Colbun’s Q1 profits saved by lower taxes

Chilean power company Colbun SA recorded a first-quarter profit of USD 66.4 million (EUR 59.2m) this year, a 3% increase over the same period of 2018, mainly on the back of lower tax expenses.

The pre-tax income decreased by 2% to USD 86.4 million this quarter, Colbun said Tuesday.

Consolidated in earnings before interest, taxes, depreciation and amortisation (EBITDA) declined to USD 161.7 million from USD 163.6 million reached in the first quarter of last year. Power generation and transmission business in Chile accounted for USD 129.4 million and 19.5 million of EBITDA, respectively, while operations in Peru brought in USD 12.7 million.

One notable operation during the first three months is the agreement to purchase the Diego de Almagro Sur I and II solar photovoltaic (PV) projects as part of the growth strategy to expand the renewables portfolio. The two projects totalling 210 MW in the Atacama region are currently under environmental evaluation. Colbun expects to close the acquisition with the vendor, renewables developer Alen Walung SA, by the end of June this year.

The Diego de Almagro Sur I and II projects will be part of the 1,800-MW solar and wind portfolio that Colbun currently has in different stages of development.

(USD 1.0 = EUR 0.89)

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