CHILE · ENERGY
Key Facts
- The country Chile is a copper-mining economy in South America whose power grid mixes hydropower, solar, wind and gas, and whose big utilities borrow in US dollars.
- Why it matters Enel Chile has American depositary shares listed on the New York Stock Exchange under the ticker ENIC, so US investors hold both the stock and the company’s dollar bonds.
- Why now The company published its nine-month results on 28 October 2026 and presented them to investors on a call on 29 October.
- What happened Third-quarter net income rose to US$118 million from US$106 million, while quarterly EBITDA slipped to US$336 million from US$345 million.
- The numbers Nine-month net income was US$390 million (up 10.7%), EBITDA US$1.021 billion (up 1.7%), revenue US$3.48 billion and capital spending US$492 million.
- What it means for you The profit trend is up, but management warns that extra rain does not lift earnings one for one because spot power prices are very low.
- Still open Gas supply after April 2027, the 2027 outlook and a grid-reform bill due in March 2027 are all undecided.
- Power Index Chile ranks 3rd of 14 in The Rio Times Latin America Power Index, with 63.6 points (October 2026 edition).
In Plain English
Enel Chile is the Chilean power company of the Italian-origin Enel group, running power plants and distributing electricity to about 2.2 million customers. Its American depositary shares, known as ADRs, are certificates that let US investors buy the stock on the New York Stock Exchange.
EBITDA is operating profit before interest, taxes, depreciation and amortization, and a grid-forming battery is a storage system that can set voltage and frequency itself instead of only following the grid. A Yankee bond is a US dollar bond sold in the United States market by a foreign borrower.
Enel Chile, the Chilean power producer and electricity distributor whose shares trade in New York under the ticker ENIC, earned US$118 million in the third quarter, up from US$106 million a year earlier. Nine-month net income reached US$390 million, a rise of 10.7%, in results published on 28 October 2026.
The profit gain came while quarterly EBITDA, a measure of operating earnings before interest, taxes and depreciation, slipped 2.6% to US$336 million from US$345 million. On a 29 October investor call, management said Enel Chile remains on course for its 2026 EBITDA and net income guidance, and background on the group sits in the Enel Chile S.A. company profile.
Profit Rises While Operating Earnings Dip
Generation EBITDA fell 7.8% in the third quarter to US$292 million from US$316 million, while the electricity distribution and grid business jumped 43.2% to US$47 million from US$33 million. Over nine months, generation earned US$903 million, up 1.1%, and distribution US$127 million, up 1.3%.
Revenue reached US$1.212 billion in the quarter, up about 1%, and US$3.48 billion over nine months, essentially flat from US$3.479 billion a year earlier. Nine-month EBITDA of US$1.021 billion was up 1.7% from US$1.004 billion, extending the first-half profit gain of 11% tied to a Shell gas deal covered in July.
Management pointed to the expiry of a regulated contract and a lower gas margin as the two items that weighed on the quarter. The gas margin fell US$10 million because gas and concession activity booked in the third quarter of 2025 was concentrated in the first quarter of 2026.
Rain Rescues a Dry Year
Hydroelectric output jumped 88% from 2.1 terawatt-hours in the second quarter to 3.9 terawatt-hours in the third, after hydrological conditions improved significantly in August and September following severe dryness through July. Nine-month hydro production reached 8.2 terawatt-hours, 3% above last year, and the Ralco and Pangue plants in the Biobío region now run at full capacity.
Chief executive Gianluca Palumbo cautioned on the call that more water does not lift EBITDA one for one, because a large part of the extra output simply offsets the drought and spot prices are very low. He said full-year hydro generation is now expected at 11 to 12 terawatt-hours after rain continued through October.
Net spot purchases of power fell 1.6 terawatt-hours in the third quarter and 1.3 terawatt-hours over nine months, as the company relied less on the market. La Tercera reported total generation of 16,966 gigawatt-hours over nine months, up 0.6%, and 2,216,233 distribution customers, up 1.5%.
Batteries Take Over the Spending
Capital spending doubled to US$492 million in the first nine months, with 63% going to renewable generation and 25% to the distribution network. Four battery projects totalling about 0.6 gigawatts are under construction, led by Las Salinas at 206 megawatts, with Valle del Sol at 153, Azabache at 94 and Finis Terrae at 100.
Las Salinas had its first grid synchronization in October and is billed as Chile’s first grid-forming battery, a type that helps hold voltage and frequency steady the way a conventional power plant does. Three projects are due to begin commercial operation in 2027 and Finis Terrae, whose construction start in Antofagasta came in August, in 2028.
Debt, Dollars and a Tax Cut
Liquidity at the end of September was US$1.021 billion, made up of US$650 million in committed credit lines and US$371 million in cash equivalents, and Revista Electricidad reported gross financial debt of US$3.795 billion, down US$46 million from December 2025. The finance chief, Simone Conticelli, said the company is weighing whether to refinance its Yankee bond early, a dollar bond that foreign companies sell to US investors.
Conticelli described an early refinancing as a trade-off, because the existing bond costs about 4.9% while a new 10-year dollar bond would price near 6.2%. Conticelli said the market remains liquid and accessible for a new bond, and that the company is still working on it but is not worried.
The corporate tax reduction brings a one-off impact of about US$11 million from revaluing deferred taxes, recorded in the October closing in the fourth quarter. A recurring effect follows from next year, lifting net income and cutting cash taxes until 2029, though the call put no dollar figure on it.
What It Means for You
US holders of the ADRs own a company whose nine-month profit is rising even though quarterly operating earnings dipped, and whose 2026 targets management has reaffirmed. Enel Chile publishes its results in US dollars, so the headline figures need no peso conversion, and more background sits in the Rio Times Chile coverage.
The company’s sales to free-market clients, a group that includes miners, were lower, which management partly tied to weaker demand from mining customers. A government bill on electricity-grid reform is expected in Congress in March 2027, and management called the Energy Ministry proposal broadly right.
What Is Not Known
The company’s own documents do not say whether the quarter beat analyst expectations, and no independent consensus figure could be confirmed. Readers comparing the result with an estimate should check which share class and currency it uses.
The supply of natural gas after April 2027 is undecided, because the firm Argentine gas contract only guarantees volumes through that month. Management said it expects to give more detail with its first-quarter 2027 results.
The size and timing of the electricity-grid reform are open, with a bill expected in Congress in March 2027 and working groups still meeting. Management also said it is too early to define guidance for 2027, which depends on hydrology at the end of the year.
Frequently Asked Questions
How much did Enel Chile earn in the third quarter of 2026?
Net income was US$118 million, up from US$106 million a year earlier. Nine-month net income reached US$390 million, a rise of 10.7%.
Is Enel Chile stock traded in the United States?
Enel Chile’s American depositary shares trade on the New York Stock Exchange under the ticker ENIC. The company files an annual report on Form 20-F with the US Securities and Exchange Commission.
Why did Enel Chile’s operating profit fall in the third quarter?
Quarterly EBITDA slipped 2.6% to US$336 million as generation earnings fell 7.8%. Management pointed to an expired regulated contract and a lower gas margin.
What is Enel Chile building with batteries?
Four battery projects totalling about 0.6 gigawatts are under construction, led by the 206-megawatt Las Salinas system. Three are due to start operating in 2027 and the fourth in 2028.
Will Enel Chile meet its 2026 targets?
Management said on 29 October that the company is on track to meet its 2026 EBITDA and net income guidance. It also said it is too early to define guidance for 2027.
Sources: Enel Chile third-quarter 2026 earnings call transcript, 29 October 2026; Revista Electricidad, 29 October 2026; Electromineria, 28 October 2026; La Tercera, 28 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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