ENIC

Enel Chile S.A. - Form 6-K Summary (Period Ended September 30, 2025)

Business Context and Reporting Period

This filing covers the consolidated financial results of Enel Chile S.A. for the nine-month period ended September 30, 2025. The company operates in Chile through two primary segments: Generation (hydro, solar, wind, thermal, and storage) and Distribution & Networks. A significant accounting change occurred effective January 1, 2025, where the functional and reporting currency changed from Chilean pesos to United States dollars.

Key Financial Metrics

Segment Performance:

• Generation: EBITDA decreased 9.1% to US$ 893 million (cumulative) due to lower hydrology and reduced physical energy sales. Net generation fell 9.2% to 16,866 GWh.
• Distribution & Networks: EBITDA increased 81.7% to US$ 125 million (cumulative), driven by lower operating costs despite a 2.5% decline in physical sales.

Material Changes vs. Prior Period

• Revenue Decline: Operating revenues dropped 7.8% year-over-year (YoY) cumulatively, primarily driven by an 11.5% revenue decrease in the Generation segment due to lower energy sales and expiring regulated customer contracts.
• Profitability Pressure: Net income attributable to shareholders fell 21.1% YoY. This was caused by a worsening financial result (expense increased from US$ 113 million to US$ 157 million) and higher depreciation/amortization expenses.
• Cost Reductions: Procurement and service costs decreased 13.2% YoY, largely due to lower energy purchase costs and transmission expenses, which helped stabilize consolidated EBITDA.
• Impairments: The company recorded a US$ 35 million impairment loss on Property, Plant, and Equipment related to the Las Salinas expansion project and a US$ 12 million impairment on accounts receivable.

Guidance, Outlook, and Risks

Regulatory Environment: The company is navigating complex tariff stabilization mechanisms (Laws 21,185, 21,472, and 21,667). While these laws allow for gradual tariff increases to recover accumulated debt, the recovery timeline extends to 2035. A recent CNE resolution (No. 633) regarding methodology for setting node prices is under evaluation for potential implications.

Financial Risks:

• Hydrology: Generation results remain sensitive to hydrological conditions; lower hydrology in Q3 2025 significantly impacted output.
• Debt Structure: Gross financial debt increased slightly to US$ 3,941 million. The average cost of debt decreased to 4.8%.
• Currency: The shift to US dollars as the functional currency has altered the presentation of exchange rate risks, though the company maintains hedging policies (cross currency swaps and forwards) to mitigate volatility.

Outlook: Management notes that the Generation segment's main income source is shifting toward free customer contracts, which reduces exposure to exchange rate fluctuations compared to regulated contracts. The company continues to invest in renewable energy, with 78% of net installed capacity now renewable.

Investor Verification Checklist

• Regulatory Recovery Timeline: Verify the specific schedule for recovering the US$ 1.8 billion (and additional US$ 5.5 billion) in accumulated debt under the new tariff stabilization laws.
• Hydrological Forecasts: Assess the impact of current and projected hydrological conditions on the Generation segment's output for the remainder of 2025 and 2026.
• Impairment Details: Review the specific assumptions behind the US$ 35 million impairment on the Las Salinas expansion project to understand future capital allocation risks.
• Debt Maturities: Confirm the maturity profile of the US$ 3,941 million gross debt and the availability of the US$ 640 million in committed credit lines.
• Currency Impact: Analyze the full-year impact of the functional currency change from Chilean pesos to US dollars on future earnings volatility and tax calculations.