UPDATE: Chile Endesa 2011 Net Profit -16.2% On Year To CLP446.87 Billion

Chile's largest power producer, Empresa Nacional de Electricidad SA (EOC, ENDESA.SN), posted a 2011 net profit of 446.87 billion Chilean pesos ($909.94 million), a 16.2% decrease from CLP533.57 billion the previous year.

The drop was due to lower reservoir water levels in Chile, which reduced the company's production of electricity from cheaper hydrogeneration, forcing it to turn to more expensive thermal generation, the company said in a statement.

Endesa added that the adverse hydrological conditions in Chile were partially offset by "the geographic diversity of the company's investments in the region, a correct commercial policy and the adequate generation mix."

The company's per-share earnings fell 16.3% to CLP54.50 from CLP65.10 in 2010, Endesa said in a statement.

Its earnings before income tax, depreciation and amortization, or Ebitda, fell 9% on the year to CLP973.89 billion from CLP1.07 trillion in 2010.

The generator has 13,846 megawatts of installed capacity in Argentina, Chile, Colombia and Peru, and owns an equity stake in 987 MW of installed capacity in Brazil. Some 38% of Endesa's capacity is in Chile.

Broken down by country, Endesa reported that Ebitda in its Peru operations rose 30% on the year in 2011 to CLP141.21 billion, while Ebitda in Colombia fell 2.4% to CLP290.82 billion.

In Argentina, Ebitda retreated 22.8% to CLP46.23 billion, while that in Chile fell 18% to CLP495.63 billion.

Endesa is controlled by power-holding company Enersis SA (ENI, ENERSIS.SN), which in turn is controlled by Spain's Endesa SA (ELEZF, ELE.MC).

-By Carolina Pica, Dow Jones Newswires; 56-2-715-8919; [e-mail]