Enel Chile S.A.

Overview Key strengths Key risks Largest vertically integrated utility in Chile, given its leading position in the generation and distribution sectors. Exposure to hydrological conditions, because as of June 30, 2023, 41% of net installed capacity comes from hydropower plants. Under scenarios of severe droughts and high spot prices, as was the case in 2021, the company needs to buy energy in the spot market to serve its contracts, which results in significant cash outflows. Enel Chile S.A.?s distribution business is stable in nature. The company's generation segment holds contracts with creditworthy counterparties and with an average maturity of seven years, providing certainty to prices. Conservative financial policy as seen in recent actions to reduce leverage to current levels, after

...The delays in the stabilization energy mechanism continue to affect the cash collection cycle, but not to the point of weakening liquidity. As of this report's date, Enel Chile has accumulated balances from the "Precio Estabilizado al Cliente Regulado" (PEC 1 and 2) receivables (the mechanism to recover differences between the regulated contract prices and stabilized prices) of close to $630 million. The collection of most of receivables was delayed for about eight months, and we expect Enel Chile to receive most of them in the second half of the year. Despite the significant amount, Enel Chile had sufficient sources of liquidity of close to $1 billion as of June 30, 2023, consisting of available committed credit lines and existing cash balances, to withstand the working capital peaks. We will continue monitoring the stabilization program and we will incorporate in our analysis any relevant developments. Enel Chile's recently announced asset rotation of four solar farms also helps maintain...

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