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Enel Americas SA (XSGO:ENELAM) Q4 2024 Earnings Call Highlights: Record Net Income and ...

In This Article:

  • Investments in Grids: Increased by 16% in 2024.

  • New Capacity: Added 0.8 gigawatts of new capacity in 2024.

  • Net Income: Reached a record $2.6 billion, including $1.7 billion from asset sales in Peru.

  • Dividends: Close to $0.8 billion to be paid, increasing dividends per share by 3 times.

  • CapEx: Decreased by 16% in Q4 2024, reaching $577 million.

  • Electricity Distributed: 27.1 terawatt hours in Q4, a 0.3% increase year-over-year.

  • Customer Growth: Increased by 414,000, reaching 22.6 million customers.

  • EBITDA: $3.7 billion for 2024, in line with 2023; Q4 EBITDA was $724 million, 15% lower year-over-year.

  • Gross Debt: Decreased by 35% to $5.2 billion.

  • Net Debt: Decreased by 65% to $2.1 billion.

  • Cost of Debt: Decreased from 12.2% to 10.3%.

Release Date: February 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Enel Americas SA (XSGO:ENELAM) reported a 16% increase in investments in grids, aligning with their strategy to enhance network resilience and service quality.

  • The company added 0.8 gigawatts of new renewable capacity in 2024, leading to a 23% increase in solar and wind generation.

  • Enel Americas SA achieved a record net income, enabling them to pay approximately $0.8 billion in dividends, tripling the dividends per share.

  • The company successfully completed its asset disposal plan in Peru, optimizing its financial position.

  • Despite challenges, Enel Americas SA maintained an EBITDA of $3.7 billion, consistent with the previous year, due to strong performance in Argentina and Central America.

Negative Points

  • The company faced a difficult hydro scenario in Colombia, impacting results due to below-average hydrology and high spot market prices.

  • Extreme weather events in Brazil led to blackouts, affecting operations and resulting in a 3% loss in wind and solar generation.

  • Currency devaluation in Brazil and Colombia negatively impacted the company's EBITDA by approximately $100 million.

  • The company's CapEx decreased by 16% in the fourth quarter compared to the previous year, primarily due to the completion of renewable projects.

  • Enel Americas SA's EBITDA for the fourth quarter was 15% lower than the same period last year, mainly due to lower generation results in Colombia and currency depreciation.

Q & A Highlights

Q: Can you talk about the curtailment situation across your generation fleet? How did we start the year 2025 and how does the situation compare with 2024? A: The curtailment is a reality we are facing, especially in recent years. It is a mix of issues, including the need for investments in transmission and better information on intermittent generation. In Brazil, the effects on our results were $90 million, representing 3% of our generation. We are working on mitigating these effects through contracts and energy trading.