Colbún (COLBUN) Q2 2024 earnings summary

Executive summary

• Operating income for 2Q24 was US$425.5M, down 22% year-over-year, mainly due to lower sales to regulated and unregulated clients in Chile and Peru, and lower average sale prices in Chile.

• Consolidated EBITDA for 2Q24 rose 13% to US$152.5M, driven by lower supply costs from improved hydrology in Chile and higher plant availability in Peru.

• Net profit for 2Q24 was US$61.5M, down 53% year-over-year, mainly due to a US$116.4M one-time gain in 2Q23 from the sale of Colbún Transmisión S.A.

• Cumulative 1H24 net profit was US$120.3M, down 46% year-over-year, reflecting the same factors as the quarter.

Financial highlights

• Operating income for 1H24 was US$807.5M, down 27% year-over-year.

• 2Q24 EBITDA was US$152.5M (+13% YoY); 1H24 EBITDA was US$299.9M (-8% YoY).

• Non-operating income for 2Q24 was a loss of US$12.2M, versus a US$88.7M gain in 2Q23 due to the prior year’s asset sale.

• 2Q24 net profit was US$61.5M, down from US$131.2M in 2Q23.

• Cash and equivalents at June 2024 were US$906.2M, down 5% from December 2023.

Outlook and guidance

• Hydrological surpluses in Chile’s main basins are expected to support lower supply costs.

• New long-term power purchase agreements signed in Chile, including a 15-year, 1,100 GWh/year contract with Codelco starting 2026.

• Results for coming months will depend on balancing efficient generation, plant reliability, hydrology, and gas procurement.

• In Peru, electricity demand grew 1.4% YoY, with future demand driven by regulated clients.