Edelnor posts US$16.1mn Jan-Sep profits

Chilean thermo generator Edelnor posted net profits of 10bn pesos (today US$16.1mn) in the first nine months this year, turning round losses of 37.9bn pesos from the same period last year, the company said in a statement to Chile's securities commission (SVS). The renegotiation of long-term debt, together with a better exchange rate difference this year, allowed the company to post 18bn peso non-operating profits, compared to 45.3bn losses in the same period last year. Power sales increased 33.6% to 1.7 million MWh at an average price of 23 pesos/kWh, bringing in 39bn pesos. Edelnor operates in Chile's northern grid (SING), and increased its power and capacity sales. Operating revenues increased 10% to 42.3bn pesos, but operating margins were 2.75bn pesos in the red compared to profits of 1.38bn pesos in the same period last year. This was due to a 1150% increase in operating losses to 5.83bn pesos that resulted from higher fixed and variable costs: the useful life of the company's plants is now listed as 25-30 years instead of 40-45 years, there were greater maintenance costs at the Mejillones plant, and gas transport costs increased relative to 2002 because gas supplies were suspended for two months in 2002 due to an accident which cut supplies, and then for a further two months thanks to a planned maintenance program. Belgian power company Tractebel and Chile's state copper company Codelco own Edelnor, which is based in Mejillones in Region II.