Colbún (COLBUN) Q3 2024 earnings summary

Executive summary

• Major maintenance at Nehuenco CCGT and Chacabuquito HP out of service impacted operations; Chacabuquito expected to restart in April 2025.

• Horizonte Wind Farm reached 90% completion, with 66 turbines energized and 83 GWh generated during testing.

• Decision to suspend Paposo Pump Storage project after regulatory setback.

• Acquisition of ILAP SpA, including San Juan and Totoral wind farms (239 MW), completed for $403 million in October 2024.

• Asset sales and M&A transactions contributed to portfolio optimization, including payment document sales under PEC III Law for up to $99 million.

Financial highlights

• Operating income for 3Q24 was $384 million, down 22% year-over-year.

• EBITDA reached $170 million, a 25% decrease year-over-year.

• Net income was $83 million, declining 34% year-over-year.

• Total energy sales fell 12% year-over-year to 2,825 GWh.

• Cash and equivalents at Sep-24: $947 million, with positive net cash flow of $17.9 million in 3Q24.

Outlook and guidance

• Horizonte Wind Farm is nearing completion, expected to further boost renewable generation.

• Project pipeline in Chile and Peru includes over 3 GW in various stages, with 1.8 GW at feasibility and 816 MW under construction.

• New long-term renewable supply contracts signed in Chile, starting 2025–2026.

• Multiple wind, solar, storage, and transmission projects in development, targeting 4,000 MW in renewables by 2030.

• Results depend on cost-efficient generation, contract levels, hydrological conditions, and gas procurement.