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

May 04, 2020 • 11:30 am ET


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


Loading Event

Loading Transcript

Aurelio Bustilho

8, where almost 5.5 million people have been benefited with our actions. We also have contributed to SDGs 9 and 11 related to build a sustainable industry, infrastructure and cities. In this way, Enel Americas relies on its low-carbon value-added products and services where the smart meters and Enel X business are relevant to the development of urban areas and improved quality of life in these areas. In addition, in order to prevent cyber security incidents, we cover all of our web application exposure to Internet with advanced cyber security solutions. Enel Americas has contributed to fight against climate change by generating 58% of its energy with hydroelectric assets during this period. As mentioned before, Enel Americas was included in the Sustainability Year book of RobecoSAM and obtained bronze category. These recognition confirm the good work that we are doing and the relevance that sustainability has on our strategy.

Now, let's analyze our financial performance in the coming slide. As mentioned before, reported EBITDA reached $848 million, a 6.6% decrease compared to the same period of last year. However, we if we exclude the FX variation, which amounted $147 million negative effect, the EBITDA would have increased by 9%. Group net income increased by 1.6%, reaching $208 million. This is mainly explained by lower financial expenses due to the debt payment in Enel Brasil made with the proceeds coming from last year's capital increase. FFO reached $127 million, an increase of 87% compared to last year, while net debt decreased by 11%, reached $3.8 billion. We will analyze in detail cash flow and debt ahead on the presentation. On the coming slide, we'll see EBITDA evolution and its breakdown, starting from $909 million of EBITDA from first quarter of last year. We can see that distribution in large hydro businesses contributed with an important increase, while Enel X also showed an improvement. On the other hand, thermal generation had an important decrease in EBITDA, mainly explained by Fortaleza one-off adjustment made in last year EBITDA of this company. Retail business has also showed a small reduction. And the currency devaluation in four countries where the operator had a negative impact of $138 million, which mostly explains the 7% reduction of consolidated EBITDA.

In terms of business lines, distribution represents 49% of our EBITDA, while generation contributes with 43%, from which 33% is large hydro; retail and Enel X represent 6% and 1% respectively. It is important to highlight that 89% of our EBITDA is generated by zero direct emissions activity. Let's now analyze our operating highlights in the following slide. On generation business, our installed capacity remained basically the same as last year, reaching 11.3 gigawatts, from which 55% are hydro. Net production reached 10.6 terawatt hours, an increase of 3% compared to last year. From the total generation, 58% corresponds to hydro generation, which increased by 200 megawatt hours. Our energy sales decreased by 9%, reaching 16.6 terawatt hours. This is explained by a reduction in trading activity in