Enap earns US$172.7 million profit in first half of 2024

This is an automated translation of the original release published in Spanish.

Press release from Enap
August 14, 2024

Santiago, August 14, 2024.- Empresa Nacional del Petróleo (Enap) achieved a profit of US$172.7 million in the first six months of the year and an EBITDA that amounted to US$474.4 million. With this, it maintains the path of good financial results of the last two years and especially in 2023, in which the state-owned company achieved annual profits of US$566 million and a historic EBITDA of US$1.414 billion.

Enap's general manager, Julio Friedmann, highlighted that the company is achieving positive results for the fourth consecutive year. “We knew that this year was going to be challenging for Enap. However, we anticipated and prepared for it, with concrete efforts in our operations, in the creation of value and in cost containment. That is why the result of the first half is above the budget considered in the business plan that we had drawn up,” he said.

He added that the actions implemented have allowed, for example, Enap to produce 10% more valuable products in this first half than in the same period of 2023.

The analysis by business lines showed that the Refining and Marketing (R&C) area, that is, the area in charge of transporting oil and its derivatives to Chile, refining it in the plants and distributing the products in the country, obtained a Result Before Tax (RAI) of US$177.7 million for the first six months of the year.

As for the Exploration and Production (E&P) line - which is responsible for extracting gas and oil in Chile and three other countries - in the first half of 2024 it obtained an RAI of US$103.3 million. Of this total, US$97.6 million correspond to the operation abroad of the subsidiary Enap Sipetrol and US$5.7 million to Magallanes.

Regarding the highlights of 2024 so far, Friedmann highlighted that “we have continued to reduce our debt, we successfully placed a US$600 million bond on the international market and the risk rating agency Standard and Poor's elevated us to the investment grade category, milestones that reflect the important task we are carrying out to make Enap a profitable company for the State and efficient in its management.”

Finally, the CEO of Enap reiterated that, as he had anticipated at the end of 2023, this year the results would be narrower due to the reduction in international refining margins. “And it is not enough for us to know and communicate this, we have to act accordingly to get to where we want to be. Specifically, we are implementing a set of structuring projects that will help address this scenario and that aim at operational excellence, financial discipline and caring for people.”