Greetings, welcome to Colbún Second Quarter 2018 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Sebastián Moraga. Please go ahead.
Hello, everyone, welcome to Colbún's Second Quarter 2018 earnings review call. My name is Sebastián Moraga. I am the CFO of the company. Joining me today are Miguel Alarcón, our Deputy CFO, and Verónica from the investor relations team. I hope that you have received our Second Quarter 2018 earnings report and an earnings review presentation that we have prepared to complement the analysis of our figures. Otherwise, you can download them at the investors section of our website. Agenda for today on slide two is as follows. We will begin talking about the highlights of the quarter to analyze in detail this quarter's results. 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 three to review the main highlights of the quarter.
First, regarding the commercial strategy, in June 2018, Colbún signed a power supply agreement for 550 gigawatt-hour with Minera Zaldívar from renewable power sources for a period of 10 years starting in July 2020. Second, related to the company's international credit rating, in June 2018, Moody's assigned a Baa2 category with a stable outlook to Colbún and its debt securities issued in the international market. Added to the triple B stable rating assigned by Standard & Poor's and Fitch Ratings, thus consolidating its investment grade rating. Finally, in terms of growth, in June 2018, the Ovejería PV project began its commercial operation. The power plant qualifies as a PMGD, is located in the metropolitan region with an installed capacity of nine megawatts. Now, please go to slide number four to review the main consolidated figures of the company.
Consolidated EBITDA last 12 months in this quarter reached $ 696 million, net income reached $259 million . As of June 2018, financial investments total $ 696 million, mainly explained by the final dividend payment for $213 million performed in May 2018. On its part, net debt to EBITDA ratio slightly increased to 1.3 times closing, the average long-term financial debt interest rate is 4.5%. Now, I will turn to Verónica, who will speak about the main drivers of this quarter results.
Thank you, Sebastián, and hello to everyone. Please move to slide six for a review of the main figures of the year, starting with a physical sales and generation balance analysis in Chile. Total generation of the period increased by 4% compared to the second quarter of 2017, reaching 3.5 terawatt hours, mainly explained by the higher hydro and gas generation, partially offset by a decrease in diesel and coal generation. Physical sales during the quarter reached 3.4 terawatt hours, increasing by 4% compared to the same period of the previous year, mainly explained by higher sales to unregulated customers and sales to the spot market, partially offset by lower sales to regulated customers. Spot market balance during the quarter recorded net sales for 507 gigawatt hours compared with net sales for 476 gigawatt hours in second quarter of 2017.
During the quarter, 100% of the company's commercial commitments were supplied with cost-efficient base load generation. Please continue to slide seven to analyze Chile's EBITDA for the quarter. First, revenues for this quarter reached $349 million , slightly increasing compared to the second quarter of the previous year, mainly explained by higher sales to unregulated customers and higher generation. The higher revenues were partially offset by lower revenues from transmission tolls due to the change in methodology in the collection of these tolls, which, as of January 2018, are paid directly to the owner of the transmission facilities. Second, sales to regulated customers and third, energy and capacity sales in spot markets. Raw materials and consumables used increased by 3% in the quarter, mainly explained by higher cost of gas and coal consumption.
The higher costs of the quarter were partially offset by lower diesel consumption and transmission toll costs. With all, EBITDA decreased by 4%, reaching $142 million as of January 2018. Please continue to slide eight for a review of the main financial figures of Fenix, starting with a physical sales and generation balance analysis. Fenix thermal gas power generation reached one gigawatt hour during this quarter. Physical withdrawals from customers under contract reached 805 gigawatt hours, and spot market balance recorded net sales of 174 gigawatt hours in the quarter. Please continue to slide nine to analyze Fenix EBITDA for the quarter. Revenues during the quarter reached $52 million, while raw materials and consumables used amounted to $38 million. On its part, personnel and other operating expenses were $10 million. With all, EBITDA totalized $12 million in the period.
Let's move to slide 10 for the consolidated non-operating income and net income analysis. Non-operating income in second quarter 2018 recorded loss of $31 million, which compares with the loss of $1 million in second quarter 2017. The higher loss in the quarter is mainly explained by, first, a non-recurring income of $23.4 million as a result of the recognition of our deferred tax asset in our subsidiary, Fenix. Second, the negative impact of the variation of the exchange rate over temporary balance accounts in local currency during the quarter. Third, accounting record in the line other profit losses of provisions for impairment of specific assets for $4 million. These effects were partially offset by, first, higher financial income due to higher rates of return on investment of cash surpluses.
Second, an increase registered in the line profit loss of companies accounted for using the equity method as a result of the dissolution of HidroAysén in November 2017, which prior to the dissolution, presented losses. Tax expenses amounted to $19 million, in line with the second quarter of 2017. Although second quarter of this year shows lower profits before taxes than the same quarter of the previous year, tax expenses remain in line, mainly due to the increase in the income tax rate from 25.5% to 27% in Chile, and because the profit at business combination level in our subsidiary, Fenix, registered in the second quarter of 2017, previously explained, is not taxable income. The company recorded in second quarter of this year a net income of $45 million, lower than the net income of $78 million of the second quarter of the previous year.
The lower profit is mainly explained by the higher non-operating losses recorded during the second quarter of the previous year, previously explained. Continuing with the conference call, please go to slide number 12, where Sebastián will give you an update on the status of our growth opportunities.
Thank you, Verónica. As we have mentioned before, we continue searching for growth opportunities in Chile, Peru, Colombia, and Argentina in order to maintain a leading position in the power generation business and to diversify our sources of income. Regarding our growth opportunities in Chile, we have focused our growth in renewables based on three pillars. The first one is developing a pipeline of projects. Within this goal, the power market is balanced in terms of efficient supply and demand. In a scenario of low growth in power demand and a significant pipeline of renewable projects, our goal is to maintain a relevant position in the sector, for which it is very important to have a diversified portfolio of projects, both in terms of technology and location.
For more details on this slide, you can see the list of our current portfolio of projects, or please refer to the latest earning reports available at our website. Second, acquiring energy from third parties. In this context, we have signed contracts with Acciona for 95 gigawatt-hour a year, and with Total SunPower for 500 gigawatts a year. Finally, as a third pillar, the company does not rule out the purchase of renewable assets that are currently in operation. With this, we are concluding Colbún's second quarter results review. Thanks for listening. Now we are open to answer your questions.
Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Our first question comes from Arturo Murúa with Banco Santander. Please proceed with your question.
Hi, guys. Sebastián, Verónica, thanks for the call and the presentation. My question is regarding to the provision for the impairment. If I'm not mistake, it's about Santa Sofía, which is a solar project. I want to know why the impairment, if your idea is to go through [renewables]. Just a bit of color about this impairment.
Arturo, hi. This is Miguel speaking. Regarding your question, this asset impairment corresponds mainly to a photovoltaic project that we acquired as part of the SunEdison transaction that occurred about two years ago.
In which Colbún finally decided not to pursue this project for the moment as part of its ongoing review that we currently perform for all of our portfolio of projects. We purchased this project as part of the generation PPAs. As mentioned, we decided not to pursue since these assets comprised mainly of rights of way and studies.
Perfect. Thanks a lot, Miguel.
Our next question comes from Miguel Ovalle with CRISIL. Please proceed with your question.
Hello, team. Thank you for taking my question. Just one short question regarding the quarter for the remaining of the year and your expectations regarding maybe revenues and the performance of the units. If you have some guidance or any color regarding Angostura, it will be helpful as well. Thank you.
Hi, Miguel. This is Miguel again from Colbún. As I think we have mentioned before, unfortunately, we cannot provide guidance or estimations about either hydrology, performance of the units, or results in general.
Okay. Understood. Do you have any kind of expectations about the performance of the company in the short term, given the lower EPS registered in the period? Especially if you're going to proceed, something like that, just any recall will be helpful on that.
I would say, Miguel, that again, in general, although we cannot provide an estimation or color on what you're asking. As you know, typically, we work considering an expected hydrology based on an average of the previous years. With that, we put together a certain expectation of output on the different units and link to that results for the company. Having said that, again, it is too soon to give information about hydrology, and we need to wait for the melting forecast that will come in August and before that on the actual rainfall in the months to come.
Ladies and gentlemen, we have reached the end of the question and answer session, and I would like to turn the call back to Sebastián Moraga for closing remarks.
Hi, this is Miguel. Thank you everyone for joining this conference call, and we hope to see you all again for the next quarter review. Have a nice week.