Colbún (COLBUN) Q4 2024 earnings summary

Executive summary

• Operating income for 4Q24 was US$384.5M, down 6% YoY, mainly due to lower sales to regulated clients in Chile and Peru, partially offset by higher sales to unregulated clients and the spot market.

• Consolidated EBITDA for 4Q24 rose 7% to US$172.8M, driven by lower raw material and consumables costs, despite lower operating income.

• Net profit for 4Q24 was US$54.1M, slightly below 4Q23, mainly due to a weaker non-operating result, partially offset by higher EBITDA and lower tax expenses.

• Major commercial contracts and acquisitions in 2024 include renewable PPAs with Codelco (1,100 GWh/year for 15 years), Antofagasta Minerals (up to 912 GWh/year for 15 years), and the acquisition of San Juan and Totoral wind farms.

• Sustainability achievements included top ESG rankings, safety records, and gender equity recognitions.

Financial highlights

• 4Q24 operating income: US$384.5M (-6% YoY); full-year: US$1,576.0M (-21% YoY).

• 4Q24 EBITDA: US$172.8M (+7% YoY); full-year: US$642.4M (-10% YoY).

• 4Q24 net profit: US$54.1M (-4% YoY); full-year: US$257.2M (-36% YoY), impacted by a one-time gain in 2023 from the Colbún Transmisión S.A. sale.

• 4Q24 non-operating loss: US$45.6M (vs. US$28.4M loss in 4Q23), mainly due to lower financial income and negative FX effects.

• Cash and equivalents at year-end: US$775.1M (-25% YoY), reflecting acquisitions and project investments.

Outlook and guidance

• Medium-term outlook in Chile is challenged by hydrological deficits in key basins; results depend on balancing cost-efficient generation and contracting levels.

• In Peru, improved hydrology and higher demand support growth, with ongoing regulatory changes to support renewables and distributed generation.

• Growth plan includes expanding renewable and storage capacity in both countries, with several large projects in development or under construction.