ENIC Enel Chile SA ADR

Enel Chile has secured all contracts in the 2025/02 regulated supply tender, marking its third consecutive win in such processes. The tender, aimed at securing 1,470GWh for 2026, saw an average weighted price of US$98.699 per MWh for Enel, significantly higher than the previous process. This success indicates Enel's dominant position in Chile's electricity supply market, despite recent modifications to auction rules and market dynamics.

Enel Chile S.A. carries substantial debt, with a net debt of US$3.25 billion as of September 2025, which outweighs its cash and near-term receivables by US$5.19 billion. The company exhibits weak interest cover and a high net debt to EBITDA ratio, alongside a significant 71% decline in EBIT over the last year, raising concerns about its financial risk despite reasonable free cash flow generation. While the Electric Utilities industry often uses debt, Enel Chile's leverage is substantial and poses risks of potential permanent losses for shareholders.

This article analyzes Enel Chile S.A.'s debt profile, highlighting its significant debt load despite a reduction over the past year. While the company demonstrates good free cash flow conversion, its weak interest cover and high net debt to EBITDA ratio, coupled with a substantial EBIT decline, raise concerns about its financial risk. The analysis suggests potential risks around the balance sheet, though acknowledges that utility companies often use debt.

Fitch Ratings has affirmed Enel Generacion Chile S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BBB+' with a Stable Outlook, following the affirmation of its parent company Enel Chile S.A. The ratings are consolidated due to the strong financial and operational linkage between Enel Generacion and its parent. Fitch expects Enel Generacion's EBITDA leverage to remain consistently below 1.0x, supported by strong internal cash flow generation, a solid contractual position, and a balanced generation mix.

Fitch Ratings has affirmed Enel Chile S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BBB+' with a Stable Outlook, along with its Long-Term National Scale rating at 'AA+(cl)' and National Equity Rating at 'Primera Clase Nivel 1(cl)'. The rating reflects the company's integrated business profile, strong cash flow generation, and solid liquidity, with Fitch expecting EBITDA leverage to remain below 3.0x. Enel Chile's strategy includes significant investment in renewable capacity and battery storage systems, maintaining a market-leading position with a strong contracted profile and long-term power purchase agreements.

Enel Chile S.A. has announced an interim dividend of USD 0.000762962580788 per share, representing 15% of its net income as of September 30, 2025. The dividend is payable on January 23, 2026, in Chilean pesos. Despite significant financial challenges in revenue and profitability, the company's strong dividend and a "Hold" analyst rating indicate a commitment to shareholder returns.