SalfaCorp Profit More Than Halves on Nueva Centinela Charges
Chile's largest construction group reported a second-quarter profit down more than half, hit by surprise charges on the Nueva Centinela copper project it is building for Antofagasta Minerals. The post SalfaCorp Profit More Than Halves on Nueva Centinela Charges appeared first on The Rio Times .
SalfaCorp, Chile's leading construction firm, reported a significant drop in profit for the second quarter of 2026 due to unexpected charges related to the Nueva Centinela copper project. The company's net income for the April-to-June quarter fell to CLP 6,452 million (around US$6.8 million), a sharp decline of approximately 55% from the previous year's CLP 14,388 million (about US$15.1 million).
Revenue remained relatively flat, indicating that the decline was primarily driven by costs and the Nueva Centinela charges. The exact size of the charge has not been disclosed, but it is believed to be significant enough to impact the company's overall earnings. The Nueva Centinela project, a large-scale copper concentrator in northern Chile, is a major investment for SalfaCorp, with a projected investment of around US$4.4 billion.
The project, built in collaboration with Fluor, is expected to begin producing copper in 2027. This single project represents about 79% of SalfaCorp's project pipeline, highlighting the company's heavy reliance on the copper market. The construction and property market in Chile has been experiencing a slowdown, with higher borrowing costs making it more challenging to fund new projects and home purchases.
This broader economic context adds to the challenges faced by SalfaCorp, as the company navigates the impact of the Nueva Centinela charges on its financial performance.
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