Q2 2024 ENGIE Energia Chile SA Earnings Call Transcript
Key Points
- Engie Energia Chile SA (XSGO:ECL) reported a significant 56% increase in EBITDA for the first half of 2024, reaching $294 million.
- The company successfully issued a 10-year $500 million green bond to fund CapEx and refinance short-term debt, reducing the net debt to EBITDA ratio to 3.9x.
- Engie Energia Chile SA (XSGO:ECL) has accelerated the implementation of battery energy storage systems (BESS), with a new project announced at the Tocopilla site, aiming for a total capacity of 370 megawatts.
- The company has seen a positive trend in sales, with a 6% increase in overall sales to customers, driven by an 11% increase in sales to regulated customers.
- Spot prices have decreased significantly, from an average of $87 per megawatt hour in 2023 to $62 in 2024, positively impacting the company's energy margin.
- Total revenues dropped by 22% to $934 million, primarily due to an 18% decrease in average realized prices.
- Engie Energia Chile SA (XSGO:ECL) experienced a 49% decrease in gas generation due to the absence of a tolling agreement with Keller.
- The company faced a 59% increase in energy purchases from the spot market, highlighting ongoing exposure to market volatility.
- Net debt increased by $158 million to $2.0 billion, driven by CapEx financing and accounts receivable buildup.
- The company is still working on monetizing $329 million in receivables under the PEC-3 program, which is crucial for liquidity and future investments.
Good day, and welcome to the Engie Energia second-quarter 2024 results conference call.
(Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to CEO. Please go ahead.
Okay. Hello. Good afternoon, everyone. I'm here. I'm Eduardo Milligan from Engie Energia Chile, and I'm here today with Bernardita Infante, Alison Saffery and Marcela Munoz. So today, we will present Engie Energia Chile's results for the first half of 2024, and our view for the rest of 2024.
So we can start directly on page 3. So in this page, we are highlighting the main drivers of our trajectory in 2024. So first, as we explained in previous quarters, we continue to see a positive evolution in fuel prices. which have remained stable, and this is positively impacting spot prices during this year. Second, there is a positive effect coming from the new renewables, the contribution of batteries and the additional backup PPAs
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