ENIC - Enel Chile Benefiting From PPA Indexation

• When the commodity boom was in full force, especially with copper which also drove the CLP value, indexation in PPAs was hurting company margin.
• These effects have reversed as the commodity boom cools, and this could continue with rate hikes addressing inflation.
• Gas price increases are now the main issue for power CCGT plants, but the worst of these effects, interacting with the hydrology crisis, have abated.
• Results are finally turning around, and the list of analysts covering the stock has shrunk, maybe now is finally the time to take a position in this extremely beleaguered stock.

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