Chilean Economic News

The consolidated results of the chilean banking system (incluiding Corpbanca's investment in Colombia) reached CLP $380,422 millions during the three first months of the year 2013, acording to the information released today by the Banking and Financial Institutions' Superintendence (SBIF). This result represents a 12.84% decrease from the same period of the last year and an increase of 25.06% compared against last february. Banco de Chile obtained the best results, winning CLP $121,470 millions, followed by Banco Santander-Chile , with a results of CLP $81,445 milliones.  In the third place was Banco de Crédito e Inversiones (BCI), which won CLP $ 54,046 during the three-months period. The largest monthly profit is mainly explained by an increase in net interest income , lower expenses in the total provisions and higher income Net Fees , however, it showed a lower income from financial operations results and higher costs support , compared with the pr...

Aguas Andinas ' earnings for the first quarter of 2013 reached Ch$38,205 million, 8.6% lower than the same period of the previous year, based on the information presented by the company to the Chilean Securities and Insurance Supervisor (Superintendencia de Valores y Seguros - SVS.   Acording to the analysis of the three months period ended on march, 31st, Aguas Andinas '  operating revenues amounted to CLP $108,284 million, CLP $426 million (0.4%) lower than in the previous period, due mainly to a lower sales volumes (2.9 million m3) of potable water as a result of the water stoppages in January and February 2013 caused by mudslides that fed into the Maipo river, forcing the company to stop water production. Additionally, average water consumption per customer during 1Q13 was lower compared 1Q12, as a result as a result of milder summer weather during the first months of 2013. Consolidated EBITDA for the period amounted to CLP $70,354 million, CLP $3,186 million (4.3...

The net income of the state-owned ENAP was USD $ 52 million in the first quarter of 2013, which compares favorably with the loss of US$110 million on march 31, 2012 (net change of USD $ 162 million from one period to the other). This change in trend in the results is due to a variation in the gross margin, which increased from –USD $ 31 million in march 2012 to USD $ 204 million in march 2013 (net change of USD $ 235 million). This variation in the margin is the result of higher income (USD $ 122 million) and lower costs (USD $ 113 million). The EBITDA for the first quarter of 2013 was USD $212 million, USD $227 million higher compared to EBITDA of -USD $ 15 million in the first quarter of 2012. Finally, and from ENAP 's positive results, equity increased by USD $ 70 million in March 2013 compared December 2012, reaching US$ 152 million. Ricardo Cruzat, General Manager of ENAP , explained that " we are obtaining results from the good work done during 2...

Net profit attributable to the Parent Company of Endesa reached $63,334 million in the period ended on march 31, 2013, a 4.4% decrease compared to the figure posted in the first three months of 2012. This was largely due to the $14,950 million higher deferred tax expense in Chile and a one percent increase in the tax rate in Colombia. Based on the information presented to the Chilean Securities and Insurance Supervisor (Superintendencia de Valores y Seguros - SVS), on this three month period profits before tax totalled $144,289 million, an amount that represented a 13.9% increase compared to the $126,684 million posted in the same period of last year.  Revenues showed a 9.6% drop, amounting to $489,433 million, due to lower average energy sales prices,  associated with fewer contracts indexed to a lower marginal cost, and to the lower physical sales mainly in Argentina and Peru. EBITDA rose by 7.4%, reaching $195,975 million. This improvement was explain...

Enersis Group net income reached CLP $84,159 millions in the first quarter of 2013 ,  decreasing 16.4% from the CLP $100.661 millions registered in the same period of the last year, based on the information presented by the company to the Chilean Securities and Insurance Supervisor (Superintendencia de Valores y Seguros - SVS). The Enersis Group diversified business assets portfolio as well as a presence in five countries in the region (Argentina, Brazil, Chile, Colombia, and Peru), allowed  Enersis to mitigate the higher taxation in Chile and Colombia, which explains the $16,502 million lower net income posted at the end of the first quarter of this year.  Analyzing other results, the physical sales in the distribution business grew by 371 GWh, posting a 2.0% increase, while the generation segment showed a decrease of 443 GWh, equivalent to a 2.7% drop. Revenues amounted to $1,456,669 million, 10.4% lower compared with the first quarter of the las...

Acording to he information presented to the Chilean Securities and Insurance Supervisor (SVS), Colbún reached a profit of USD $ 24.4 millions in the period ended on march, 31, 2013.  This results is an increase from the USD $ 9.2 obtained in the same three months of the previous year. In the quarter recently ended, Colbun's EBIDTA obtained a result of USD $ 89.2 millions, more than 3 times higher than the USD $ 27.4 from march, 2012.  This numbers are the results of a more balanced trade position and an improved cost structure. Hidraulic generation of the period reached 1,052 GWh, decreasing 26.6% from the 1Q12. This decrease is mainly due to lower dispatch of Central Colbún during the period, due to the schedule of the CDEC.  Despite this, total generation of the period reached 3.055 GWh. Physical sales to customers under contract during 1Q13 totaled 2,569 GWh , 10.7 % lower than physical sales under contract in the same period of the la...

Net profits for USD $ 30.5 millions obtained Sonda during the first quarter of the current year, growing 17.4% compared with the same period of the last year, acording to the information presented by the company to the chilean Securities and Insurance Supervisor Organism - SVS. In the same period, the company obtained USD $ 334.4 milliones in consolidated revenues, which means a positive growth of 2.5% y/y.   In the case of the Operational Result, Sonda reached USD $42.8 millions increasing 6.8% from the results on the period ended on march, 2012.  The EBIDTA raised 3.2%, totalizing USD $57.6 millions.  Considering the main ratios of the company, the Return on Equity (ROE)  was 13.7% and the Return on Assets (ROA) was 8.0%. Following the analysis presented by the company, the o perations outside of Chile recorded a rise of 6.0 % in terms of revenue s, reaching  USD $ 185.0 millions , which represents  55.3% of  the consolidated...

Latin American and Caribbean countries will grow by 3.5% in 2013, thanks to buoyant internal demand and the improved performance of Argentina and Brazil compared with 2012, according to the new projections presented today by ECLAC ("Economic Commission for Latin America and the Caribbean") on it's " Updated economic overview of Latin America and the Caribbean 2012 ". About Chile , the same document projects a result of 5% in the Gross Domestic Product , increasing from the 4.8% estimated on the previous analysis.   ECLAC informed that the 2013 results are partly due to the expectations of higher growth in Argentina (3.5%) and Brazil (3.0%), thanks to the upturn in agricultural activity and investment (which fell in those countries in 2012). The regional expansion is also backed by ongoing growth in consumption in the wake of improved labour indicators and rising bank credit to the private sector (and, to a lesser extent, investment). This has...

After a shareholders' meeting, Coca Cola Embonor's general manager, Cristian Holdberg, inform that the company will invest USD$105 millions during 2013 to increase it's production capacity and to strenght the bottling structure and market presence of the company. Embonor,  Chile's second-largest Coca-Cola bottler,  aims to invest $300 million in plant upgrades in the next two years, acording to a statement published in it's own website. Andrés Vicuña, president of Embonor, said " i n the last seven years , the company has achieved sustained growth rates in volume of approximately 9 % per annum, which implies that the scale of the company has doubled between 2005 and 2012 , creating greater value for our shareholders. For this reason, we require to increase our capacity with modern technology ". Last year, the company obtained a profit of CLP $ 37,808 millions and an EBIDTA of CLP $ 67,707 millions, which represents a 16.9 pe...

Viña Concha y Toro S.A. informed today its preliminary sales for the first quarter 2013. Consolidated sales totaled CLP $ 88,416 million, showing a 2.2 percent increase as compared to the same quarter last year. Related to this, it is important to consider that export market volumes were affected by the port strike in Chile during March; where around 1,485 thousand liters couldn’t be shipped, acording to the same company.  For this quarter, sales of export markets in Chilean Pesos, increased 3.8 percent; sales of wine in the domestic market dropped by 5.8 percent; Domestic market – New Business increased 2.1 percent. In the case of Argentina, Domestic Sales reached CLP$1.047, decreasing 30.9 percent from the CLP $1.516 registered in the same period of the last year. This result was affected by the fall of 37.6% in the sales volume, which represents only CLP $775 compared with the CLP $1.241 of the first quarter of 2012.  Finally, USA (Fetzer) Domestic sales rose t...

4.9 percent will grow the chilean economy in 2012, acording to the World Economic Outlook report, published by the International Monetary Fund (IMF) analyzing global and regional situations.  In the same report, the organism projects a 4.6 percent in 2014 in the same indicator for our country, giving a positive perspective in the evolution of this macroeconomic indicator for the next two years.   Considering the numbers for all the region, the document says that Real GDP growth in the Latin America and Caribbean region declined to 3 percent in 2012, from 4.5 percent in 2011, reflecting a slowdown in external demand and, in some cases, the impact of domestic factors. The deceleration was particularly pronounced in Brazil, the region’s largest economy, where large policy stimulus failed to spur private investment.  However, real GDP growth in the zone is projected to increase to 3.4 percent in 2013. In the case of Chile, IMF expects a results of 2.1 percent in the C...

Copper price fell 5.19% today, closing at US$ 3.2298 per pound in the London Metal Stock Exchange (LSE), acording to the information released by Cochilco (Comisión Chilena del Cobre). Last friday, the red metal closed at US$3.4064 per pound and today reached the biggest fall since october 21th, 2011. In the same market, the futures prices of the copper reached US$ 3.24568 per pound. With this variations, the monthly average price at the date is US$ 3.36489 per pound and the year average price is US$3.56533 per pound.

GeoPark Holdings Limited ("GeoPark") announced yesterdary it's results for the year ended 31 december 2012, registering it's seventh consecutive year of overall growth. Acording to the corporate action presented to the SVS, during last year the company continued to execute it's business plan and grow it's key performance measures of oil and gas production, revenues, EBITDA and net income. James F. Park, CEO of GeoPark, commented: " Our 2012 results represent a significant performance step-up and reflect the growing strength of our underlying asset foundation andrecord of execution. In 2012, GeoPark demonstrated improvements in each of its three principalcapacities as an oil and gas explorer, operator and consolidator--with increases in production,reserves, and cash flows and new project growth in Colombia and Tierra del Fuego. Our team's ability to consistently find and produce oil and gas, our strengthening balance sheet and reliable cash flow g...

In it's monthly monetary policy meeting, the Board of the Central Bank of Chile decided to maintain the monetary policy interest rate at 5% (annual). Acording the press release released by the organism, international financial conditions are stable. Incoming economic indicators for the United States are mixed, while the Eurozone remains in recession and in a fragile fiscal and financial situation. The Bank of Japan recently announced a substantial quantitative easing program, which has translated into a depreciation of the yen. The prices of commodities receded in recent weeks, especially for copper. About the chilean economy, the Central Bank explains that february’s activity indicator was below market expectations. The labor market is still tight and domestic demand remains dynamic. Credit conditions are somewhat more restrictive. Headline and core inflation measures are around 1% and 2% y-o-y, while inflationary expectations in the policy horizon remain around the target....

Un 546% creció el resultado bruto de Schwager Energy en el período culminado el 31 de diciembre de 2012, de acuerdo a la información presentada por la empresa a la Superintendencia de Valores y Seguros (SVS).  En ese lapso, la compañía obtuvo M$1,429,156 frente a los M$220,988 a la misma fecha del año anterior.   De acuerdo al análisis razonado de sus estados financieros, este resultado se debe principalmente a una mayor venta correspondiente al segmento de negocios Servicio a la Minería (38.69% sobre el total de los ingresos) con una facturación de M$2,522,225, ítem que el año 2011 presentaba facturación por M$137,603.  Respecto a sus indicadores financieros, el índice de liquidez de la empresa fue de 1.57 veces, mientras que el test ácido alcanzó 1.55%.  En cuanto al ROE (resultado del ejercicio/patrimonio), obtuvo un -0.58%.  El activo fijo del período alcanzó a M$3,978,706 y el total activo fue de M$ 18,120,946. En el mismo documento, la co...