By Graciela Ibanez
Chile's largest power generator, Empresa Nacional de
Electricidad SA (EOC, ENDESA.SN) will likely report a gain in
second-quarter net profit on higher hydroelectric generation and an
increase in the company's Chilean revenue.
The power producer is seen posting 75.51 billion Chilean pesos
($152.7 million) in second-quarter net profit, a 16% gain from the
same period a year ago, according to the median estimate of three
analysts polled by Dow Jones Newswires.
With a total installed capacity of 14,832 megawatts in Latin
America, Endesa operates in Chile, Argentina, Colombia and Peru and
has an equity investment in Brazil.
The company's largest energy source is hydroelectric generation,
which represented 61% of Endesa's capacity in Chile, as of
March.
"June rain benefited Endesa's results in Chile," said Rodrigo
Jacob, head of research at Bice Inversiones.
Endesa likely posted CLP198.45 billion in earnings before
interest, taxes, depreciation and amortization, or Ebitda, a 7%
increase versus the same period of 2011.
Endesa's parent company, Enersis SA (ENI, ENERSIS.SN),
meanwhile, will likely report a 27% year-on-year decrease in
second-quarter profit to CLP77.51 billion, according to the
analysts' median estimate.
Variations between the Brazilian real and the Chilean peso
contributed to Enersis's lower profit as the real depreciated more
against the dollar than the peso did against the U.S. currency last
quarter, said Mr. Jacob.
Enersis, owned by Spain's Endesa SA (ELEZF, ELE.MC), has power
generation, distribution and transmission businesses in Argentina,
Brazil, Chile, Colombia and Peru.
Endesa and Enersis are expected to release second-quarter
earnings Wednesday.
Write to Graciela Ibanez at graciela.ibanez@dowjones.com
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