By Nathan Gill and James Attwood
Oct. 28 (Bloomberg) -- Empresa Nacional de Electricidad SA, Chile’s biggest power generator, said third-quarter profit surged 56 percent after it lowered costs.
Net income rose to 178 billion pesos ($336 million) from 114 billion pesos a year earlier, the company known as Endesa Chile said today in a statement to the nation’s securities regulator. The company was expected to post profit of 164 billion pesos, the average estimate of six analysts surveyed by Bloomberg News.
Santiago-based Endesa Chile’s power-generating costs fell this year as it produced more from hydroelectric plants amid increased rainfall, offsetting lower prices, said Sergio Zapata, an analyst at Banchile Inversiones. The cost of fuel, transport and other supplies declined 13 percent, Endesa Chile reported.
“Chile operations were benefited by lower diesel costs” and higher reservoir water levels, Zapata said in a telephone interview today. He maintained his “buy” rating on the stock.
Madrid-based Endesa SA controls the Chilean generator through Enersis, which reported third-quarter net income of 174 billion pesos today.