Enel Chile (ENIC) 6-KCurrent report (foreign)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of February, 2024.

Commission File Number: 001-37723

Enel Chile S.A. 
(Translation of Registrant’s Name into English)

Santa Rosa 76
Santiago, Chile 
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  [X]   Form 40-F  [   ]

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

ENEL CHILE

ANNOUNCES CONSOLIDATED RESULTS

FOR THE PERIOD ENDED DECEMBER 31, 2023

(Amounts expressed in millions of Chilean Pesos – Ch$ million)

EXECUTIVE SUMMARY

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

BUSINESS SEGMENT SUMMARY

Generation

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Distribution & Networks

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

FINANCIAL SUMMARY- ENEL CHILE

The Company’s gross financial debt as of December 2023 was US$ 4,408 million, US$ 252 million less than the balance as of December 2022. This variation was mainly explained by the following:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Liquidity available to Enel Chile is composed of the following:

The average cost of Enel Chile’s debt went from 4.1% in December 2022 to 4.9% in December 2023.

Hedging and protection:

To mitigate the risks associated with exchange rate and interest rate variations, Enel Chile has established policies and procedures to protect its financial statements against the volatility of these variables.

Enel Chile’s exchange rate hedging policy states that there should be a balance between the currencies of each company’s operations and the currency of its debt. Therefore, we have cross currency swaps and forward contracts that amount to US$ 252 million and US$ 1,251 million, respectively.

To reduce financial statement volatility caused by interest rate variations, the Enel Chile Group maintains an adequate debt structure balance. Therefore, the Group has interest rate swaps for US$ 50 million.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

INFORMATION RELEVANT TO THE ANALYSIS OF THESE FINANCIAL STATEMENTS

Regulatory Changes:

On September 14, 2020, the National Energy Commission (“CNE” in its Spanish acronym) published Exempt Resolution 340 that modified the technical provisions regarding the implementation of the Tariff Stabilization Law. This Resolution clarified that the payment to each supplier “must be booked against the Balance in a chronological manner, beginning with the most dated to the most recent pending Balances”, and not weighted based on the total Balance pending payment as it had been interpreted by the industry up to such date.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

This fund will be financed with an extra charge billed to final customers based on their level of consumption. Customers whose monthly consumption is less than 350 kWh, and also small companies that consume less than 1,000 kWh are exempt of this additional charge.

The fund is managed by Chile’s treasury department, Tesorería General de la República. It will receive a US$ 20 million fiscal contribution every year until its expiration date set on December 31, 2032, in addition to the US$ 15 million contribution made in 2022. The amount accumulated in excess of the US$ 1,350 million fund established in Law No. 21,185 is subject to this new mechanism created by Law No. 21,472.

On March 14, 2023, the National Energy Commission published Exempt Resolution 86 that establishes technical provisions regarding the implementation of Law No. 21,472. On August 9, 2023, the CNE issued Exempt Resolution 334 that amends and restates the text of Exempt Resolution No. 86 indicating, among other issues, certain provisions, procedures, terms and conditions to adequately implement such Law.

The sale of Enel Transmisión Chile S.A.:

On December 9, 2022, the Company informed that the conditions precedent previously mentioned had been satisfied and therefore the Sale, amounting to approximately US$ 1,399 million, had become effective.

The sale of Arcadia Generación Solar S.A.:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

MARKETS IN WHICH ENEL CHILE S.A. OPERATES

Generation segment

We carry out our generation business in Chile through our subsidiaries Enel Generación Chile and Enel Green Power Chile (hereafter EGP Chile) which combined, have a total 8,478 MW^[1] net installed capacity as of December 31, 2023. Our generation assets are diversified, and focus on renewable energy, which represents 77%^[2] of the Enel Chile’s total net installed capacity. A total of 3,510 MW come from hydroelectric power plants, 1,978 MW from thermal power plants that operate using gas or fuel oil, 1,970 MW from solar power plants, 903 MW from wind farms, 83 MW from geothermal power plants, and 34 MW from energy storage systems (BESS).

The following chart summarizes the physical information of our Generation business segment for the period ended December 31, 2023, and 2022:

Distribution & Networks segment

Our Distribution and Networks business is carried out by our subsidiaries Enel Distribución Chile S.A. and Enel Colina S.A.

Enel Distribución Chile is one of the largest electricity distribution companies in Chile in terms of regulated customers, distribution assets, and electricity sales. It operates in a 2,105 square kilometer concession area. The Chilean Government granted the concession agreement for an unlimited period of time to transmit and distribute electricity to 33 counties of the Metropolitan Region, including the concession areas of our subsidiary Enel Colina. Its service area, from the Chilean tariff regulation perspective, is considered primarily a densely populated area, making it one of the largest electric utility companies for regulated customers in Chile.

^[1] Includes an additional 555 MW net capacity during 2023. Additional capacity: when the first wind turbine/photovoltaic field circuits are connected to the network and begin to produce electricity and all wind turbine/photovoltaic field circuits are electromechanically operational. Capacity to be declared as “Additional” refers to the nominal capacity that is electromechanically operational.

^[2] Refers to Renewables + BESS.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

The following chart summarizes the physical information of our Distribution and Networks business segment for the period ended December 31, 2023, and 2022^[3]:

The following chart presents quarterly and accumulated electricity sales revenue per business segment and customer type as of December 31, 2023, and 2022:

^[3] Figures include physical sales of Enel Transmisión Chile S.A. that was sold on December 9, 2022.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

I. CONSOLIDATED FINANCIAL STATEMENT ANALYSIS

Net income attributable to the shareholders of Enel Chile as of December 31, 2023, reached a Ch$ 633,456 million profit, which represents a Ch$ 618,626 million, or 49.4%, reduction when compared to the figure for 2022. During Q4 2023, net income attributable to the shareholders of Enel Chile reached a Ch$ 357,798 million profit, which is Ch$ 744,842 million less than the figure for Q4 2022.

The following chart compares the quarterly and accumulated figures of each item of the income statement as of December 31, 2023, and 2022:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

EBITDA

Consolidated EBITDA of Enel Chile amounted to Ch$ 1,038,958 million as of December 31, 2023, which represents a Ch$ 135,245 million, or 11.5%, decrease when compared to EBITDA for year 2022. This reduction is primarily explained by the US$ 520 million payment made by Shell to Enel Generación Chile that was booked as additional revenue in December 2022 related to their contract amendment, and also due to lower gas sales revenue, partially offset by lower operating costs resulting from lower gas commercialization costs and energy purchase costs, also in the Generation business segment.

During Q4 2023, consolidated EBITDA amounted to Ch$ 395,485 million, which represents a Ch$ 364,088 million decrease when compared to Q4 2022, primarily explained by lower operating revenues in the Generation business segment due to the additional revenue booked in December 2022 related to the agreement with Shell.

Operating revenues, operating costs, personnel, and other expenses that determine our EBITDA, broken down by business segment for the periods ended December 31, 2023, and 2022, are presented below:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Generation business EBITDA

EBITDA of our Generation business segment reached Ch$ 991,587 million as of December 31, 2023, which is Ch$ 68,206 million, equivalent to a 6.4%, less than the figure for 2022. Regarding quarterly results, Q4 2023 EBITDA for this business segment decreased Ch$ 339,504 million when compared to Q4 2022.

The main variables that explain this result are described below:

The aforementioned was partially compensated by:

^[4] Includes Ch$ 460,715 million booked in December 2022 related to gas purchase contract amendment signed by Enel Generación Chile and Shell mainly regarding the gas volume commitments.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Operating revenues for Q4 2023 reached Ch$ 760,240 million, which represents a Ch$ 648,324 million reduction when compared to Q4 2022. This variation is mainly due to the following:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Operating costs for Q4 2023 reached Ch$ 316,343 million, which represents a Ch$ 263,159 million reduction when compared to Q4 2022. This variation is mainly due to the following:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

During Q4 2023, personnel expenses (net of personnel expense capitalization) reached Ch$ 19,118 million, which represents a Ch$ 8,873 million increase when compared to Q4 2022, mainly explained by: (i) greater employee collective bargaining agreement bonuses for Ch$ 2,635 million; (ii) less capitalization of personnel expenses for Ch$ 2,100 million; (iii) greater restructuring expenses related to the Group’s digitalization strategy for Ch$ 1,600 million; (iv) greater severance payments for Ch$ 1,029 million; and (v) greater performance bonuses and other recurrent expenses for Ch$ 771 million.

During Q4 2023, other expenses amounted to Ch$ 42,873 million, which is Ch$ 54,535 million less than the figure for Q4 2022, mainly explained by a Ch$ 52,800 million reduction in impairment costs due to the thermal, hydroelectric, and geothermal power plant project impairment costs booked in 2022, as mentioned above.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Distribution & Networks business EBITDA

The EBITDA of our Distribution and Networks business segment reached Ch$ 92,378 million as of December 31, 2023, which represents a Ch$ 67,478 million, or 42.2% reduction when compared to 2022. During Q4 2023, EBITDA reached Ch$ 23,506 million, which represents a Ch$ 17,757 million reduction when compared to Q4 2022.

The main variables that explain this outcome are described below:

These effects were partially offset by:

During Q4 2023, operating revenues amounted to Ch$ 375,717 million, which represents a Ch$ 7,604 million reduction, equivalent to 2.0%, when compared to Q4 2022, mainly explained by the following:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

These effects were partially offset by:

The aforementioned effects were partially compensated by:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

During Q4 2023, operating costs reached Ch$ 329,279 million, which represents a Ch$ 10,769 million increase when compared to Q4 2022, mainly explained by:

The aforementioned effects were partially compensated by:

During Q4 2023, personnel expenses (excluding capitalized personnel costs) amounted to Ch$ 6,679 million, which is Ch$ 1,520 million higher than the figure for Q4 2022, mainly explained by lower capitalization of personnel expenses related to investment projects for Ch$ 1,311 million.

During Q4 2023, other expenses amounted to Ch$ 16,253 million, a Ch$ 2,137 million reduction when compared to the figure for Q4 2022, mainly due to lower maintenance and repair costs related to the sale Enel Transmisión Chile.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

DEPRECIATION, AMORTIZATION AND IMPAIRMENT

The following table summarizes the Enel Chile Group quarterly and accumulated EBITDA, depreciation, amortization and impairment expenses and EBIT broken down by segment as of December 31, 2023, compared to December 31, 2022.

Depreciation, amortization, and impairment costs amounted to Ch$ 271,197 million for the period ended December 31, 2023, which represents a Ch$ 9,351 million increase when compared to the previous year. This variation is mainly explained by:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

The aforementioned effects were partially compensated by:

During Q4 2023, depreciation, amortization, and impairment costs amounted to Ch$ 77,534 million, which represents a Ch$ 7,893 million increase when compared to Q4 2022. This is mainly explained by: (i) higher depreciation and amortization for Ch$ 6,849 million, primarily in the Generation business segment, due to the commissioning of new power plants; and (ii) greater impairment of property, plants, and equipment for Ch$ 5,476 million. All the aforementioned was partially compensated by lower impairment of accounts receivables for Ch$ 4,433 million, primarily in the Distribution and Networks business segment.

NON-OPERATING INCOME

The following chart presents Enel Chile’s quarterly and accumulated consolidated non-operating income as of December 31, 2023, and 2022:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Financial Result

The consolidated net financial income of Enel Chile for year 2023, amounted to a Ch$ 88,384 million loss, which represents a Ch$ 30,555 million improvement when compared to the Ch$ 118,939 million loss booked for 2022. During Q4 2023, consolidated net financial income amounted to a Ch$ 39,391 million loss, which represents a 18.8% improvement when compared to the figure for Q4 2022.

The most relevant variables that explain this result are described the below:

Financial income increased Ch$ 83,839 million, mainly explained by: (i) greater interest income for Ch$ 52,656 million on Power Distribution company accounts receivables related to billings that have been accumulating since July 2022 million pending the issuance of the corresponding tariff decrees; (ii) greater interest income for Ch$ 8,700 million related to the implementation of tariff stabilization laws 21,185 and 21,472; (iii) greater returns on short-term fixed income investments amounting to Ch$ 14,704 million; and (iv) greater financial income related to customer refinacing agreements for Ch$ 6,871 million.

During Q4 2023, financial income increased Ch$ 62,399 million when compared to the last quarter of 2022, mainly explained by: (i) greater interest income for Ch$ 52,656 million on accounts receivables of pending billings to Distribution companies; and (ii) greater income related to the present value of dismantling provisions of power plants impaired due to the decarbonization process for Ch$ 9,103 million.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Financial expenses increased Ch$ 53,450 million, primarily explained by: (i) greater financial expenses for Ch$ 35,546 million due to financial accounts receivables factoring related to the Company’s financial leasing contracts involved in the Santa Rosa and Transantiago 5 electric mobility contracts; (ii) greater financial expenses as a consequence of improvements to the supplier payment schedule for Ch$ 18,173 million; and (iii) higher interest expenses on bonds and bank loans amounting to Ch$ 16,972 million. These effects were partially offset by lower financial expenses with related parties for Ch$ 15,079 million resulting from a lower amount of debt with Enel Finance International (EFI).

During Q4 2023, financial expenses increased Ch$ 53,767 million when compared to Q4 2022, explained by: (i) greater financial expenses for Ch$ 35,546 million due to factoring accounts receivables; (ii) greater financial expenses as a consequence of improvements to the supplier payment schedule for Ch$ 15,721 million; and (iii) lower interest capitalization for Ch$ 9,967 million. These effects were partially offset by lower financial expenses with related parties for Ch$ 9,608 million resulting from a lower amount of debt with Enel Finance International (EFI).

Income related to indexation increased Ch$ 19,423 million, mainly explained by greater income from indexation of trade accounts receivables for Ch$ 20,933 million primarily related to pending billings to Power Distribution companies that have been accumulating since July 2022 due to the postponement of tariff decrees. This effect was partially offset by: (i) greater losses due to trade accounts payable indexation for Ch$ 1,007 million; and (ii) greater negative effects caused by IAS 29 “Financial Reporting in Hyperinflationary Economies” on the branch of our subsidiary Enel Generación Chile located in Argentina for Ch$ 497 million.

During Q4 2023, income related to indexation increased Ch$ 18,519 million when compared to Q4 2022, mainly due to: (i) greater income from indexation of trade accounts receivables for Ch$ 19,434 million including Power Distribution company accounts receivables; (ii) lower negative effects caused by IAS 29 “Financial Reporting in Hyperinflationary Economies” on the branch of our subsidiary Enel Generación Chile located in Argentina for Ch$ 3,798 million. These effects were partially offset by: (i) lower income from non-financial asset indexation for Ch$ 2,944 million; and (ii) greater loss from indexation of trade accounts payable and other accounts payable for Ch$ 1,655 million.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Income from exchange rate differences decreased Ch$ 19,258 million, mainly explained by: (i) greater negative exchange rate differences on financial debt and derivative instruments for Ch$ 80,462 million; (ii) greater negative exchange rate differences on other financial assets for Ch$ 30,760 million; and (iii) lower positive exchange rate differences on related party trade accounts payable for Ch$ 13,845 million related to new loans obtained from EFI.

The aforementioned was partially offset by: (i) greater positive exchange rate differences on trade accounts receivables for Ch$ 64,058 million that includes the Ch$ 11,850 million positive effect related to Tariff Stabilization Laws 21,185 and 21,472^[5] that establishes that pending billings to regulated customers must be dollarized; (ii) greater positive exchange rate differences on trade accounts payable for Ch$ 30,604 million that includes the Ch$ 1,024 million negative effect related to Tariff Stabilization Laws 21,185 and 21,472; (iii) lower negative exchange rate differences on other non-financial liabilities for Ch$ 8,242 million; and (iv) lower negative exchange rate differences on other non-financial assets for Ch$ 2,668 million.

During Q4 2023, net income from exchange rate differences amounted to a Ch$ 18,038 million greater loss when compared to Q4 2022, mainly explained by: (i) greater negative exchange rate differences on trade accounts payable to related parties for Ch$ 86,899 million related to new debt payable to EFI; (ii) greater negative exchange rate differences on financial debt and defivative instruments for Ch$ 35,917 million; (iii) greater negative exchange rate differences on trade account payable for Ch$ 9,560 million that includes the Ch$ 22,711 million negative effect related to Tariff Stabilization Laws 21,185 and 21,472; (iv) greater negative exchange rate differences on cash and cash equivalents for Ch$ 8,779 million; and (v) greater negative exchange rate differences on other financial assets for Ch$ 4,272 million.

^[5] The US$ 1,350 million limit on regulated customer accounts receivables established by Law 21,185 which created a temporary regulated customer tariff stabilization mechanism, was reached in January 2022. Consequently, since February 2022, the short term regulated customer accounts receivables equivalent to the difference between the theoretical prices established by Distribution company contracts and the regulated tariff being billed to final customers were accumulating. On August 2, 2022, Law 21,472 was enacted creating a new tariff stabilization fund and a new temporary electricity tariff stabilization mechanism for regulated customers. The accounts receivables that exceed the US$ 1,350 million limit established by Law 21,185 that was reached in January 2022 are subject to the new mechanism established by Law 21,472. On March 2, 2023, the National Energy Commission issued Exempt Resolution 68 establishing the technical rules to implement Law 21,472.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

The aforementioned was partially offset by greater positive exchange rate differences on trade accounts receivable for Ch$ 127,199 million that includes the Ch$ 54,158 million positive effect related to Tariff Stabilization Laws 21,185 and 21,472.

Other non-operating results

Net income from other investments decreased Ch$ 763,719 million when compared to 2022 mainly due to the Net income from the sale of Arcadia Generación Solar in October 2023 for Ch$ 215,618 million when compared to net income from the sale of Enel Chile’s shareholding in Enel Transmisión Chile for Ch$ 981,857 million booked in December 2022.

During Q4 2023, Net income from other investments decreased Ch$ 765,454 million when compared to Q4 2022 for the same reasons indicated above.

Corporate Income Taxes

Corporate income tax reached a Ch$ 226,912 million loss as of December 31, 2023, a Ch$ 242,784 million lower expense when compared to 2022, primarily explained by: (i) a Ch$ 311,754 million lower tax expense due to the sale of Enel Transmisión Chile that took place in December 2022; and (ii) a Ch$ 25,000 million lower tax expense due to the Company’s lower profit in 2023. These effects were partially compensated by: (i) a Ch$ 61,750 million higher tax expense due to the sale of Arcadia Generación Solar that took place in October 2023; and (ii) a Ch$ 25,239 million higher tax expense related to price-level restatement.

During Q4 2023, corporate income tax reached a Ch$ 119,788 million loss, a Ch$ 364,618 million lower expense when compared to Q4 2022. This is primarily explained by: (i) a Ch$ 311,754 million lower tax expense due to the sale of Enel Transmisión Chile that took place in December 2022; (ii) a Ch$ 97,095 million lower tax expense due to the Company’s lower profit in Q4 2023; and (iii) a Ch$ 19,291 million decrease in deferred taxes related to transferring investments to the asset available for sale category. These effects were partially compensated by a Ch$ 61,750 million higher tax expense due to the sale of Arcadia Generación Solar in October 2023.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Total assets of the Company as of December 31, 2023, decreased Ch$ 31,859 million, when compared to total assets as of December 31, 2022.

Current Assets decreased Ch$ 693,271 million as of December 31, 2023. The variations in the main categories are presented below:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

The aforementioned effects were partially compensated by:

Non-Current Assets increased Ch$ 661,412 million when compared to the balance as of December 31, 2022. The variations in the main categories are presented below:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

The aforementioned effects were partially compensated by:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

The Company’s Total Liabilities as of December 31, 2023, including Equity, reached Ch$ 11,833,721 million, which represents a 0.3% reduction when compared to total liabilities as of December 31, 2022.

Current liabilities decreased Ch$ 374,574 million. The variations in the main categories are explained below:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

The aforementioned effects were partially compensated by:

Non-Current Liabilities decreased Ch$ 29,233 million as of December 31, 2023, mainly explained by the following:

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

The aforementioned effects were partially compensated by:

Total Equity amounted to Ch$ 4,760,886 million as of December 31, 2023, representing a Ch$ 371,947 million increase when compared to the figure as of December 31, 2022, and is mainly explained by the following:

Equity attributable to shareholders of Enel Chile amounted to Ch$ 4,446,080 million, comprised of the following: Issued capital for Ch$ 3,882,103 million, Retained earnings for Ch$ 2,917,851 million, and Other reserves for negative Ch$ 2,353,875 million.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Equity attributable to non-controlling shareholdings amounted to Ch$ 314,806 million, a Ch$ 23,068 million increase when compared to the balance as of December 31, 2022, mainly explained by net income of the period for Ch$ 46,558 million. These effects were partially offset by dividend payments for Ch$ 21,769 million and lower other comprehensive income for Ch$ 2,169 million.

Performance of main financial ratios

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

When excluding the extraordinary effects booked in 2022, primarily related to fuel impairment losses booked as a consequence of the decarbonization process, this ratio would have decreased 38.2% (7.55 times as of December 31, 2022).

When excluding the extraordinary effects previously indicated, the profitability index would have increased 3.0 percentage points. (20.5% as of December 31, 2022).

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

The net cash flow of Enel Chile Group reached negative Ch$ 314,812 million as of December 31, 2023, due to a Ch$ 886,506 million increase in cash outflows when compared to 2022. The main factors that explain this net cash flow reduction are presented below:

Net cash flow from operating activities reached Ch$ 705,662 million for the period ended December 31, 2023. It includes the following main cash inflows: (i) collections from sales of goods and services amounting to Ch$ 5,886,342 million; and (ii) other collections from operating activities, mainly related to leasing company assets and then selling such assets for Ch$ 44,859 million. These cash flows were partially offset by the following cash outflows: (i) supplier payments for Ch$ 4,638,105 million; (ii) income tax payments for Ch$ 294,998 million; (iii) employee payments for Ch$ 146,491 million; (iv) net insurance premium payments for Ch$ 24,400 million; and (v) other operational cash disbursements for Ch$ 121,545 million, mainly value added tax payments and other taxes.

The Ch$ 39,117 million decrease in operating cash inflows when compared to 2022 is mainly due to: (i) greater income tax payments for Ch$ 235,170 million; and (ii) greater supplier payments for Ch$ 168,558 million. This was partially compensated by greater cash received from the sale of goods and services for Ch$ 376,949 million, which includes the Ch$ 734,120 million greater cash inflow from trade accounts receivable factoring operations.

Net cash flow from investing activities amounted to negative Ch$ 86,238 million for the period ended December 31, 2023. These cash outflows are mainly comprised of: (i) Ch$ 636,792 million to purchase property, plant, and equipment; (ii) net payments of derivative transactions for Ch$ 40,622 million; and (iii) Ch$ 25,631 million to purchase intangible assets. These cash outflows were partially compensated by the following cash inflows: (i) Ch$ 520,086 million from the sale of Arcadia Generación Solar; (ii) interest payments received amounting to Ch$ 34,586 million; (iii) Ch$ 33,979 million from the sale of property, plant and equipment related to the sale of the Santa Rosa Complex (Ch$ 28,661 million) and Huasco thermal power plant (Ch$ 5,318 million); and (iv) Ch$ 29,662 million from the sale our share in jointly owned company Sociedad de Inversiones K Cuatro SpA.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

The Ch$ 541,809 million reduction in investment cash outflows when compared to December 2022, is mainly explained by: (i) a Ch$ 714,408 million decrease in cash from subsidiaries due to the sale of Enel Transmisión Chile S.A. in December 2022 compared to the cash received from the sale of Arcadia Generación Solar S.A. in October 2023; and (ii) Ch$ 172,370 million less cash received related to Enel Transmisión Chile’s debt with Enel Chile paid in December 2022. These cash flows were partially compensated by: (i) lower disbursements to purchase property, plant, and equipment for Ch$ 278,900 million; and (ii) greater cash from the sale of property, plant, and equipment for Ch$ 32,497 million.

Net cash flow from financing activities amounted to negative Ch$ 934,236 million for the period ended December 31, 2023. These cash flows are mainly comprised of the following cash outflows: (i) EFI loan payments for Ch$ 1,255,013 million; (ii) dividend payments for Ch$ 401,594 million; (iii) interest payments for Ch$ 193,173 million; (iv) bank loan and bond payments for Ch$ 84,763 million; and (v) leasing liability payments for Ch$ 18,419 million. These cash outflows were partially compensated by the following cash inflows: (i) cash received by Enel Chile from financing provided by EFI during 2023 for a total Ch$ 767,683 million (US$ 960 million); and (ii) cash received from new bank loans for Ch$ 248,992 million granted by BBVA and Mizuho to Enel Chile (US$ 100 million) and by EIB (US$ 200 million).

The Ch$ 305,579 million negative variation in the Company’s financial cash flow when compared to the figure as of December 31, 2022, is mainly explained by: (i) greater dividend payments for Ch$ 361,984 million; and (ii) lower net cash from bank loans for Ch$ 38,471 million. These cash flows were partially compensated by greater cash received from EFI loans granted to Enel Chile for Ch$ 98,334 million.

The following table presents the cash disbursements related to additional Property, Plant and Equipment and its Depreciation for the periods ended December 31, 2023, and 2022.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

The most relevant cash outflows originate in the Generation business segment and are primarily related to the construction of new renewable generation projects that amounted to Ch$ 563,105 million as of December 31, 2023.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

II. MAIN RISKS ASSOCIATED WITH THE ACTIVITY OF ENEL CHILE S.A. GROUP

The Group’s activities are subject to a broad set of governmental regulations, and any changes in them could affect their activities, economic situation and operating income.

The Group’s operating subsidiaries are subject to a wide range of tariff regulations and other aspects that govern their operations in Chile. Consequently, the introduction of new laws or regulations, or the modification of current laws and regulations, could affect their operations, economic situation and operating results.

These new laws or regulations, on occasion, modify regulatory aspects that may affect existing entitlements which, as the case might be, may adversely affect the Group’s future income.

The Group’s operations are also subject to wide-ranging environmental regulations that Enel Chile continuously meets. Eventual modifications introduced to such regulations could affect its operations, economic situation and operating income.

These regulations, among other things, require the preparation and submission of Environmental Impact Studies for projects under study, obtaining licenses, permits and other mandatory authorizations and complying with all the requirements imposed by such licenses, permits and regulations. Just as with any regulated company, Enel Chile cannot guarantee that:

The Group’s commercial operations have been planned in order to mitigate possible impacts as a result of changing hydrological conditions.

The operations of Enel Chile Group include hydroelectric generation, and therefore, depend on actual hydrological conditions throughout a broad geographical area where the Group’s hydroelectric generation facilities are located. Should the hydrological conditions lead to droughts or other conditions that might negatively affect hydroelectric generation business, our results could be adversely affected, which is why Enel Chile has established, as an essential part of its commercial policy, to refrain from contractually committing 100% of its generation capacity. At the same time, the electricity business is also affected by meteorological conditions, such as temperatures, that affect consumption. Our margins may be affected by weather conditions depending on the different climate conditions.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

The financial situation and the results of our operations may be negatively affected if the exposure to interest rate fluctuations, commodity prices and foreign exchange rates are not effectively managed.

RISK MANAGEMENT POLICY

The companies of the Enel Chile Group follow the guidelines of the Internal Risk Management Control System (SCIGR) defined at the Holding level (Enel SpA), which establishes the guidelines for risk management through the respective standards, procedures, systems, etc., which are applied at the different levels of the Enel Chile Group Companies, in the processes of identification, analysis, evaluation, treatment, monitoring and communication of risks that the business faces continuously. These are approved by the Board of Directors of Enel SpA, which houses a Controls and Risks Committee, which supports the evaluation and decisions of the Board of Directors of Enel Chile with respect to internal controls and risk management system, as well as those related to the approval of the periodic financial statements.

To comply with this, there is a specific Risk Control and Management policy within the Company, which is reviewed and approved each year by the Board of Directors of Enel Chile, observing and applying local requirements in terms of risk culture.

The Company seeks protection for all risks that may affect the achievement of business objectives. There is a risk taxonomy for the entire Enel Group, which considers 6 risk macro-categories: financial; strategic; governance and culture; digital technology; compliance; and operational; and 37 risk sub-categories to identify, analyze, assess, treat, monitor and communicate its risks.

The Enel Group's risk management system considers three lines of action (defense) to obtain effective and efficient management of risks and controls. Each of these three "lines" plays a distinct role within the broader governance structure of the organization (Business and Internal Controls areas, acting as the first line, Risk Control, acting as the second line and Internal Audit as the third line of defense). Each line of defense has the obligation to inform and keep Senior Management and Directors updated on risk management, with Senior Management being informed by the first and second line of defense and the Board of Directors of Enel Chile in turn, by the second and third line of defense.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Within each company of the Group, the risk management process is decentralized. Each manager responsible for the operational process in which the risk originates is also responsible for the treatment and adoption of risk control and mitigation measures.

Interest Rate Risk

Interest rate variations modify the fair value of interest bearing at a fixed rate assets and liabilities, as well as future flows of assets and liabilities indexed at a variable rate of interest.

The aim of managing the interest rate risk is to reach a debt structure balance that would enable to minimize debt costs while reducing Income Statement volatility.

The debt structure according to interest rate, measured as the percentage of fixed debt and/or protected above total gross debt, is the following:

This ratio considers only debt transactions with third parties and with Enel Finance International, if any.

Depending on the Group’s estimates and on the objectives of its debt structure, various hedging operations are carried out via contracting derivatives to mitigate such risks.

Risk control through specific processes and indicators allows limiting possible adverse financial impacts and, at the same time, optimizes the debt structure with an adequate degree of flexibility.

As is public knowledge, the U.S. dollar LIBOR rate (Libor) was discontinued on June 30, 2023, and was replaced by the SOFR reference rate. Enel Chile Group successfully completed the transition from Libor to SOFR of 100% of its financial contracts and derivatives in June 2023, in line with market standards.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Foreign Exchange Rate Risk

Foreign exchange rate risks are primarily inherent to the following transactions:

In order to mitigate the foreign exchange rate risk, the hedging policy of the Enel Chile aims at maintaining a balance between US$-indexed flows or local currencies flows if they exists, and the level of assets and liabilities denominated in such currency. The aim is to minimize the exposure of cash flows to foreign exchange rate variations.

The instruments currently used to comply with the policy are foreign exchange forwards and currency swaps.

During the third quarter of 2023, exchange rate risk management continued in the context of complying with the aforementioned risk management policy, without difficulty in accessing the derivatives market.

Commodity Risk

The Enel Chile Group is exposed to the risk of price variations of certain commodities, primarily the following:

In order to reduce the risk under extreme drought conditions, the Group has designed a policy that defines sale commitment levels in line with the capacity of its generating facilities during a dry year, by including risk mitigation clauses in some contracts with unregulated clients and, in the case of regulated clients subject to long-term tender processes, by establishing indexing polynomials to reduce commodity exposure.

In consideration of the operational conditions Chile is facing in the electricity generation market and the drought and commodity price volatility in international markets, the Company is continuously reviewing the convenience of hedging the impact of these price variations on its net income.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

As of December 31, 2023, the Company held Brent hedges for 551 Kbbl to be settled for purchases and for 217 Kbbl to be settled for sales. With respect to gas, there were hedges for two commodities as of December 31, 2023: a) the Henry Hub Swap with 1.5 TBtu to be settled for sales; and b) the Henry Hub Future with 5.9 TBtu and 3.9 TBtu to be settled for purchases and sales, respectively. Regarding coal, there were 47 kTon as of December 31, 2023 to be settled for sales. As of December 31, 2022, the Company held swaps for 450 Kbbl of Brent oil to be settled in 2023 corresponding to fuel purchases; regarding gas, there were swaps for two commodities: a) the HH Swap with 2.7 TBtu to be settled in 2023 for sales; and b) the HH Future, with 18.9 TBtu to be settled in 2023 for purchases. Regarding coal, there were 175.6 kTon to be settled for purchases in 2023, whose indexation is related to energy sales contracts.

According to the operating conditions that are updated permanently, these hedges may be amended, or include other commodities.

The Group was able to minimize the effects of volatility in commodity prices on the results of 2023 due to the mitigation strategies implemented.

Liquidity risk

The Group maintains a liquidity policy that consists of contracting long-term credit commitment facilities and temporary financial investments for amounts sufficient to support the forecast needs in a given period which, in turn, is a function of the overall situation and expectations of the debt and capital markets.

The above-mentioned forecast needs include maturities of net financial debt, that is to say, net of financial derivatives.

As of December 31, 2023, the liquidity of Enel Chile Group was Ch$ 563,291 million in cash and cash equivalents and Ch$ 473,645 million in unconditionally available long-term credit lines. As of December 31, 2022, the liquidity of Enel Chile Group was Ch$ 875,214 million in cash and cash equivalents and Ch$ 333,551 million in long-term committed credit lines.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

Credit risk

The Enel Chile Group continually monitors in depth all credit risks as described below:

Commercial Accounts receivable

In relation to the credit risks of accounts receivable from commercial activities in our generation business, this risk has historically been quite limited given that clients cannot accumulate significant amounts due to short collection terms. To that effect, we continuously monitor the credit risk and measure the maximum amounts exposed to payment risk; which, as stated earlier, are quite limited.

Regarding the credit risk corresponding to accounts receivable from the commercial activity of electricity distribution business, this risk is historically very limited since the short term of collection from customers means that they do not individually accumulate very significant amounts before the suspension of supply due to non-payment can occur, in accordance with the corresponding regulation. Additionally, there are portfolio monitoring and control measures for all the Company's segments: Corporate, Public Administration and Residential, with exclusive commercial executives available to attend to Corporate and Public Administration customers, in order to mitigate any activity that may put the customer's non-payment at risk.

Financial assets

Investments of cash surpluses are made with both national and foreign first-class financial entities with limits set for each entity.

Investment banks selection considers those with Investment Grade rating, considering the three major international rating agencies (Moody’s, S&P and Fitch).

Investments may be guaranteed by treasury bonds of Chile and/or paper issued by first class banks, giving priority to those offering the best returns (always within the current investment policies).

Risk Measurement

The Enel Chile Group prepares a Value at Risk measurement for its own debt positions and financial derivatives, with the purpose of monitoring the risk taken on by the company, thus circumscribing Income Statement volatility.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

The portfolio of the positions included for the purposes of calculating the present Value at Risk, is comprised of:

The calculated Value at Risk represents the possible value variation of the above-described positions portfolio within a quarter and with 95% certainty. To that effect, we have studied the volatility of the risk variables that affect the value of the positions portfolio in relation to the Chilean peso which including the exchange rates of the different currencies involved in the calculation.

The Value at Risk calculation is based on the extrapolation of future market value scenarios (one quarter out) of the risk variables based on real observations for the same period (quarter) through a 5-year period.

The Value at Risk for the next quarter, with 95% confidence level, is calculated as the percentile of the most adverse 5% of the possible quarterly changes.

Considering the assumptions described above, the Value at Risk at one quarter out of the foregoing positions corresponds to Ch$ 501,348 million.

This value represents the potential increase of the debt and derivatives portfolio, therefore this value at Risk is intrinsically related, amongst other factors, with the value of the portfolio at the end of each quarter.

OTHER RISKS

As is common practice in bank credit facilities and capital market operations, a portion of our financial debt, is subject to cross-default provisions. If certain non-payments are not corrected, they could result in a cross-default and eventually certain liabilities of Enel Generación Chile, EGP Chile or Enel Chile could become enforceable, as appropriate.

In connection with the credit line under New York State law, subscribed in June 2019 and maturing in June 2024, and another subscribed in October 2021 and maturing in October 2025, prepayment may occur as a result of the non-payment -after any applicable grace period- of any other debt of Enel Chile whose individual outstanding principal amount exceeds the equivalent of US$150 million and whose amount in default also exceeds the equivalent of US$150 million. In addition, this credit line contains provisions under which certain events other than non-payment, such as Enel Chile's bankruptcy, insolvency, adverse enforceable court judgments in excess of US$ 300 million, among others, could lead to the acceleration of this debt.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

In connection with the bank loan under Chilean law, signed in July 2021 and maturing in June 2024, and another signed in December 2021 maturing in December 2026, prepayment may occur as a result of the non-payment - after any applicable grace period - of any other debt of Enel Chile whose individual outstanding principal amount exceeds the equivalent of US$ 150 million and whose amount in arrears also exceeds the equivalent of US$ 150 million. In addition, these loans contain provisions according to which certain events other than non-payment, in Enel Chile, such as bankruptcy, insolvency, adverse enforceable court judgments for an amount greater than US$ 150 million in the case of the loan maturing in June 2024 and US$ 300 million in the case of the loan maturing in December 2026, among others, could result in the declaration of acceleration of the loan.

In connection with the bank loan under Italian law, signed in August 2022 and maturing in December 2038, prepayment may occur as a result of the non-payment -after any applicable grace period- of any other debt of Enel Chile whose individual outstanding principal amount exceeds the equivalent of US$ 150 million and whose amount in arrears also exceeds the equivalent of US$ 150 million. In addition, this loan contains provisions according to which certain events other than non-payment, in Enel Chile, Enel SpA or a relevant subsidiary, such as bankruptcy, insolvency, adverse enforceable court judgments, could cause the declaration of acceleration thereof.

Additionally, non-payment – after any applicable grace period – for any debt of Enel Chile or any of its subsidiaries, with a principal amount that exceeds US$ 150 million, or its equivalent in other currencies, could lead to the mandatory advance payment of its Yankee bonds. The acceleration of the debt due to cross default does not occur automatically, but must be demanded by the holders of at least 25% of the bonds of a certain Yankee Bonds series.

There are no credit-agreement clauses stating that changes in the corporate or debt rating of Enel Chile or its subsidiaries’ debt, performed by credit-rating agencies, would result in the need to make prepayments of debt.

	FINANCIAL STATEMENTS ANALYSIS ENEL CHILE GROUP AS OF DECEMBER 31, 2023

III. BOOK VALUE AND ECONOMIC VALUE OF ASSETS

The following are the most important assets:

Property, plant, and equipment are valued at their acquisition cost, net of the corresponding accumulated depreciation, and impairment losses. The property, plant, and equipment, net of their residual value, depreciate by distributing the cost of their different components linearly over the years of the estimated useful life of the asset, which is the period in which the companies expect to use them. The estimated useful life of the asset is reviewed periodically.

Goodwill (lower value of investments or commercial funds) generated in the consolidation, represents the excess acquisition cost over the Group’s participation in the fair value of assets and liabilities, including contingent liabilities and any non-controlling, identifiable shareholdings in a subsidiary, as of the date of acquisition. Goodwill is not amortized, but at the end of each accounting period an estimation of any impairment that might reduce its recoverable value to an amount below the recorded net cost is calculated, in which case an adjustment is made for the impairment. For additional information see Note 3.e. of the Financial Statements as of December 31, 2023.

Throughout the year and, primarily at its closing date, an evaluation is carried out to determine whether any asset might have suffered an impairment loss. In the event that there is an indication of such loss, an estimate of the recoverable value of such asset is made to determine the amount of the impairment. In the case of identifiable assets that do not generate cash flows independently, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs, which is considered to be the smallest group of assets that generate cash inflows independently.

Assets denominated in foreign currencies are presented at the exchange rate prevailing at the end of the period.

Accounts and notes receivable from related companies are classified according to their maturity in short-term and long-term. Transactions are adjusted to conditions prevailing in the market.

In summary, asset values are determined according to the International Financial Reporting Standards, whose criteria are included in Notes No. 2 and 3 of the Financial Statements of Enel Chile as of December 31, 2023.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 28, 2024