Ladies and gentlemen, hello and welcome. Thank you for joining us for this Colbún second quarter 2020 earnings conference call. As a reminder, today's session is being recorded, and all phone lines are in a listen-only mode, but after today's prepared remarks, you will be given the opportunity to ask questions. To get us started with opening remarks and introductions, I am pleased to turn the floor over to Mr. Sebastián Moraga. Mr. Moraga, good morning.
Hello to everyone. Welcome to Colbún's second quarter 2020 earnings review call. My name is Sebastián Moraga. I am the company's CFO, and joining me today are Miguel Alarcón, the Deputy CFO, Soledad Errázuriz, and Isidora Zaldívar from our Investor Relations team. I hope that you have received our earnings report and earnings review presentation that we have prepared to complement the analysis of our figures.
Otherwise, you can download them at the Investor section of our website. Our agenda for today on slide three is as follows. We will begin talking about the highlights of this quarter, to then analyze in detail this quarter's results, and after that, we will provide an update on our growth opportunities. Following the presentation, there will be time to participate in a Q&A session. Now, please go to slide number four to review the highlights of this quarter.
First, regarding the COVID-19 pandemic contingency, the company's power plants are operating normally, and Colbún has taken actions considering two priority focuses. First, protect the health of our workers, collaborators, suppliers, and our surrounding communities. Home office was established for all the positions that can carry out their functions with this mode, and this corresponds to approximately 98% of our headquarters employees.
For positions with functions in which an on-site attendance is critical, this working mode is maintained, but with the necessary safeguards. Different preventive measures have been adopted in the company's power plants to prevent contagion, such as equipment, safeguarding feeding places, temperature controls, collective and individual cleaning and disinfection practices, and special transportation to and from the home of our workers.
To ensure the continuity and security of the energy supply, measures have been adopted to ensure the procurement of the necessary supplies for the correct operation of all our power plants. Some power plants' maintenance have been postponed after assessing in the cases that it didn't risk the operational continuity and integrity of each generation unit. Regarding the impact of COVID-19 on energy demand, there is still uncertainty about the magnitude and length of this contingency.
Energy demand in Chile decreed approximately 2% during the second quarter of 2020 compared to the one in 2019. In Peru, there was a decrease of approximately 23%. Regarding Colbún's project pipeline, on June 2020, our board of directors approved the construction of two PV projects. Diego de Almagro Sur One and Two, which are located in the Atacama Region, with an installed capacity of 220 MW.
Construction is scheduled to start in the third quarter of this year, and the commissioning should occur on the first quarter of year 2022. The total investment of this project is approximately $147 million. Second is the project PV Machicura, which is located in the Maule Region with an installed capacity of approximately nine megawatts. Its construction is scheduled for the third quarter of this year, and its commissioning for the first quarter of year 2021.
Total investment of this project is approximately $7 million. Now, regarding the Fenix plant gas supply, in June of this year, there was a modification to the gas supply contract with Pluspetrol, which mainly introduced the following changes. The take-or-pay clause was significantly reduced compared to the previous contract. The allotted maintenance period was increased, therefore, giving greater flexibility to the company.
This contract was extended until December 2029, and all of these changes were applied to the contract retroactively from December 2019 onwards. Please go to slide number five to review the main consolidated figures of the company. Consolidated EBITDA for this quarter reached $155 million, decreasing 9% compared to the $170 million EBITDA in the same quarter of last year. This difference is mainly explained by the lower operating income recorded during the period. This effect was partially offset by lower raw materials and consumables used, cost in Chile, and lower expenses denominated in local currency, driven by the exchange rate depreciation compared to the one of the same quarter in last year.
The consolidated profit reached just $1 million, 20% lower than the $62 million posted on same quarter of last year, which is mainly explained by the lower EBITDA recorded during the quarter and higher tax expenses. These effects were partially offset by lower non-operating losses. Regarding financial investments, this totalized $854 million. Regarding net debt to EBITDA ratio, it is at 1.2 times. Looking at the average long-term financial debt interest rate of our company, it currently stands at 3.9%, measured in US dollars.
Colbún has a total installed capacity of 3.8 teras, comprised of 2.1 teras in thermal units, 1.6 teras in hydro units, and nine megawatts from the PV power plant, Ovejería. In terms of transmission asset, it owns roughly 940 km of transmission lines and 31 substations. I will turn to Isidora, who will speak about the main drivers of our second quarter's results.
Thank you, Sebastián, and hello to everyone. Now please continue to slide seven for physical sales and generation balance analysis in Chile. Total generation of the period decreased 7% compared to the second quarter of last year, reaching 3.1 terawatt hours, mainly due to, one, lower hydro generation driven by less favorable hydrological conditions for most of the quarter. Two, lower coal generation driven by lower economic dispatch during certain hours of the day. Three, lower wind farm generation explained by the expiration of San Pedro plant contract in May 2020. These effects were partially offset by a higher gas generation.
Physical sales during the quarter reached 3.0 terawatts, 8% lower than the second quarter of last year, due to, one, lower sales to regulated clients, mainly explained by the expiration of the contract with Saesa in December 2019, and a lower energy demand driven by the state of emergency. Two, to lower sales in the spot market, partially offset by higher sales to unregulated clients.
Spot market balance during this quarter recorded net sales of 511 gigawatt hours, compared with the net sales of 566 gigawatt hours in the second quarter of last year, as a result of the lower generation during the quarter driven by the lower energy demand due to the state of emergency. Please continue to slide eight to analyze the EBITDA from the generation business in Chile for the quarter.
EBITDA of the generation business in Chile reached $123 million this quarter, decreasing 8% compared to the second quarter of last year. The lower EBITDA of the quarter is mainly explained by the lower operating income recorded during the period. These effects were partially offset by lower cost of raw materials and consumable use and lower expenses denominated in local currency as a result of the depreciation of the exchange rate compared to the second quarter of last year.
Please continue to slide nine to analyze the EBITDA from the transmission business for this quarter. EBITDA of the transmission business reached $18.5 million this quarter, in line with the $18.4 million EBITDA recorded in the second quarter of last year. Please continue to slide 10 for physical sales and generation balance analysis in Peru.
Total generation of the period decreased 45% compared to the second quarter of last year, reaching 530 gigawatt hours, mainly explained by the lower economic dispatch of the plant driven by the state of emergency decreased since March 16th. Physical sales during this quarter reached 628 gigawatt hours, decreasing 36% compared to the second quarter of last year.
The decrease is mainly explained by the lower sales to customer under contract, mainly explained by the state of emergency, decreasing by the Peruvian government since March 18th due to the COVID-19 pandemic, and to lower sales to regulated clients due to the expiration of this year's contract in December. Two, lower sales in the spot market as a consequence of the court's request to stop dispatch from 18th March until 13th April due to the demand decrease recorded in the country after the state of emergency previously mentioned.
Since May, the government gradually began to activate some economic sectors, and the plant started to be dispatched. Spot market balance during this quarter recorded net purchases of five gigawatt hours compared to the net sales of 209 gigawatt hours during the same quarter of the previous year, due to the lower generation of the period. Please continue to slide 11 to analyze the EBITDA in Peru for this quarter.
EBITDA in Peru reached $14 million in this quarter, 27% lower than the EBITDA of $19 million recorded in the second quarter of last year, mainly due to the lower operating income recorded during the period. Please continue to slide 12 for the consolidated net operating income and net income analysis. Non-operating income of this quarter presented losses of $22 million, lower than the losses of $25 million recorded in the second quarter of last year.
The lower losses are mainly explained by a positive effect of the exchange rate variation of temporary bond sheet items in local currencies during the quarter. The company recorded this quarter profits of $500 million, 20% lower than the $62 million profit of the same quarter of last year. The lower profit is mainly explained by the lower EBITDA recorded during the quarter, by higher tax expenses. These effects were partially offset by lower non-operating losses. Continuing with this conference call, please go to slide number 14, where Sebastián will give you an update on the status of growth opportunities.
Thank you, Isidora. Regarding our growth opportunities in Chile, we have focused our growth in renewables based on three pillars. First, developing a pipeline of projects. Regarding the incorporation of renewable energy from variable sources, up to this date, Colbún has been able to complete a portfolio of locations for wind and solar projects, which are in different stages of studies and development. Horizonte, a wind farm of approximately 607 MW located in the Atacama Region.
Diego de Almagro Sur one and two, two PV projects of a capacity of 220 MW, as commented earlier. Inti Pacha, a PV project of 486 MW located in the Antofagasta Region. Jardín Solar, a PV project of 537 MW located in the Tarapacá Region. Machicura, a PV project of 9 MW located in the Maule Region, which was commented earlier. Los Junquillos a wind farm of 265 MW located in Biobío Region.
In addition to all of these projects, at the end of this quarter, Colbún holds a portfolio of locations for other wind and solar projects, which are in early stages of development. For more details on this slide, you can refer to our latest earnings report available at our website. Second, the company does not rule out the purchase of renewable assets that are in operation. Finally, the third pillar of our growth in renewables is acquiring energy from third parties. Regarding our transmission business, Colbún has several projects for the expansion and enhancement of the company's current transmission assets, with a total awarded investment value of approximately $40 million.
In terms of our international expansion strategy, as we have mentioned before, we continue searching for growth opportunities in selected countries of the region in order to maintain a leading position in the power generation business and to diversify our sources of income. With this, we are concluding Colbún's second quarter of 2020 results review. Thank you very much for listening, and now we are open to answer your questions.
Thank you very much for your remarks. Ladies and gentlemen, if you would like to ask a question at this time on your telephone, please press star and one on your touch tone keypad. Pressing star and one will place your line into a queue, and we will take your questions one at a time. A friendly reminder that if you're joining us this morning on a speakerphone, please return to your handset prior to pressing star and one to be sure that your signal does reach our equipment. Once again, ladies and gentlemen, that is star and one, if you'd like to ask a question. We'll hear first from Murilo Ruscini. Go ahead, please.
Good afternoon. This is Murilo Ruscini from Santander. Thanks for the call, guys. We are seeing a better hydro output in July and spot price that could be at low levels during the second half of the year. How do you see this dynamic for Colbún, and do you expect to benefit from this situation in the second half? My second question is a follow-up on the receivable. How much receivables are you accumulating to date, and how are the negotiations to find alternatives to fund these receivables? Thank you.
Hi, Murilo. This is Miguel. Thank you for your questions. Regarding hydrology, as you mentioned, since last week of June, higher rainfalls than average were recorded. With that, as of July of this year, hydrological year presents higher rainfall in most of the basins in the system. Colbún reservoirs present a higher level than last year. I expect that there should be more snow accumulation, although up to this date, we don't have no official quantification released. We estimate that this, of course, could translate into a better hydro output in the second half. I think we cannot comment more than that up to this point.
Okay. Thank you. Regarding the receivables, do you have the number that you are accumulating to date?
Just give me a second, please.
Sure. Thank you again.
Up to this point, as of June of this year, the total amount is approximately from, let's say, $60 million-$80 million, roughly speaking. Maybe just a narrower range, I would say around $70 million.
Great. Thank you, Miguel.
Okay.
Thank you, sir. Our next question comes from, and I do apologize if I mispronounce your last name. Our next question will come from John Wisk at HSBC.
Hey. Just a quick follow-up to Murilo's question. What are you anticipating in terms of different amounts for the stabilization impact in the second half, and why? Could you provide some details on the nature and timing of the factoring that's being contemplated for these accounts? Separately, are you anticipating a capital injection to Fenix? If not, what are the conditions that would prompt such an injection?
Hi, John. This is Miguel again. I didn't get your second question. Let's go with the first at the beginning. Basically, I would say that for the second half of this year, we should accumulate something close to 50% of the current balance, let's say another $30 million-$35 million. That, of course, has to do with a number of factors, the effects of change rates and demand, among others. That's the first question. Your second question is? Sorry, what? You can repeat.
I understand that there are plans to factor or the intention to factor some of these accounts. I was wondering if you could give some detail as to the nature of.
those plans and the timing.
Yeah. Sorry, I think this has been somehow mentioned in the press. We are working on a financing solution with a number of other gencos and some commercial banks in order to, as you mentioned, structure what would be a sale of this accounts receivable. We are working in that financing, we should expect to have news in the next two to three months. We're still working in the timeline, it's no time to provide more update than that.
Okay, great. With respect to anticipating a capital injection to Fenix, could you give some color on that?
First of all, I would say that up to this point, Fenix has a cash position that it's closer to $20 million as of the second quarter of this year. As you know, John, and we've discussed this in the past, the shareholders provided a form of support to Fenix with a cash support agreement that was signed last year, and that I think that should cover any shortfall in the liquidity needed for Fenix in terms of its funding need and especially its debt repayment schedule. I think up to this point, we cannot comment, and it's not fair to comment about a capital injection because, among other things, and this is also something that I think we've discussed in previous calls, we had an insurance claim that was underway, and that's mostly collected.
As you remember, there was a failure on the TG 1-2 in October of last year. That meant a claim for the insurance companies closer to $20 million. That's almost completely already funded into Fenix.
Okay, great. Thanks, Miguel.
Sure.
Thank you for your question, John. Next, we'll hear from, and again, I apologize if I mispronounce your last name, Gabriela. We'll hear from an associate at PineBridge Investments, Gabriela Bachrach.
And I have-
I'm sorry, we couldn't hear you, ma'am.
Can you hear me?
We can hear you now. Please go ahead. Welcome.
Okay. Hi. Thank you. Hi. I have two questions. The first one is if you could please confirm your total CapEx plan for 2020, including the new projects of Diego de Almagro and Machicura. The second question would be if you could please provide an updated EBITDA guidance and leverage guidance for 2020. Thank you.
Hi, Gabriela Bachrach. This is Soledad Errázuriz from Colbún. Regarding the CapEx update, I'd say that it is still close to the one we projected by the beginning of the year. Around $60 million-$80 million in maintenance CapEx. Also, we have to add the CapEx of Diego de Almagro and Machicura projects. That would be around $80 million for this year. Regarding the EBITDA guidance, sorry, but we cannot give any guidance on that matter because of our investor relation policy.
Thank you. Sorry, Soledad. A follow-up question on the CapEx plan. I remember from a call two months ago that the CapEx that you had estimated for the entire year, the investment CapEx, was like $100 million. Yes, $100 million just for investment, besides the maintenance CapEx. What I wanted to confirm is that if the new projects of Diego de Almagro and Machicura are included in this CapEx or that's additional?
The figure of $100 probably contains some of the investment CapEx. The maintenance CapEx for the year is around $60 million-$80 million. To that, you have to add the expansion CapEx from the Diego de Almagro and Machicura projects. The total CapEx for Diego de Almagro is around $150 million, but roughly 50% will be spent this year. To that, you have to add a small CapEx from Machicura, which the total CapEx of this project is around $7 million, and we will expend most of that CapEx this year. With that, you'd have a total of around $100 million of new CapEx this year and $60 million of maintenance CapEx. That's on roughly figures.
Perfect. Thank you.
To our leadership team for Colbún, I'd like to let you know that we have no further questions at this time. If we may, I'd like to allow a few extra seconds to give everyone a chance to signal with star and one, if you do have a question or a comment about anything covered in today's meeting. We'll give just another moment or two. We have no further signals from the group. I'll turn it back to you, Mr. Moraga, for any additional or closing remarks.
I just wanted to thank everyone for joining this conference call. I hope everyone is safe at home or at work, and I wish you have a very pleasant and good weekend. Bye-bye to all.