E.CL Jumps in Chile After Long-Term Fuel Supply Deal
E.CL SA (ECL), a power-generation unit of France’s GDF Suez (GSZ), rose the most in four months after saying it had signed a long-term contract for fuel at its thermoelectric plants in northern Chile.
E.CL advanced 3.9 percent to 685 pesos at 12:44 p.m. in Santiago, its biggest gain on closing basis since April 26. Volume traded was six times the full-day average of the past three months. The IPSA benchmark index climbed 0.3 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 stock has fallen 38 percent in 2013, the IPSA gauge’s seventh-worst performance. The company reported an $8.51 million net loss in the second quarter as fuel costs rose.
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