UPDATE: Chile Enersis 1Q Net Profit +5% On Year To CLP100.66 Billion

Enersis SA's (ENI, ENERSIS.SN) first-quarter net profit gained 5% year-on-year to 100.66 billion pesos ($206.91 million), the Chilean energy holding company reported Wednesday.

The gain was due to a 6.4% increase in power demand in Chile, Brazil, Peru and Argentina, the company said in a statement.

Enersis noted that its balance sheet also saw effects of converting the results of its operations abroad into Chilean pesos for reporting purposes.

When converting from Brazilian reais and Argentine pesos, results in the Chilean currency decreased 4.3% and 6.2%, respectively.

But when converting from Colombia pesos and Peruvian soles into Chilean pesos, results from those countries increased 6% and 5.1%, respectively.

The company's first-quarter earnings before income taxes, depreciation and amortization, or Ebitda, grew 14.4% year-on-year, to CLP497.03 billion, while earnings per share rose 5% to CLP3.08.

Income for the first quarter increased 4.4% on the year to CLP1.66 trillion, the company said.

Enersis owns power generation, distribution and transmission businesses in Argentina, Brazil, Chile, Colombia and Peru.

The company said improved results from its generation units in Colombia and Peru helped to offset reduced contributions from power production in Argentina and Chile.

Generation costs in Chile rose due to higher fuel costs as many generators have been forced to reduce hydrogeneration due to drought conditions and opt for more expensive fuels such as coal and diesel.

In Argentina, average energy prices fell while personnel expenses increased, the company said.

In Colombia, meanwhile, Enersis saw power sales increase as a result of higher hydroelectric generation, it said. Enersis added that in Peru, average energy prices increased 17% and power sales inched up 2% during the first quarter of the year.

Spain's Endesa SA (ELEZY, ELE.MC) owns Enersis, which in turn owns Chile's largest power generator, Empresa Nacional de Electricidad SA (EOC, ENDESA.SN).

Enersis' shares on the Santiago Stock Exchange closed 1.7% higher at CLP198.00 as investors applauded the strong earnings, while the IPSA select index ended just 0.04% higher.

In the past 52 weeks, Enersis has traded at a high of CLP218.48 and a low of CLP169.20.

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

Order free Annual Report for Enersis SA

Visit http://djnweurope.ar.wilink.com/?ticker=US29274F1049 or call [phone]