(Alliance News) - Enel Chile has decided to adopt the U.S. dollar instead of the Chilean peso, effective January 1, 2025, a necessary move to adapt to economic conditions, as Milano Finanza writes Wednesday.
This change will result in an immediate loss of about USD450 million in the 2024 financial statements, due to the end of hedging transactions on exchange rate risks between Enel Chile and its subsidiary Enel Generación Chile, the financial newspaper further notes.
However, the company expects 52 percent growth in net income to USD446 million in the first nine months of 2024.
The decision will mainly affect subsidiaries Enel Generación Chile and Empresa Eléctrica Pehuenche, with future dividends determined in U.S. dollars.
An extraordinary shareholders' meeting will be held by April 2025 to approve the change in the company's bylaws.
Despite the accounting loss, Enel Chile plans to keep the dividend pay-out unchanged for 2024 through a revision of the distribution policy to offset the impact of the loss on the financial statements.
By Claudia Cavaliere, Alliance News reporter
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