E.CL Jumps in Chile After Long-Term Fuel Supply DealEduardo Thomson
E.CL SA, a power-generation unit of France’s GDF Suez, rose the most in two years after saying it had signed a long-term contract for fuel at its thermoelectric plants in northern Chile.
Shares surged 4.9 percent to 691.48 pesos at the close in Santiago, the biggest gain since August 2011. Volume traded was almost eight times the full-day average of the past three months. The IPSA benchmark index climbed 0.1 percent.
The power company disclosed yesterday in a regulatory filing a contract with Soc. GNL Mejillones SA that will guarantee a supply of liquefied natural gas for its thermal plants through 2026.
“Securing long-term supply of LNG is beneficial for the company,” EuroAmerica Corredores de Bolsa SA analyst Ximena Garcia said today in an e-mailed research note. “We should see a positive impact on this overly punished stock.”
E.CL’s shares have fallen 37 percent in 2013, the IPSA gauge’s seventh-worst performance. The company reported a net loss of $8.51 million in the second quarter as fuel costs rose.