09 September 2009

Chile's Edelnor Rallies After Submitting Lowest Supply Bids

By James Attwood and Nathan Gill
Sept. 9 (Bloomberg) -- Chile’s Empresa Electrica del Norte Grande SA rose the most in three months after announcing it offered the lowest price in bidding for new supply contracts.

The northern Chilean electricity producer known as Edelnor rallied 8.3 percent to 742 pesos in Santiago trading, the steepest advance since May 28.

Edelnor submitted the lowest bids for contracts to supply 1,800 gigawatt hours to 2,530 gigawatt hours to regulated clients in northern Chile from 2012 through 2026, it wrote in a statement posted today on the regulator’s Web site. The contract, if awarded to Edelnor, would “practically” double the company’s supply under contract, it wrote.

“It’s a very attractive long-term project in which the company guarantees its income until 2026,” William Baeza, an analyst at Euroamerica Corredores de Bolsa SA, said today in a telephone interview from Santiago. “It’s an element that adds to the company’s growth outlook.”

Edelnor is controlled by France’s GDF Suez SA and Chilean state-owned copper producer Codelco.