Colbún's 2017 results unscathed by project setbacks

By
Thursday, February 8, 2018

Chilean power generator Colbún closed 4Q17 with strong improvements to its income and balance sheet, but also suffered some non-operating income losses due to problems with two projects.

The firm increased its year-on-year net income by US$30.7mn, recording US$79.5mn in 4Q17. In cumulative terms, it reached a net income of US$289mn for 2017, higher than the US$205mn in 2016.

Start your 15 day free trial now!

cta-arrow

Already a subscriber? Please, login

The company attributed this to higher recorded earnings during the quarter as a result of "higher hydro generation, which implied lower costs associated to the lower generation based on gas and lower energy and capacity purchases in the spot market in Chile," and "higher revenues from an increase in sales to customers and transmission tolls."

Colbún closed 2017 with assets of US$1.15bn, a 21% increase against December 2016. This was due to an increase in cash from the flows of operating activities and a net worth of US$3.95bn, a 4% increase compared with December 2016.

During 4Q17 Colbún generated a positive net cash flow of US$194mn, a 29% increase compared with 4Q16, explained by "a higher operational result during the quarter." In cumulative terms, a positive net cash flow of US$600.9mn was generated in 2017, increasing 16% over the US$518mn in 2016.

Non-operating income for 4Q17 fell by US$105mn, due to adjusted higher cost of US$45mn for the San Pedro Hydroelectric project because of "lower energy prices than those contemplated in its economic valuation at the beginning of its construction," and a US$10mn loss during the Unit II expansion of the Santa María complex which has been scrapped.

The financial results report can be found here.