Chile's Colbun grows 2021 profit by 504% on sale deal, EBITDA down

Chilean utility Colbun SA closed the fiscal year 2021 with a net profit of USD 540.2 million (EUR 485.1m), up 504% year-on-year, largely on the back of the sale of its power transmission business, the company’s results show.

Operating income for the full year stood at USD 1.44 billion, up 7% on the year, as a result of higher prices in the spot market and a higher average sale price in Chile. These earnings were partially offset by lower physical sales to unregulated clients, driven by an expired contract with mining company Anglo American Plc (LON:AAL), Colbun said.

Earnings before interest, depreciation and amortisation (EBITDA) came down by 24% to USD 520.2 million as extreme droughts in Chile significantly lowered hydroelectric generation. This prompted the utility to replace hydro with gas-fired generation at higher costs.

Over the year, Colbun produced 10,982 GWh of power from its plants in Chile, including renewables, marking a 9% decrease.

In Peru, where Colbun only operates gas-fired plant, generation levels increased by 19% year-on-year to 3,439 GWh.

In the renewables segment, Colbun’s most notable milestone was the start of construction of the 778-MW Horizonte wind farm project in Chile. The company’s 232-MW Diego de Almagro I and II solar projects were 93% completed as of the fourth quarter of 2021.

The environmental permit for the 537-MW Jardin solar project was granted in September, but Colbun’s board has not yet approved its construction, the company said.

(USD 1.0 = EUR 0.898)

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