Q2 2024 Empresa Distribuidora y Comercializadora Norte SA Earnings Call Transcript
Key Points
- Empresa Distribuidora y Comercializadora Norte SA (BUE:EDN) reported a significant improvement in EBITDA, rising to ARS77.4 billion in the second quarter of 2024 from a loss of ARS27.3 billion in the same period last year.
- The company successfully issued $100 million in Class 5 and Class 6 notes at attractive rates, improving its debt profile.
- A major 319.2% transition tariff increase was implemented on February 16, 2024, leading to substantial financial improvements.
- The five-year tariff review process is on track to be completed by year-end, which is expected to further enhance financial performance.
- Energy losses were reduced to 14.1% from 15.3% year-over-year, demonstrating effective measures to curb inefficiencies.
- The resignation of Neil Bleasdale as Chairman and CEO could lead to transitional challenges as Daniel Marx takes over.
- Despite improvements, the company still faces challenges with regulatory uncertainties and the need for further tariff adjustments.
- Financial expenses increased by 2% compared to the second quarter of 2023, primarily due to CAMMESA debt and currency devaluation impacts.
- The company continues to negotiate a payment plan for remaining debt with CAMMESA, indicating ongoing financial obligations.
- There is a reduced demand in energy consumption, which partially offset the positive impacts of tariff adjustments.
(video playing)
Good morning. On behalf of Edenor, we would like to thank everybody for participating in this conference call to discuss the Result of Second Quarter ending June 30, 2024. We will also highlight important recent developments and advances in our efforts to strengthen our position as an energy leader.
If you would like to receive our earnings release or presentation, you can download them easily from the Investor Relations section of our website located at www.edenor.com, or contact our Investor Relations team to request the document.
This event is being recorded. After the company's remarks are completed there will be a question-and-answer session, for which you may submit questions through the webcast chat.
Before proceeding, let me mention that forward-looking statements are based on the belief and assumption of Edenor's management and on
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