Chile Enersis 3Q Net Profit Falls 13% to CLP101.94 Billion

Third-quarter net profit at Enersis SA (ENI, ENERSIS.SN) declined 13% year on year to 101.94 billion Chilean pesos ($212.8 million), the Chilean energy holding company said in a regulatory filing Tuesday.

Chile's drought conditions were behind the decrease in net profit, the company said in a separate statement.

Enersis, which operates in Chile, Argentina, Colombia, Peru and Brazil, controls Chile's largest power generator, Empresa Nacional de Electricidad SA (EOC, ENDESA.SN), whose biggest energy source is hydroelectric generation, representing 61% of its capacity in Chile.

Enersis's revenue fell to CLP1.536 trillion from CLP1.588 trillion in the same period a year ago.

During the first nine months of the year, Enersis's earnings before interest, taxes, depreciation and amortization, or Ebitda, declined 8% to CLP756 billion.

Some 51% of Endesa's Ebitda comes from its generation and transmission businesses with the remainder corresponding to the distribution business.

Enersis has been on the spotlight as it plans to conduct an $8.02 billion capital increase, which has raised concerns among minority shareholders due to the size and use of proceeds.

The company's board members may call for a December shareholders meeting to vote on the transaction.

Since Enersis announced its capital increase plans in July, the stock has declined more than 10%.

Enersis was recently trading 1.5% higher at CLP168 while the select IPSA index was 0.2% higher.

-Write to Graciela Ibanez at graciela.ibanez@dowjones.com

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