Enel Chile SA (ENIC) Q3 2025 Earnings Call Highlights: Resilience Amid Market Challenges

This article first appeared on GuruFocus.

Release Date: November 04, 2025

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

Positive Points

Enel Chile SA (NYSE:ENIC) maintained a stable EBITDA for the first nine months of 2025, demonstrating resilience despite challenging market conditions. The company successfully implemented a comprehensive winter plan, enhancing grid stability and service continuity during adverse weather conditions. Gas optimization activities supported margins, adding $74 million in margin during the first nine months of 2025. Enel Chile SA (NYSE:ENIC) maintained a strong liquidity position with available credit lines of $640 million and cash equivalents of $373 million as of September 2025. The company is actively pursuing strategic investments in renewable energy and battery storage projects, aligning with its long-term growth strategy.

Negative Points

Net production decreased by 9% in the first nine months of 2025 compared to the same period in 2024, due to lower renewable energy production and transmission line limitations. The company's net income for the first nine months of 2025 decreased by 21% compared to the previous year, impacted by higher depreciation, amortization, and impairment expenses. Enel Chile SA (NYSE:ENIC) faced a $63 million decrease in EBITDA during the last quarter, primarily due to the termination of high-price regulated contracts. The company is dealing with increasing energy losses, with losses slightly higher than 6% due to various factors including tax increases. Regulatory uncertainties remain, with significant updates expected that could impact tariffs and market mechanisms, affecting long-term strategic planning.

Q & A Highlights

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Q: What is the amount that Enel Chile must return to customers due to the miscalculation of the CNA included in the first half, 2026 PNP reports? A: The impact of the miscalculation is estimated to be between $40 and $45 million. The financial impact will primarily be in terms of financial costs, with only a small portion (2%) affecting customers. The process for returning this amount is expected to be completed in the first half of 2026.

Q: What is the amount owed to Enel Distribution Chile in connection to the VAD 2020-2024? A: The amount owed is approximately $50 to $55 million. The process is in its final stages, and the sector will determine when the missing part will be received. The cashback could start in the middle of 2026, although it might begin earlier according to the new Minister of Energy.

Story Continues

Q: Could you explain your strategy regarding LNG and Argentine gas for 2026? How many ships do you plan to buy? A: The gas business is crucial for Enel Chile, both for thermal power plants and for creating margin opportunities. The company has long-term LNG contracts and plans to continue using them in 2026. Negotiations are ongoing with Argentine suppliers to add new contracts for Argentine gas.

Q: Could you provide an update on CapEx for the generation business in 2025? A: The CapEx plan is mostly on track, except for a delay in the development of a new system due to strategic reasons. The delay was to await new regulations for ancillary services. The total generation investment is expected to be around $10 to $16 million, with a focus on thermal fleet efficiency and performance.

Q: What measures are being taken to address increasing energy losses in distribution? A: Energy losses have increased slightly above 6% due to various reasons, including tax increases. Enel Chile is increasing activities to recover these losses, launching flexible payment plans, using smart tools to localize losses, and working with regulators to find regulatory changes to help contain losses.

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

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