...Balanced Contractual Position: Colbun S.A. (Colbun) benefits from long-term contracts with financially strong counterparties (power distribution companies and industrials). The contracts have adequate indexation mechanisms that closely match the company's generation mix and somewhat mitigate Colbun's exposure to fuel price volatility. Based on normal hydrology, Colbun's contract requirements are balanced and its contracted volume is expected to be in the 12,000 gigawatt hours (GWh) per year level and increasing as new projects come online. Favorable Natural Gas Contracts: Under a scenario of dry hydrology, Colbun's contracted volume could be met with the company's natural gas backup units or by purchases in the spot market, typically with a negative effect on margins. Positively, Colbun secured temporary provisions of natural gas for its thermal units through contracts with Metrogas S.A. (Metrogas) and Empresa Nacional del Petroleo (ENAP). The company estimates this secures its needs for...
