Endesa (PK) (USOTC:ELEZF)
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From Jun 2019 to Jun 2024

Enersis SA's (ENI, ENERSIS.SN) third-quarter net profit dropped to 144.0 billion Chilean pesos ($291.1 million) from CLP173.9 billion for the same period in 2009, the Chilean utility holding company said Wednesday.

As widely expected, profits were hurt by higher power-generation costs as Enersis had to rely on more expensive thermal generation because hydroelectric generation was curtailed in Chile and Colombia on reduced rainfall, the company said.

"We continue to witness strong growth in energy demand in the five nations we operate in, especially in Brazil and Peru," the company said. Growth in gross domestic product this year is expected to be over 7% in Argentina, Brazil and Peru, near 5.5% in Chile and around 4.4% in Colombia.

Sales for the third quarter increased to CLP1.64 trillion from CLP1.54 trillion in the comparative year-ago period.

Over the last 52 weeks, Enersis shares have traded between CLP182.82 and CLP244.36, gaining 13.8% over that period.

Enersis is strongly positioned for the coming years because of "supportive tariff trends, and an increase in the client base in distribution; investments in generation, supported by long-term prices; its diversified portfolio in Latin America and rising energy demand all over the region," local investment bank Celfin Capital said in a research note.

Enersis shares, which have a 9.6% weighting on the blue-chip Ipsa index, ended 2.1% higher at CLP228.67 after Enersis announced an upcoming dividend payment and as Celfin Capital reiterated its buy recommendation and CLP256 target price for the company.

Enersis, which is owned by Spain's Endesa SA (ELEZF, ELE.MC), is active in the power generation, transmission and distribution businesses in Argentina, Brazil, Chile, Colombia and Peru.

-By Anthony Esposito, Dow Jones Newswires; 56-2-715-8929; anthony.esposito@dowjones.com