WRAPUP 2-Enersis, Endesa Chile profits tumble

Tue Nov 6, 2012 3:31pm EST

* High costs, lower energy prices, drought weigh
    * Enersis Q3 net profit down 13.1 percent
    * Endesa Q3 net profit dives 44.2 percent


    SANTIAGO, Nov 6 (Reuters) - Regional energy group Enersis
and its generation unit Endesa Chile saw third-quarter net
profits tumble due to a continued drought in Chile, which
impacted production, as well as lower sales prices and higher
costs, the companies reported on Tuesday.
    Enersis , one of the region's largest
electricity companies, with generation, transmission and
distribution units in Argentina, Brazil, Chile, Colombia and
Peru, suffered a 13.1 percent drop in net profit compared with a
year earlier.
    Net profit for the quarter was 101.937 billion pesos ($216.7
million). For the first nine months of the year, net fell 17.1
percent to 264.557 billion pesos ($562.3 million).
    "The (drop) was due mainly to the effects of the drought
that has affected the generation business in Chile for over
three years. This situation started to turn around mildly in the
second half of 2012," Enersis said in a statement.
    Enersis' EBITDA - earnings before interest, taxes,
depreciation and amortization - slipped 2.0 percent for the
first nine months of the year, to 1.481 trillion pesos.
    
    ENDESA NET TUMBLES
    Endesa Chile's  third-quarter net profit
plummeted 44.2 percent from a year earlier to 64.924 billion
pesos and was down 40.2 percent for the January-September period
to 166.367 billion pesos.
    The Andean nation's leading power generator said its EBITDA
totaled 610.507 billion pesos for the January-September period,
down 8.1 percent from a year earlier.
    Falling EBITDA was "chiefly due to lower average energy sale
prices in Chile and Argentina, higher fuel consumption costs in
Chile, Peru and Colombia, and higher transport costs in Chile,"
Endesa said in a statement.
    Enersis has been mired in a controversial planned $8.02
billion capital increase. Minority shareholders say assets that
Enersis' parent company, Spanish energy company Endesa,
plans to use to pay for its part of the operation are
overpriced. 
    In late October, two new appraisals trimmed by at least 20
percent the value of those assets. 
    Shares in Enersis closed 1.79 percent stronger while shares
in Endesa closed up 0.28 percent. Santiago's blue-chip IPSA
 stock index rose 0.33 percent.
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