Chile's Gener 2007 net falls to $81 million

SANTIAGO, Feb 15 (Reuters) - Aes Gener CHG.SN, a unit of U.S. power company AES Corp (AES.N), said profit fell 47 percent last year on big cost increases resulting from higher fuel prices and cuts in natural gas supplies.

Gener reported 2007 net income of 40.28 billion pesos ($81 million), down from 75.5 billion pesos in 2006. The company said in a separate communication to the local regulator in Chile that sales in 2007 rose 42 percent to 729.9 billion pesos.

Earnings before interest, taxes, depreciation and amortization fell 25 percent to 141.2 billion pesos.

"This reduction reflects the significant increase in electric generation costs related to the Argentine natural gas restrictions and rise in fuel prices, which resulted in higher fuel consumption and spot market energy purchase costs," the company said.

In 2007 energy prices on Chile's spot market more than quadrupled on short supplies caused by natural gas cuts and lower hydroelectric reservoir levels on scant rainfall.

Chile's sole supplier of natural gas, Argentina, has drastically cut its shipments as it confronts its own domestic energy shortage.

AES Gener, Chile's second-largest electrical generator, said its units in 2007 had supplied 22 percent of the energy generated in the northern power grid that serves Chile's mining region, and 26 percent in the central power grid that serves the populous central region. ($1=497.8 pesos at the end of December) (Reporting by Lisa Yulkowski; Editing by Lisa Von Ahn)