Quiñenco General Manager Francisco Pérez Mackenna said the results confirm that the company's strategy was correct. "It was a period full of successes and positive news, highlighting the CCU business in Argentina, reviving CSAV and Hapag-Lloyd's results, and Enex's entry into the American market. We will continue the process of greening in Chile and explore business opportunities abroad, "he said.
Quiñenco recorded a net profit of 153,832 million pesos for the first nine months of 2018, an increase of 135% over the same period in 2017.
This is explained by the consortium founded by Andrónico Luksic Abaroa, mainly due to the return of the CSAV and the one-time gain gained by the CCU after a transaction that envisaged the termination of its Budweiser license in Argentina.
First, Compañía Sudamericana de Vapores (CSAV) canceled the 2017 accounting loss due to dilution in Hapag-Lloyd after merger with the United Arab Shipping Company (UASC). By September this year, the German shipping company had positive results due to good operating performance in connection with the demanding conditions in the container industry.
In Quiñenco's profit until the third quarter of 2018, it was also important to increase the profit of the CCU. Though it is largely due to the $ 153.496 million non-repayable profit announced by the company for a transaction that ended its license in Budapest in Argentina, it is also worth noting the good results in Chile and International Business, the second with a 25% increase volumes.
Banco de Chile made a profit of $ 433.350 million while retaining a similar level to the previous period. The 7% increase in the bank's operating income, driven by both customer income and the favorable effect of inflation over the period, was offset by higher spending and credit risk reserves, above all unrepeatable. It is important to note that the net profit the bank has acquired will allow the subscription of 100% of the subordinated debt to the central bank administered by SM Chile. Payment of the final charge should be made by the end of April 2019, 17 years before the original deadline for termination of this commitment.
In the case of SM SAAM, the one-time gain recorded last year from the sale of its minority stake in Tramarsa explains that the subsidiary's contribution to the results of the company will be reduced by 38% in 2018. Continuous operations, the Terminal Ports segment worked well, with more activity in most of them, while the logistics segment is recovering, especially in the third quarter.
In the field of energy, Enex achieved good operating result with an EBITDA increase of 11%, due to rising sales volumes and better margins in service station and lubricant pipelines, as well as the favorable impact of sales of inventories valued at historical cost due to rising prices. Net profit increased by 13%.
In an important milestone for Quiñenco's strategy for internationalization last week, Enex entered the US market through the acquisition of the 38 Road Ranger Road Networks on the main roads, and they will enter Texas with the Midwest. The transaction, which reached $ 289 million, has an interesting growth potential.
Another important milestone at the international level was the opening of the Invexans subsidiary in London, Invexans Limited, to explore new business opportunities and concentrate the parent company's investments, particularly in Europe and other countries. Invexans recently announced that it has transferred to this UK subsidiary an investment in the French company Nexans, which now reaches 28.39% of the shares issued by the company. The French multinational company does not report results in the third quarter of the year.
The strategy works
Together with Quiñenco's Quiñenco General Manager, Pérez Mackenna's Quiñenco General Manager said he was confirming that the company's strategy was right. "It was a period full of successes and positive news, highlighting the CCU business in Argentina, reviving CSAV and Hapag-Lloyd's results, and Enex's entry into the American market. We will continue the process of organic growth in Chile and explore business opportunities abroad, "he said.