Enel Chile says agreement with Shell to bring $500 million positive impact

SANTIAGO (Reuters) – Enel Generacion Chile said on Friday that it reached an agreement with Shell to carry out contractual modifications that would have a pre-tax financial positive impact of about $500 million.

In a note to local markets regulator, Enel Generacion Chile said the changes are still pending some corporate authorizations that are expected in December.

The note said that “among others”, one of the changes is the partial disposal of projected excess liquefied natural gas. 

“It is estimated that the operation will have a positive impact on the pre-tax result of Enel Generacion Chile of approximately USD 500 million,” the note added.

The company did not provide further details.

After the statement sent to the regulatory body, Enel Chile’s shares rose more than 4% on the Santiago stock market at the beginning of Friday afternoon.

On Tuesday, Enel, the Chilean subsidiary’s parent company in Italy, announced plans to sell $21.5 billion in assets and pull out of certain markets.

(Reporting by Natalia Ramos; Writing by Alexander Villegas, Editing by Fabián Andrés Cambero and Marguerita Choy)