Enel Américas (ENELAM) Q2 2024 earnings summary

Executive summary

• Completed sale of Peruvian assets, generating $4.4 billion in cash and $1.8 billion in net income, driving record net income of $2.3 billion in H1 2024 and advancing corporate simplification.

• Strategic focus shifted to Brazil and Colombia, with increased investments in grids and renewables to support long-term growth and operational improvements.

• Net profit attributable to shareholders surged to $1.93 billion in Q2 2024, up from $169 million in Q2 2023, mainly due to Peru asset sales.

• Energy distributed rose 7% year-over-year, driven by Brazilian and Colombian concessions; renewable capacity increased by 700 MW in 2024.

• Corporate simplification continues, with further divestitures in Argentina under consideration.

Financial highlights

• H1 2024 revenues rose 6% year-over-year to $6.7 billion; Q2 revenues up 4.5% to $3.38 billion, driven by Colombia and Argentina, partially offset by lower revenues in Brazil.

• H1 2024 EBITDA increased 9% year-over-year to $2.1 billion; Q2 2024 EBITDA was $995 million, up 4% year-over-year.

• Net income for H1 2024: $2.3 billion, with $1.8 billion from asset sales; operational net income: $0.5 billion.

• Net debt reduced by 65% to $2.3 billion as of June 2024, reflecting strong cash inflows from asset disposals.

• CAPEX in H1 2024 was $1.07 billion, down 20% year-over-year, with a focus on grids and renewables.

Outlook and guidance

• Strategic focus on Brazil with $2.9 billion CapEx for grids from 2024-2026, a 75% increase over prior plan; anticipated final contract for Brazil grid concession renewal expected in October 2024.

• Remaining Peruvian asset (Enel Generación Piura) expected to be sold by end of 2025.

• Dividend payout for 2024 expected to be based on $3 billion net income, with 15% paid as provisional dividend in January 2025.

• Use of remaining cash from asset sales to be defined in the next strategic plan, expected November 2024.

• Strategy emphasizes concentration in countries supporting energy transition and increasing renewable capacity.