Chile's Colbún boosted by increased Q3 hydro output

Wednesday, October 29, 2014

Chilean generator Colbún reported Q3 net income of US$18.2mn, compared to a net loss of US$10.1mn for the same period a year ago.

Hydro output and generation as a whole increased by 56% and 26%, respectively, a company statement said, due to the start up of the 316MW Angostura hydro plant.

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The statement said that despite inferior rainfall in the company's principal basins, conditions were still better than last year, causing marginal costs on the SIC grid to drop 18% to US$148/MWh.

Ebitda reached US$117mn, up from US$25.9mn.

Colbún extended until 2019 a medium-term LNG supply contract with Metrogas, consisting of 11 shipments from 2015-19 totaling about 900m3.

The quarter also included the approval of construction startup on the 34MW La Mina run of the river plant.

The company issued US$500mn in international bonds in July, with a portion of proceeds going toward the prepayment of a US$150mn bank loan. The rest will go toward future expansion plans, the company said.

Colbún noted that President Michelle Bachelet's tax reforms mandated a gradual increase of the corporate tax rate from 20% to 27% by 2018, which led the company to record a US$213mn increase in net deferred tax liabilities.

Colbún is the second largest generator in terms of installed capacity on the SIC. Of the company's 3.278GW of total installed capacity, thermo and hydro account for 52% and 48%, respectively.

Operating revenue dropped 24% year-on-year to US$351mn, which a company statement attributed to lower sales to free customers.

The company this month named Thomas Keller as CEO, replacing Ignacio Cruz.