nine months of 2020 for 2020.
Speaker Change: We see a decrease of $217 million up ECS.
Simone Conticelli: However, this is only a temporary asset, as we have already received an additional $630 million. Working capital in the nine-month period showed a negative balance of $74 million, mostly due to CAP experiments related to car sales to an increase in new votes. Compared to the last year's figure, working capital impact on FFO was positive for $84 million, mainly due to the higher accumulation of VAT tax credit in 2020. Income taxes negatively impacted our FSO by $169 million this period, primarily due to tax payments in the generation business in 2024 and taxes paid on the sale of Arcadia.
Speaker Change: This is all the temporary yet the SBA book.
We see an additional $630 million.
Speaker Change: Yes.
Working capital in the nine months period, it showed a negative balance of $74 million.
Speaker Change: Mostly due to capex payments.
Speaker Change: 2023 zero reports.
Compared to the last year season, working capital impact on FX was positive.
$84 million.
Speaker Change: Mainly due to the.
Speaker Change: Whom rational.
Speaker Change: That is created equal.
Speaker Change: Income tax taxes negatively impacted our sales by $169 million.
Speaker Change: Primarily due to tax payments in the international business in 2024.
Speaker Change: And taxes paid on the state of Alaska.
Simone Conticelli: Comparing income taxes paid in the first nine months of 2024 to 2023, we see a negative aspect of $163 million. This difference is mainly due to the tax payments of Arcadia Operations in 2024. Higher tax payment in generation business and lower recovery from previous speeds. To conclude, financial expenses had a negative impact of $166 million on the 9-month 2024 FF. Mainly because of their predated Once compared to last year, our financial expenses decreased by $12 million in the first nine months of 2024 compared to 2023. This decrease is mainly due to the financial expenses related to pessimism, like one in 2013.
Comparing income taxes paid in the first nine months of 2024, Consequently, we see a negative one.
Speaker Change: $163 million.
Speaker Change: This difference is mainly due to the tax payments of our annual operational 2024.
Hi, Yes tax payment engine restaurant business and lower recovery from previous three years.
Speaker Change: To conclude the financial expenses as a net negative impact of $166 million.
Speaker Change: On the nine months 2024.
Speaker Change: Yes.
Mainly due to the day to day.
Once compared the last year.
<unk> expenses decreased by $12 million in the first nine months of 2024 compared to 2023.
This decrease is mainly due to the financial expenses related to <unk>.
One in 2012.
Simone Conticelli: Now. Let's take a look at our liquid and leverage. Argo's debt increased by 8% to $4.8 billion by the end of September 2024 compared to December 2020. This higher debt was mainly due to PEC accumulation effects and seasonality of Generation B. This increase in gross debt should reverse during the last quarter of 2024, considering the factories under the TEC-3 mechanism which took place on the last October 24th allowing us to pay an important amount in short-term credit lines taking advantage of our debt flexibility. The average term of our decimatility slightly decreased to 5.7 years by the end of September 2024 versus the 6.1 years seen in December 2020.
Speaker Change: Now.
Speaker Change: Let's say.
Speaker Change: Our liquidity and our leverage position.
Our gross debt increased by 8%.
Speaker Change: 8%.
Speaker Change: By the end of September 2024, compared to December 2003.
This was mainly due to Nash.
International and.
Speaker Change: Seasonality of generation business.
Speaker Change: This increase in gross debt should reverse during the last quarter of 2024, we'll see the factory.
Speaker Change: Three.
Which took place in the last 12 20.
Speaker Change: <unk> 24.
Allowing us to pay an important amount in short term said your lines. Thank you.
Advantage of offset 60 boots.
The average status of debt maturity slightly decreased to five <unk>.
Speaker Change: By the end of September 2024 vessels six one.
<unk> seen in December 2000.
Simone Conticelli: and the portion at the fixed rate was 75% of total. The average cost of our debt reached 5.0%. End of September 2020. slightly above the 4.9% recorded in December 2023, mainly due to the energy generation, the active volume maturity in April 2024 for 400 million dollars at 4.25%. All in all, we can see a significant improvement in our leverage effect. In this attempt, our net depth and bid direction was 2.9, demonstrating solid degrees versus plus-quarter figures. Regarding liquidity, we are in a comfortable position to support our capital needs for the upcoming months and cope with the next year.
And therefore, some FX fix that rate that was 75%.
Speaker Change: Total debt.
Speaker Change: Yes.
Net discussed a lot of debt.
Speaker Change: Five zero percent.
As of September 2000 places.
Slightly above four 9% every quarter.
Speaker Change: <unk> entered 2000 liquidity, mainly due to the energy generation Yankee bond maturity in 2024 four.
And with young.
For 'twenty.
Speaker Change: 25, such test.
Speaker Change: Yeah.
All in all we can see a significant improvement in our leverage ratios.
Indeed, our net debt to EBITDA ratio was two nine demonstrating solid decrease versus last quarter.
Regarding liquidity, where it is.
Speaker Change: In a comfortable position to support capital.
Speaker Change: <unk> done that.
The coming months and pool, but within next year.
Giuseppe Turchiarelli: Thank you all for your attention and now I pass the floor to Giuseppe for the closing remarks.
Speaker Change: Thank you all for your attention and now hypothesis.
Speaker Change: The growth in his remarks.
Giuseppe Turchiarelli: Thank you, Simone.
Speaker Change: Thank you Simona.
Giuseppe Turchiarelli: To conclude this presentation, I would like to give you the following closing remarks. Better Hydrology and Incorporating New Technology such as optimization in hydro-facility and the development of batteries in our portfolio have helped us to improve our market. Also, our trading capabilities were also important in adjusting our sales portfolio, contributing to important margins in the business. As a result, we have delivered a more than solid operating and financial performance during the year. We received around $713 million through various factoring activities related to the PACT, a larger part of which came from the last week's operation, which reached $630 million.
This presentation I would like to give you the following closing remarks.
Speaker Change: Better hydrology and incorporating new technology.
Speaker Change: Sure.
Station group activity and the development of a battery in our portfolio.
<unk> path to improve our margin.
So our trading capabilities, but also important in adjusting our portfolio contributing to important margin in the video.
Speaker Change: As a result, we have delivered more than solid operating and financial performance during the year.
Speaker Change: We received around $713 million true, but as factoring activities related to the effect of the larger part of which came from the last week operation, which reached $630 million.
Giuseppe Turchiarelli: The proceeds will primarily repay short-term debt, strengthening our balance. As I mentioned, taking this new factoring realized in October, we expect to end the year with accrual in the range of 500 up to 550 million dollars.
The proceeds will be.
Primarily repay short term debt.
Speaker Change: Strengthening our balance sheet.
Speaker Change: As I mentioned, taking these new factory realizing October.
Speaker Change: Correct.
And the year with approval in a range of high rounded up to $550 million.
Giuseppe Turchiarelli: Finally, to conclude, we want to invite you to the event of November 21st where we will present the new strategic plan for 2025-2027 to the financial community. More information will be provided in the coming days.
Finally to conclude we want to invite you to divest of November any first but will present, the new strategic plan for 2025 2027.
Speaker Change: Financial community more information will be provided in the coming year.
Isabela Klemes: Let me now hand over to Isabela. Thank you, Giuseppe.
Let me now handover is of it.
Isabela Klemes: Next, I'll begin with our Q&A session. We will receive questions via phone and chat in the webcast. The Q&A section is open.
Speaker Change: Thank you.
Net slough begin with our Q&A session, we received questions via phone and chat in the webcast. The Q&A section is open bottoming leads you may start. Thank you. Some 10 is a reminder that is star one one if you do have a question via telephone.
Operator: Carmen, please, you may start.
Operator: Thank you so much, and as a reminder, that is star 11 if you do have a question via telephone. One moment for the first question.
For the first question.
Javier Suarez: And he comes from the line of Javier Suarez with Mediobanca. Please proceed. Hi, many thanks for the presentation and for taking my questions as well.
And it comes from the line of Javier Suarez with Mediobanca. Please proceed.
Hi, many thanks for the presentation and for taking my questions as well I have three quick questions.
Giuseppe Turchiarelli: I have three questions. The first one is on the guidance. If you can elaborate on the latest guidance that you provided to the market in terms of EBITDA, net income, and also net debt, we should consider this guidance confirmed and the implications of the fact that the company is increasing their hydro guidance to 13 terawatts hour this year when previous guidance were 12 terawatts hour. So any light on existing data could be appreciated.
The first one is on the on the guidance. If you can elaborate on the on the latest guidance that you provided to the market in terms of EBITDA net income and also net debt.
Consider these guidance confirmed.
Speaker Change: The implications of the fact that the companys, increasing data hydro guidance to 13 Terawatt hour this year when previous guidance.
Terawatts hour, so any any light on existing guy that could be appreciated.
Simone Conticelli: Second question is on the recovery of regulatory receivables and the stabilization mechanism. So the question is, can you update us on your latest expectation for the timing for the recovery of the pending amount? I think that on the previous conference call you mentioned something like $200 million in 2025 and the remaining portion in 2026 and 2027. Is that guidance still a good one?
Speaker Change: Second question is on the on the recovery.
Speaker Change: Recovery of regulatory receivables under the stabilization mechanism.
So the question is can you update us on your latest expectation for the timing for the recovery of the pending amount.
Is that on the previous conference call, you mentioned, something like $200 million to $200 million in 2025, and the remaining portion in 2026 and 27 your tax guidance is still a good one.
Giuseppe Turchiarelli: And the final question is on your latest expectations on the publication of the new distribution tariff. I think that you mentioned during the conference call that there is no significant update. So if you can give us some latest thoughts on when the final report should be unveiled. Thank you. Okay. Thank you, Javier, for your questions. I will hand over to Giuseppe.
Our final question is on the on the.
Our latest expectations from the application of the new distribution tariff I can that you mentioned during the conference call that there is no significant update so if you can give us some latest thoughts on when the final reports will be thank you.
Thank you Javier for your questions I will hand over to <unk>.
Giuseppe Turchiarelli: Yes, okay, let me say that for what concerns the guidance, as you probably remember, last year we presented a range of EBDA between 1.3 and 1.5 and we confirmed Of course, we're going to be in the upper side of the range, but we are confirming our guidance. Same confirmation for us concerning the net FTP dilatation, we're going to be... below three times that is basically our target, we feel comfortable with this ratio. And for what concern, I draw, as you see in the In the presentation, we are expecting to close the year with approximately 13 TWh of idle products.
Speaker Change: Yes.
Speaker Change: Let me say that for what concerns the guidance there.
As you probably remember last year, we presented.
Speaker Change: One.
A range of EBITDA between $1 315, and we confirm it.
Of course, we are going to be in.
Speaker Change: A better side of the range, but we are.
Speaker Change: Confirming our guidance.
Speaker Change: Same.
Speaker Change: Confirmation for us concerned that net debt to EBITDA ratio youre going to be.
Below three times debt is basically our target.
We feel comfortable with this.
Speaker Change: Ratio.
Speaker Change: And.
For what concern either or.
As you see in there.
The presentation, we are big.
<unk> to close the year with.
Speaker Change: 15.
Speaker Change: Approximately 13 Terawatt hour of either production.
Giuseppe Turchiarelli: Let me say that already in October... We had 1.2, 1.3, so we are in line, everything is in line with our focus that people think in the call. So this should be the production. that we're gonna have at the end of the...
Let me see that already in October.
Had 1213. So we are in line everything is in line with our <unk>.
Speaker Change: At.
Speaker Change: The independent.
Nicole so.
This should be their production.
But we're going to have at the end of the year.
Simone Conticelli: For what concern PEC receival, Simone, well, okay, maybe just to find, to analyze my part for what concern the 2024-2028 tariff, distribution tariff process. We don't have any kind of update, we expect to have some. News at the beginning of the next year, when... The regulatory body will issue the feedback for the technical consult records, so we are waiting for this report.
Speaker Change: For what concern.
Back receivable Simona.
Speaker Change: Okay, maybe just to fine.
Speaker Change: To finalize.
My my my part, but what concerned there.
In 2024 tenants in it.
Speaker Change: Yes.
Speaker Change: Distribution type process.
We don't have any kind of update we expect to have.
Speaker Change:
News at the beginning of the next year win.
The CNS the regulatory model.
Speaker Change: Sure.
Speaker Change: And the feedback.
Speaker Change: <unk>.
For the baked in at all.
Consult directly so we are waiting for these.
Speaker Change: So Paul.
Speaker Change: Good luck.
Simone Conticelli: Okay, thanks for the question.
Okay. Thanks for the question, let's talk a bit about specs.
Simone Conticelli: Let's talk a little bit about specs. As you know, at the beginning of the year, the death toll was quite high, 715. And then this debt increased during the first three quarters, because each quarter we accumulated something like $100 million of new debt. And in the first three quarters, we received as a factoring process just more or less $80 million. And so at the end of September, the situation is that we have a debt of about $1.1 billion. The important message that Giuseppe already gave you is that, in any case, the increase in taxes changes the situation.
Speaker Change: You know at the beginning of the deficit was quite high at 715.
And then this debt increase during the first three pool of course, each quarter, we accumulated 100 million.
And in the first three quarter, we received so far.
Factoring process, just more or less AP.
Speaker Change: And so at the end of September.
The situation is that we have.
Speaker Change: Debt.
At Mt. One beyond that 100.
Speaker Change: Paul.
The important metrics that already.
You gave you is that many cases the increase in taxes.
Change of the separation.
Simone Conticelli: Starting from a few weeks ago with the GDP, we are not accumulating more or less any other PEC receivable. And so, from now on, the PEC amount should decrease each month. Now, as we have already commented, we received a cash-in of 630 million on the 24th of October. And given this cash-in, at the end of the year, our position should be in a range among 500 and 550 million stores. This amount should be cashed in mainly in the next two years. The larger amount, more or less $200 million in the first year, 2025, and the most of the remaining in 2020.
Speaker Change: <unk>.
Few weeks single with the PDP. The second so we have not accumulating more or less any other bank.
Speaker Change: Yes.
Speaker Change: Receivables and so.
Speaker Change: From now on.
<unk> should decrease each months now as we have already commented that we received <unk> six standard in regards to the question before.
Speaker Change: Okay.
Speaker Change: <unk>.
Speaker Change: Given these cashing it at the end of the year.
Acquisitions should be in a range among the 505 hundred.
Maybe I'll start.
This amount should be.
It should be mainly.
Mainly in the next two years.
The luxury amounts, they're more or less one.
In the first year plus of 25.
Speaker Change: <unk>.
Most of the remainder in 2000 and growing <unk>.
Simone Conticelli: We expect just a small part to be cashed in in 2027 and particularly we are talking about the expected one As you know, this mechanism considers that a part of the total debt will be cashed in through the tax, and so we have to wait for the end of the video, that is, Thank you, Simone.
We expect the justice more path could be catch up in 2020.
Particularly we are talking about to date.
One min su.
As you know this Matt can we consider that.
So that all sounds better.
Speaker Change: B.
Cash it needs to be done and so we had to wait for the end of the decade.
Speaker Change: Okay.
Speaker Change: Thank you good morning.
Operator: Operator, do we have more questions online? We do not have any other questions.
Speaker Change: The return do you have more questions on line.
We do not have any other questions back to you for webcast.
Operator: Back to you for webcast. Okay, thank you. So, Giuseppe and Simone, I will start with some questions that we have received from the analysts and investors connected. So, the first one is coming from Francisco Paz from Santander. Francisco is saying, thanks for the presentation. The question is the following. We have observed a positive water availability during this year and the previous one. which has helped the company to reduce cost pressures and increase hydrogeneration.
Thank you so does that mean.
Speaker Change: Ill start with some questions that we have received strong.
The analyst and Investor disconnected. So the first one is coming from Francisco Pos.
Speaker Change: Dan.
So just to be safe and thanks for the presentation. The question is the following we have observed a positive water availability during this year and the previous one.
Which has helped the company to reduce cost pressures and increased hydro generation going forward and in the context of uncertainty for water availability in the long term why do you assume is the reasonable estimates of hydro generation in the medium to long term for the company in an Walter.
Giuseppe Turchiarelli: Going forward and in the context of uncertainty for water availability in the long term, what do you assume is the reasonable estimate of hydrogeneration in the medium to long term for the company in annual terms? Let me say that we are clearly happy to have this year with a very good hydrological condition. Weeeeee Do not consider this Tweer as a proxy for the following here, so we use two. project in terms of hydro condition, the last 10, 11 year average. So. In general, we are soon to have around 10-11 telepath towers per year. This is our estimation as soon as we're gonna see a different kind of path in terms of hydrology we are going to change our estimation but as of today we are we keep our estimation around 10 11 terawatt hours Okay, thank you Giuseppe.
Speaker Change: What.
Speaker Change: Let me say that.
Speaker Change: We are clearly.
Speaker Change: Okay.
Speaker Change: However, these two year.
With a very good the hydrological condition.
We do not consider these two years.
A proxy.
Speaker Change: Following here so we used to.
Speaker Change: Project in terms of hydro condition.
Then 11 year average so.
Speaker Change: In general we are tuned around 10, 11 terawatt hour per year.
Speaker Change: These hour.
Estimation, extranet, youre going to see a different kind of Boston.
<unk> going to change our submission but as of today.
We keep our.
Estimation around 10, 11 Terawatt hour.
Okay. Thank you just that we have some questions now from Andrew Gardiner from Lorraine Geos.
Giuseppe Turchiarelli: So we have some questions now from Andrew McCartney from L'Oréal. So the first question is also related to the hydrogeneration, but I think we have covered now the question.
So the first question is also related to the hydro generation, but I think we have Cobra now.
Simone Conticelli: So the second one... And relating to the PEC, the PEC-3, so when do you expect to sell more PEC-3 receivables and how much do you expect? I can answer also the previous question, but I will focus on the specific question. Thank you. We are keep on selling the... going with now the new decrees that we... And we are expecting to end. Cash for around 200 or something more million US dollars by the end of 2025.
The question so the second one.
Speaker Change: Okay.
Relating to the pack the factory and also when do you expect to sell more factory.
The bubbles and how much do you expect to receive.
Speaker Change: So I think that the revenue.
Answer also to your previous question.
We will focus on the strategic question in queue.
We have to keep on selling.
Speaker Change: Okay perfect.
That's it.
Going with the new Dcs.
Speaker Change: And we.
We are expecting to add.
Speaker Change: Cash or around the one that or something more.
Speaker Change: Donna.
U S dollar by the end of 2025. This is the first book.
Simone Conticelli: This is the first block of. Okay, thank you, Simone.
The effectiveness that we have to go.
Speaker Change: Kitchen.
Okay. Thank you. Good morning, So we have another question from wind you.
Simone Conticelli: So we have another question from Andrew. That's also the investors analysts have sent to us. So do you see more gas commercialization opportunities for the first quarter? Well, at this moment, we don't expect any additional sales of cargo for the rest of the year. Clearly, we are always looking at... Any opportunity to increase our profitability, at the end of today, we don't have it. any in front of us, any series of categories.
Thats also other investors analyst to ask so do you see more gas commercialization opportunities for the first quarter.
But at this moment, we're going to expect any additional cargo for the rest of the year clearly we are always looking.
Annual opportunity to increase our profitability.
Speaker Change: With me.
Any in front of us and we see Cotter you talked about.
Giuseppe Turchiarelli: Okay, thank you. So the last question from Andrew is, do we expect the distribution business to return to normalized operating property in the fourth quarter of this year? Or should there be more negative impacts from fines or compensation to clients for services interruption that occurred in 2024? For what concerns the distribution business, of course, we are still evaluating all the activities that we need in order to put our grid to the original status. We are waiting also and discussing for what concerns You know the possible fines or compensation and we're gonna give you more detail during our Okay, thank you.
Speaker Change: Okay. Thank you. So the last question from Andrey do we expect that the distribution business to return to normalize its operating profit in the fourth quarter of this year.
Speaker Change: Should there be more negative impact from fines or compensation took lines or services interruption that occurred in 2024.
For what concern the distribution business of course, we are.
Speaker Change: Yes.
Speaker Change: Waiting all the activity that we need in order to boost.
Speaker Change: Our original plan.
Speaker Change: So we.
Speaker Change: We are.
Waiting all saw and these caching for Wisconsin.
The possible fines, our competition and we're going to give you more detail during our Investor day.
Simone Conticelli: We have some questions from Ignacio Sabele from Itaú. So the questions is also very similar to the ones that we have already answered, but just to focus on the PEC-2, so how much we expect the receivable accumulation regarding the PEC-3 going forward, Simone, and just to rephrase, as we have several questions on this. Yes, as we have commented in this, with consumption below 350 and with consumption higher of 350 are started to pay basically the fair price, the cost of the system, and then also a component that...
Okay. Thank you we have some questions growing Nat Stewart Bailey from <unk>. So the question Steve.
Very similar to the ones that we have.
Speaker Change: <unk> already answered but.
Just to focus on the back to now so how much.
We expect the receivable accumulation regarding the factory going forward.
And just to refresh as we have several questions on the yes as we are coming in this morning.
Segment of customers.
Samsung will beat our 350.
And with the consumption is higher.
Got it.
It started that today basically data.
Sir Clive: Sir Clive.
Speaker Change: Okay.
The cost of the system, and then we'll sort of home for them.
Simone Conticelli: Sponsored ADR So, from now on, we expect no significant increase on accommodation. Okay, thank you.
Speaker Change: Is needed to recall that raw data.
Speaker Change: So from now on we expect significant increase in Florida homeowner Shlomo.
Speaker Change: Okay. Thank you. So a question from now coming from marching iron stats from balance.
Simone Conticelli: So a question from now coming from Martin Arancet from Balance, also on PEC, but he is asking more details about the usage of the funds from the PEC-3 that we received in NAMIO. Okay, thank you for the question. As we have commented, the 24th of October, we receive a payment of more or less 630 million dollars. This cash-in was received by Enel Finance on Chile, and Enel Finance on Chile used the money to reduce the debt position in the short term. And part of the money was invested also in the short term at the market interest rate.
Speaker Change: I'll fall back, but he is asking more details about the users of the funds from the factory that we received an army of silver.
Speaker Change: Okay.
Speaker Change: Thank you for the question.
As we have commented that.
Speaker Change: 24.
We received a payment of more or less six outlet stores.
Speaker Change: And going online.
He is.
Speaker Change: Cash in was received by Pam So cheap.
And that's essentially use the Miami too.
Speaker Change: Reduce the debt position.
And that part of the mine what was invested also in the short term.
Speaker Change: After the market.
Simone Conticelli: Clear, we keep on looking ahead to have further opportunity to optimize also the long-term debt. And on the other side, you know that financial stability is one of our core goals for our strategy. Why? Because we can leverage on that to grab eventual opportunity that can pop up in the market. And so this increase of our financial stability is a very positive aspect that can enable us to do more things in the future.
Speaker Change: Interestingly.
Speaker Change: Clear.
Speaker Change: Looking ahead with the further opportunity to optimize also the last Saturday.
Speaker Change: And on the other side the euro debt.
Speaker Change: Uh huh.
Speaker Change: With financial.
Speaker Change: Stability is one of our core growth.
For our strategy one of course, we can leverage all that to get up.
Speaker Change: The eventual approximated net tangible path.
Speaker Change: In the market.
And so this increase of our financial stability is very positive.
Speaker Change: Can enable us to move more into the future.
Speaker Change: Okay.
Giuseppe Turchiarelli: Thank you, Simone. So we have one more from Martin. He's asking, if I'm not mistaken, the government is preparing a technical report to evaluate if Enel Distribuciones has taken the proper steps to return service to clients after the extreme weather event condition.
Speaker Change: Thank you. Good morning, So we have one more from Mark team. He is asking if I'm not mistaken. The government is preparing a technical report to evaluate is announced.
<unk>, which John has taken the proper steps to return service to clients. After the extreme weather events conditions, what do you give us any color on the timeline of these reports your expectation and also your options. If it has a negative outcome.
Giuseppe Turchiarelli: Quirio gives any call on the timeline of this report, your expectations, and also your options if it has a negative impact. OK, so let me first mention the fact that the process of revoking the concession has not yet. The Minister of Energy, that's the second. with preparing a technical report on Enel distribution concessions. According to the authority, this study should take between 6 and 18 months. And once it's going to be ready, it will be delivered to the President of the Republic for review. and only the President of the Republic of Chile through a decree.
Speaker Change: Okay.
Let me first mention the fact that the.
Process of reworking the compensation is not yet.
Speaker Change: Yeah.
The minister of vein in June that the sector.
With preparing our technical report on <unk> concession.
According to the authority the status should peak.
Between six and 18 months.
I mean, one is going to be reading it will be delivered to the prison.
For review.
Speaker Change: And only the president of the Republic of cheating through.
Giuseppe Turchiarelli: can start the process. So we are waiting for the report that should be issued by the SEC in order to understand whether. See any possibility of or any suggestion in order to revoke or to suggest the revoking of the question.
Speaker Change: Decrease.
Speaker Change: And start the process. So we are waiting for the.
The ramp up that should be issued by the SEC in order to understand whether.
Speaker Change: These technical Marty.
Speaker Change: See Amy <unk>.
Possibility or 80 subjects.
It to ruble cost too.
Speaker Change: Jay.
Looking of the concession.
Giuseppe Turchiarelli: HMMMMM Just to be clear, the law, the current law, excludes any possible revocation of the concession in case of force majeure. This is the reason because we believe that any report from the SEC should give these kinds of suggestions, because is it clear? from the situation that has been. Occurred in August that the 4th Major is clearly part of the ban.
Speaker Change: Hmm.
Just to be clear below the current low exclude any possible.
The relocation of the concession in case of forced mature. These the reason because we believe that any.
Revpar from this sector should.
And keep this kind of subjects because is it clear.
From from the situation that has been.
Our cure in August the first mature.
Speaker Change: Clearly.
Speaker Change: Part of the Bank, let me see.
Giuseppe Turchiarelli: And what we're going to do in case of negative outcome? Well, clearly, we're going to start with all. The legal action. locally and internationally. So we're going to start. really defending our interest in terms of construction. Okay, thank you, Giuseppe.
Speaker Change: And.
What are we going to do in case of negative outcome.
Clearly we're going to start.
Speaker Change: With all the.
Speaker Change: The league.
Speaker Change: Legal action.
Speaker Change: Locally and internationally.
Speaker Change: So we're going to.
Speaker Change: That.
Speaker Change: Okay.
Speaker Change: The.
Speaker Change: Pending our interest.
In terms of competition.
Speaker Change: Okay. Thank you.
Operator: We received other questions also from Rodrigo Mora, but they're the same on distribution and also on gas commercialization.
Well. The question is also from a legal modem, but they're the same on distribution and also on gas commercialization.
Tomas Gonzalez: So, Tomás González from Escoria Bank. Some questions we have already answered, but I go to the dividends. Also, he's asking regarding the dividends, do you plan to play an interim dividend before the year-end? Any possibility to increase the payout in the future? He's mentioned because of the funds of the PAC. Dividend policy of energy action is to increase through the year. In this moment, this Kashimi is in line with the... Sponsored ADR And so this money are a very good news, you know, because we permit to stay with our rhythm policy.
So Thomas solid strong audio bank.
Speaker Change: Some questions. We have are the answer but then go to the dividends and also you're asking regarding the dividend.
Do you plan to play into indeed than before the year end any possibility to increase the payout in the future.
Speaker Change: As mentioned because of the funds of the Sac.
Speaker Change: Okay.
Speaker Change: Talking about.
Speaker Change: Soon.
Speaker Change: Yes.
Speaker Change: This is <unk>.
Speaker Change: In phase II.
Speaker Change: Yeah.
Speaker Change: And this is more this has seen increase in line.
Speaker Change: The possibility to stay in the quantity and in the very short term. So we'll reach it in the future.
I'll give the tendency of our central Division.
And so this mine room.
Speaker Change: But the good news.
Third we need to stay.
Dividend policy.
Giuseppe Turchiarelli: But in my opinion, and this is a matter for the board of directors, for the assembly of the owners of the company, but in my opinion there will be not big changes regarding the...
It might not be where land is just a matter for the bulk of that exponent towards the asset owners.
Speaker Change: Nicole you May remember, we did not.
Big changes regarding the dividend.
Operator: Okay, thank you. So let me check here.
Okay. Thank you so let me check here, we have other questions.
Giuseppe Turchiarelli: We have other questions. Okay, so we have one from Martin Pozo, so he's asking us, can you give more detail about the impact the company might have with the increase of the green taxes in case the new project law is approved?
Okay. So we have one from marching parcel.
Speaker Change: So he is asking us can you give more detail.
About the impact the company might have.
The increase of the green taxes in case, the new project lines approved.
Giuseppe Turchiarelli: Can you give you more details, Giuseppe, Simone? Yeah. Let me remind you that... Last year, we paid $15 million in... in We have a very, very good mix in terms of of Plainfleet. Our CCGT is supplied with a very competitive gas contract. And the green tax at the end of the day. represent a very low percentage of our of our thermal power. We have several options in order to... to compensate these taxes, but at the end of the day, as I said before, we are, you know, the law is under discussion, it's at the beginning of the discussion.
Can you give you some money.
Speaker Change: Yes.
Let me remind you that.
Last year, we paid $50 million.
Speaker Change: Green taxes.
Speaker Change:
Speaker Change: We have a very.
Very good mix in terms of.
Speaker Change: Or.
Speaker Change: The planned fleet.
Speaker Change: Our two CGT.
Supply with a very competitive gas contract.
And then.
Speaker Change: The green tax.
Speaker Change: At the end of the day.
Speaker Change: And represent a very low percentage of our of our thermal power plant.
Speaker Change:
Speaker Change: We have.
Several options in order to.
Speaker Change: To.
Two competencies.
Speaker Change: These.
Speaker Change: These taxes, but at the end of the day.
<unk> said before we are there.
The law is under discussion is at the beginning of the discussion and action.
Giuseppe Turchiarelli: And the amount of the taxes are almost...
And the amount of the tax.
Speaker Change: Yeah.
Speaker Change: Almost.
Giuseppe Turchiarelli: Sponsored ADR Okay, thank you, Giuseppe.
Yes, very very low.
Rodrigo Mora: So one more from Rodrigo Mora from Patria Moneda. He's asking about Los Condores project. Okay.
Okay. Thank you just one more the film with Eco Mod ask John Bob Jim will need them. She is asking about silos Congress project Okay.
Giuseppe Turchiarelli: So he's asking if we could give more color about the status of testing of Los Condores. and the energy generated expected to this plant.
So he is asking if we could eat more color about the status of testing all follows Congress.
Speaker Change: And.
The energy generated.
Speaker Change: To the.
Giuseppe Turchiarelli: So, Giuseppe, if you can give more on how we are in Los Congres, and then Simone, the generation of Los Congres. Okay, well, Los Condores project. is in a very good shape right now because we already started the pre-commissioning test. We are going ahead and we are pretty sure to have the first synchronization in the following month. Before the end of the year. We expect we could have a very good surprise in the following weeks, but let me say just to be conservative by the end of the year. Okay, thank you.
So this plant. So just if you can give me on how we are in this Congress and then some more needed generation of <unk>.
Speaker Change: Okay.
Yeah.
Speaker Change: Last Congress projects that.
Very good.
Speaker Change: Shape right now because we already started the commissioning.
Speaker Change: Commissioning tester.
Speaker Change: We are going to add and we are pretty sure web.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Synchronization.
Speaker Change: In the <unk>.
Following more so.
Speaker Change: Oh for sure before the end of the.
We expect that we today have a very good.
Surprise in the following weeks, but let me say just to be conservative by the end of the.
Speaker Change: At the end of the year. Okay. Thank you good morning on the generation plan looking at both the generation of these new plans.
Simone Conticelli: Simone, on the generation, please. Talking about the generation of this new plant, we can give a range of production expected. And it should be ammo 150 and 200 gigawatt-hours for one.
We can give a range of production expected for the next day.
Speaker Change: It should be.
Speaker Change: 100, Bcm, who one.
Speaker Change: Gigawatt hour.
Speaker Change: Good morning.
Simone Conticelli: Okay, thank you.
Okay. Thank you. So we have one strong Andreas <unk> from <unk>.
Giuseppe Turchiarelli: So we have one from Andres Barberi from MBE. So the question is on Andres, thank you for the presentation. I have a question regarding the regulated sales. We observed a year-over-year increase of 550 gigawatts. Is this increase driven by higher demand in your current PPAs or is due to the start of a new regulated contract?
Speaker Change: The question is on Andre. Thank you for the presentation I have a question regarding the regulated sales, we observe that year over year increase of 506 Gigawatts.
This increase driven by higher demand in your current Ppas already just to start off on the regulated contracts.
Giuseppe Turchiarelli: Well, basically. The increasing incest are connected to... a new concert that started recently, this year. And it was a regulated standard that we won in 2017. So it's a matter of perimeter.
Speaker Change: But.
Speaker Change: Musically.
The increase in <unk>.
Speaker Change: You too.
Speaker Change: <unk> committed to.
Speaker Change: In new concept.
Speaker Change: Scott.
Speaker Change: Recently the reaction.
Speaker Change: And it was.
Our regulated then that we won in 2017.
Giuseppe Turchiarelli: So we have a. new PPA entering our portfolio. Okay. Thank you, Giuseppe.
Speaker Change: So we have been.
Speaker Change: Yeah.
Speaker Change: New PPA entering our portfolio.
Okay. Thank you just that the so called me operator, do we have any more questions.
Operator: So, Carmen Operito, do we have any more questions online? Yes, we do. We have a follow-up. One moment, please. Okay, thank you.
Speaker Change: Yes, we do we have a follow up my mom and please.
Javier Suarez: From the line of Javier Suarez with Mediobanca, please proceed. Thank you. I'm sorry for coming back again. It's on the guidance. You mentioned that the guidance for the EBITDA in 2024 is now seen at the upper end of the range, the previous range, $1.3 to $1.5 billion. If you can confirm that, if you can share with us also the guidance for the net income. Thank you. Okay, I confirm you on that it's going to be at upper ranges, so... around or closer to 1.3 rather than 1.3 so upper range and for what concern the net income similar situation I mean we are going to confirm The guidance of the upper range.
Okay. Thank you from the line of Javier Suarez with Mediobanca. Please proceed.
Thank you and sorry for coming back again is on the on the on the guidance you mentioned that the guidance for the EBITDA. In 2024 is now seen at the upper end of the range of the previous range of one three to $1 5 billion billion. If you can confirm that.
Speaker Change: You can set with US also on the guidance for the net income. Thank you.
Speaker Change: Okay.
Speaker Change: From you on that.
Be at the upper range so.
Speaker Change: Around.
Closer to $1 fee, rather than one three so upper Ranger and for what's been said than net income.
Speaker Change: <unk> situation I mean, we are going to confirm or.
Speaker Change: The guidance adaptor range.
Giuseppe Turchiarelli: that he presented the last time. Okay, thank you.
That we presented last year.
Okay. Thank you.
Operator: If there is no more questions, I would like to conclude our conference call. The Investor Relations team is available to answer any questions you may have. Many thanks for your attention.
Speaker Change: There is no more questions I would like to conclude our conference call.
Speaker Change: Mr Relations team is available to answer any questions. You may have many thanks for your thank you have a great breadth with the weekend useful sorry.
Operator: Have a great rest of the week and see you soon at our Investor Day. Thank you.
Investor day. Thank you. Thank.
Operator: And with that, we conclude today's conference.
Thank you and with that we conclude today's conference you may now disconnect.
Operator: You may now disconnect. Downloaded From www.AllSubs.org
Speaker Change: [music].