Navigating Contradictions: Insights from the Latest Earnings Call on Tariffs, CapEx, and Dividends
Earnings DecryptTuesday, May 20, 2025 5:19 am ET
1min read
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Tariff Adjustments and Revenue Improvement:
- Edenor reported a 48% increase in real terms for revenues in the first quarter of 2025 to ARS 638 billion, compared to ARS 430 billion in the previous year.
- This increase was mainly driven by the impact of a 319% tariff adjustment in February 2024 and subsequent average monthly adjustments of 4% since August 2024.
Operating Performance and EBITDA Growth:
- Edenor's EBITDA improved significantly to ARS 63.2 billion in Q1 2025, compared to ARS 6.9 billion in Q1 2024.
- The improvement was largely due to tariff increases and operational efficiencies, which offset higher energy costs and lower sales volumes.
Five-Year Tariff Review and Future Outlook:
- The five-year tariff review process resulted in a 14.34% rate increase for Edenor, with an initial 3% increase effective May 1, 2025, followed by monthly adjustments of 0.42% until November 2027.
- This increase aims to limit inflation effects and provide more regulatory certainty, benefiting Edenor's future growth and profitability.
Debt Reduction and Financial Stability:
- Edenor successfully reduced its financial debt by cancelling ARS 24.4 million in principal and interest on Class 4 notes and ARS 9 million in principal and accrued interest on Class 1 notes.
- This reduction reflects Edenor's improved cash flow position, enabled by positive financial results and tariff adjustments.
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Tariff Adjustments and Revenue Improvement:
- Edenor reported a 48% increase in real terms for revenues in the first quarter of 2025 to ARS 638 billion, compared to ARS 430 billion in the previous year.
- This increase was mainly driven by the impact of a 319% tariff adjustment in February 2024 and subsequent average monthly adjustments of 4% since August 2024.
Operating Performance and EBITDA Growth:
- Edenor's EBITDA improved significantly to ARS 63.2 billion in Q1 2025, compared to ARS 6.9 billion in Q1 2024.
- The improvement was largely due to tariff increases and operational efficiencies, which offset higher energy costs and lower sales volumes.
Five-Year Tariff Review and Future Outlook:
- The five-year tariff review process resulted in a 14.34% rate increase for Edenor, with an initial 3% increase effective May 1, 2025, followed by monthly adjustments of 0.42% until November 2027.
- This increase aims to limit inflation effects and provide more regulatory certainty, benefiting Edenor's future growth and profitability.
Debt Reduction and Financial Stability:
- Edenor successfully reduced its financial debt by cancelling ARS 24.4 million in principal and interest on Class 4 notes and ARS 9 million in principal and accrued interest on Class 1 notes.
- This reduction reflects Edenor's improved cash flow position, enabled by positive financial results and tariff adjustments.
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