Enersis Américas S.A. (NYSE:ENI) Q1 2020 Earnings Conference Call - Final Transcript

May 04, 2020 • 11:30 am ET

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Enersis Américas S.A. (NYSE:ENI) Q1 2020 Earnings Conference Call - Final Transcript

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Executive
Aurelio Bustilho

workforce are working remotely, and all personnel that can work remotely is currently doing so. We have also taken steps to ensure the safety of our employees on the field, providing them with protective equipment during work hours. As well, everyone in Enel Americas is covered by the insurance policy which was entered by Enel SBA and was implemented worldwide, the first ever of its kind.

In relation to our clients, we have put our focus on increasing digitalization efforts. We have redesigned the websites of our subsidiaries to ease the clients experience and focus on communication and payment channels such as emails, task manager, messages and payments apps. On the coming slide, we'll see the engagements with our operations--in the operations and stakeholders.

Regarding operations, our infrastructure is fully operational and reinforcing [Indecipherable] infrastructure is a key concern on these difficult times, and safety and security protocols have been re-forced. Some of our companies in Brazil have notified their counterparts for force majeure clause, which has begun as a preventive measure to negotiate with suppliers looking to mitigate the impact of the current conditions. We have also committed efforts on all big countries we operate in doing donations to help institutions purchase of medical materials and preventive measures in communities.

Now let's see the main government measures in the countries where we have operations. On the topic of regulation, government and local regulators have, have taken a variety of measures looking to curve the impact of the virus on population and the economy. Argentina, Colombia and Peru are in mandatory quarantine till May and cities in Brazil like Sao Paulo are doing the same. All four countries have implemented some for--form of waiver on payments to low-income clients as well as closing commercial offices, which has a negative effect on collection.

We want to highlight measures like the Medida Provisoria 950 in Brazil, which are aimed to bring liquidity relief on distribution companies that are the most affected by the current situation with the decrease on collection. On the similar vein, liquidity lines for company were implemented in Colombia with the--with the same objective.

Let's analyze capex on the following slides. Total capex for the period amounted to $301 million, a decrease of 6.6% compared to the same period of last year. This reduction, however, is mainly explained by the devaluation of local currency. Without this, our capex would have increased by 11%. Our investments were mainly devoted to maintenance capex and focusing distribution business like we announced. From a geographical point of view, 60% of our investments were made on our [Indecipherable] review with a significant increase in Enel Goias, Enel Ceara and Enel Rio.

Now, on the following slide, let's see our main ESG indicators. As we have said in the past, ESG is part important part of our strategy. In that sense, we continue with our focus on contributing with United Nations sustainability development goals.

We have been supporting our community through goals for 7 and