Q1 2025 Enel Chile SA Earnings Call
Operator: Good afternoon, ladies and gentlemen, and welcome to Enel Chile's first quarter 2025 results conference call.
Okay.
Victor: Good afternoon, ladies and gentlemen, and welcome to Enel Chile's first quarter 2025 results Conference call. My name is Victor and I'll be your operator for today.
Operator: My name is Victor, and I'll be your operator for today. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again.
Victor: This time all participants are in listen only mode. After the speaker's presentation. There will be a question answer session to ask a question. During the session you will need to press star one on your telephone you didn't hear an automated message advising your hand is raised to withdraw your question. Please press star. One again, please be advised that today's conference is being recorded during this conference call.
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 Security Litigation Reform Act of 1995. Such forward-looking statements reflect only on 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.
Victor: 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.
Victor: Any forward looking statements as a result of the risk.
Operator: For more information, visit www.enel.com. These factors are described in Enel Chile's press release reporting its first quarter 2020-2025 results. The presentation accompanying this conference call and Enel Chile's annual report on Form 20-F included under risk factors.
Victor: Factors.
Victor: These factors are described in Enel Chile's press release reporting its first quarter 2020 2025 results the.
Victor: A presentation accompanying this conference call and interchanged annual report on form 20-F.
Operator: You may access our first quarter 2025 results, press release, and presentation on our website, www.enel.cl, and our 20-F on the SEC's website, www.sec.gov. Readers are cautioned not to place under-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.
Victor: Under risk factors you may access our first quarter 2025 results press release and presentation on our website Www Dot N O C L and our 20-F on the Sec's Web site Www Dot FCC Dot Gov reader.
Victor: Readers are cautioned not to place undue reliance on those forward looking statements, which speak only as of their dates and 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.
Isabela Klemes: I will now turn the presentation over to Mrs. Isabela Klemes. Head of Investor Relations of Enel Chile, please proceed. Buenas tardes, good afternoon and welcome to Enel Chile's first quarter results presentation. We greatly appreciate you taking time to join us today. My name is Isabela Klemes, I'm the head of investor relations.
Speaker Change: Except as required by law I will now like to turn the presentation over to Mr. It's about glynis.
Speaker Change: Head of Investor Relations of energy. Please proceed.
Speaker Change: Okay.
Speaker Change: When I started this good afternoon and welcome to Enel Chile's first quarter results presentation. We greatly appreciate your taking time to join US today My name is.
Isabela Klemes: Joining me today are our CEO Giuseppe Turchiarelli and CFO Simone Our presentation and related financial information are available on our website, www.enel.cl, in the investor section, as well as through our Investors app. In addition, a replay of the call will soon be available.
Speaker Change: Joining me today are our CEO.
Speaker Change: Yeah.
Speaker Change: Our presentation and related financial information are available on our website.
Speaker Change: Yeah.
Speaker Change: Well that's true.
Speaker Change: In addition, a replay of this call will soon be available.
Isabela Klemes: At the end of this presentation, there will be an opportunity to ask questions via phone or webcast chat through the Ask a Link question. Media participants are connected in listening mode.
Speaker Change: At the end of this presentation, there will be an upward trend.
Speaker Change: Questions via phone or what was shocked me.
Speaker Change: Yeah.
Speaker Change: All right.
Speaker Change: The name modes.
Giuseppe Turchiarelli: Giuseppe will kick off the presentation by covering key highlights of the period. He will also delve into our portfolio management actions and provide updates on the regulatory context.
Speaker Change: We call for the presentation.
Speaker Change: Highlights of the period, you also delve into arc, which is following management actions.
Speaker Change: Updates on the rig.
Giuseppe Turchiarelli: Following that, Simone will offer an overview of our business economics and financial performance. Thank you for your attention.
Speaker Change: Grateful.
Shimon: Following that Shimon you will offer you a part of business economic and financial performance. Thank you for that.
Giuseppe Turchiarelli: Giuseppe will now take over the Thank you, Isabela. Good afternoon, and thanks for joining. Let's start the presentation with our main highlight of the day. Regarding our portfolio management, the Los Condores hydropower plant successfully achieved its commercial operation date in February. Recording approximately 100 GWh of production in the first quarter, demonstrating its solid performance. In response to the climate events of May and August 2024, which severely impacted our distribution concession area, we have launched a resilient plan aimed at strengthening our grid infrastructure against the already proved increase in climate risk. Despite the always more frequent extreme climate events, as of today, we don't foresee any imminent changes in the regulatory framework.
Speaker Change: We will now take over the call.
Shimon: Hey.
Shimon: Good afternoon, and thanks for joining.
Shimon: Let's start with the divisional EBITDA, what I mean.
Shimon: Highlights of the.
Shimon: Regarding our portfolio management the laws Congress.
Shimon: The plant successfully achieved commercial operation date.
Shimon: Accordingly.
Shimon: Yeah.
Shimon: That's right.
Shimon: Demonstrating solid.
Shimon: We will responsibly planet.
Shimon: May and August.
Shimon: Each separately.
Shimon: Our.
Shimon: Fishing area.
Shimon: We haven't launched every billion plan right.
Shimon: Right.
Shimon: Breathing action.
Shimon: The game that already.
Shimon: As you probably know me.
Shimon: Despite the always more fragrances climate survey.
Shimon: Today, we don't foresee any immediate changes.
Shimon: Changes in the regulatory thing.
Giuseppe Turchiarelli: Turning to the country in a regulatory context, I would like to highlight that the BID 2020-2024 decree was finally published in April 2020. I will also share updates on the progress of the BAD 2024-2028 process. Furthermore, we expect to receive updates next quarter on the regulation of best ancillary services. as well as the public consultation to update the National Electric System Operations Regulation.
Shimon: Turning to the town.
Shimon: I would like to highlight that.
Shimon: Any kidney.
Shimon: Taught degree what's finally published in AP.
Shimon: We'll also share update on the progress of the B E.
Shimon: Yeah.
Shimon: Furthermore, we expect to receive the next bar on the regulation.
Shimon: Okay.
Shimon: The public consultation update the Michigan.
Shimon: Okay.
Giuseppe Turchiarelli: Finally, regarding business profitability, I am pleased to report that we have had an exceptional start to the year. With our books now U.S. dominated, we achieve stronger BDA and net income level, further reinforcing confidence in our strategic plan. To conclude this slide regarding Schroeder remuneration, the AEA AGM held on Monday of this week approved the final and eventual deed. amounting to approximately 3.34 Chilean pesos per share, bringing the total to 4.24 Chilean pesos per share for the 2024 fiscal year.
Shimon: Sure.
Speaker Change: Finally regarding business stability I'm pleased to report that Ed.
Shimon: An exceptional start.
Shimon: There are books now you're at the minute.
Shimon: We achieved strong EBITDA and net income.
Shimon: Further reinforcing our confidence in our.
Shimon: Right.
Shimon: To conclude the call.
Shimon: I forgot.
Shimon: Sure Nick.
Shimon: AGM.
Shimon: Mandy.
Shimon: We approved the final debate with you then.
Shimon: Mounting a blockbuster approximately three point that he thought she didn't embed, especially <unk>.
Shimon: Sure.
Julien: Sure Julien.
Shimon: For the clinic.
Giuseppe Turchiarelli: Now, let's review some updates regarding our generation sourcing as outlined on the next slide. I would like to highlight that we have started 2025 with a solid and diversified portfolio, comprising a total net installed capacity of 8.9 gigawatts. 28% of our capacity coming from renewable energy sources and battery energy storage systems. In the first quarter of 2025, we received authorization from the National Electricity Coordinator to begin commercial operation of the Los Condores hydropower plant, which has a capacity of 153.5 hectares. With the inclusion of Los Condores, we have secured approximately 2.1 gigawatts of capacity since January 2023, covering solar, wind, hydro, and storage technologies.
Shimon: Yeah.
Shimon: Now, let's review some updates regarding our.
Shimon: So no.
Shimon: Hang on.
Shimon: The next slide.
Shimon: I would like to highlight that impacts about 2025 with a solid.
Shimon: Sure.
Shimon: Comprising.
Shimon: Our next you spoke about eight.
Shimon: Eight nine.
Shimon: Okay. Thanks.
Shimon: Thanks.
Shimon: Coming from a renewable energy source.
Shimon: And as you see.
Shimon: In the first quarter.
Shimon: What do you eat authorization from the niche and our liquidity coordinator to begin commercial operation the last Congress either of our plan.
Shimon: We tried the capacity all but one of them.
Shimon: No.
Shimon: With the inclusion of Congress.
Shimon: Sure.
Shimon: Two one gigawatt DC.
Shimon: In January.
Shimon: Great.
Shimon: Already saw that we left eye drops.
Shimon: Technology.
Giuseppe Turchiarelli: Net electricity generation total 5.6 TWh as of March 2025. reflecting an 8% decrease compared to the production in 2020. This decline was primarily driven by lower hydro and renewable generation due to higher contribution from snowmelt in 2024. The maintenance of two of our solar planes and network restrictions caused by the transmission line limitation following the blackout. However, this was partially offset by higher contribution from wind planes, notably La Capagna and Renegade. In the first quarter, our energy sales totaled 7.7 terawatt-hour, marking a 9% reduction compared to the previous year. These decrees stem from lower stakes to regulated customers following the expiration of regulated contracts.
Okay.
Shimon: Net.
Shimon: So both of them five.
As of March.
Shimon: Hi.
Shimon: Reflecting an 8% decrease compared to the production.
Shimon: This decline was primarily driven by lower <unk>.
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Shimon: Sure.
Shimon: No.
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Shimon: And next door.
Shimon: Caused by the mutual language issue.
Shimon: However, this was partially offset by higher contribution from like no lockup.
Shimon: Lockup on yet.
Shimon: Okay.
Shimon: In the first quarter our energy.
Shimon: Seven seven.
At 9%.
Shimon: Yeah.
Shimon: These decrease.
Shimon: Lower.
Shimon: In my following the expiration of the call.
Giuseppe Turchiarelli: Despite the challenging conditions caused by the blackout on February 25th, transmission line restrictions and lower water availability compared to 2024, we successfully fulfilled our commitment to our clients. This quarter, we reduced our purchases from third parties by 0.2 TWh and decreased post-market purchases by 0.1 TWh.
Shimon: Despite the challenging condition caused by the outcome.
Shimon: And as Michel Library.
Shimon: Well I've got to be competitive.
Shimon: We successfully.
Shimon: Our commitment.
Shimon: This brought it up.
Shimon: Reduced our artisan artifact if by beautiful.
Shimon: In the bulk market.
Giuseppe Turchiarelli: Now I would like to take a moment to discuss the energy regulatory framework and share important upcoming updates. In the coming months, we anticipate significant announcements regarding changes and updates to the regulatory framework. In this slide, we have a brief summary of the key topics currently under discussion.
Shimon: Got it.
Shimon: Now I would like to take a moment to discuss the energy related.
Shimon: In sharp.
Shimon: I mean update.
Shimon: Okay.
Shimon: In the coming months.
Shimon: You can if you can announce.
Shimon: And change it.
Shimon: Good day and good luck.
Like many of the key topic currently under cash.
Giuseppe Turchiarelli: As you may recall during the last call. We reviewed the key aspects of the government's proposed law to increase the electricity stock. At the present, the subsidies benefit approximately 1.8 million families. And the new proposal aims to expand support to nearly 4.7 million families. Focusing on Chile's 40% most vulnerable households. In January 2025, the Chamber of Deputy approved the government's proposed tax law, with certain modifications. The proposal remains under discussion in Congress, and the second legislative review in the Senate is expected to be finalized during June. We are also expecting a regulatory update in the second quarter of 2025 regarding the remuneration of auxiliary services, called PES.
Shimon: As you may recall during the last call.
Shimon: We review.
Shimon: Of the government proposed law.
Shimon: It could be stopped.
Shimon: At the present the subsidies.
Shimon: Similarly, one medium family.
Shimon: And the new proposed Inc.
Shimon: Sure.
Shimon: At Board.
Shimon: Meeting Jami.
Shimon: Focusing on Chile Bobby.
Shimon: Most vulnerable.
Shimon: In January 25.
Shimon: The charm, but basically.
Shimon: The government proposed.
Shimon: Certainly.
Shimon: The proposed that remain under discussion as you called it and the tax.
Shimon: If you do the same.
Shimon: Uh huh.
Shimon: It can be.
Shimon: During Q.
Shimon: Sure.
Shimon: We are also expecting a regulatory update.
Shimon: The second quarter.
Shimon: Okay.
Shimon: Sure.
Shimon: All right.
Giuseppe Turchiarelli: Storage systems play a critical role in mitigating renewable energy containment while enhancing the security and flexibility of the electric system. to promote investment in this technology, it is essential to establish clear rules governing the participation and remuneration of VETs in the energy capacity and services market.
Shimon: Alright.
Shimon: Alright.
Shimon: Play a critical role mitigating.
Shimon: Energy containment.
Shimon: And.
Shimon: Good evening.
Shimon: Got it.
Shimon: To promote investment in these technology it is painful with Stablish.
Shimon: So we are all well then.
Shimon: Patient every motivation.
Shimon: In the energy.
Shimon: At MTV.
Giuseppe Turchiarelli: May 3, 2025. The Minister of Energy initiated a public consultation on proposed amendments to the Regulation for the Coordination and Operation of the National Electric Many proposed changes in Inclusion of Small Distribution Generation Unity the so-called PEMEJEDE, in the allocation process for zero variable cost generation. That means the PEMEJEDE will be part of the Determination of opportunity cost for best to ensure efficient dispatch. The system operator will establish a batch charging schedule and introduce a time-breaking rule for situations where multiple batch units are operating. Potential exclusion of insurance policies as valid guarantees. Implementation of Automatic Dispatch for All Power Plants The public consultation will be available until May 8th.
Shimon: Mark.
Shimon: You need to replenish.
Shimon: Five.
Shimon: The minister of energy.
Shimon: Public policy consultation.
Shimon: Proposed amendments to the regulation for the coordination and nobody.
Shimon: The national.
Shimon:
Shimon: Meaning proposed changes include.
Shimon: Inclusion of small distribution gains.
Shimon: And you wanted to.
Shimon: So call it that in the allocation process for the veto vote cast generation.
Shimon: It means.
Shimon: If I may say, they would be part of the book.
Shimon: The termination of a pretty easy.
Shimon: Paul back to ensure efficient.
Shimon: That piece of it but he started with established bank charter.
Shimon: Any reduce fabric and rules.
Shimon: Sure.
Well you'll need.
Shimon: No.
Shimon: Potential exclusion of each one of them all.
Shimon: That's about it.
Shimon: Implementation of these.
Shimon: But put all our plan.
Shimon: The public consultation we gave you the book.
Giuseppe Turchiarelli: The processing of the publication of the new regulation is expected to begin in the second quarter of 2025.
Shimon: Eight eight.
Shimon: The processing of the communication.
Shimon: English is that.
Shimon: To begin in the second.
Shimon:
Giuseppe Turchiarelli: Let's now move to the right side of the slide to review the distribution regulatory cycle. In relation to the 2020-2024 VAT process, in April 2024... The Office of the Comptroller General of the Republic approved and published the decree. an important step to enabling the recovery of the outstanding balances from the tariff side. Following this approval, the Superintendency of Electricity and Fuels is expected to issue a resolution in the coming months to determine the process and timeline for settling the pending index in favor of the distribution code. Regarding the process for the VAD, according to the estimated timeline, the consultant final report shall be delivered and officially published in the next quarter.
Shimon: Sure.
Shimon: Let's now move to the right side of this line.
Shimon: You did disabled Sean Mclaughlin cycle.
Shimon: In relation to the screen.
Shimon: Any thought about raw steak, Sir you may begin.
Shimon: But.
Shimon: Oh, Oh Oh.
Shimon: Paul.
Shimon: Jana.
Shimon: Probably up a little and published.
Shimon: An important aspect.
Shimon: The quality of the plane.
Shimon: On the balance sheet.
Shimon: But that is a cycle.
Shimon: Harlan ruin the superintendency.
Shimon: Hopefully.
Shimon: Sure.
Shimon: Hey, good evolution.
Shimon: With that in mind.
Shimon: And Pamela.
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Shimon: In favor of the D C.
Shimon: Got it.
Shimon: Regarding the prospects of the buyback.
Shimon: Awesome.
Shimon: Accordingly.
Shimon: Lynn.
Speaker Change: You can find that report shall be did you bet and officially publish in the next quarter.
Giuseppe Turchiarelli: By the last quarter of this year, we anticipate the regulator might publish the final technical report for this cycle. Finally, we reiterate our expectation that this new process will result in an improved regulatory system. Reflecting the newly approved Valor Nuevo del Impaso, DNR, and all the economic and technical assumptions as of December 2022, including indirect. We remain confident that this element will be upheld throughout the various stages of this process.
Speaker Change: But the last quarter Lithia.
Speaker Change: The replay for Mac publish their funnel.
Speaker Change: This high quality.
Speaker Change: Finally, we reiterate our expectation that the new process, resulting in group.
Speaker Change: Reflecting the newly approved.
Speaker Change: The Vietnam and all of the economic and thinking about that.
Speaker Change: As of December.
Speaker Change: Included in that.
Speaker Change: We remain confident that these elements will be.
Speaker Change: Hello, Novartis visual discusses.
Simone Conticelli: I will now hand over to Simone, who will guide us through the economic and financial results. Many thanks, Giuseppe, and good afternoon, everyone. I will begin my presentation with an overview of the key results for...
Speaker Change: Are we now in the doorway to steam on it when we guide.
Speaker Change: The economic and financial results.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Many thanks.
Speaker Change: Good afternoon, everyone.
Speaker Change: I will begin my presentation.
Speaker Change: The key results.
Simone Conticelli: Let me remind you that since the 1st of January this year, Enel Chile changed the functional currency from Peso Siciliano to U.S. dollar. For comparative purposes, in today's presentation, the first 4,000.4 figures are converted using the average exchange rate of the That said, let's now review a quick summary of the first quarter 2025 solid economic and financial performance. As you can see in this slide, the progress between the NFTs shows a significant improvement compared to the previous year's figures. despite the negative impact of the review of the PPI's estimation.
Speaker Change: Sure.
Speaker Change: Let me remind you that.
Speaker Change: The third Gen. This year and it's you don't change it function.
Speaker Change: Got it.
Speaker Change: Chile.
Speaker Change: Yep.
Speaker Change: For comparison.
Speaker Change: It's Sean.
Speaker Change: So it's been important to see that come back.
Speaker Change: Did that change.
Speaker Change: Yes.
Speaker Change: That's right.
Speaker Change: No.
Speaker Change: Some of that.
Speaker Change: Those are pretty.
Speaker Change: Sorry.
Speaker Change: Sharper fourth months.
Speaker Change: As you can see this slide.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: The improvement.
Speaker Change: Do you see.
Speaker Change: Despite the negative impact.
Speaker Change: Yeah.
Simone Conticelli: Thank you.
Speaker Change: Yeah.
Simone Conticelli: This has been a presentation of the Center for Autonomous Vehicles. The sourcing mix optimization, do you require higher GNA availability and include commercial sourcing? and the increase of the risk margin mainly due to the prohibition related to the beginning of the ADR in 2004-2008. The FFR reached $109 million, almost in line with the first quarter of 2020. We will go into more detail later in the presentation.
Speaker Change: This is mainly explained by the <unk>.
Speaker Change: In addition, DIY target G&A, yes.
Speaker Change: I'm not sure.
Speaker Change: And then.
Speaker Change: With margin.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: So think about that.
Speaker Change: Good.
Speaker Change: Okay.
Speaker Change: Oh, each at 191 on that.
Speaker Change: From the line.
Speaker Change: 2024.
Speaker Change: We didn't go into more detail.
Speaker Change: The presentation.
Simone Conticelli: And now, on the next slide, let's review the progress on. In the first quarter of 2025, our total capex reached 68 million dollars in the focus on grid and power plants. 39% amounting to $26 billion, most allocated to delivery. 32% for a total of 22,000 donors went to ThermaPro. 29% amounting to $20 million went to renewable and storage.
Speaker Change: And now on the next slide Leslie.
Speaker Change: That's all.
Speaker Change: Okay.
Speaker Change: In the first quarter for 2025.
Speaker Change: That topic.
Speaker Change: We've got them all.
Speaker Change: To some degree.
Speaker Change: On this platform.
Speaker Change: David.
Speaker Change: Santa amounting to 115.
Speaker Change: Yes.
Speaker Change: Really.
Speaker Change: Perfect.
Speaker Change: But it's not about when you put them together.
Speaker Change: Right.
Speaker Change: That's it.
Speaker Change: 99% amount.
Speaker Change: Great.
Speaker Change: When renewable and storage.
Simone Conticelli: Regarding Greece, the focus is on the Resilient Plan to Strengthen Greece's Infrastructure. Are you prepared now to focus it on the food market? Concerning renewables, we focus on activities to finalize PMGD programs, improve hydroplasticity's performance, and maintain and improve the reliability of our... Asset Management CapEx reached $35 million, representing 50% of our total. Most of this amount, 22 million dollars, was allocated to thermal projects, specifically for the maintenance activities of the Atacama and San Isidro CCGP power plants. The available income reached $21 million mainly due to the finalization of the 2024 investment program of PMGD.
Speaker Change: But again the focus on de risking the plan to strengthen infrastructure.
Speaker Change: Infrastructure.
Speaker Change: Let me put that focuses on the fleet.
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Speaker Change: Certainly.
Speaker Change: What we said on that one.
Speaker Change: Right.
Speaker Change: Hum.
Speaker Change: And one thing.
Speaker Change: Yes.
Speaker Change: Oxford.
Speaker Change: Asset management Capex, let me just quickly I remember that.
Speaker Change: Yes.
Speaker Change: Perfect.
Speaker Change:
Speaker Change: Most of this amount.
Speaker Change: Got it.
Speaker Change: We're also looking at that now.
Gotcha.
Speaker Change: For the month.
Speaker Change: Okay.
Speaker Change: It is our plan.
Speaker Change: Capex reached at $21 million, mainly due to the transition.
Speaker Change: Yes.
Speaker Change: The energy.
Simone Conticelli: The main development investment for 2025, aimed at building storage systems, will be concentrated in the second half of the year, in line with the expected improvements in infrastructure.
Speaker Change: The main the ultimate investment.
Amy.
Speaker Change: So let us.
Speaker Change: Will be concentrated in the second update yet.
Speaker Change: In line with expected demand.
Speaker Change: So much.
Simone Conticelli: Let's now move on to the next slide where we have the detail of the first quarter in that background. In the first quarter of 2025, our EBITDA reached $365 million, marking a $72 million increase compared to the same period of 2024.
Speaker Change: Let's now move on to the next slide.
Speaker Change: Yes.
Speaker Change: Of the first quarter.
Speaker Change: Okay.
Speaker Change: Yes.
Yeah.
Speaker Change: In the first quarter of 2020.
Speaker Change: Would it be that each of them.
Speaker Change: I do not.
Speaker Change: <unk> is a young adult life.
Speaker Change: In fact, the same to get ready.
Simone Conticelli: This video is primarily due to the following facts.
Speaker Change: Great.
Speaker Change: This is.
Remember, we do listen.
Speaker Change: Okay.
Simone Conticelli: Thank you for listening. We recorded at 49 million dollars to keep the PTA safe. This speech is mainly explained by the termination of some high-priced regulated companies. that impacted on volume and average price of the regulated portfolio. This was partially offset by the positive effects related to new contracts in the trademark sector and the offset of 2024 negative easy factors from exchange rate hedges thanks to the change of functional coverage. Regarding sourcing, we record an increase of $56 million due to positive performance in our industrial sector. This is mainly explained by commodity advantages, reduction in transmission costs, and lower diversification costs versus last year.
Speaker Change: Yeah.
Speaker Change: Snapping cogeneration meatless.
Speaker Change: We did talk with supplemental umbrella.
Speaker Change: This decrease is mainly explained by the international some high priced.
Speaker Change: Yes.
Speaker Change: Volume and average size of a deliberate pause.
Speaker Change: Yes.
Speaker Change: This was partially offset by the positive FX.
Speaker Change: New sponsor.
Speaker Change: The opposite.
Speaker Change: Turning negative.
Speaker Change: Some exchange rate hedges, thanks to good chance of functional pattern.
Speaker Change: Yeah.
Speaker Change: They've got these sorts of critical that any piece of $66 million.
Speaker Change: Uh huh.
Speaker Change: In that sense.
Speaker Change: This is mainly explained it.
Speaker Change: Commodity hedges.
Speaker Change: The financial cost.
Speaker Change: Lower.
Speaker Change: Cash on cost.
Speaker Change: Yes.
Simone Conticelli: Then, we recorded an increase of $31 million in commercial sourcing, mainly due to energy settlement from industrials and the execution of a guarantee related to a bi-dictated limit. This pathos more than offsets the negative impact of higher spot market prices caused by the lower water availability and the transmission-wise restrictions following the February blackout. Going to Greece will recover a $28 million positive impact mainly due to the traditional reflux. The IRB and ARA expected for the regulatory remuneration period 2024-2028. Finally, we recorded a negative $4 million impact, mainly due to the increase in the generation outputs related to the newly developed capacity.
Speaker Change: Then vehicles that so quickly.
Speaker Change: Certainly one example of that.
Speaker Change: Sure.
Speaker Change: Yeah.
Speaker Change: And with respect.
Speaker Change: Please proceed sir.
Speaker Change: And it is.
Speaker Change: So don't make guarantee.
Speaker Change: Bye.
Speaker Change: Sure.
Speaker Change: These factors more than offset the negative impact.
Speaker Change: Automatic psyche.
Speaker Change: Yes.
Speaker Change: And commercialize it.
Speaker Change: Moving et cetera.
Speaker Change: Thanks, Tom.
Speaker Change: More recently with the corporate equity.
Speaker Change: Policy.
Speaker Change: Mainly due to the result reflect.
Speaker Change: Yes.
Speaker Change: Uh huh.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Finally, with the prospect of negative $4 million.
Speaker Change: Namely.
Speaker Change: International.
Speaker Change: Really.
Speaker Change: We set out.
Speaker Change: Okay.
Simone Conticelli: And now let's move on to the next slide, where we will review the next income strategy. As per SPORT 2025, net income reached $175 million, with an increase of 11% compared to the last year figure. This work is mainly due to the previously illustrated techniques I've been talking about.
Speaker Change: And now let's move on to the next slide we can review the net income stabilization.
Speaker Change: Yeah.
Speaker Change: Our first quarter 2025, net income reached $175 million.
Speaker Change: It's up 11%.
Speaker Change: Yes.
Speaker Change: This deal.
Speaker Change: Mainly due to the previously distributed.
Speaker Change: Exactly.
Simone Conticelli: Let me direct you to Gertie Shaw and Fritz Koberlein. Referring to depreciation, amortization, impairment, and debt debt, we recorded a higher cost of $15 million, mainly resulting... Higher depreciation in energy power due to the newly added renewable capacity. and higher budget subpoenas in Greece may be driven by an increase in the average invoiced amount due to higher... Regarding financial results, we reported a $26 million negative valuation versus last year, mainly explained by high-aspect interest and positive exchange rate discrepancies in the first quarter of 2024.
Speaker Change: Let me drive you to best ensure ethics.
Speaker Change: Okay.
Speaker Change: He said, he who prequalification amortization in bedroom and bedding.
Speaker Change: Hi, yes.
Speaker Change: Mainly the positive.
Speaker Change: I guess the assertion.
Speaker Change: Our.
Speaker Change: Julie.
Speaker Change: Possibly.
Speaker Change: And yet <unk>, mainly driven by increase in the average invoice amount before.
Speaker Change: The GAAP financial results, we report that.
Speaker Change: $2 million negative mortgage lastly name.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: And possibly exchange rate.
Speaker Change: In the first quarter earnings.
Speaker Change: Cool.
Simone Conticelli: Finally, we recorded a $50 million increase in income taxes, essentially due to better living conditions.
Speaker Change: Finally with the court.
Speaker Change: <unk>.
Speaker Change: Income taxes essentially.
Speaker Change: Got it.
Simone Conticelli: And now, let's move on to the SSO analysis on the next slide. Let's analyze the effects of composition for the first quarter of 2025 and the main effects compared to 2020. In the first quarter of 2025, FFO reached $109 million, showing a slight decrease of $5 million compared to 2020.
Speaker Change: And now let's move on to date.
Speaker Change: At analysis.
Speaker Change: On the next slide.
Speaker Change: Let's analyze the NFL composition for the first quarter of 2025 and domain expertise.
Speaker Change: Right.
Speaker Change: Yes.
Speaker Change: In the first quarter 2025.
Speaker Change: $190 million.
Speaker Change: Right.
Speaker Change: Finally, you'll note.
Speaker Change: <unk> thousand one.
Simone Conticelli: This is just a little spot. The EBITDA of the quarter reached $365 million, reflecting a positive variation of $72 million compared to the same period of 2024, as previously estimated. Second, there is an increase in the working capital of $188 billion as a consequence of the lower pay-as-you-go rate related to development, capex, and seasonal growth on energy payments. Compared to the previous year's figure, the impact of data waste in capital on FFO was negative by 6% in Gondwana, mainly due to the negative effects of energy payment scheduling and increases in energy distribution receivables due to an increase in the tariff.
Speaker Change: This is Scott.
Speaker Change: Scott.
Speaker Change: Sure.
Speaker Change: We don't report that reach beyond that.
Speaker Change: Reflecting the positive valuation of semi.
Speaker Change: We began the dogma pullback.
Speaker Change: Compared to the same period of 2000.
Speaker Change: In principle.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: There is an increasing working.
Speaker Change: Capital of $188 million consequence of the lower maybe related.
Capex.
Speaker Change: And a few things.
Speaker Change: Compared to the previous year.
Speaker Change: Kathy.
Speaker Change: <unk> was negative.
Speaker Change: Mainly boosted Megan.
Speaker Change: <unk> energy payments take them and then.
Rick: Rick EBIT.
Speaker Change: Wayne.
Speaker Change: Got it.
Simone Conticelli: These aspects were partially offset by negative impact of the tech mechanics in 2021 net worth impact. Third, income taxes have a negative impact on FFO by 38 million dollars, mainly due to tax payments related to the generation of income. Comparing income taxes paid in the first quarter 2025 versus first quarter 2024, we observe a negative impact of 12 million dollars. The difference is mainly due to higher tax payments in the generation business, driven by higher income and higher tax rates. Finally, financial expenses had a negative impact of 30 million dollars, mainly due to the debt-related costs.
Speaker Change: This is.
Speaker Change: Partially offset by negative impact.
Speaker Change: Got it.
Speaker Change: April networking.
Speaker Change: Yes.
Speaker Change: Income taxes.
Speaker Change: And make any impact on <unk>.
Speaker Change: Right.
Speaker Change: Eight.
Speaker Change: Manley.
Speaker Change: Really.
Speaker Change: Internationally.
Speaker Change: Comparable income taxes paid in the first quarter.
Speaker Change: Yes.
Speaker Change: Quarter 2024.
Speaker Change: That negative impact.
Speaker Change: But when you go products.
Speaker Change: This is mainly due to higher.
Speaker Change: Hey man and the depression equal.
Speaker Change: But I guess.
Speaker Change: Eight.
Speaker Change: Okay.
Speaker Change: Finally financial expenses negative impact of $13 million.
Speaker Change: Mainly due to the debt related costs.
Simone Conticelli: Compared to the same period last year, our financial expenses are slightly lower thanks to a lower average debt in the country.
Speaker Change: Compared to the same period last year.
Speaker Change: Sure.
Speaker Change: A slightly lower thanks to a lower average debt.
Speaker Change: Thank you.
Speaker Change: Okay.
Simone Conticelli: And now, let's review our liquidity and leverage position. During the first quarter of 2025, our gross debt had a slight increase of 2%, reaching $4.0 billion. This increase was related to a new credit line with Corporazione Albina de Cominco, disbursed during January, mainly to cover working capital needs of the first quarter. As we mentioned before, on the 3rd of April, we received around $260 million from the PEC-3 package. This concept supports a liquidity position to meet a short-term financial need, mainly related to dividends and taxes. The average stem of our death inmaturity is around 6 years, and the fixed rate is around 88% by the end of March 2020.
Speaker Change: And now let's review our leasing team and.
Speaker Change: Sure.
Speaker Change: During the first quarter 2025, our gross debt.
Speaker Change: Right.
Speaker Change: 2% he cheap for zebra.
Speaker Change: This increase was related to a new pickle line.
Speaker Change: Russia.
Speaker Change: The company.
Speaker Change: This.
Speaker Change: As you.
Speaker Change: We call that worked with capital needs.
Speaker Change: Sure.
Speaker Change: As we mentioned.
Speaker Change: The third of the PPP.
Speaker Change: 100 <unk>.
Speaker Change: Sure.
Speaker Change: From the top.
Speaker Change: This town center support and liquidity position.
Speaker Change: Sure.
Speaker Change: Xiaomi, mainly related to dividends and taxes.
Speaker Change: Yeah.
Speaker Change: Yes. It is.
Speaker Change: That's my two.
Speaker Change: You said on <unk> and <unk>.
Speaker Change: Paper and all of that.
80% by the end of March 2020.
Simone Conticelli: In line with 2021. The average cost of our debt continues to be very competitive at 4.9% thanks to a good mix between long and short terms in line with our continuous effort to optimize the financial system. Regarding liquidity, we are in a comfortable position to support our capital needs for the upcoming year.
Speaker Change: In line.
Speaker Change: But plenty for us.
Speaker Change: Nevertheless, crosswalk that continues to be very competitive.
9%.
Speaker Change: With good mix between long and short in.
Speaker Change: In line with our computers.
Speaker Change: The financial results.
Speaker Change: They've got maybe.
Speaker Change: We are in a comfortable position.
Speaker Change: Capital.
Simone Conticelli: Anchor with the next year's material. Finally, as of March 2025, the available commuter ferry lines amounted $640 million, and the cash equivalent to $462 million.
Speaker Change: Got it.
Speaker Change: April next year.
Speaker Change: Finally as of March 2000.
Speaker Change: Available committed lines.
Speaker Change: 600 and thoughtfully.
Speaker Change: Paula.
Speaker Change: The cash.
Speaker Change: 406.
Speaker Change: Alright.
Simone Conticelli: So thanks, everybody, for your attention.
Speaker Change: So.
Giuseppe Turchiarelli: And now, I will pass the floor to Giuseppe. Thank you. Thank you, Simone.
Speaker Change: Thanks, everybody for your attention and now I will talk with you today.
Speaker Change: Two months.
Speaker Change: Yes.
Giuseppe Turchiarelli: To conclude... I would like to share the following closing remarks. Despite a challenging environment, our resilient and diversified business model continues to deliver solid results. This achievement underscores our strategic vision, adaptability, and commitment to our goals.
Speaker Change: Thank you Steve.
Speaker Change: To conclude.
Speaker Change: I would like to share the following closing remarks.
Despite a challenging environment, our resilient and diversified business model.
Speaker Change: To deliver solid results.
Speaker Change: These achievements underscore our.
Speaker Change: Vision.
Speaker Change: EVP and commit main product.
Giuseppe Turchiarelli: Looking ahead to 2025, we remain committed in advocating for comprehensive distribution reform and the modernization of the regulatory framework to significantly strengthen asset ratings. By promoting these changes, we aim to build a more robust and adaptable grid capable of meeting future challenges and uncertainties. A modernized regulatory framework will foster an environment that supports innovation, efficiency and economic competitiveness to the cut.
Speaker Change: Looking ahead to 2005, we remain committed at booking.
Okay.
Speaker Change: <unk> distinguished your thought.
Speaker Change: And then with the integration of the regulatory framework.
Speaker Change: Significantly.
Speaker Change: Great.
Speaker Change: By promoting these changes we aim to build more for a buck.
Speaker Change: Adoptable fleet capable of meeting future challenges and uncertainty.
Speaker Change: And modernized regulatory framework.
Speaker Change: Foster an environment.
Speaker Change: Our innovation efficiency and the economy competitiveness to the accounts.
Giuseppe Turchiarelli: As demonstrated in today's presentation, the first quarter began with solid economic and financial performance, fully aligned with the targets and strategic pillars outlined during our last single study. We remain confident in our ability to achieve this objective. and we ensure we keep you informed about our progress and accomplishments.
Speaker Change: As demonstrated in today's presentation. The first quarter began with solid economic and financial former fully aligned with the target.
Speaker Change: Did you build up offline, giving out a lot.
Speaker Change: Yeah.
Speaker Change: We remain confident in our ability to achieve these objectives.
Speaker Change: And really should we keep you informed about our progress and accomplishments.
Isabela Klemes: Now let me hand over to Isabela for the Q&A section. Thank you, Giuseppe. Now let's move on the Q&A session. We will be taking questions via phone and chat through the webcast. The Q&A session is now open.
Speaker Change: Now let me.
Speaker Change: Is that right now for the Q&A section.
Speaker Change: Thank you.
Now, let's move on the Q&A session, we will be taking questions will I ask phone and checks to the webcast Q&A session is now open.
Operator: Operator, please proceed. Thank you.
Speaker Change: Please proceed.
Operator: And to ask a question, you need to press star 1 1 on your telephone, and wait for your name to be announced. To withdraw your question, please press star 1 1 again. Please stand by while we compile the Q&A roster.
Speaker Change: Thank you to ask a question you need to press star one on one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Speaker Change: Please standby, we compile the Q&A roster one moment for our first question.
Operator: One moment for our first question.
Speaker Change: Okay.
Martin Arancet: Our first question comes from Martin Arancet from Barlans, your line is open. Hi, thank you for the presentation and for taking my questions.
Speaker Change: Our first question comes from the line of Martin <unk>.
Speaker Change: Your line is open.
Speaker Change: Hi, Thank you for the presentation and for taking my questions.
Martin Arancet: I have three questions and I would like to run them one by one, if that's okay. First, regarding distribution, I was wondering if you could give us some additional color on the resilience program for that segment. And also, during the investor day, you mentioned that you were thinking about investing all of the BDAs of the distribution business back into the grid. So, just to know if this new resilience program is related to that.
Speaker Change: I have quick questions and I will like to run them one by one if that's okay.
Speaker Change: First.
Speaker Change: It was regarding distribution I was wondering if you could give us some color on the resilience program.
Speaker Change: For that segment.
Speaker Change: So.
Speaker Change: During the Investor Day, you mentioned that you were thinking about investing and.
Speaker Change: All of the EBITDA of the distribution reach Smith.
Speaker Change: But into the to the grid.
Speaker Change: So just to know if these.
Speaker Change: Neuroscience program is related to that.
Giuseppe Turchiarelli: Thank you, Martin.
Marty: Thank you Marty.
Giuseppe Turchiarelli: okay so We started already since the end of last year to put in place a very strong resilience program in order to face the pandemic. These extreme climate events that... are occurring always more frequent, at least in comparison with the previous. in several actions, especially for what concerns the quality of degrees. and also on the digitalization of our... All these CAPEX have been already included in the presentation made last year in our Capital Investor Day. So basically, we are just increasing the... Our campus in comparison to the previous year again in order to new situation in which the extreme events are always brought.
Speaker Change: Okay. So.
Speaker Change:
Speaker Change: We started.
Speaker Change: Since the end of last year.
Speaker Change: Put in place that Barry.
Speaker Change: In programming.
Speaker Change: Yeah.
Speaker Change: Okay.
These.
Speaker Change: Extreme climate debate that.
Speaker Change: Our cooling always more frac.
Speaker Change: At least in comparison with the previous year.
Speaker Change: In several Asian.
Speaker Change: Basically for what concern the qualities of the game.
Speaker Change: And also on the Digitization of out.
Speaker Change: All of these capex, it's been already.
Speaker Change: Included in the presentation made last year.
Speaker Change: Our capital.
Speaker Change: That's a V.
Speaker Change: So basically we are Jeff.
Speaker Change: Increasing there.
Our capex in comparison to the previous yet again.
Speaker Change: The new.
New situation and we churn the same event.
Giuseppe Turchiarelli: So, basically, quality. digitalization through the telecontrol. And also several other actions covering the day-to-day operations of the project.
Speaker Change: Alright.
Speaker Change: So basically quality.
Speaker Change: Of degree.
Speaker Change: Uh huh.
Speaker Change: Utilization for the telephone song.
Speaker Change: Also all seven of our other collection.
Speaker Change: Sure.
Speaker Change: During the day to day operation.
Speaker Change: Yeah.
Simone Conticelli: Thank you, Giuseppe, Martin. Yeah, regarding my second question, CapEx during the first quarter, I think it was a little bit low. But if I understood correctly, you plan to be more intense in terms of CapEx during the second half of the year, mostly in batteries. So could we assume that the $800 million guidance on CapEx for this year is still in place?
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: I'll go to my second question Kathy.
Kathy: Capex during the first quarter I think it was a little bit low.
Kathy: But if I understood correctly you plan to.
Kathy: Will it be more intense in terms of capex during the second half of the year, mostly in batteries. So could we assume that the $800 million.
Kathy: The guidance on Capex for this year is still in place.
Simone Conticelli: Simone? Hello, Martin. Thanks for the question. So, you arrived at the beginning of the year. This is the PURE level of CAPEX. And what we are doing now, we are in such a way as analyzing the PMGP program that we started last year. The main part of the CapEx for the year will be in the second half. In this moment, we will start some of the bigger projects that we planned, and we'll talk about this kind of investment in the last... Ok, ok, so up to now you maintained the capital gainers? Yes, for sure.
Kathy: Yeah.
Kathy: Yeah.
Kathy: Good morning.
Kathy: Thanks, Paul.
Kathy: So you're right.
Kathy:
Kathy: Yes.
Kathy: Okay.
Kathy: Okay.
Kathy: Leather capex and what we are doing now react it can fluctuate.
Kathy: And I can get today.
Kathy: The program that we start with the last year.
Kathy: The main part of the Capex for the year.
Kathy: Could be.
Kathy: At this moment.
Kathy: Some of the bigger projects.
Kathy: The extra week.
Kathy: Wow.
Kathy: About half of our investment in the last one.
Kathy: Okay. Okay, so okay to valley.
Kathy: Maintained.
Kathy: Guidance Capex guidance, yes for sure.
Giuseppe Turchiarelli: Ok, thank you. And my final question then, I was wondering what effect or how much do you think it will affect your results? The new regulatory changes and you have several fronts there. First, the best ancillary services, I don't know how much do you expect from that in terms of dollars per mile per hour. And also with the new subsidy, I guess you will have a bit of additional CO2 taxes and this new battery operational performance, I don't know if that affects also your expected results.
Kathy: Okay. Okay. Thank you and my final question then.
Kathy: I was wondering what the effect or how much do you think it will affect your results.
Kathy: Then you'll regulatory changes and you have similar fronts. They are first the best ancillary services and I don't know is how much do you expect that.
Kathy: Yeah from that in terms of dollars per megawatt hour I noticed so with the new subsidy.
Kathy: I guess you will have.
Kathy: We do have additional eh.
Kathy: The C O two taxis.
Kathy: And these Nino.
Kathy: I'm sorry.
Kathy: Sorry, this new body of the operational performance I don't know if that affects also.
Kathy: Expected results.
Giuseppe Turchiarelli: Giuseppe? Yeah. So, talking about the regulatory...
Kathy: Does that then yes.
Kathy: So.
Kathy: Okay about the regulatory.
Giuseppe Turchiarelli: Reddit and twitter for the best It's still early to talk about that because we don't know. Basically, we share the idea of... The regulator. We assume we are going to have some benefits because the idea is to improve the regulatory in order to facilitate and to stimulate the anterior stability coming from the battery, but as of today, it's too early. to discuss and to have an idea about the impact on our battery project.
Kathy: Our rent expense.
Kathy: Uh huh.
Kathy: Yes.
Kathy: Early to talk about that because we don't know.
Kathy: Exactly which are the B L.
Kathy: Sure.
Kathy: They are equally strong.
Kathy: We assume we are going to add some.
Kathy: Benefit because.
Kathy: The idea is to improve the regulatory.
Kathy: There are rules in order to put CVP and to stimulate and Dan.
David: Hey, David.
Kathy: As of today too early to.
David: To discuss and to have it.
David: Any idea about the impact on our.
David: Battery project.
Giuseppe Turchiarelli: You have also to consider that... Most part of our revenue income is coming from the capacity and the energy shifting. So we believe that the city services is going to be a good complement. for the demolition of the battery, but we don't know yet how much and how will be the improvement in terms of profitability for the company.
David: You have also to consider that.
David: Most part of our revenue.
David: Revenue income.
David: Coming from the capacity and then shifting so we believe that.
David: The city is going.
David: Going to be.
David: Good complement.
David: For the remuneration of the box, but we.
David: We don't know yet how much and.
David: How will be the improvement in same store.
David: Profitability.
Giuseppe Turchiarelli: for what concerns the new possible law about subsidies. The two most important measures are the usage of VAT coming from the increase of the tariff, which of course is neutral for our company, for everybody. For what concerns the Q2, I would say that as of today, or at least according to the production that we had in 2023 with the impact in 2024, we used to pay around $15 million. in terms of CO2 taxes. We could have an additional $15 million if the CO2 is going to be doubled. So move from $5 million to $15 million.
David: Okay.
David: <unk> concept there.
David: New possible law about the SaaS.
David: Yeah.
David: Basically most.
David: Most importantly that measure our debt and use their job.
David: Coming from the increase.
David: That of course is that.
David: Mr. Alfaro part of our company for everybody.
David: For what concern the Q2.
David: I would say that a lot.
Good day.
David: At least according to the production that we had in theory they impacting.
David: I think listen before we used to pay around $15 million.
David: In terms of Q2.
David: So.
David: We put day event.
David: An additional $15 million.
David: You too.
David: Bob what are some more around five.
Giuseppe Turchiarelli: Sponsored ADR But we don't know yet how it's going to be, the result, because the law, the proposal of the law is still in the Senate.
Okay.
David: Sure.
David: Sure.
David: But we don't know yet.
David: How is going to be.
David: The result will be both.
David: So the proposal dealing.
David: Still in China.
Giuseppe Turchiarelli: Okay, thank you Giuseppe.
David: Okay. Thank you.
Martin Arancet: Do you have more questions or that was the three, Martin? That was it for you. Thank you very much.
David: Okay.
David: Do you have more questions. So that was the three martine.
David: That was it for you. Thank you very much.
Isabela Klemes: So, Pareto, do we have more questions coming from the line? Otherwise, I'll go for the chat. I'm not showing any further questions on the line.
Speaker Change: Okay. Thank you very much so frequently have more questions coming from the line of the ones that go for the ship.
Speaker Change: I'm not showing any further questions on the allotted questions.
Isabela Klemes: Okay, so I will go through the chat.
Speaker Change: Okay. So I did bolster the shack. So the first question that we have comes from <unk>.
Beatrice Gionola: So, the first question that we have comes from Beatrice Gionola from Mediobanca.
Beatrice Gionola: So, she has several questions. I go one by one. I think it's easy to go through.
Speaker Change: Yes, no sorry through all major bankrupt. So she has several questions. One by one I think it's easy to go through okay. So the first question is.
Giuseppe Turchiarelli: Okay, so the first question is, how do you expect hydrology to evolve in the rest of the year? You target 10.7 terawatt hour for 2025. Is still this number valid? Yes it is. It's still valid.
Speaker Change: Do you expect hydraulic lift both in the rest of the year targets 10.7 with Florida.
Speaker Change: One five.
Speaker Change: Thank you this number valeant.
Speaker Change: Yes, it is still valid.
Giuseppe Turchiarelli: You have to consider that ideologically... May, so we need to wait at least... End of June, end of July, in order to have a better view of the hydrology impact. So, as of today... The 10.7 that I'm about to have an opportunity to need five are still valid. Okay, thank you, Giuseppe.
Speaker Change: You have to consider that.
Speaker Change: Yeah.
Speaker Change: Subsequent nowadays the baking and becoming.
Speaker Change: Uh huh.
Speaker Change: Sure.
Speaker Change: Uh huh.
Speaker Change: May so we need to wait at least.
Speaker Change: End of June end of July the equipment that they would be up.
Speaker Change: They had been.
Speaker Change: The only impact.
Speaker Change: So as of today.
Speaker Change: This pain point.
Speaker Change: Power for clinical need five.
Speaker Change: Okay.
Simone Conticelli: So, the second question is for you, Simone. It's coming from the PAC. So, the question is relating to the factoring of the PAC-3. Can you remind us how much you are expecting to receive and when? So starting from the position at the end of 2024, we have created around 500 million jobs. And we plan to recover all this credit through the 2025, 2026, and 2027. The recovery will not go all through factories, but in any case, of course, for example, step one, the recovery will come from... In any case, this year we have already cashed in from the factoring process around $260 million for the PEC-23 mechanism, and we plan to recover a larger part of the remaining in the next two years, but also in this year we can, given the next PMT decrease, cash in.
Speaker Change: Okay. Thank you just referenced on the second question is for you.
Speaker Change: So the question is related to the factory of the factory can you remind you ask how much you are expecting to receive and win.
Speaker Change: Okay. Thank you.
Speaker Change: This is a big question.
Speaker Change: And let me say that.
Speaker Change: The important to stress that staffing.
Dave Khani: Starting from the end of the question for Dave Khani.
Speaker Change: A higher cost of energy and so we will not.
Dave Khani: In the future.
Dave Khani: So starting from the position at the end of 2000 and in Florida.
Dave Khani: They did around the pipe.
Dave Khani: Yes.
Dave Khani: And we plan to recall that it will be.
Speaker Change: Thank you.
Dave Khani: 8000 25000 ability.
Speaker Change: 2020.
Speaker Change: But it probably will not.
Speaker Change: Some factory.
Speaker Change: That's one.
Speaker Change: Probably not.
Speaker Change: In any case this year.
Speaker Change: Great.
Speaker Change: Mhm gas.
Speaker Change: Yes should be partnering.
Speaker Change: Boxing process around 160 milligrams.
Speaker Change: The next 10 years.
And we plan.
Speaker Change: Recall that the larger part of the remaining debt in the next year, but it's in DCF, Ken given the next yes.
Speaker Change: The decrease.
Kashi.
Speaker Change: Yeah.
Speaker Change: 200 <unk>.
Speaker Change: Yeah.
Simone Conticelli: Okay, thank you, Simone.
Speaker Change: Okay. Thank you.
Beatrice Gionola: So, let me go to the other questions from Beatrice.
Speaker Change: So let me go to the other questions from the FDA regarding the new regulatory framework around distribution, which are the latest updates on the concept.
Giuseppe Turchiarelli: So, regarding the new regulatory framework from distribution, which are the latest updates on the consultation report? Okay, the consultant. is expected to deliver the final report in the coming when it's going to be officially published. Following to that, the CNE has three months to issue its first technical report with the proposed remuneration for the distribution. that should occur. in the second semester of 2025.
Speaker Change: With data reports.
Speaker Change: Okay.
Speaker Change: The consultant.
Speaker Change: Execute to deliver.
Speaker Change: Final report and the timing.
Speaker Change: When this is going to be officially published.
Speaker Change: So let me put that third.
Speaker Change: They're <unk>.
Speaker Change: At three months to issue its first thinking incorrect book.
Speaker Change: Wholesale distribution.
Speaker Change: The distribution company.
Speaker Change: That should occur.
Speaker Change: And the second semester.
Speaker Change: Bye.
Giuseppe Turchiarelli: Okay so and the last question here from her is do you feel comfortable with the current 2025 guidance? Yes, it is. Yeah, yeah.
Speaker Change: Okay.
Speaker Change: The last question here from parties do you feel comfortable with the current 2025 guidance.
Speaker Change: Yes, it is yeah yeah.
Giuseppe Turchiarelli: According to our projection, the guys are going to be Okay, thank you, Giuseppe.
Speaker Change: According to our projection.
Speaker Change: The guidance has gone up to me.
Speaker Change: Yeah.
Speaker Change: Okay. Thank you so now moving on the questions on.
Andrew Mccarthy: So now moving on the questions on the chat. So now we have a question from Andre McCartney from L'Oreille Ville, also on distribution. So Andrew is asking, what should be the economic impact for the distribution business, and now distribution in Chile, of receiving the outstanding debt only from the delay in the publication of the 2020-2024 VAT decree? Well, let me clarify, I mean, we are not going to have any economic impact, but only cash impact because The tariff from 2020-2024 has been already provisioned, we have already made the provision, so no economic impact. On the other side, we are going to recover.
Speaker Change: So now we have a question from Andrew Gardiner from lowering beyond.
Speaker Change: Outflow long distribution, so Andrew is asking what should be the economic impact for the distribution.
Speaker Change: <unk> business and other streams from Chile of risky.
Speaker Change: Sending that only from the delay in the publication of the 2000 22024 back decree.
Speaker Change: Well, let me clarify we are not going to play it.
Speaker Change: Konami.
Speaker Change: But the only issue.
Speaker Change: The tides trial.
Speaker Change: What has been already published.
Speaker Change: You mean the provision start.
Speaker Change: No economic impact on the other side, we are going to record.
Giuseppe Turchiarelli: cash, according to the information that the SEC should deliver in the following weeks. So basically, the SEC should give us, and to all the distribution companies, details on how the outstanding debt will be included in the next payment. So we are assuming to receive around 50 million dollars in the following 18 months.
Speaker Change: The cashier.
Speaker Change: Turning to debt.
Speaker Change: In automation the detection to deliver in the following weeks so.
Speaker Change: So basically the sector.
Speaker Change: It should give us the inflows of the distribution company detailing.
Speaker Change: How are those things that will be included.
Speaker Change: Yes.
So we are assuming to receive around five I'm sorry 50.
Speaker Change: $50 million.
And the following.
Giuseppe Turchiarelli: We need four more. OK, thank you, Giuseppe.
<unk>.
Speaker Change: And if our model.
Giuseppe Turchiarelli: Still on the distribution side, also from Andrew McCartney. So he's asking, what is the economic? impact of the resilience program designed to strengthen grid infrastructure in the distribution segment. Does this impact CAPEX or EBITDA targets announced in the last strategic plan for 2025-2027 period? Yeah, as I said before, I mean, all these topics have been already included in the last Industrial Plan 2025-2027 From the same, how much will be the impact in the bidet is really difficult. to estimate right now.
Speaker Change: Okay. Thank you just a few on the.
Speaker Change: On the disposition side also from Linda Mccartney.
Speaker Change: He is asking what is baked.
Speaker Change: In fact of the resilience program, we began straight program designed to trace ingredients risk structure.
Speaker Change: In addition segment.
Speaker Change: His impact capex or EBITDA targets announced that in the last strategic plan for 2025, 2022nd spirit.
Speaker Change: Yes, as I said before.
Speaker Change: All this capex has been already included in that.
Speaker Change: Industrial trends.
2007.
Speaker Change: To understand how much will be the impact in EBITDA is really difficult.
Speaker Change: Estimate right now.
Giuseppe Turchiarelli: I believe that in the next industrial panel we can have a little bit better view about Okay, thank you.
Speaker Change: I believe that in the next.
Speaker Change:
Speaker Change: And that's a better if we can add that.
Speaker Change: And it'll be better.
Speaker Change: Good day.
Speaker Change: Okay. Thank you. So also on the give you just a follow up question coming from DSV today.
Simone Conticelli: So also on distribution, just a follow-up question coming from Beatrice on the grid EBITDA. And in relation to slide nine, when we showed the EBITDA slide, not compared to 2025 and 2024, you were already factoring in the impact coming from the new regulatory framework. Is that correct? Can you please clarify, Simone? Beatriz is asking about the variance between the EBITDA of the distribution segment. So she's asking if we are already including the new VAD related to the cycle 2024-2028. Okay, thanks. Yes, considering that this year the process for determining the new VAD for the next period, 2024-2028, is moving faster, faster than what happened in the last period.
Speaker Change: And in relation to its like nine one we show.
Speaker Change: EBITDA.
Speaker Change: On.
Speaker Change: On slide no.
Speaker Change: Plenty.
Speaker Change: Are.
Speaker Change: You already factoring in the impact coming from the new regulatory framework is that correct can you. Please clarify.
Speaker Change: Okay.
Speaker Change: Yes, you just asking about.
Speaker Change: Variance between the EBITDA of the distributions segment. So she's next Keith regarding Chile.
Speaker Change: The new bonds related to the cycle 2020 for 2020, okay.
Speaker Change: Yes.
Speaker Change: You bet.
Speaker Change: Yes.
Speaker Change: Profits for the third.
Speaker Change: J D.
Speaker Change: Next the Eagle.
Speaker Change: Program.
Speaker Change: We need it.
Speaker Change: Uh-huh offset them.
Speaker Change: And ending up.
Speaker Change: Yes.
Speaker Change: Have a good destination.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: And so we can.
Speaker Change: We've shown that with them.
Speaker Change: Okay.
Simone Conticelli: Okay, thank you Simone.
Speaker Change: Okay. Thank you good morning.
Rodrigo Mora: So continue on the on the questions here. So now we have question coming from Rodrigo Mora from Moneda. Rodrigo has seven questions so I will go one by one. Okay so Rodrigo say thank you for the presentation. My question is related to the gas supply from Argentina and LNG cargos. I would like to know whether Enel Chile has signed Argentine gas contracts with take or pay clauses and also will maintain the LNG cargos to use in his mention about the Shell LNG contract. Yes, our current Argentinean gas contract portfolio for 2025 includes take-off payloads. which at the moment we have a key filling method.
Speaker Change: So continuing on the question of here. So now we have.
Speaker Change: A question coming from Brazilian Murdoch Joel Manes, Donald you can have seven questions. So I will.
Speaker Change: One by one okay. So it would be let's say thank you for the presentation. My question is relating to the gas supply from Argentina and LNG cargoes.
Speaker Change: I'd like to know where that announced Chile.
Speaker Change: Argentina gas contracts take or pay clauses and now so we will maintain the LNG cargoes to using making urine as LNG terminal forgives a sarcoma information about the shell LNG contract.
Speaker Change: Yes, how are current.
Speaker Change: Got problems that can be produced five includes take or pay clauses.
Speaker Change: Rich at the moment.
Speaker Change: And you can imagine.
Giuseppe Turchiarelli: So we do not expect a TPP-related issue for the rest of the year.
Speaker Change: So we're going to we've been out there.
Speaker Change: That could be related issues.
Speaker Change: Alright.
Rodrigo Mora: Okay, thank you.
Speaker Change: Okay.
Speaker Change: Okay. Thank you.
Giuseppe Turchiarelli: Another follow-up question from Rodrigo. Now this question is coming related to distribution. Rodrigo is asking In relation to Enel distribution, could you give us some color about Davida for 2024, sorry 2025, whether this good first quarter was incorporated as the projections for Davida guidance for the conference in Monique? Thank you, Rodrigo. Let me comment that according to our last stage plan for 2025... The cumulative data for energy production will range between 0.4 to 0.5 billion dollars. And so we can confirm this range.
Speaker Change: Follow up question from Rodrigo.
Speaker Change: This question is coming.
Speaker Change: Related to this give you Shannon.
Speaker Change: King.
Speaker Change: In relation to Enel distribution.
Speaker Change: You gave us some color to above the EBITDA for 2024, sorry, five whether this good first quarter was incorporate at the projections for the EBITDA guidance for the conference.
Speaker Change: Thanks.
Speaker Change: Let me comment Accordingly lost.
Speaker Change: Until 2035.
Speaker Change: Before that.
Speaker Change: <unk>.
Speaker Change: For any distributor.
Speaker Change: A range of between zero to.
Speaker Change: Fine.
Speaker Change: Sure.
Speaker Change: In two weeks.
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: This range.
Speaker Change: Yes.
Giuseppe Turchiarelli: Okay, thank you.
Giuseppe Turchiarelli: Now the the last question of Rodrigo, please. I have a question in relation to the potential sale of solar plant association with the PPA contracts of FGP Chile. He mentioned about NEOS that was in the press. I would like to know whether this process is going on. Okay, well, we are, as you know, we are constantly looking for opportunities in the market to maximize the value of our footprint. including rotating certain aspects to unlock beta for the Chiroldo. Having said that, for the time being, we don't have any news on...
Speaker Change: Okay. Thank you.
Speaker Change: Now the last question.
Speaker Change: Please go ahead with your question relation to potential sale.
Speaker Change: Thoughtful.
Speaker Change: Ladies association with the BPA contract.
Speaker Change: Chile information about means that closing to Brett I would like to know whether this process is going on thank you very much.
Speaker Change: Got it.
Speaker Change: We are as you know we are constantly looking for opportunities in the market.
Speaker Change: Maximize our footprint.
Speaker Change: Including roofing rotating certain oven floor beta from the channel.
Speaker Change: Having said that for the time being with the Navy any any news on that.
Simone Conticelli: Thank you, Giuseppe. So, moving on, we have questions from Ruben Alvarado from BEES. Ruben also has three questions, so I'll go one by one. Okay, so the first one is... It's regarding the insurance recovery that was included on the distribution business. So he's asking about what is this insurance related to, if we can clarify about it. And if we are expecting any other recoveries. And then, I'll go for the questions better, and then the second one is about the regulated contracts that was expired by the end of 2024 in the generation segment. He's asking about which are these contracts that was expired.
Speaker Change: Thank you.
Speaker Change: So moving on we have question strong real Daniels, but ongoing strong beef.
Rubin: Rubin also have three questions. So I bought one by one okay. So the first one.
Speaker Change: Regarding the insurance group.
Speaker Change: That was included on the distribution business.
Speaker Change: Exactly and your boss Watson.
Speaker Change: Steve.
Speaker Change: <unk> related jewelry, we can clarify about deep.
Speaker Change: And if we aren't expecting any of their recovery.
Speaker Change: And then I'll go.
Speaker Change: Well all of the questions that and then the second one is about the regulated construct that logic.
The end of 2000.
Speaker Change: Many for.
Speaker Change: Generation segment.
Speaker Change: He is asking them both of which are these projects that was expired.
Giuseppe Turchiarelli: And now, so the last question is, why do you see around minus 9% year-over-year decrease in Enel Chile's renewable generation, wild system, wild renewable generation actually was up around 7%.
Speaker Change: And now for the last quick question.
Speaker Change: Why do you see around line of 9% year over year decrease in you know chinas renewable generation, while squeaked in wild renewable generation actually.
Speaker Change: What's up around 7%.
Simone Conticelli: So, starting with the insurance, Simone. So, uh, the issue of the first quarter is related to the agreement on voluntary payments. So we have an issuance in Enel Chile that cover in general this kind of event. And so starting from the beginning of the year, we start analyzing if, you know, there is a clear correspondence between the perimeter Let me say that Articirante has a comprehensive third-party policy, and also it covers power supply sector. Based on this analysis, the analysis is at this stage, at the end of the year, so in this moment. final analysis, the progress is much better.
Speaker Change: So starting with the students to morning.
Speaker Change: So.
Speaker Change: The issues that superficial.
Speaker Change: As it.
Speaker Change: Related to that agreement.
Speaker Change: You can see.
Speaker Change: Loan prepayments are you there.
Speaker Change: So.
Speaker Change: Ed.
Speaker Change: You should answer it.
Speaker Change: Sheila that cover.
Speaker Change: <unk>.
Speaker Change: Got it.
Speaker Change: You bet.
Speaker Change: And so.
Speaker Change: Starting from the beginning.
Speaker Change: Uh huh.
Speaker Change: We are analyzing.
Speaker Change: Analyzing that.
Speaker Change: Yeah.
Speaker Change: This format between cutoff date.
Speaker Change: Issuance that you bet.
Speaker Change: Let me say that issue.
Speaker Change: On France.
Speaker Change: Got it.
Speaker Change: And that also caused our power right.
Speaker Change: Based on these analyses.
Speaker Change: Thank you.
Speaker Change: At the end of it yet so.
Speaker Change: In deployment.
Speaker Change: We did not position.
Speaker Change: In this moment even.
Speaker Change: Yes Marcos.
Speaker Change: Final analysis.
Speaker Change: Yeah.
Speaker Change: Got it.
Speaker Change: Uh huh.
Giuseppe Turchiarelli: And so, given this process, given also our experience for similar events in the past, we provision the recovery of part of the cost that we have to pay related to the government. Okay, thank you. So, Giuseppe, the second question was about the generation, no? Sorry, about the PTA that was expired and the third about the generation. Yeah. So, for what concern the PPA? The regulated one that has expired at the end of 2024 was related to the tender process. of 2018 and 2013. which were indexed to the commodity and had a price. higher than $100 per megawatt hour.
Speaker Change: Much better and so given this profit given.
Speaker Change: Egypt or Mena event.
Speaker Change: We've shown that.
Speaker Change: If all the.
Speaker Change: The cost of.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Hum.
Speaker Change: Okay. Thank you. So just repeat the second question was about the generation.
Speaker Change: Sorry.
Speaker Change: EBIT was its eye on the third.
Speaker Change: Generation.
Speaker Change: Yes.
Speaker Change: Well lets call center.
Speaker Change: They're going to take months.
Speaker Change: Alright.
Speaker Change: Or was <unk> 10.
Speaker Change: In the process.
Speaker Change: And all of them.
Speaker Change: And then.
Speaker Change: No.
Speaker Change: Which were indexed to the commodity and had the right.
Speaker Change: Yes.
Speaker Change: The dollar per megawatt hour.
Giuseppe Turchiarelli: For what concern, the question about the renewable generation. The reduction is basically associated to the maintenance in two of our solar power plants, Conchoil and Solder. In idle generation reduction that was covered by other types of generation, it's called Thank you.
Yeah.
Speaker Change: For what concern.
Speaker Change: We had said about the renewable generation.
Speaker Change: Debt reduction.
Speaker Change: So it is good that maintenance.
Speaker Change: Maintenance in two of our smaller.
Speaker Change: <unk> choice and <unk>.
Speaker Change: So.
Speaker Change: Hydrogenation reduction that was covered by other application coil.
Giuseppe Turchiarelli: So the last question that I have here is coming from Constanza Gonzalez from Quaest. Thanks for the presentation. She's asking if we have more available guests from Argentina and if we are expecting to sell more guests, treating as in the Well, we have already sold one cargo in February. for the second quarter of 2025. taking profits from high-gas-level prices in favor. Of course, the details of the transaction are confidential, right? For the rest of the year, we are always looking for new opportunities. We maintain our guidance for the year that is so. me to trade around.
Speaker Change: Thank you. So the last question that I have here is coming from coastal southern style is from flat.
Speaker Change: Thanks for the presentation.
Speaker Change: She is asking if we have more of the available gas from Argentina.
Speaker Change: And.
Speaker Change: We are expecting to sell.
Speaker Change: Mortgage.
Speaker Change: In the second quarter.
Speaker Change: But we have already sold the one category in February.
Speaker Change: For the second quarter.
Speaker Change: Five.
Speaker Change: Taking profits from the Tiger.
Speaker Change: Right.
Speaker Change: Okay.
Speaker Change: Of course, the dates of the transaction are confidential right.
Speaker Change: Right now.
Speaker Change: Rest of the year, we are always looking for new opportunities.
Speaker Change: We maintain our guidance for the.
Speaker Change: <unk>.
Speaker Change: You mean TK there island.
Giuseppe Turchiarelli: 50 and 60 million dollars. Okay, thank you, Giuseppe.
Speaker Change: 50 and $60 million.
Speaker Change: Okay.
Isabela Klemes: So we do not have any more questions from the here from the chat. So also from the line, considering these, I would like to thank you all for having the call with us today. Let me remind you that the investor relations team remain available to address any questions you may have. Thank you for your attention. And we look forward to seeing you soon again. Thank you very much. Thank you for your participation in today's conference.
Speaker Change: Thank you Jim.
Speaker Change: So we do not have one.
Speaker Change: Any more.
Speaker Change: <unk> shown here.
Speaker Change: From the Shack. So also strong the line.
Speaker Change: See there indeed, I would like to thank you all for having the call with US today, Let me remind you that the Investor relations team remains available to address any questions. You may have thank you for your attention and we look forward to see you soon one game. Thank you very much.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program and you may now disconnect everyone have a great day.
Operator: This does conclude the program. You may now disconnect. Everyone, have a...
Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].