Earning Date, Transcript Summary & Report

EBITDA Profit Improvement: EBITDA for the full-year resulted in a profit of ARS207.3 billion, reflecting a sharp improvement in operating results due to tariff increases.

Sales Surge in Q4: Sales rose 97% year-to-year in the fourth quarter of 2024 in constant currency to ARS517.1 billion, driven by the February 2024 tariff adjustment.

Distribution Margin Increase: The distribution margin rose 126% in the fourth quarter to ARS219.5 billion, aided by tariff adjustments despite lower sales volumes.

Net Earnings Increase: Net earnings rose 23% year-to-year, indicating improved profitability.

Client Base Growth: Edenor's client base reached 3.34 million, showing a 1% growth versus the fourth quarter of 2023, indicating successful customer acquisition efforts.

EBITDA Recovery Quarter: The EBITDA for the fourth quarter was ARS57.8 billion, a significant recovery from a negative EBITDA of ARS63.5 billion in the same quarter of the previous year.

Reduction in Financial Expenses: Net financial expenses saw a sharp reduction to ARS31.2 billion, down from ARS192 billion in the fourth quarter of 2023, reflecting improved financial management.

Capital Expenditures Increase: Capital expenditures for the full-year of 2024 were ARS389.2 billion, up 45% from 2023, demonstrating commitment to infrastructure and service quality improvements.

International Market Re-entry: The company successfully returned to international markets with a $184 million issuance, improving its debt profile and liquidity position.

Credit Rating Upgrades: Credit ratings have improved significantly, with upgrades from Standard & Poor's, Moody's, and Fitch, reflecting a stronger financial outlook.

Sales Volume Decline: Sales volume in the fourth quarter of 2024 totaled to 5,175 gigawatts which has down 1.6% versus the fourth quarter of 2023 because of the effect of the economy on demand in the commercial and industrial segments.

Residential Demand Decline: Residential demand also declined 3.1% monthly, due to variations in temperature in the fourth quarter of 2024 versus the previous year.

Distribution Margin Increase: The distribution margin rose 126% in the fourth quarter to ARS219.5 billion that helped mainly by the tariff adjustments that were partially offset by lower sales volumes.

Energy Loss Increase: Energy losses for the full-year were 15.2% which was modestly from 14.1% in 2023, indicating a slight increase in inefficiencies.

Scheduled Outages for Maintenance: The increase in scheduled outages is because of important maintenance tasks and important projects that we are carrying out in many municipalities impacting on the current values of outages and durations, aimed to improve the quality of services for our company.

Regulatory Challenges Ahead: The final report with the proposed tariff together with a report prepared by FIEL, Fundacion de Investigaciones Economicas Latinoamericanas, with the objections to the rate of return previously set by the ENRE, which was appealed by Edenor, indicates ongoing regulatory challenges.

Energy Cost Obligations: The company has been paying its energy purchase cost to CAMMESA since April, indicating ongoing financial obligations that may impact cash flow.

Energy Subsidy Reduction Impact: The national government is continuing its program to gradually reduce energy subsidies, which could affect customer demand and revenue.

Deferred Tax Liability Issues: The deferred tax adjustment identified inconsistencies in the determination of deferred tax liabilities, highlighting potential internal control weaknesses.