Colbún blames dry conditions for US$10mn loss in Q3

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Wednesday, October 30, 2013

Chilean generator Colbún posted a US$10.1mn net loss in the third quarter compared to a profit of US$4.5mn in 3Q12 as dry conditions reduced hydro generation 20% to 1.16GWh.

Revenue rose 46.1% in the quarter to US$461mn on increased sales volumes to unregulated clients, including state miner Codelco.

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Ebitda fell 77.9% year-on-year to US$25.9mn, according to the company's latest MD&A.

The poor operational results were attributed to the lack of hydro availability, increased coal-based generation, up 15% to 646GWh, and an increase in spot market purchases to cover an increase in supply contract sales.

Diesel-based generation dropped 22% to 331GWh while natural gas generation grew 20% to 415GWh on higher availability during the period.

PROJECT UPDATES

Colbún announced the Angostura hydro project on the Biobío and Huequecura rivers is expected to begin commissioning tests by the end of the year after the dam was completed in 3Q13. At 316MW it is the largest hydro project built in the last decade in Chile.

The company is also developing the 150MW San Pedro (evaluation studies) and 34MW La Mina (evaluating EPC bids) hydros, and second 342MW unit at the Santa María thermo complex (working on modification to meet 2011 emission standards).

Technical, environmental and economic feasibility studies are underway for the generator's floating storage regasification unit (FSRU) LNG terminal project which will allow the company to secure gas supply for its combined cycle plants under more competitive and flexible terms.