Edenor's Q4 2024 Earnings Call: Contradictions in CapEx Plans, Financial Performance, and Regulatory Timelines

These are the key contradictions discussed in Empresa Distribuidora y Comercializadora Norte Sociedad Anónima's latest 2024Q4 earnings call, specifically including: CapEx plans, financial performance, and regulatory approval timeline for change in control:



Improved Financial Performance:
- Edenor reported EBITDA of ARS207.3 billion for the full year 2024, reflecting a sharp improvement in operating results.
- This growth was driven by tariff increases starting with a significant adjustment in February 2024 and subsequent monthly adjustments averaging 4% since August 2024.

Capital Expenditures and Infrastructure Investments:
- Edenor's capital expenditures for 2024 were ARS389.2 billion, a 45% increase from 2023.
- The increase was due to investments aimed at meeting rising demand, enhancing service quality, and reducing non-technical losses.

Debt Ratings and Financial Health:
- Edenor's credit ratings improved significantly, with Standard & Poor's raising their local currency and foreign currency debt ratings from CCC to CCC+.
- This improvement was a result of Edenor's enhanced regulatory environment and improved macro outlook in Argentina.

Tariff Review and Regulatory Framework:
- The five-year tariff review process for 2025 to 2029 is well-advanced, with the public hearing held on February 27 and final tariffs expected by March 31.
- This process aims to normalize tariffs and deregulate the energy sector, which should further enhance Edenor's financial performance.