Endesa Chile's Earnings Show 52% Improvement from 2007

The Chilean energy company Endesa Chile (NYSE: EOC) reported strong earnings for 2008, with Net Income reaching Ch$443 bln, which equals US$721 mln at CLP614/USD.

Endesa's 2008 result is a 52.8% improvement from the Ch$210 bln (US$342 mln) obtained in 2007. The strong development is due to a 44% increase in Operating Income, which arrived at Ch$893 bln (US$1.45 bln), as well as a 63% improvement in the company's Non-Operating Result.

The improvement in Non-Operating Income was driven mainly by better results from the affiliate company Endesa Brazil, as well as the devaluation of the Colombian Peso, which affected the company's liabilities dominated in that currency.

EBITDA grew 38%, and reached Ch$1.146 bln (US$1.87 bln), while Total Revenues reached Ch$2.492 bln (US$4.06 bln), up 33% from the same period in 2007.

In volume terms, Endesa sold 55.734 GWh worth of worth of power in 2008. This was a 1% increase from 2007. By region, sales declined by 11% in Argentina, while grew in Chile, Colombia and Peru, by 3%, 5% and 6% respectively. The decline in Argentina was due lower hydrology, according to the company's press release.

Endesa's financial position as of December 31 showed US$1.92 bln of Current Liabilities, US$3.7 bln of Long Term Liabilities, US$3.7 bln of Equity and US$1.87 bln worth of Minority Interest.

Endesa's ADR has a twelve-month performance of +6.11%. The current price of US$37.06 per ADR implies a P/E of 24 and a Market Cap of US$10.15 bln.

The company's latest financial reports can be found here.

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