Engie Energia Chile posts higher profits in H1 2019 despite coal shutdown

Chilean power utility Engie Energia Chile posted a net profit of USD 80.6 million (EUR 72.6m) in the first half of 2019, up by 129% year-on-year, according to the company’s financial report.

Without certain one-offs, the half-year net profit in 2019 would have reached USD 145 million, up by around 67% year-on-year compared to the net recurring income in the same period of 2018. These one-offs stemmed from the decision of the company to decommission four coal-fired generation units at the Tocopilla power plant. Units 12 and 13 were taken offline on June 7, 2019 but recorded as impaired assets in the half-year income statement in 2018. Similarly, the future decommissioning of units 14 and 15, announced this spring, was also recorded as an impairment loss in the first half of 2019.

The impairment loss was offset by damages that the company’s turnkey contractor had to pay for delaying the commissioning of the Infraestructura Energetica Mejillones (IEM) coal-fired plant. The 375-MW plant finally started commercial operation on May 16, while Engie collected USD 74.9 million gross due to lost revenues.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) reached USD 285 million, up 53% year-on-year, underpinned by increased sales to regulated customers. Revenues rose by 27% to USD 766 million.

Gross power generation declined by 16% in the first half of 2019, mainly as a result of a 31% drop in coal-fired generation. This led to a higher share of gas and green power in Engie’s generation mix.

(USD 1.0 = EUR 0.9)

Choose your newsletter by Renewables Now. Join for free!