Endesa's profits decreased 4% during 1Q2013

Net profit attributable to the Parent Company of Endesa reached $63,334 million in the period ended on march 31, 2013, a 4.4% decrease compared to the figure posted in the first three months of 2012. This was largely due to the $14,950 million higher deferred tax expense in Chile and a one percent increase in the tax rate in Colombia.

Based on the information presented to the Chilean Securities and Insurance Supervisor (Superintendencia de Valores y Seguros - SVS), on this three month period profits before tax totalled $144,289 million, an amount that represented a 13.9% increase compared to the $126,684 million posted in the same period of last year.

Revenues showed a 9.6% drop, amounting to $489,433 million, due to lower average energy sales prices,  associated with fewer contracts indexed to a lower marginal cost, and to the lower physical sales mainly in Argentina and Peru.

EBITDA rose by 7.4%, reaching $195,975 million. This improvement was explained by a 20.6% reduction in costs of sourcing and services, mainly reflecting the lower costs for energy purchases in Chile resulting from higher thermal generation; by the lower fuel consumption costs in  all the countries, and by the lower transport costs in Chile. 

It should be noted that this result does not include the contribution from investments in Endesa Brasil, which is not consolidated in Endesa Chile, and which results are considered under profit (loss) of equity investments, accounted for using the equity method, and which at march 2013 amounted to $ 23,333 million.

In the first quarter the generation of Endesa Chile, a subsidiary of the Enersis Group, went from 12,999.9 GWh last year to current 12,737.7 GWh, posting a 2% drop, due to the decrease in operations of Argentina, Peru, and Colombia. Along this same line, energy sales recorded 13,912.6 GWh, compared to 14,300.7 GWh posted in the first quarter of 2012. Physical sales in Chile dropped by 1.1% as a consequence of the termination of some contracts on the free market.

Finally, net financial charges totalled $35,141 million, decreasing by 15.9% mainly due to lower financial expenses in Peru. The income in associated companies dropped by 6.5% and registered a value of $29,102 million, due to lower net income from Endesa Brasil.