Q1 2025 Enel Americas SA Earnings Call
Operator: Presentation, and include statements regarding the intent, belief, or current expectations of Enel Americas and its management with respect to, among other things, Enel Americas business plans, Enel Americas cost reduction plans, trends affecting Enel Americas financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere.
And include statements regarding the intent belief or current expectations of Enel Americas and its management with respect to among other things Enel Americas business plans, and then Americas cost reduction plans trends affecting enel Americas financial condition or results of operations include.
The market trends in the electricity sector in Chile or elsewhere.
Operator: Supervision and Regulation of the Electricity Sector in Chile or elsewhere, and the future effect of any changes in the laws and regulations applicable to Enel Americas or its subsidiaries. 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 in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere, and other factors described in Enel Americas Integrated Annual Report.
Supervision and regulation of the electricity sector in Chile, or elsewhere, and the future effect of any changes in the laws and regulations applicable to enel Americas or its subsidiaries such forward looking statements.
Afflict only our current expectations are not guarantees of future performance and involve risks and uncertainties actual results may differ materially from those in the forward looking statements as a result of various factors.
These factors include a decline in the equity capital markets and increase in the market rates of interest in the United States or elsewhere adverse decisions by government regulators in Chile or elsewhere and other factors described in Enel Americas integrated annual report.
Operator: Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their date. Enel Americas undertakes no obligation to release publicly the result of any revisions to these forward-looking statements except as required by law.
Readers are cautioned not to place undue reliance on those forward looking statements, which state only as of their dates.
Speaker Change: <unk> undertakes no obligation to release publicly the results of any revisions to these forward looking statements except as required by law I would now like to turn the presentation over to Mr. Jorge beliefs, and then Americas head of Investor Relations. Please proceed.
Jorge Veliz: I would now like to turn the presentation over to Mr. Jorge Veliz, Enel Americas Head of Investor Relations. Please proceed. Thank you Gigi.
Jorge Veliz: Good morning everyone and welcome to our first quarter 2025 results presentation. I'm Jorge Veliz, Head of Industrial Relations of Enel Americas.
Speaker Change: Thank you Jim.
Speaker Change: Good morning, everyone.
Speaker Change: Welcome to our first quarter 'twenty can make five results presentation. Unfortunately.
Speaker Change: Investor Relations stuff and then I know you guys.
Jorge Veliz: In the coming slides, our CEO, Aurelio Bustillo, and our CFO, Rafael de la Haza, will be presenting the main figures of this period. Let me remind you that this presentation will follow the slides that have been already uploaded in the company's website.
In the coming slides, our CEO Aurelio steel and our CFO.
Speaker Change: What would be the same thing the main figures of the spirit.
Speaker Change: Let me remind you that this presentation will follow the flights that have been already uploaded in the company's website.
Jorge Veliz: Following the presentation, we will have the Q&A session. If you want to make a question, please send it through the webcast or write us to our corporate email, ir.enelamericas at enel.com.
Speaker Change: I don't want the presentation, we will have the Q&A session.
Speaker Change: If you want to make a question please send it through the webcast.
Speaker Change: All right up to our corporate E mail.
Speaker Change: That Enel Americas Enel dotcom.
Aurelio Bustillo: Now, let me hand over the call to Aurelio, who will start by outlining the main highlights of the period in slide number three. Thank you, Jorge. Good morning, everybody. First of all, I'd like to thank all the people, all our people, for the results and preparing this presentation. During the first quarter of 2025, we had an important 11% increase in investments in grids, isolating the currency's devaluation impact. that we had. This allowed us to improve our response time to service outage, confirming our commitment with our customers to improve service quality and to be a more resilient company.
Speaker Change: Now, let me hand over the call Joe <unk>.
Speaker Change: I will start by outlining the main highlights of the period in slide number three.
Joe: Thank you Jorge good morning, everybody.
I'd like to thank all the people all of our people for the results.
Speaker Change: Adding this presentation.
Speaker Change: During the first quarter of 'twenty five.
Speaker Change: And important to 11% increase in investments in Greece.
Speaker Change: Relating to currency devaluation impact.
Speaker Change: If we had.
Speaker Change: It's allowed us to improve our response time to sort of South beach, confirming our commitment with our customers to improve search quality and to be a more resilient company.
Aurelio Bustillo: In generation, we increased our production by 23%, mainly explained by renewable capacity additions and better hydro conditions in Colombia. EBITDA in this quarter reached 11.01 billion US dollars. If we isolate the impact coming from currency devaluation, EBITDA reached 1.13 billion US dollars, which is... is 5% higher than the same period of last year, mainly explained by better results in Argentina and generation business in Colombia. Thanks to the deployment of the funds that we received from the sale of Peruvian assets, we have been able to reduce our debt level and financial expenses decreased by 21% this quarter compared to the first quarter of 2024.
Speaker Change: In generation, we increased our production by 23% mainly explained by renewable capacity additions and better hydro conditions in Colombia.
Speaker Change: EBITDA in this quarter reached 11 zero 1 billion U S dollars.
If we isolate the impact coming from currency devaluation EBITDA reach at 113 billion U S dollars, which is.
Speaker Change: A 5% higher than the same period last year, mainly explained by better results in Argentina.
Speaker Change: In generation business in Colombia.
Speaker Change: Thanks to the deployment of the funds that we received from the sale of ILUVIEN assets.
Speaker Change: <unk> been able to reduce our debt level and financial expenses decreased by 21% this quarter compared to the first part thereof. Thank you. Thank you for.
Aurelio Bustillo: Also, we have implemented a change in the visual identity of Brazil, reflecting the evolution of the company in the country and the record investments planted for the grid. Founded in Greece Focusing on Quality Improvement and Resilience. This is aligned with our ongoing efforts in expanding our field teams, reducing emergency response time, and increasing the capacity of our service channels. All in, this has allowed us to improve our emergency response time during the summer. with improvements of 50% in Sao Paulo, 40% in Rio, and 30% in CearĂ¡, despite an increase of 35% in climate events.
Speaker Change: Also we have implemented a change in the visual identity of Brazil, reflecting the evolution of the company in the country and David record investments branded product grades.
Speaker Change: In Greece.
Speaker Change: Focusing on quality improvements and Brazilians.
Speaker Change: This is in line with our ongoing efforts in expanding our field teams, reducing emergency response time.
Speaker Change: And increasing the capacity of our service channels Ali.
Speaker Change: This has allowed us to improve our emergency response time during December.
Speaker Change: Which improvements of 50% Pizza Bowl.
Speaker Change: 3% embryo and 30% despite an increase of 35% in climate events.
Aurelio Bustillo: Before going to details of our operational and financial performance at this period, I would like to have an update on the regulatory topics that we are facing this year. 2025 is an important year with relevant regulatory milestones in the region. Starting with Colombia, the commercialization tariff revision process is still ongoing, while for the distribution tariff process, we expect to have news about the technical document in the third quarter. In generation business, a law project that caps at 5% the energy sales of hydroelectric energy in the sport market is under discussion. We expect to have more details about this in the coming weeks.
Before I go into the operational and financial performance for the Spirit I would like to have an update on the regulatory topics that we are facing this year.
Thank you <unk> five is an important year with relevant regulatory milestones in the region.
Speaker Change: Starting with Colombia.
Speaker Change: The acceleration that if revision process is QM goals, while for the distribution that if a process. We expect youll have news about the technical document in the third quarter.
Speaker Change: Generation business a lot of project debt.
Speaker Change: At 5% the energy sales of hydrogen Atlantic Alright, and achieve the spot market is under discussion.
Speaker Change: We expect to have more details about these in the coming weeks.
Aurelio Bustillo: In Brazil, the concession renewal process is moving ahead as expected. By the end of March, we formalized our intention to renew our concessions and now Enel The regulator in Brazil has 60 days to deliver its recommendation to the Ministry of Mines and Energy. Finally, in Argentina, after the public hearing held in February, the ANGRI, the authority regulation, the regulation in Argentina, published on April 30th a resolution that puts into effect the five-year tariff review for EDESUR for the period 2025-2030, effective as May 1st, 2025. Among the main elements established are the new WAC before tax of 9.99%, an increase in the distribution component of 3% in May and subsequent increase of 0.36% real for the following third month.
Speaker Change: In Brazil the <unk>.
Speaker Change: Concession renewal process is moving ahead.
Speaker Change: <unk> by the end of March we formalized it our intention to renew our concessions and now now.
Speaker Change: The regulator in Brazil has 60 days to deliver its recommendation to the ministry of mines and energy.
Speaker Change: Finally in Argentina.
Speaker Change: After the public hearing held in February the angry Daryl authority regulation.
Speaker Change: Relation in Argentina.
Speaker Change: On April 30th resolution that puts into effect there.
The five year tariff review for <unk> for the period 2018.
Terry: Thank you Terry.
Speaker Change: Effective may.
Terry: Thank you Frank.
Terry: Among the main elements establishing.
Terry: The new walk before tax of 999% an increase in the distribution component of three.
Terry: <unk>, 3% in May.
Terry: And subsequent increase of zero point, 36% real further.
Terry: They are falling 30 months.
Aurelio Bustillo: Leading to a total increase of 15.69%. Tariffs will also be updated through monthly inflation adjustments based on the consumer and wholesale inflation indicators, with a weight of 33.3% and 66.7% respectively.
Moving to total inquiries off.
Terry: 15, 6% to 9%.
Terry: That will also be updated through monthly inflation adjustments based on the consumer and wholesale inflation indicators.
Terry: <unk> of 33 for three.
Terry: Three 3% and 66, 7% respectively.
Terry: Okay.
Aurelio Bustillo: Now let's analyze our investments of the period in the coming slides. During the first quarter of this year, our capex decreased by 27% compared to the same period of last year, reaching $406 million. This is mainly explained by lower capex in generation due to the completion of renewable projects in 2024. However, it is important to highlight that investment in grid business increased 11%, excluding the effect of currency devaluation, reaching $0.3 billion. 59% of total investments were allocated to Brazil and 30% to Colombia. We see that Argentina is becoming more relevant in terms of investment with 12% of the total investment.
Terry: Now, let's analyze our investments of the feeling that comes with a lag.
Terry: During the first quarter of this year, our capex decreased by 27%.
Terry: Compared to the same period of last year rich.
Terry: Reaching $406 million.
Terry: This is mainly explained by lower Capex in generation due to the completion of renewable projects and very good. Thank you. Thank you. Thank you for.
Terry: However, it is important to highlight that investments in Greece business increased 11%, excluding the effect of currency devaluation.
Terry: Zero point $3 billion.
Terry: 59% of total investments were allocated to Brazil, and 30% to Colombia.
Terry: We see that Argentina is becoming more relevant in terms of investment with the percent of the total investments.
Aurelio Bustillo: In terms of business lines, 74% of total profits was devoted to grid. and 25% to generation. Regarding Grids CapEx, we see that investment devoted to network upgrade increased by 42% compared to the same period of last year.
Terry: In terms of business lines, 74% of total Capex was devoted to greed.
Terry: And typically 5% to generation.
Terry: Regarding Greece, Capex, we see that investment devoted to network upgrade increased by 42% compared to the same year.
Aurelio Bustillo: Let's now analyze GRID's operational highlights in slide 2. Electricity distributed reached 27.3 TWh in the first quarter, which represents an increase of 0.2% compared to the same period last year.
Terry: As of last year.
Terry: Analyzed greggs operational highlight.
Terry: Slide six.
Terry: Electricity distributed reached 27, three terawatt hours in the first quarter, which represents an increase of 0.2% compared to the same period last year explained by higher sales in Brazil.
Aurelio Bustillo: Explained by Hyatt Sales, Inc. Partially compensated by lower sales in Argentina due to a milder temperature in Colombia. Regarding number of customers, we had an increase of almost 400,000 in the last 12 months. reaching 22.7 million customers. Smart meters increased by 82%, reaching 1.5 million in this period.
Terry: Solid compensated by lower sales in Argentina, due to a temporary and Columbia.
Terry: Regarding number of customers, we have an increase of almost 400000 in the last 12 months, reaching 22 7 million customers.
Terry: Smart meters increased by eight 2%, reaching $1 5 million in dispute.
Aurelio Bustillo: Explained by the deployment in Sao Paulo.
Ethan Carlo: Explain it by the deployment Ethan Carlo.
Aurelio Bustillo: NETROP and NETROP for Customers. 15% and 13% respectively, isolating the impact of currency devaluation.
Terry: Net Rob and net Raptor customers.
Ethan Carlo: Great.
Ethan Carlo: 15% and 13%, respectively, isolating the impact of currency devaluation.
Aurelio Bustillo: Peace reflects. Significant investments that we are doing in our grid.
Ethan Carlo: This reflects the significant investments that we are doing in our agrees.
Aurelio Bustillo: In terms of... Saifi improved in all subsidiaries while Saifi showed mixed results. Finally, regarding energy losses, we improved in Enel Sierra and remaining flat in Colombia, but increased in Enel Rio and Enel Sao Paulo due to higher temperatures and, as a result, due to weather events in 2025, and increased in tariff indexation during the past year.
Ethan Carlo: In terms of.
Ethan Carlo: The improved improvement in our subsidiaries while.
Ethan Carlo: Show mixed results.
Ethan Carlo: Finally regarding energy losses, we boosted.
Ethan Carlo: <unk> remaining flat in Colombia, but increase at <unk> and I know some barrel due to higher temperatures and due to weather events in 2025.
Ethan Carlo: An increase in bad debt indexation during the past year.
Ethan Carlo: Specially in Argentina.
Aurelio Bustillo: Let's continue with generation operation with highlights. The stock capacity reached 12.9 gigawatts, which is 5.1% more than the same period of last year, thanks to the renewables projects that began operations during 2021. With this, 98% of our capacity is renewable.
Ethan Carlo: Let's continue with generation operational highlights.
Ethan Carlo: You still have capacity reached Richard 12, 92, Gigawatts, which is up five 1% more than the same period of last year. Thanks to the renewables projects that began operations in doing thank you. Thank you for.
Ethan Carlo: We did 98% of our capacities renewable.
Aurelio Bustillo: We are currently working in the construction of 0.5 gigawatts or 500 megawatts. of Nucabut. Related to solar projects located in Colombia, Guayapo 3 and Atlantis.
Ethan Carlo: We are currently working in the construction of 0.5 Gigawatts of 500 megawatts.
Ethan Carlo: Of new capacity.
Ethan Carlo: Related to solar projects located in Colombia, <unk> III and at lunch.
Aurelio Bustillo: which will start operations between 2025 and 2035. in the high, in the right charge.
Ethan Carlo: Which will start operations between 55 and 200000 seats.
Ethan Carlo: And the high in the right charge.
Aurelio Bustillo: We see that our energy balance is on a consolidated base. using the right side of the chart.
Ethan Carlo: We see that our generate our energy balance sheet on a consolidated basis, you can see in the right side of that charge.
Aurelio Bustillo: We can see that in this quarter we increased our sales by 13%, reaching 17.4 terawatt-hours. from these 9.7 terawatt hours came from our production and 7.6 terawatt hours came from energy purge. The increased amount of energy sold came mainly from higher renewable production and higher purchase from third parties. Energy sales increased in Brazil and Colombia, mainly in non-regulated markets.
Ethan Carlo: We can see that he described that we increased our sales by 13%, reaching 17 four terawatt hours.
Ethan Carlo: From these nine seven.
<unk> gained from our protection and seven six terawatt hours.
Came from energy purchases.
Ethan Carlo: They increased the amount of energy sold came mainly from higher renewable production and higher purchase from third parties.
Ethan Carlo: And then just sales increased in Brazil, and Colombia, mainly in nonregulated market in the case of Brazil, and regulated and spot markets in case of Colombia.
Rafael de la Haza: In the case of Brazil, unregulated and spot markets in case of Now HAFFA will comment. Thank you, Aurelio.
Ethan Carlo: Now I will comment.
Ethan Carlo: On the financial results of the therapeutic Omega.
Ethan Carlo: Please.
Rafael de la Haza: Good morning to everybody. Buenos dias a todos. EVITA in this quarter reached 1.01 billion U.S. dollars, a reduction of 6.5 percent compared to the first quarter of 2024. This is mainly a consequence of currency depreciation in Brazil and Colombia, but if we exclude this effect, we get to an adjusted EBITDA of $1.13 billion, which is 5% higher than first quarter 2024. This result is mainly explained by weather results in generation in Colombia, as Aurelio said before, due to weather ideal conditions in the country and higher tariffs in distribution in Argentina. Net income reached $0.25 billion in this quarter, which is 32% lower than the first quarter of last year.
Ethan Carlo: Thank you Antonio.
Ethan Carlo: Good morning to everyone.
Ethan Carlo: Yes.
Ethan Carlo: EBITDA in this quarter, we took a $1 1 billion U S dollars.
Ethan Carlo: Six 5% compared to the first quarter of 2024.
Ethan Carlo: This is mainly a consequence of currency depreciation in Brazil and Colombia.
Ethan Carlo: But if we exclude this effect, we get to an adjusted EBITDA of $1 $13 billion, which is 5% hygiene down first quarter of 2024.
Ethan Carlo: This result is mainly explained by better results in generation in Colombia, as I said before.
Ethan Carlo: Due to weather conditions in the country and how you get about ace and distribution in that again Peter.
Ethan Carlo: Net income reached <unk> $25 billion in this quarter.
Ethan Carlo: This 32% lower at about the first quarter of last year.
Rafael de la Haza: If we isolate the contribution from discontinued operations in Peru in both periods, net income decreases 5% explained by the lower reported EBITDA partially compensated by lower financial costs and taxes. You have to remind you that in 2024, we sold the contribution of our businesses in Peru. We sold the generation in May 2024 and the distribution in June 2024. So there were some months in which Peru was contributing to the results of the company during the first half of the year. Funds from operations reached 0.47 billion U.S. dollars, an improvement of 6 percent compared to the same period of last year.
Ethan Carlo: We isolate the contribution from discontinued operations in Peru in both periods net income decreased 5% explained by the lower reported.
Ethan Carlo: Partially compensated by lower financial costs and taxes, Yes, I'll remind you that in 2024, we sold the contribution I'll say our business is in Peru, we solve the generation in May 2024.
Ethan Carlo: The distribution in June 2020, full hold anyway, some waltzing leach.
Ethan Carlo: <unk> added to the results of the company during the first half of it yet.
Ethan Carlo: Funds from operations, which exceeded 47 billion an improvement of 6% compared to the same period of last year.
Rafael de la Haza: This is mainly explained by lower taxes paid and lower financial expenses due to lower debt and lower interest rates compared to the first quarter of 2024. Just to remind you that in 2024, in the first quarter, we saw a consolidated net debt of around 6.7 billion U.S. dollars and a gross debt of around 8.4 billion U.S. dollars. So if we compare it to the current one, this is explaining substantially the reduction in terms of financial expenses of this third quarter of 2025 when compared to the first quarter of 2024. Starting from 1.77 million EBITDA of the first quarter of 2024, we see that the innovation has an important increase of 46 million, mainly explained by the contribution of our businesses in Colombia and Argentina.
Ethan Carlo: This is mainly explained by lower taxes paid.
Ethan Carlo: Lower financial expenses due to lower debt and lower interest rates compared to the first quarter of 2024.
Ethan Carlo: I will remind you that in 2024 in the first quarter we sold.
Ethan Carlo: Consolidated net debt of around $6 7 billion USD.
Ethan Carlo: And I would ask that of around eight behaviors. So a real competitor to they've got all along this is explained in substantial reductions in personal financial expenses.
Ethan Carlo: <unk> third quarter 2025, when compared to the first quarter of Sanjay. Thank you Paul.
Speaker Change: Starting from our 1 billion $1 77 million EBITDA of the first quarter of 2024, and we see that generation will have an important increase of $46 million, mainly explained by the completion of our business in Colombia and Argentina.
Rafael de la Haza: Grids slightly decreased due to lower results in Brazil. Customers and others also improved. With this, we get to an adjusted data of $1,133,000,000 for the first quarter of 2025, which is 5% higher than the same period of 2025. FX had a negative impact of $126 million, resulting in a reported EBITDA for this quarter of $1.007 million. From our reported EBITDA, 50% came from Brazil, 41% from Colombia, 6% from Central America, and 3% from Argentina. In terms of business line, grids represent 58% of our EBITDA, generation 39%, and customers contribute with 3% of the total.
Speaker Change: <unk> slightly decreased due to lower results in Brazil, custom apps and others all central.
Speaker Change: With this we get to an adjusted EBITDA of one.
Speaker Change: 1.183 billion order for the first quarter of 2020.
Speaker Change: 2025, which is 5% higher than the same periods of 2020.
Speaker Change: Thanks, Scott that negative impact of $126 million.
Speaker Change: In a report that the heat therefore, this quarter at a $1 billion.
Speaker Change: One <unk> 7 million U S dollars.
Speaker Change: Our reported <unk>, 50% came from Brazil, 41% from Colombia, 6% fall in Central America, and APAC transform Argentina industrial business line recently represents 58% of our EBITDA generation of 39% on customers contributed with 3%.
Rafael de la Haza: On slide 11, we will focus on the cash flow of our company. Starting from an EBITDA of $1.01 billion, we see that networking capital amounted to $0.34 billion, slightly higher than the first quarter of 2024. Taxes paid during the period amounted to $0.1 billion, a lower amount compared with last year, while net financial expenses also decreased, reaching $0.1 billion.
Bolton on a slightly later, we will focus on the cash flow of our company.
Speaker Change: Some future M&A, we thought of one $2 billion to $1 billion and we see that net working capital amount that you will see the 454 billion and slightly higher you hit it on the first quarter of 2024.
Speaker Change: As I stated during the period amounted for Cedar point 1 billion.
Speaker Change: Compared with last year, while it may turn out net financial expenses also decreased reaching <unk> four 1 billion.
Rafael de la Haza: With this, funds from operations amounted to $0.47 billion, an improvement compared to the same period of 2025. After investments for $0.41 billion, we get to an adjusted free cash flow of around $60 million.
Speaker Change: With these funds from operations amounted to <unk> 47 billion, an improvement compared to the same period of 2024.
Speaker Change: The investments fall Cedar point $41 billion, we get to an adjusted free cash flow.
Speaker Change: One 6 million USD.
Rafael de la Haza: Let me now analyze the debt of our company in the following slide, slide number 12. Gross debt amounted to $5.7 billion, an increase of 8% compared to December 2024. And this is mainly explained by FX Impact, as we said before, a higher debt in Brazil.
Speaker Change: Let me now analyze the data our company in the following slide slide number 12.
Speaker Change: Does that amounted to $5 7 billion, an increase of 8% compared to the same better 2024.
Speaker Change: This is mainly explained by FX impact as we said before.
Rafael de la Haza: If we compare this quarter with the first quarter of 2024, or the previous year, our debt significantly decreased, as we already mentioned at the beginning of this presentation. Net debt reached $2.9 billion, an increase of 34% compared to the end of 2024. This includes positive free cash flow for $0.1 billion, net dividends paid for $0.4 billion, extraordinary operations for $0.3 billion, mainly related to the payment of the second installment of the pension fund in Enel Sao Paulo, an FX effect for $0.1 billion.
Speaker Change: Debt in Brazil.
Speaker Change: We completed this quarter with the first quarter of 2020, followed opinions yet our debt significantly decreased as we already mentioned that at the beginning of this presentation.
Speaker Change: Net debt reached $2 9 billion, an increase of 34% compared to the end of 2024.
Speaker Change: <unk> includes positive free cash flow for Cedar point 1 billion net dividends paid for Cedar point 4 billion extraordinary operations for Cedar point 3 billion, mainly related to the payment for the second installment of the pension fund in any Sao Paulo on FX effect, while setup on $1 billion U S.
Rafael de la Haza: In terms of currency and country, we see that Brazil remains as the largest contributor, while the debt at the holding level represents only 11% of the total. Finally, regarding the cost of the debt, we can see a slight increase for this period going from 10.3% to 10.7% mainly explained by higher interest rates in Brazil. I remind you that in 2024 was 11.3% and now we see 12.7% interest rates in Brazil.
Speaker Change: In terms of currency and currently we see that Brazil remains the largest contributor.
Speaker Change: They built up a whole new level would it make sense.
Speaker Change: Only 11% of the total.
Speaker Change: Finally regarding the cost of the debt with Ses light duty increase for these <unk> going forward.
Speaker Change: 3% to 10, 7% explained Li explained mainly explained by higher interest rates in Brazil, I remind you that in 2010 before cost 11 point today.
Speaker Change: We see 12 offsetting interest rates investing on the next slide Aurelio will conclude this presentation with some closing remarks.
Aurelio Bustillo: On the next slide, Aurelio will conclude this presentation with some closing remarks. Concession renewal process in Brazil is moving ahead as expected. We confirmed our intention to renew our concession. We continue to focus our investments in grids, aiming to improve our service quality for our customers. The EBITDA net of effects improved mainly due to better results in grids in Argentina and in generation in Colombia. We've reduced our financial expenses and keep a solid and flexible financial position which allow us to execute our capital.
Speaker Change: Concession renewal process in Brazil, which is moving ahead as expected we confirm our intention to renew our concessions.
Speaker Change: We continue to focus our investments in Greece, aiming to improve our service quality for our customers.
Speaker Change: EBITDA net of FX improvement, mainly due to better results in Greece, and Argentina, and incineration in whole loans.
Speaker Change: We've reduces our financial expenses and keep a solid and flexible financial position, which allows us to execute our capex plan.
Aurelio Bustillo: Finally, our shareholders approved a final dividend of 407 million U.S. dollars to be paid on May 29. bringing the total dividends paid by our company in 2025 to almost 800 million U.S. dollars, reflecting the record net income generation in 2024.
Speaker Change: Finally, our shareholders approved a final dividend for <unk> four.
Speaker Change: 407 million U S dollars cubic Dave Amit to 89 days, bringing total leaf have been stayed by our company into 80 to 85 to almost $800 million reflecting.
Speaker Change: Record net income generation into 80 to 84.
Aurelio Bustillo: Thank you, Aurelio. Thank you, Rafa. Thank you, everybody, for your attention.
Speaker Change: Thank you. Thank you thank.
Operator: And now we begin our Q&A session. Remember that you can send your questions to our webcast.
Speaker Change: Thank you everybody for your attention and now we begin our Q&A session.
Speaker Change: Remember that you can send your questions through our webcast.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Javier Suarez: Okay, the first questions come from Javier Suarez from Marivanta. Can you please indicate if your guidance for 2025 is confirmed? Hi, Javier. Good morning. Thank you very much for your question.
Speaker Change: Okay.
Speaker Change: First question comes from Javier Suarez from Mediobanca.
Speaker Change: Can you. Please indicate if your guidance for 25 is confirmed.
Speaker Change: Good morning, and thank you very much for your question Alicia.
Rafael de la Haza: This is Rafael de Laza. Yes, we are confirming our guidance for 2025. So we will see, of course, still volatility in terms of effects, but we do not see any extraordinary event to indicate anything different to the guidances that we announced in 2024 for the period 2025, or for this year, let me say, in terms of EBITDA or in terms of net income. So the answer is yes, we are confirming our guidance for 2025.
Melissa yes.
Speaker Change: We are confirming our guidance for 2025. So we will see of course is still volatility in terms of FX, but we do not see any extraordinary event.
Speaker Change: We'll indicate anything different today.
Speaker Change: The guidance is that we announced in 2024 for the period 2020.
Speaker Change: Fifth VEGF, let me say in terms of every dollar of investment net income. So the answer is yes, we are confirming our guidance for 2020.
Ruben Alvarado: Second question is from Ruben Alvarado.
Speaker Change: Second question.
Alvarado: From when Alvarado.
Ruben Alvarado: Sponsored ADR and three questions. First one regarding the 34.1% increase in net debt in the Brazilian sub series. Is this product of the concession renewal? Could you provide us with an update on the debt restructuring? Have you been able to repay additional debt or should we expect a decrease in financial expenses?
Speaker Change: From visa.
Speaker Change: Yeah.
Speaker Change: Three questions first one regarding the 34, 1% increase in net debt in the Brazilian subsidiaries.
Speaker Change: Is this product of the concession renewal.
Speaker Change: Could you provide us with an update on the debt restructuring.
Speaker Change: Have you been able to prepay additional debt should we expect a decrease in financial expenses.
Ruben Alvarado: Could we have an update regarding the assets held for sale? for the sale of Pura in Peru and the assets in Argentina?
Speaker Change: And lastly.
Speaker Change: We have an update regarding the assets held for sale, specifically if theres a set date for the sale of <unk> in Peru, and the assets in Argentina.
Speaker Change: I suggested.
Speaker Change: Yes.
Speaker Change: Question regarding the financing that acquisition.
Speaker Change: I can answer the question related to.
Speaker Change: Sure.
Rafael de la Haza: Assets for Sale in the last Thank you very much for your question regarding the increase in net debt in our Brazilian subsidiaries. Let me say it is partially due to the fact, as we saw in the slide we were explaining the debt, to the payment, the second installment of the payment of the Sao Paulo's pension fund. This is the main reason of the increase that you saw in terms of net debt increase in our Brazilian subsidiaries. And also we saw an impact in terms of effects that in the case of Brazil was around $187 million for the period, comparing December 2024 with the first quarter of 2025.
Speaker Change: The assets for sale.
Speaker Change: The last one.
Speaker Change: Yes.
Speaker Change: And spot.
Speaker Change: Yes.
Speaker Change: Thank you very much for the question I had one regarding the increase in net debt in our Brazilian subsidiary is let me say is partially due to the fact as we saw in the likelihood of extending the debt.
Speaker Change: Through the payment of the second lien.
Speaker Change: Total amount of the payment.
Speaker Change: Paolo specially on Paul. This is the main reason of the increase that we saw.
Speaker Change: In terms of net debt increase in our <unk> subsidiaries and also we saw.
Speaker Change: On impact in terms of FX that indications wassa around 100.
Speaker Change: $87 million.
Speaker Change: For the BDO.
Speaker Change: Completed in December 2024.
Rafael de la Haza: Those are the main reasons.
Speaker Change: The first quarter of two.
Speaker Change: 2020, those are the main reasons.
Rafael de la Haza: Regarding the assets that we have in Peru... We are now working on restructuring the gas contracts. We are in the middle of an auction of new gas contracts.
Speaker Change: Regarding the asset that we have <unk>.
Speaker Change: The thermal plant.
Speaker Change: We are now working in his.
Speaker Change: Structuring.
Speaker Change: Contracts that gas contracts, we are in the middle of.
Speaker Change: Let's see.
Speaker Change: An auction.
Speaker Change: New.
Rafael de la Haza: Spots in Colombia. We are not participating on this, but it's important to assure the of the plan. This is an asset that we have PPAs, we have what we call Reserva Fria, and it's operating regularly, very well operated, but we prefer to restructure the contracts and the gas supply agreements in order to provide the information to the consumers.
Speaker Change: Gas.
Speaker Change: Spots in Colombia, where no question based on this but it's important to assure the.
Speaker Change: Sustainability of the plan.
Speaker Change: This is a.
Speaker Change: And assets that we have ppas, we have the what we call has to have a free tier.
Speaker Change: And it's operating regularly very well operated but we prefer to listen to.
Speaker Change: The contracts in the gas supply agreements.
Speaker Change: <unk> provide the information.
Speaker Change: <unk>.
Rafael de la Haza: Regarding Argentina, as we mentioned before, we decided to maintain the assets in our perimeter. In our vision, it was a very good decision because of the risk of the country if we see what was before and what is now improved. Little by little, we are improving the regulatory issues, so for now, we maintain our assets there and are working on the recovery, let me tell you, the regulatory framework with the government, with the operation of EDESUR and also the generation assets, SOCOM. We decided to maintain it for now. I don't know if you guys had a question related to this, but I think we answered it.
Speaker Change: Regarding the asset sale.
Speaker Change: Regarding regarding <unk>.
Speaker Change: As we mentioned before we decided to maintain the assets in.
Speaker Change: In the in our perimeter.
Speaker Change: And now our fees.
Speaker Change: A very good decision because the rest of the country. If we see what was deployed in what is now a prove it.
Speaker Change: Little by Little we are improving the regulatory issues. So for now we maintain.
Speaker Change: Our our assets.
Speaker Change: Working on the recovery, let's say, let me say that.
Speaker Change: The regulatory framework with the government with the operation of <unk> and also the generation assets to cope with.
Speaker Change: We decided to maintain it for now.
Speaker Change: I don't know if you guys. Another question related but I think we answered.
Andrew Mccarthy: Next question is from Andrew McCarthy. Do you have any preliminary expectations about the outcomes of the tariff review process in Colombia? What are the key points that will likely be debated with the regulator?
Speaker Change: So okay.
Andrew Mccarthy: Our next question is from Andrew Mccarthy.
Andrew Mccarthy: Do you have any preliminary expectations about the outcomes of the tariff review process in Colombia.
Andrew Mccarthy: The key points that will likely be debated with the regulator. Thank.
Rafael de la Haza: Thank you, Andrew, for the question. Well, the process in our view, well, not only in our view, it's delayed, probably will not have this process defined by this year. The regulation in Colombia is very well, it's a solid regulation. We believe that we'll maintain this regulation. But there's a lot of discussion yet to come. But we expect from this delay that we'll have news by the end of this year or beginning of the next one. But for now, it's moving in the, let's say, in the.
Speaker Change: Thank you Andrew for the question.
Andrew Mccarthy: Well the process now.
Andrew Mccarthy: In our view.
Andrew Mccarthy: Not only in our view it's delayed.
Andrew Mccarthy: Probably we will not have this for us is defined by by this year.
Andrew Mccarthy: The regulation in Colombia is very well.
Andrew Mccarthy: It's a solid regulation, we believe that we will maintain visa regulation.
Andrew Mccarthy: But there is a lots of discussion yet to come.
Andrew Mccarthy: But we expect that.
Andrew Mccarthy: From from delayed that.
Andrew Mccarthy: We will have.
Andrew Mccarthy: News by the by the end of this year beginning of the next one but for now it's.
Andrew Mccarthy: It's moving in the let's say that.
Rafael de la Haza: and Jorge Espinosa for their presentations Political issues that also make part of this process. We all know, but we are confident that we'll have.
Andrew Mccarthy: In the right way of course regulation is always something that we need to be gassy.
Andrew Mccarthy: And so on but in that general view.
Andrew Mccarthy: Its movie is moving forward.
Andrew Mccarthy: In the correct way, despite all the discussions and all of the.
Andrew Mccarthy: Yeah.
Andrew Mccarthy: Political issues that also make market in the back of this process.
Andrew Mccarthy: As we all know, but we are confident that we will have it.
Rafael de la Haza: Regarding the other question, if I may jump into this question.
Andrew Mccarthy: In a very good way regarding.
Andrew Mccarthy: Another question, if I may jump into this question from from hybrid right.
Rafael de la Haza: from Javier, for the cap sales of 5%. Of course, we need to look in an overall way and to, of course, regarding and related to the prices that we are practicing with the generation. We don't see major impact in our assets.
Andrew Mccarthy: So on the kit sales too.
Andrew Mccarthy: 5% of course, we need to look at.
Andrew Mccarthy: And how if at all.
Andrew Mccarthy: And two of course regarding the.
Andrew Mccarthy: And relate that to the prices that we are practicing.
Andrew Mccarthy: We the generation, we don't see major impacts in our in our assets is part of the of the.
Rafael de la Haza: It's part of the fine-tuning that the government wants to provide to generation assets and we do not see Major impacts, I don't know how much you have calculated, but in our case, I think we can compensate this with the prices that we are practicing with our PBAs and So, as you mentioned before, Aurelio, this is a project we need to obtain the details of this initiative, so we cannot, we do not have for this moment any impact calculation because we need to have all the details to do this. So let's see how it evolves, but for the moment we do not have any calculations.
Andrew Mccarthy: Friday.
Andrew Mccarthy: <unk> wants to provide to generation assets and we did not see.
Andrew Mccarthy: Major impacts I don't know halfway through we'll have a calculator.
Andrew Mccarthy: In our case I think we can compensate this.
Andrew Mccarthy: With the prices that we are practicing.
Andrew Mccarthy: Our 58 and <unk>.
Andrew Mccarthy: And the volumes that we have.
Andrew Mccarthy: Uh huh.
Andrew Mccarthy: Projected for this year.
Andrew Mccarthy: Yeah. So.
Andrew Mccarthy: So the Florida earlier this is a project we need to really to obtain.
Andrew Mccarthy: The details of the Esa or <unk>, so we cannot.
Andrew Mccarthy: We cannot and will not helpful. At this moment any impact calculation, because we need to us already.
Andrew Mccarthy: OLED details today.
Andrew Mccarthy: So, let's see how it evolves, but the order momentum we do not have any calculation on leasing.
Rafael de la Haza: Thank you.
Fernan Gonzalez: We have a question from Fernan Gonzalez. Did Enel reveal the quality indicators for your concessions in Brazil and if so, how do they compare with your real performance? What is still pending for the renewal process of the distribution concessions?
Speaker Change: Thank you we have a question from Fernando Fellas.
Speaker Change: Revealed the quality indicators for your concessions in Brazil, and if so how do they compare with your real performance.
Speaker Change: What is still pending for the renewal process of the distribution concessions.
Aurelio Bustillo: A good news that we had in the concessional renewal was the was that last week. On the previous weeks, we had the renewal process advancing for the first distribution. And what we saw, it's pretty much aligned with what we are working and we are projecting. Of course, the new contracts, they will be more... Let's see, they will have more indicators, detailed indicators of quality, which is fair in our vision. and of course providing us the condition of making more investments annually recognized by the tariff reset, so the tariff review. So with this, we think it's fair.
Speaker Change: Well.
Speaker Change: A good a good news that we have in the concession renewal was.
Speaker Change: Was that last week.
Speaker Change: Previously we had.
Speaker Change: Renewal process education for the first distribution office versus which you stated this up right.
Speaker Change: And what we saw is very much aligned with what we are working and we are projecting of course, the new contracts.
Speaker Change: They will be more and more.
Speaker Change: Let's say.
They will have more indicators.
Speaker Change: Daily indicators of quality, which is fair and our vision.
Speaker Change: And of course, providing us the condition of making more investments annually.
Speaker Change: Is it by the tariff reset so the data for review so.
Speaker Change: With this we think its share more quality, but on the other hand, the good conditions to operate and to invest into Capex repopulation.
Aurelio Bustillo: More quality, but on the other hand, the good conditions to operate and to invest and to have CAPEX recognition. for the distribution company.
Speaker Change: For the distribution company.
Aurelio Bustillo: Please keep in mind that the current contracts, we have almost 30 years of the old contract that we have today. And it was, of course, built, constructed in another environment in terms of data analytics, extreme climate events, social media, and so on. Now we are confident that these contracts reflect more, especially in Brazil, the new environments of these extreme events, the conditions, especially the kind of energy that we have in the grid, the data analytics, social media. So we are confident that this will reflect the current condition. It will be more rigid or aggressive, if you may say, yes, but on the other hand, with the good conditions of operations.
Please keep in mind that the current contracts we have.
Speaker Change: Almost 30 years of the old contract that we had to date and it was of course.
Speaker Change: <unk> constructed in another.
Speaker Change: The environment in terms of.
Speaker Change:
Speaker Change: Okay.
Speaker Change: Data analytics.
Speaker Change: Extreme climate events.
Speaker Change: Shall media and so on so now we.
Speaker Change: We're confident that discount these contracts reflect.
Speaker Change: More especially Brazil.
Speaker Change: The new environment subsidy of extreme events the conditions of our.
Speaker Change: Especially the kind of anti exactly we have agreed that data analytics social media. So.
Speaker Change: We are confident that these will reflect that.
Speaker Change: A different formulation.
Speaker Change: It will be more.
Speaker Change: We are aggressively if it makes aes, but on the other hand with a good conditions occupation. So it's a different different world the world changing though.
Aurelio Bustillo: So it's a different world. The world changes.
Aurelio Bustillo: Thank you, Aurelio. Thank you, Rafa.
Speaker Change: Thank you Aurelio Thank you Rafa.
Operator: If there are no more questions, we conclude our results conference call. Let me remind you that the investor relations team is available for any doubts that you may have.
Speaker Change: Our normal no more questions, we'll conclude our subsequent principle.
Speaker Change: Let me remind you that the Investor relations team is available for any doubt that you may have thank you for your attention.
Operator: Thank you for your attention.
Operator: This concludes today's conference call. Thank you for participating.
Speaker Change: Thank you.
Speaker Change: Yes.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Operator: You may now disconnect. Music
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].