Good day, ladies and gentlemen, thank you all for joining us for this Colbún second quarter 2019 earnings conference call. As a reminder, today's meeting is being recorded, and all lines are in a listen-only mode, but after today's prepared remarks, you will have the opportunity to ask questions. If, during today's conference, you need operator assistance, simply press star and zero on your telephone keypad. With that, I will now turn the floor over to the management team.
Hello to everyone, welcome to Colbún's second quarter 2019 earnings review call. My name is Miguel Rapún. I am the Deputy CFO of the company, and joining me today are Soledad Razmilic and Isidora Sander from the investor relations team. I hope that you have received our earnings report and the earnings review presentation, that we have prepared to complement the analysis of our figures. Otherwise, you can download them in the investor section of our website. Agenda for today on slide three is as follows. We will begin talking about the highlights of the quarter to then analyze in detail this quarter's result, and after that, we will provide an update on our growth opportunities. Following the presentation, there will be time to participate in a questions and answers session. Now, please go to slide number four to review the highlights of this quarter.
First, on May 7th, 2019, dividends for $256.1 million were paid. This payment consisted of, one, a final dividend of $156.1 million, which, added to the $84.2 million paid in December of last year, amounted to 100% of the net distributable profit of 2018. Two, an eventual dividend charged to previous fiscal year profits for $100 million. Second, regarding the commercial strategy, during this year, the company has contracted approximately 590 gigawatt hours per year of its generation with new and related customers. Third, regarding expansion strategy, during the second quarter of this year, Colbún continues looking for renewable projects throughout the country with a target of consolidating a robust and diversified project portfolio in line with the goal of doubling our current installed capacity, incorporating renewable generation equivalent to a total of 4,000 megawatts.
Related to the Horizonte project, progress is being made in the feasibility stage, and the wind turbine option concluded. For its part, the Diego de Almagro Sur project continues in the environmental processing stage. Regarding the Zampeiro project, at the end of April, the environmental authority issued the first EIA. Fourth, regarding the fixed cost efficiencies plan implemented during 2019, it can be highlighted that Colbún has continued its execution. This is reflected on the consolidated financial statements' fixed costs. Fifth, at the closing of the second quarter of this year, in Fenix' subsidiaries' financial statements reflect the adoption of the accounting standards IFRS 15 and IFRS 16, and the capitalization of the plant major maintenance performed in April of this year. For more details, see Appendix one on page 30 of the earnings report.
Please go to slide five to review the main consolidated figures of the company. Consolidated EBITDA for the second quarter of this year reached $174 million, increasing 13% compared to the $154 million EBITDA for the second quarter of 2018, mainly due to lower costs as a result of, one, the recognition of the gas distribution contract with Cálidda as a financial leasing, which were $8 million for the first half of this year. Second, higher average sales price to unrelated customers in Chile. Consolidated profits reached $61 million, 37% higher than the $45 million in profits in the second quarter of the previous year, mainly explained by, first, higher EBITDA recorded in the quarter, previously explained. Second, the positive effect of the variation of the exchange rate Chilean peso to US dollar on temporary balance sheet items in local currency during the quarter.
Financial investments totalized $667 million, a net debt to EBITDA ratio is at 1.5 times. The average long-term financial debt interest rate in US dollars is 4.5%. Colbún has a total installed capacity of 3,893 megawatts, comprised of 2,250 megawatts in thermal units, 1,634 megas in hydraulic units, and nine megas from the photovoltaic power plant, Ovejería. In terms of transmission assets, it owns 941 kilometers of transmissions lines and 28 substations. I will turn to Isidora, who will speak about the main drivers of last quarter's results.
Thank you, Miguel, 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 by 5% compared to the second quarter of the previous year, reaching 3.3 terawatts, mainly due to the lower gas and hydro generation, partially offset by an increase in coal and variable renewable energy generation. Physical sales during the second quarter of this year reached 3.3 terawatts, 4% lower than second quarter of the previous year, mainly explained by lower sales to regulated clients, partially offset by higher sales to unregulated clients and to the spot market. Spot market balance during the second quarter of this year recorded net sales for 572 gigawatts, 11% higher compared with net sales for 517 gigawatts in the second quarter of the previous year.
Please continue to slide eight to analyze the EBITDA from generation business in Chile for the second quarter of this year. EBITDA of the generation business in Chile reached $133 million in the second quarter of this year, increase in 7% compared to the same quarter of the previous year. The higher EBITDA of the quarter is mainly explained by the lower gas consumption cost, mainly due to, one, a decrease in the purchase price of that fuel, and two, a lower gas generation, partially offset by an increase in the coal consumption cost, explained by the increase in the purchase price of that fuel. Please continue to slide nine to analyze the EBITDA from the transmission business for the second quarter of this year.
EBITDA of the transmission business reached $18 million in the second quarter of this year, increases 9% compared to the same quarter of the previous year, mainly explained by an increase in the revenues from zonal transmission assets due to the release of the 60 decree in October 2018, which modified the pricing of those assets. Now, please continue to slide 10 for physical sales and generation balance analysis in Peru. Total generation of the period increased by 6% compared to the second quarter of the previous year, reaching 937 gigawatts, mainly explained by the lower plant availability due to the major maintenance carried out during the month of April 2019. In 2018, on the other hand, a routine maintenance was performed during the first quarter of the year. Physical sales during the second quarter of this year reached 983 gigawatts, similar to the second quarter of the previous year.
The decrease in sales to customers under contract was offset by higher sales to the spot market. Spot market balance during the second quarter of this year recorded net sales for 209 gigawatts, increasing by 20% compared to the same quarter of the previous year. Please continue to slide 11 to analyze the EBITDA from the generation business in Peru for the second quarter of this year. EBITDA in Peru reached $22 million in the second quarter of this year, 8% higher than the EBITDA of $12 million recorded in the second quarter of the previous year, explained by, one, the recognition of gas distribution contract with Cálidda as a financial lease from January 2019 onwards due to the adoption of IFRS 16 accounting standard. Two, the major maintenance performed during the month of April 2019.
Please continue to slide 12 for the consolidated non-operating income and net income analysis. Non-operating income in the second quarter of this year presented losses of $27 million, 12% lower than the losses of $31 million in the second quarter of the previous year. The lower losses are mainly explained by a positive effect on the variation of the exchange rate, CLP to USD, on temporary balance sheet items on local currency during the quarter. In the second quarter of the previous year, this effect was negative. It was partially offset by higher financial expenses due to the recognition of the gas distribution contract with Cálidda as a financial leasing.
Tax expenses amounted to $19 million, similar to expenses registered in the second quarter of the previous year, despite the higher income before taxes recorded during the quarter, mainly due to a deferred tax profit recorded in the second quarter of this year in Fenix, as a result of the Peruvian sol appreciation during the period, given that Fenix's taxes accounting is carried out in Peruvian soles according to the Peruvian tax legislation. The company recorded, in the second quarter of this year, profits of $61 million, $37 higher than the $45 million gain in the second quarter of the previous year. The higher profit is mainly explained by, one, a higher EBITDA recorded in the quarter previously explained, and two, the positive effect of the variation of the exchange rate, Chilean pesos to US dollar, on temporary balance sheet items in local currency during the quarter.
Now, continuing with the conference call, please go to slide number 14, where Miguel will give you an update on the status of our growth opportunities.
Regarding our growth opportunities in Chile, we have focused our growth in renewables, meaning hydro, solar, and wind, based on three pillars. One, developing a pipeline of projects. Regarding 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 670 MW located in the Atacama region. Diego de Almagro Sur I and II, two photovoltaic projects of an overall capacity of 200 MW located in the Atacama region. Sol de Tarapacá, a photovoltaic project of 180 MW located in the Tarapacá region. Additionally, at the end of this quarter, Colbún holds a portfolio of locations for another four wind and solar projects, which total capacity is approximately 800 MW. These projects are in early stages of development.
For more details on this slide, you can see the list of our current portfolio of projects, or please refer to the latest earnings report available at our website. Second, the company does not rule out the purchase of renewable assets in operation. The third pillar of our growth in renewables is acquiring energy from third parties. Regarding the transformation business, Colbún has several projects for the expansion and enhancement of the company's current transmission assets, with a total investment value of approximately $50 million. In terms of our international expansion strategy, as we have mentioned before, we continue searching for growth opportunities in Peru, Colombia, and Argentina in order to maintain a leading position in the power generation business and to diversify our sources of income. This concludes Colbún's second quarter 2019 results review. Thank you for listening, and now we're available to answer your questions.
Thank you for your prepared remarks. To our audience joining today, now is the time if you would like to ask a question or have a comment on anything covered in today's meeting. Please press star and one on your telephone keypad. Also, a friendly reminder that if you're joining us today on a speakerphone, please return to your handset before pressing star and one to make sure that the signal does reach our equipment and also to provide the most favorable audio quality from your call. Once again, that is star and one if you would like to ask a question, and we'll pause for just a moment to give everyone a chance to signal us. We'll take our first question from the line of Martín Pérez with S&P Chile. Go ahead, your line is open.
Good morning, Miguel, Soledad, Isidora. Thank you for the presentation, and congratulations for the good results. My question is regarding the expansion projects, please. In the press release, you have seven projects individualized there. I would like to ask you two things regarding the projects, if I may. First, what's the amount of total CapEx involved in each one? Secondly, what's the expected timeline? In particular, when do you expect them to start construction and then operation? I know that this second part might be a moving target, but probably you have an estimation already.
The status of each project depends on the progress made for each one specifically. For example, in the ones we specifically mentioned in the earnings report, you'll see that, for example, Horizonte, it's in the feasibility stage, while others, like, for example, Diego Almagro, it's the environmental approval phase. I think those two are the ones with the most advance, and its execution will depend on our ability to recontract our energy in the near term or in the medium term, while the others probably will follow the same strategy of progressing, first of all, in feasibility and then expect news on the commercial side. Having said that, we will inform the market timely once we have further news about the execution of each project.
Regarding the second part of your question, I think it is too soon to provide a CapEx estimation for either each project or for the complete portfolio. Having said that, and I'm sure you're aware, we're having an Investor Day in the coming week, and I think in that scenario, we will provide further details about the CapEx, at least for the projects with the most advance.
Very good. Thank you very much. We expect to be there on Wednesday, let's see.
Thank you, Mr. Pérez. Once again to our phone audience today, that is star and one on your telephone keypad if you'd like to ask a question. Also, a reminder, please return to your handset to be sure that your signal does reach our equipment. We'll take just another moment to allow the audience a chance to signal us with star and one. We do not have any signals from the group at this time. Isidora, I will turn it back to yourself and the rest of the leadership team for any kind of additional or closing remarks that you may have.
Okay. Thank you, everybody, for joining this conference call, and hope to see you again for the next reporting in Q3 2019. Have a great weekend. Bye-bye.
Ladies and gentlemen, this does conclude today's conference, and we thank you all for your participation. You may now disconnect your lines, and we hope that you enjoy your weekend.