6-K 1 enipr1q07_6k.htm CONSOLIDATED RESULTS 1Q07 Provided By MZ Data Products

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of April, 2007

Commission File Number: 001-12440

ENERSIS S.A.

(Translation of Registrant’s Name into English)

Santa Rosa 76
Santiago, Chile

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  [X]   Form 40-F  [   ]

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes    [  ]      No    [X]

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes    [  ]      No    [X]

Indicate by check mark whether by furnishing the information
contained in this Form, the Registrant is also thereby furnishing the
information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes    [  ]      No    [X]

If °;Yes” is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A

 

PRESS RELEASE
First Quarter 2007– Market Information 
 

ENERSIS ANNOUNCES CONSOLIDATED RESULTS FOR
THE FIRST QUARTER MARCH 31, 2007

HIGHLIGHTS FOR THE PERIOD
[All figures in Chilean Pesos]

  • Operating Revenues increased 12.6% to Ch$1,072,808 million, as a consequence of 18.1% higher revenues in generation and transmission business and of 9.5% higher revenues in distribution business.
  • Operating Margin grew 24.6%, reaching Ch$411,966 million.
  • EBITDA grew 22.6% reaching Ch$464,029 million.
  • Energy demand continued growing in all our subsidiaries in the operating countries, as follows
  •  Chile 5.1% 
  •  Argentina 8.8% 
  •  Brasil 3.7% 
  •  Colombia 8.1% 
  •  Perú 6.9% 
  • Physical sales continued growing, with increases of 6.3% in distribution and 8.0% in generation.
  • Our client base in distribution continue growing, increasing as of March, 2007 by 375 thousand new customers.

  • Energy losses, at aggregate level, diminished from 11.3% to 11.1%.

  • Enersis’ Chilean stock price increased 39.7% and ADR grew 37.4%, reaching Ch$176.00 and US$16.29 respectively.

  • Our market capitalization reached Ch$5,746,605 million, achieving a significant improvement of 39.7%.

  • As of April 18th, 2007, a new node price was published by the authority, to be effective for the period within May and October 2007, reaching US$73.17 per MWh, revealing an increase of 8.7%.

 


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PRESS RELEASE
First Quarter 2007– Market Information 
 

TABLE OF
CONTENTS

HIGHLIGHTS FOR THE PERIOD    1 
     
TABLE OF     
CONTENTS    1 
     
GENERAL INFORMATION    4 
   SIMPLIFIED ORGANIZATIONAL STRUCTURE    5 
     
MARKET INFORMATION    6 
   EQUITY MARKET    6 
   MARKET PERCEPTION    9 
   DEBT MARKET    9 
     
RISK RATING CLASSIFICATION    10 
   CORPORATE RISK RATING CLASSIFICATION:    10 
   DOMESTIC RISK RATING CLASSIFICATION:    10 
     
CONSOLIDATED INCOME STATEMENT    11 
   UNDER CHILEAN GAAP, MILLION CH$    11 
   UNDER CHILEAN GAAP, THOUSAND US$    12 
     
CONSOLIDATED INCOME STATEMENT ANALYSIS    12 
   NET INCOME    13 
   OPERATING INCOME    13 
   NON OPERATING INCOME    14 
   EVOLUTION OF KEY FINANCIAL RATIOS    14 
     
CONSOLIDATED BALANCE SHEET    16 
   ASSETS UNDER CHILEAN GAAP, MILLION CH$    16 
   ASSETS UNDER CHILEAN GAAP, THOUSAND US$    17 
   LIABILITIES AND SHAREHOLDERS EQUITY UNDER CHILEAN GAAP, MILLION CH$    18 
   LIABILITIES AND SHAREHOLDERS EQUITY UNDER CHILEAN GAAP, THOUSAND US$    19 
     
CONSOLIDATED BALANCE SHEET ANALYSIS    20 
   DEBT MATURITY WITH THIRD PARTIES, MILLION CH$    22 
   DEBT MATURITY WITH THIRD PARTIES, THOUSAND US$    22 
     
CONSOLIDATED CASH FLOW    23 
   UNDER CHILEAN GAAP, MILLION CH$    23 
   UNDER CHILEAN GAAP, THOUSAND US$    25 
     
CONSOLIDATED CASH FLOW ANALYSIS    27 
   CASH FLOW RECEIVED FROM FOREIGN SUBSIDIARIES BY ENERSIS, CHILECTRA AND ENDESA CHILE (*)   28 
   CAPEX AND DEPRECIATION    29 
     
ANALYSIS OF THE EXCHANGE RISK AND THE INTEREST RATE    30 

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PRESS RELEASE
First Quarter 2007– Market Information 
 

ARGENTINA    31 
 
   GENERATION    31 
         Costanera    31 
         Chocón    32 
   DISTRIBUTION    32 
         Edesur    33 
 
BRAZIL    34 
 
         Endesa Brasil    34 
   GENERATION    34 
         Cachoeira Dourada    34 
         Fortaleza    35 
   TRANSMISSION    36 
         Cien    36 
   DISTRIBUTION    37 
         Ampla    37 
         Coelce    38 
 
CHILE    39 
 
   GENERATION    39 
         Endesa Chile    39 
   DISTRIBUTION    40 
         Chilectra    40 
 
COLOMBIA    42 
 
   GENERATION    42 
         Betania    43 
         Emgesa    42 
   DISTRIBUTION    44 
         Codensa    44 
 
PERU    45 
 
   GENERATION    45 
         Edegel    45 
   DISTRIBUTION    46 
         Edelnor    46 
 
PARTIALLY CONSOLIDATED INCOME STATEMENT    47 
 
   UNDER CHILEAN GAAP, MILLION CH$    47 
   UNDER CHILEAN GAAP, THOUSAND US$    48 
 
CONFERENCE CALL INVITATION    49 
 
   CONTACT INFORMATION    50 
   DISCLAIMER    50 

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PRESS RELEASE
First Quarter 2007– Market Information 
 

GENERAL INFORMATION

(Santiago, Chile, April 25, 2007) Enersis S.A. (NYSE: ENI), announced today its consolidated financial results for the quarter ended March 31, 2007. All figures are in both US$ and Ch$, under Chilean Generally Accepted Accounting Principles (Chilean GAAP), as seen in the standardized form required by Chilean authorities (FECU). Variations refer to the period between March 31, 2006 and March 31, 2007. Year 2006 figures have been adjusted by the accounting convention for CPI variation between both periods, equal to 2.7% .

For the purpose of converting Chilean pesos (Ch$) into US dollars (US$), we have used the exchange rate prevailing as of March 31, 2007 for both periods under comparison, equal to US$1 = Ch$539.21. The Chilean peso depreciated by 2.4% against the US$ comparing March 31, 2007 with March 31, 2006.

The consolidation includes the following investment vehicles and companies,
  a) In Chile: Endesa Chile (NYSE: EOC), Chilectra, Synapsis, CAM and Inm. Manso de Velasco.
  b) Outside Chile: Distrilima (Peru), Endesa Brasil (Brazil) [*], Edesur (Argentina) and Codensa.

In the following pages you will find a detailed analysis of financial statements, a brief explanation for most important changes, and comments on main items in the Income and Cash Flow Statements compared to the information as of March 2006.

[*] Consolidated since October 2005 and including Endesa Fortaleza, CIEN, Cachoeira Dourada, Ampla and Coelce.

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PRESS RELEASE
First Quarter 2007– Market Information 
 

SIMPLIFIED ORGANIZATIONAL STRUCTURE




Pg. 5

PRESS RELEASE
First Quarter 2007– Market Information 
 

MARKET INFORMATION

EQUITY MARKET

New York Stock Exchange (NYSE)

Over the last 12 months, the Enersis’ ADR stock price increased 37.4%, from US$11.86 to US$16.29, over the 11.21% increase of the Dow Jones Industrial Index. The growth of the ADR price has been higher than the Adrian Index performance1, which reached a growing rate of 33.5% .

The chart below presents the performance of Enersis stock listing in NYSE (“ENI”) against Dow Jones and the DJ Utilities benchmarks:

Stock price variation v/s Local Stock Index

Daily Average Transactions Volume
(1 ADR = 50 local shares)

Source: Bloomberg

____________________________
1 ADRIAN Index is a Bolsa Electrónica de Chile’s composite global index for ADRs listed in the United States.

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PRESS RELEASE
First Quarter 2007– Market Information 
 

Bolsa de Comercio de Santiago (BCS)

Over the last 12 months, the Enersis’ Chilean stock price increased 39.7%, from Ch$126.00 to Ch$176.00. This variation is compared with the 34.2% increase on the IPSA Index.

Stock price variation v/s Local Stock Index

Daily Average Transactions Volume
Bolsa de Comercio de Santiago

Source: Bloomberg

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PRESS RELEASE
First Quarter 2007– Market Information 
 

Bolsa de Comercio de Madrid (Latibex)

Over the last 12 months, the Enersis’ share price in the Latin American market of the Madrid Stock Exchange, (Latibex) increased from € 9.95 to € 12.13. The chart below presents the performance of XENI stock listing in the Madrid Stock Exchange against Latibex.

Stock price variation v/s Local Stock Index

Daily Average Transactions Volume
(1 unit = 50 local shares)

Source: Bloomberg

Pg. 8

PRESS RELEASE
First Quarter 2007– Market Information 
 

MARKET PERCEPTION

The research released during the period on Enersis shows the following target prices for the Company’s ADR.

Table 1         
         
Publication Date  Company  Main Analyst  Target Price  Recommendation 
      US$   
         
13-Dec-06  Santander  Raimundo Valdés  17.3  Buy 
21-Dec-06  Alfa Corredores  Rodrigo Cristi  17.3  In Revision 
17-Jan-07  Bear Stearn  Rowe Michels  16  Peer Perform 
04-Feb-07  Penta  Jorge Palavecino  18.1  Neutral 
07-Feb-07  Raymond James  Ricardo Cavanagh  17.5  Buy 
16-Feb-07  Deutsche Bank  Marcus Sequeira  19.5  Buy 
13-Mar-07  Banchile (*) Sergio Zapata  16.8  Hold 
27-Mar-07  UBS (**) Brian Chase  17.9  Neutral 2 
24-Apr-07  Larraín Vial  Cristián Ramírez  20.6  Overweight 
25-Apr-07  Merrill Lynch  Frank McGann  22.0  Buy 
         
ADR average target price (US$)   18.3   
       
(*) The analyst used an exchange rate of Ch$550.00 forecasted by Banchile as of Dec-07 
(**) UBS only estimates the local share target price, therefore we have used an exchange rate at the report publication's date 
(Ch$537.45) for making the conversion to ADR price. 

Source: Bloomberg and market researches

DEBT MARKET

The following chart shows the pricing of our Yankee Bonds during the last twelve months.

Enersis Yankee Bonds

Source: Bloomberg

It is important to mention that, the Yankee Bond for US$ 300 million maturating 2006 was paid on December 1st, 2006.

Pg. 9

PRESS RELEASE
First Quarter 2007– Market Information 
 

RISK RATING CLASSIFICATION

CORPORATE RISK RATING CLASSIFICATION:

Moody’s:         Baa3 / Stable

Rationale (14/12/06)
“Moody’s upgraded its rating for Enersis and for its 60% owned subsidiary, Endesa Chile, from Ba1 to Baa3, both with Stable Outlook. With this rating action, both companies achieved “investment grade” category. Moody’s upgrade was mainly due to the companies’ higher financial flexibility and liquidity, and based also in the fact that the financial performance has raised markedly over the last two years as a result of improvements in the regulatory framework and higher demand for electricity in the countries in which the companies operate; namely, Chile, Colombia, Peru, Brazil and Argentina.
The ratings were placed on Stable Outlook, reflecting the stable scenario in the region, with higher prices for electricity, better economic conditions, strong increase in electricity demand and a lower regulatory uncertainty.”

Standard & Poor’s:          BBB- / Positive

Rationale (15/12/05)
Standard & Poor's Ratings placed the 'BBB-' ratings on Chile-based electricity provider Enersis S.A. on CreditWatch with positive implications due to the improvement of the company's consolidated debt service coverage ratios and financial flexibility.
Standard & Poor's expects to resolve the CreditWatch listing after completing a detailed analysis of Endesa Chile's projected cash flow for the period from 2007 to 2011, including its exposure water availability and capital expenditures.”

Fitch:         BBB / Stable

Rationale (02/06/06)
“…The Risk Rating Agency upgraded Enersis’ rating from BBB- to BBB with a Stable Outlook, reflecting the sustained improvements in the Group’s finances in recent times.” Fitch “acknowledges the sustained improvement in the credit quality of the Company since the beginning of 2004, a more comfortable spread of maturities and a greater solidity presented by its operations in general”.

DOMESTIC RISK RATING CLASSIFICATION:

Feller Rate:    Bonds:     A+ / Positive
    Shares: 1st Class Level 1 
 
Fitch:    Bonds:     A+ / Stable 
    Shares: 1st Class Level 1 

Pg. 10

PRESS RELEASE
First Quarter 2007– Consolidated Income Statement  
 

CONSOLIDATED INCOME STATEMENT

UNDER CHILEAN GAAP, MILLION CH$

Table 2

         
CONS. INCOME STATEMENT - (million Ch$)
1Q 06 
1Q 07 
Var 06-07 
Chg % 
         
           Revenues from Generation & Transmission  380.192  448.870  68.678  18,1% 
           Revenues from Distribution  642.955  703.903  60.948  9,5% 
           Revenues from Engineering and Real Estate  7.630  9.151  1.521  19,9% 
           Revenues from Other Businesses  41.414  39.276  (2.138) (5,2%)
           Consolidation Adjustments  (119.076) (128.391) (9.315) (7,8%)
         
Operating Revenues  953.115  1.072.808  119.693  12,6% 
         
           Costs from Generation  (227.463) (247.724) (20.261) (8,9%)
           Costs from Distribution  (467.424) (494.747) (27.323) (5,8%)
           Costs from Engineering and Real Estate  (5.960) (7.150) (1.190) (20,0%)
           Costs from Other Businesses  (33.513) (33.318) 195  0,6% 
           Consolidation Adjustments  111.858  122.097  10.239  9,2% 
         
Operating Costs  (622.501) (660.842) (38.341) (6,2%)
         
Operating Margin  330.614  411.966  81.352  24,6% 
         
           SG&A from Generation  (10.442) (12.436) (1.994) (19,1%)
           SG&A from Distribution  (43.572) (44.028) (456) (1,0%)
           SG&A from Engineering and Real Estate  (851) (789) 62  7,3% 
           SG&A from Other Businesses  (9.138) (8.951) 187  2,0% 
           Consolidation Adjustments  7.916  7.997  81  1,0% 
         
Selling and Administrative Expenses  (56.088) (58.208) (2.120) (3,8%)
         
Operating Income  274.526  353.758  79.232  28,9% 
         
           Interest Income  27.014  27.284  270  1,0% 
           Interest Expense  (96.269) (106.863) (10.594) (11,0%)
Net Interest (Expense) (69.255) (79.579) (10.324) (14,9%)
           Equity Gains from Related Companies  2.756  661  (2.095) (76,0%)
           Equity Losses from Related Companies  (65) (2.058) (1.992) - 
Net Income from Related Companies  2.691  (1.396) (4.087) N/A 
           Other Non Operating Income  32.296  52.971  20.675  64,0% 
           Other Non Operating Expenses  (71.828) (95.399) (23.571) (32,8%)
Net other Non Operating Income (Expense) (39.532) (42.428) (2.896) (7,3%)
           Price Level Restatement  179  (134) (313) (174,9%)
           Foreign Exchange Effect  2.117  185  (1.932) (91,3%)
Net of Monetary Exposure  2.296  51  (2.245) (97,8%)
Positive Goodwill Amortization  (14.022) (13.993) 29  0,2% 
         
Non Operating Income  (117.822) (137.345) (19.523) (16,6%)
         
Net Inc b. Taxes, Min Int and Neg Goodwill Amort.  156.704  216.413  59.709  38,1% 
         
           Extraordinary Items  -  -  -  N/A 
           Income Tax  36.903  (97.646) (134.549) N/A 
           Minority Interest  (51.103) (65.754) (14.651) (28,7%)
           Negative Goodwill Amortization  2.499  1.128  (1.371) (54,9%)
         
NET INCOME  145.003  54.141  (90.862) (62,7%)
         
 
         
EBITDA  378.575  464.029  85.454  22,6% 
         

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PRESS RELEASE
First Quarter 2007– Consolidated Income Statement 
 

UNDER CHILEAN GAAP, THOUSAND US$

Table 2.1         
         
CONS. INCOME STATEMENT - (thousand US$)
1Q 06 
1Q 07 
Var 06-07 
Chg % 
         
             Revenues from Generation & Transmission  705.091  832.459  127.368  18,1% 
             Revenues from Distribution  1.192.401  1.305.432  113.031  9,5% 
             Revenues from Engineering and Real Estate  14.151  16.971  2.820  19,9% 
             Revenues from Other Businesses  76.805  72.840  (3.965) (5,2%)
             Consolidation Adjustments  (220.834) (238.110) (17.276) (7,8%)
         
Operating Revenues  1.767.614  1.989.593  221.979  12,6% 
         
             Costs from Generation  (421.844) (459.421) (37.577) (8,9%)
             Costs from Distribution  (866.868) (917.541) (50.673) (5,8%)
             Costs from Engineering and Real Estate  (11.054) (13.260) (2.206) (20,0%)
             Costs from Other Businesses  (62.152) (61.790) 362  0,6% 
             Consolidation Adjustments  207.448  226.436  18.988  9,2% 
         
Operating Costs  (1.154.469) (1.225.574) (71.105) (6,2%)
         
Operating Margin  613.145  764.019  150.874  24,6% 
         
             SG&A from Generation  (19.366) (23.063) (3.697) (19,1%)
             SG&A from Distribution  (80.808) (81.653) (845) (1,0%)
             SG&A from Engineering and Real Estate  (1.579) (1.464) 115  7,3% 
             SG&A from Other Businesses  (16.946) (16.601) 345  2,0% 
             Consolidation Adjustments  14.681  14.830  149  1,0% 
         
Selling and Administrative Expenses  (104.019) (107.950) (3.931) (3,8%)
         
Operating Income  509.126  656.069  146.943  28,9% 
         
             Interest Income  50.099  50.600  501  1,0% 
             Interest Expense  (178.537) (198.184) (19.647) (11,0%)
Net Interest (Expense) (128.439) (147.585) (19.146) (14,9%)
             Equity Gains from Related Companies  5.111  1.226  (3.885) (76,0%)
             Equity Losses from Related Companies  (121) (3.817) (3.696) - 
Net Income from Related Companies  4.990  (2.592) (7.582) N/A 
             Other Non Operating Income  59.896  98.238  38.342  64,0% 
             Other Non Operating Expenses  (133.209) (176.923) (43.714) (32,8%)
Net other Non Operating Income (Expense) (73.314) (78.685) (5.371) (7,3%)
             Price Level Restatement  332  (248) (580) (174,9%)
             Foreign Exchange Effect  3.925  343  (3.582) (91,3%)
Net of Monetary Exposure  4.258  95  (4.163) (97,8%)
Positive Goodwill Amortization  (26.005) (25.951) 54  0,2% 
         
Non Operating Income  (218.509) (254.718) (36.209) (16,6%)
         
Net Inc b. Taxes, Min Int and Neg Goodwill Amort.  290.618  401.351  110.733  38,1% 
         
             Extraordinary Items  -  -  -  N/A 
             Income Tax  68.440  (181.090) (249.530) N/A 
             Minority Interest  (94.773) (121.945) (27.172) (28,7%)
             Negative Goodwill Amortization  4.634  2.092  (2.542) (54,9%)
         
NET INCOME  268.918  100.408  (168.510) (62,7%)
         
 
         
EBITDA  702.091  860.571  158.480  22,6% 
         

Pg. 12

PRESS RELEASE
First Quarter 2007– Consolidated Income Statement 
 

CONSOLIDATED INCOME STATEMENT ANALYSIS
(Source in Ch$ FECU)

NET INCOME

As of March 2007, net income decreased 62.7% down to Ch$54,141 million compared to the same period as of 2006, whereby net income was Ch$145,003 million. This is mainly explained by the one time-effect recognition of the positive effect of deferred taxes for Ch$110,580 million due to the merger between Chilectra and Elesur, occurred on March, 2006. If we isolate this effect and compare in homogeneous terms, we would appreciate an improvement of 57.3%

OPERATING INCOME

Operating income as of March 2007 amounted to Ch$353,758 million, presenting an increase of Ch$79,232 million (which means an improvement of 28.9%) comparing to Ch$274,526 recorded the same period previous year. If we take into account the 2.4% devaluation effect of Chilean peso against US$ (from Ch$526.18 to Ch$539.21), Operating Income improves by 28.5% .

Table 4                 
                 
  1Q06  1Q07 
                 
 
Operating 
Operating Costs 
SG & A 
Operating 
Operating 
Operating Costs 
SG& A 
Operating 
Million Ch$ 
Revenues
Income
Revenues 
Income
                 
Endesa Chile  297,603  (166,958) (8,287) 122,358  394,424  (213,751) (10,092) 170,581 
Cachoeira (*) 15,410  (7,541) (874) 6,995  19,072  (7,695) (751) 10,626 
Fortaleza (**) 28,339  (17,239) (243) 10,857  25,012  (13,612) (324) 11,076 
Cien (**) 44,320  (40,629) (1,031) 2,660  26,208  (27,154) (1,359) (2,305)
Chilectra  156,394  (117,383) (11,685) 27,326  180,342  (138,681) (10,427) 31,234 
Edesur  67,949  (52,668) (7,933) 7,348  78,410  (63,375) (9,560) 5,475 
Distrilima (Edelnor) 54,590  (40,872) (4,845) 8,873  56,183  (39,579) (4,906) 11,698 
Ampla  148,418  (108,713) (4,517) 35,188  150,788  (97,868) (5,735) 47,185 
Investluz (Coelce) 104,546  (71,851) (11,356) 21,339  113,278  (68,583) (9,627) 35,068 
Codensa  111,060  (75,937) (3,426) 31,697  124,902  (86,662) (3,745) 34,495 
CAM Ltda.  28,318  (24,452) (2,088) 1,778  24,870  (21,549) (2,457) 864 
Inmobiliaria Manso de Velasco Ltda.  1,019  (608) (624) (213) 1,820  (1,314) (533) (27)
Synapsis Soluciones y Servicios IT Ltda.  11,908  (8,731) (1,990) 1,187  13,229  (10,707) (2,011) 511 
Enersis Holding and other investment vehicles  1,180  (330) (4,870) (4,020) 1,177  (1,061) (4,453) (4,337)
Consolidation Adjustments  (117,939) 111,411  7,681  1,153  (136,907) 130,749  7,772  1,614 
                 
Total Consolidation  953,115  (622,501) (56,088) 274,526  1,072,808  (660,842) (58,208) 353,758 
                 
 
Table 4.1                 
                 
  1Q06  1Q07 
                 
 
Operating 
Operating Costs 
SG & A 
Operating 
Operating 
Operating Costs 
SG& A 
Operating 
Thousand US$ 
Revenues
Income
Revenues
Income
                 
Endesa Chile  551,925  (309,634) (15,368) 226,923  731,484  (396,416) (18,716) 316,352 
Cachoeira (*) 28,579  (13,985) (1,622) 12,973  35,371  (14,271) (1,392) 19,708 
Fortaleza (**) 52,556  (31,971) (451) 20,134  46,387  (25,245) (600) 20,542 
Cien (**) 82,194  (75,348) (1,913) 4,933  48,605  (50,359) (2,521) (4,274)
Chilectra  290,043  (217,694) (21,670) 50,678  334,456  (257,193) (19,338) 57,925 
Edesur  126,016  (97,676) (14,713) 13,626  145,417  (117,532) (17,730) 10,155 
Distrilima (Edelnor) 101,241  (75,800) (8,985) 16,456  104,194  (73,401) (9,098) 21,695 
Ampla  275,251  (201,616) (8,377) 65,258  279,647  (181,502) (10,636) 87,508 
Investluz (Coelce) 193,887  (133,253) (21,060) 39,574  210,081  (127,192) (17,854) 65,034 
Codensa  205,967  (140,830) (6,354) 58,783  231,639  (160,720) (6,945) 63,973 
CAM Ltda.  52,517  (45,348) (3,872) 3,297  46,124  (39,964) (4,557) 1,603 
Inmobiliaria Manso de Velasco Ltda.  1,889  (1,128) (1,157) (395) 3,375  (2,438) (989) (51)
Synapsis Soluciones y Servicios IT Ltda.  22,084  (16,192) (3,691) 2,200  24,534  (19,857) (3,730) 948 
Enersis Holding and other investment vehicles  2,188  (612) (9,032) (7,455) 2,182  (1,968) (8,259) (8,044)
Consolidation Adjustments  (218,726) 206,618  14,245  2,137  (253,903) 242,483  14,414  2,993 
                 
Total Consolidation  1,767,614  (1,154,469) (104,019) 509,126  1,989,593  (1,225,574) (107,950) 656,069 
                 
(*)      Consolidated by Endesa Chile until September 30th, 2005. Since October 1th is consolidated by Enersis through Endesa Brasil.
(**)      Since October 1, 2005, these subsidiaries are consolidated by Enersis through Endesa Brasil.

Pg. 13

PRESS RELEASE
First Quarter 2007– Consolidated Balance Sheet  
 

NON OPERATING INCOME
The company’s non-operating losses increased 16.6%, from a loss of Ch$117,822 million to a loss of Ch$137,345 million. This is mainly explained by:

Net Interest Expenses increased by Ch$10,324 million or 14.9%, from Ch$69,255 million to Ch$79,579 million, due to higher average debt mainly through our subsidiaries CIEN and Ampla, in addition to the outstanding debt of Etevensa at the date of the merger with Edegel (June 1st, 2006), as well as increasing in interest rates used in refinancing from US$ to local denominated debt basically in CIEN. Further, Edesur shows a rise of Ch$3,722 million in interests due to higher service quality fines.

Income from investments in related companies decreased Ch$4,087 million, showing a net loss of Ch$1,396 million compared to an income of Ch$2,691 million as of March, 2006. This is mainly explained by lower profits in Gas Atacama by Ch$3,943 million proceeding from continuous natural gas restrictions from Argentina.

Amortization on positive goodwill remains with no significant variations, decreasing 0.2% to Ch$13,993.

Net other non-operating income worsen from a net loss of Ch$39,532 million to a net loss of Ch$42,428. The main reasons for this variation are,

  • Equity Tax in Colombia of Ch$16,448 million.
  • Net losses of Ch$14,775 million proceeding from conversion adjustments to Chilean norms in order to compliance Technical Bulletin N° 64, mainly through subsidiaries in Brazil, Colombia and Peru.
  • Reliquidations of energy and power in SIC by Ch$6,889 million.

These items were partially compensated by:

  • Tariff adjustment from previous periods in Edesur by Ch$27,968 million.
  • Lower expenses from provisions and contingencies by Ch$9,152 million, mainly in Endesa Chile.

The Foreign Exchange Effect decreased by Ch$1,932 million, decreasing from a positive income of Ch$ 2,117 million whereby Chilean peso devaluated 2.7% against US$, to an income of Ch$185 million, where Chilean peso devaluated 1.2% against US$. The aforementioned is due to the active mismatch position in US$ that the company has held in both exercises.

Income tax and Deferred tax registered a net expense of Ch$97,646 million, which compared with the profit of Ch$36,903 million in March 2006, presents a negative variation of Ch$134,549 million.

The increase of Ch$25,497 million in income tax is mainly explained by higher provisions in Endesa Chile by Ch$13,079 million, in Edesur by Ch$8,900 million, in CIEN by Ch$5,634 million and in Coelce by Ch$4,342 million. The aforementioned is in part offset by lower expenses in Codensa by Ch$5,443 million and in Chilectra by Ch$4,702 million.

Deferred taxes, which do not constitute cash flow, registered a negative variation of Ch$109,052 million mainly explained by the one time effect recognized in Chilectra for Ch$110,580 million as consequence of the merger between Elesur and Chilectra. This merger implied, for Elesur, a reversion adjustment in the provisions on valuations upon accumulated tax losses, as booked in previous exercises.

Amortization on negative goodwill decreased Ch$1,371 million, reaching an amount of Ch$1,128 million, explained by the final amortization regarding the purchase of the first stake in Betania, which effect is a lower amortization of Ch$1,355 million.

Pg. 14

PRESS RELEASE
First Quarter 2007– Consolidated Balance Sheet 
 

EVOLUTION OF KEY FINANCIAL RATIOS

Table 5           
           
Indicator               Unit 
1Q06 
1Q07 
Var 06-07 
Chg % 
           
Liquidity  Times  1.06  1.25  0.19  17.9% 
Acid ratio test *  Times  0.97  1.16  0.19  19.6% 
Working capital  million Ch$  92,888  368,187  275,299  N/A 
Working capital  th. US$  172,266  682,826  510,560  N/A 
Leverage **  Times  0.90  0.96  0.06  6.7% 
Short-term debt  %  0.31  0.27  (0.04) (12.9%)
Long-term debt  %  0.69  0.73  0.04  5.8% 
Interest Coverage***  Times  4.26  4.59  0.33  7.7% 
EBITDA****  th. US$  702,091  860,571  158,480  22.6% 
ROE  %  5.18%  1.84%  (3.34%) (64.5%)
ROA  %  1.33%  0.48%  (0.85%) (63.9%)
           

* Current assets net of inventories and pre-paid expenses 
** Using the ratio = Total debt / (equity + minority interest)
***EBITDAEI/Interest expenses = (Earnings before taxes+Fin exp+Net non operating income+depreciation+Positive Goodwill) /Interest expenses 
****EBITDA: Operating Income+Depreciation+Amortization 

Liquidity ratio increased to 1.25 times, which represents an improvement of 17.9% . This means that the company is showing stronger liquidity, reducing its obligations with banks through cash surplus and structuring an adequate debt maturity calendar.

Leverage reached 0.96 times, maintaining slightly higher as in the same period last year, increasing 6.7% .

Interest Coverage improved 7.7% to 4.59 times, mainly due to the increase in operating results for the Group, which more than offset the higher financial expenses.

ROE reached 1.84%, decreasing regard 5.18% seen as of March 2006, mainly explained by the lower net income as of March, 2007, due to the lower net income as a consequence of the positive one time effect due to the merger between Chilectra and Elesur, occurred in the year 2006. If we isolate this effect and compare in homogeneous terms, we would appreciate an improvement from 1.23% to 1.84% in this indicator.

ROA decreased from 1.33% as of March, 2006, to 0.48% as of March, 2007, reflecting the lower net income on this quarter due to the merger between Chilectra and Elesur. If we isolate this effect and compare in homogeneous terms, we would appreciate an improvement from 0.32% to 0.48% in this indicator.

Pg. 15

PRESS RELEASE
First Quarter 2007– Consolidated Balance Sheet 
 

CONSOLIDATED BALANCE SHEET

ASSETS UNDER CHILEAN GAAP, MILLION CH$

Table 6         
         
ASSETS - (million Ch$)
1Q 06 
1Q 07 
Var 06-07 
Chg % 
         
 
CURRENT ASSETS         
Cash  57,844  50,598  (7,246) (12.5%)
Time deposits  388,260  345,251  (43,009) (11.1%)
Marketable securities  7,155  17,674  10,519  - 
Accounts receivable, net  775,780  919,609  143,829  18.5% 
Notes receivable, net  4,233  8,081  3,849  90.9% 
Other accounts receivable, net  67,974  108,909  40,935  60.2% 
Amounts due from related companies  99,407  24,046  (75,361) (75.8%)
Inventories  73,529  77,103  3,574  4.9% 
Income taxes recoverable  57,015  45,095  (11,920) (20.9%)
Prepaid expenses  61,992  51,532  (10,460) (16.9%)
Deferred income taxes  53,195  56,221  3,026  5.7% 
Other current assets  24,432  160,791  136,359  - 
         
Total currrent assets  1,670,817  1,864,911  194,094  11.6% 
         
 
PROPERTY, PLANT AND EQUIPMENT         
Land  134,610  134,459  (151) (0.1%)
Buildings and infraestructure and works in progress  10,865,559  11,095,816  230,257  2.1% 
Machinery and equipment  1,840,244  2,048,371  208,127  11.3% 
Other plant and equipment  446,858  594,355  147,497  33.0% 
Technical appraisal  188,496  187,640  (856) (0.5%)
      Sub - Total  13,475,767  14,060,640  584,873  4.3% 
Accumulated depreciation  (5,480,482) (5,909,678) (429,197) (7.8%)
         
Total property, plant and equipment  7,995,286  8,150,962  155,676  1.9% 
         
 
OTHER ASSETS         
Investments in related companies  106,928  116,622  9,694  9.1% 
Investments in other companies  26,558  24,416  (2,142) (8.1%)
Positive goodwill, net  699,221  642,574  (56,647) (8.1%)
Negative goodwill, net  (34,898) (44,691) (9,793) (28.1%)
Long-term receivables  135,643  145,387  9,744  7.2% 
Amounts due from related companies  -  91,684  91,684  N/A 
Deferred income taxes  12,015  10,189  (1,826) - 
Intangibles  86,434  93,060  6,626  7.7% 
Accumulated amortization  (52,064) (57,166) (5,102) (9.8%)
Others assets  253,306  310,132  56,826  22.4% 
         
Total other assets  1,233,142  1,332,206  99,064  8.0% 
         
 
         
TOTAL ASSETS  10,899,245  11,348,079  448,834  4.1% 
         

Pg. 16

PRESS RELEASE
First Quarter 2007– Consolidated Balance Sheet 
 

ASSETS UNDER CHILEAN GAAP, THOUSAND US$

Table 6.1         
         
ASSETS - (thousand US$)
1Q 06 
1Q 07 
Var 06-07 
 Chg % 
         
 
CURRENT ASSETS         
Cash  107,275  93,838  (13,437) (12.5%)
Time deposits  720,054  640,291  (79,763) (11.1%)
Marketable securities  13,269  32,777  19,508  - 
Accounts receivable, net  1,438,735  1,705,476  266,741  18.5% 
Notes receivable, net  7,850  14,988  7,138  90.9% 
Other accounts receivable, net  126,062  201,979  75,917  60.2% 
Amounts due from related companies  184,357  44,595  (139,762) (75.8%)
Inventories  136,365  142,993  6,628  4.9% 
Income taxes recoverable  105,738  83,632  (22,106) (20.9%)
Prepaid expenses  114,969  95,570  (19,399) (16.9%)
Deferred income taxes  98,653  104,265  5,612  5.7% 
Other current assets  45,311  298,197  252,886  - 
         
Total currrent assets  3,098,639  3,458,599  359,960  11.6% 
         
 
PROPERTY, PLANT AND EQUIPMENT         
Land  249,644  249,363  (281) (0.1%)
Buildings and infraestructure and works in progres  20,150,886  20,577,913  427,027  2.1% 
Machinery and equipment  3,412,852  3,798,837  385,985  11.3% 
Other plant and equipment  828,727  1,102,269  273,542  33.0% 
Technical appraisal  349,578  347,990  (1,588) (0.5%)
     Sub - Total  24,991,686  26,076,372  1,084,686  4.3% 
Accumulated depreciation  (10,163,910) (10,959,883) (795,973) (7.8%)
         
Total property, plant and equipment  14,827,777  15,116,489  288,712  1.9% 
         
 
OTHER ASSETS         
Investments in related companies  198,305  216,283  17,978  9.1% 
Investments in other companies  49,253  45,281  (3,972) (8.1%)
Positive goodwill, net  1,296,751  1,191,695  (105,056) (8.1%)
Negative goodwill, net  (64,720) (82,882) (18,162) (28.1%)
Long-term receivables  251,558  269,629  18,071  7.2% 
Amounts due from related companies  -  170,033  170,033  N/A 
Deferred income taxes  22,283  18,896  (3,387) - 
Intangibles  160,297  172,585  12,288  7.7% 
Accumulated amortization  (96,556) (106,018) (9,462) (9.8%)
Others assets  469,772  575,160  105,388  22.4% 
         
Total other assets  2,286,942  2,470,663  183,721  8.0% 
         
 
         
TOTAL ASSETS  20,213,358  21,045,751  832,393  4.1% 
         

Pg. 17

PRESS RELEASE
First Quarter 2007– Consolidated Balance Sheet 
 

LIABILITIES AND SHAREHOLDERS EQUITY UNDER CHILEAN GAAP, MILLION CH$

Table 7         
         
LIABILITIES AND SHAREHOLDER´S EQUITY - (million Ch$)
1Q 06 
1Q 07 
Var 06-07 
Chg % 
         
 
CURRENT LIABILITIES         
Short-term debt due to banks and financial institutions  148,638  139,222  (9,416) (6.3%)
Current portion of long-term debt due to banks and financial instit  128,661  143,070  14,409  11.2% 
Current portion of bonds payable  456,940  236,948  (219,992) (48.1%)
Current portion of long-term notes payable  32,151  42,220  10,069  31.3% 
Dividends payable  44,183  35,685  (8,498) (19.2%)
Accounts payable  315,952  388,275  72,322  22.9% 
Short-term notes payable  17,403  11,466  (5,938) (34.1%)
Miscellaneous payables  83,155  109,913  26,758  32.2% 
Accounts payable to related companies  50,936  30,214  (20,721) (40.7%)
Accrued expenses  76,560  71,883  (4,677) (6.1%)
Withholdings  73,197  108,626  35,429  48.4% 
Income taxes payable  77,810  97,958  20,147  25.9% 
Anticipated income  2,944  3,636  692  23.5% 
Reinbursable financial contribution  1,586  874  (712) (44.9%)
Other current liabilities  67,812  76,735  8,923  13.2% 
         
Total current liabilities  1,577,929  1,496,724  (81,205) (5.1%)
         
 
LONG-TERM LIABILITIES         
Due to banks and financial institutions  620,485  1,005,122  384,638  62.0% 
Bonds payable  2,142,378  2,176,049  33,671  1.6% 
Long -term notes payable  114,115  112,574  (1,540) (1.3%)
Accounts payables  63,878  152,360  88,482  - 
Amounts payable to related companies  13,963  11,394  (2,568) (18.4%)
Accrued expenses  453,130  348,160  (104,970) (23.2%)
Deferred income taxes  -  -  -  N/A 
Reinbursable financial contribution  4,053  3,007  (1,046) (25.8%)
Other long-term liabilities  177,847  245,867  68,020  38.2% 
         
Total long-term liabilities  3,589,849  4,054,535  464,686  12.9% 
         
 
Minority interest  2,933,264  2,856,631  (76,633) (2.6%)
 
SHAREHOLDERS´ EQUITY         
Paid-in capital, no par value  2,429,478  2,415,284  (14,194) (0.6%)
Additional paid-in capital  (7,288) 4,831  12,119  - 
Additional paid-in capital (share premium) 172,616  172,468  (148) (0.1%)
Other reserves  (213,619) (228,392) (14,773) 6.9% 
      Total capital and reserves  2,381,187  2,364,191  (16,995) (0.7%)
Retained earnings  272,013  522,039  250,026  91.9% 
Net income for the period  145,003  54,141  (90,862) (62.7%)
Interim dividends  -  -  -  - 
Deficits of subsidaries in development stage  -  (182) (182) - 
     Total retained earnings  417,016  575,998  158,982  38.1% 
         
Total shareholder´s equity  2,798,203  2,940,189  141,986  5.1% 
         
 
         
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY  10,899,245  11,348,079  448,834  4.1% 
         

Pg. 18

PRESS RELEASE
First Quarter 2007– Consolidated Balance Sheet 
 

LIABILITIES AND SHAREHOLDERS EQUITY UNDER CHILEAN GAAP, THOUSAND US$

Table 7.1         
         
LIABILITIES - (thousand US$) 1Q 06  1Q 07  Var 06-07  Chg % 
         
 
CURRENT LIABILITIES         
Short-term debt due to banks and financial institutions  275,658  258,196  (17,462) (6.3%)
Current portion of long-term debt due to banks and financial in  238,610  265,333  26,723  11.2% 
Current portion of bonds payable  847,424  439,435  (407,989) (48.1%)
Current portion of long-term notes payable  59,626  78,299  18,673  31.3% 
Dividends payable  81,940  66,179  (15,761) (19.2%)
Accounts payable  585,954  720,080  134,126  22.9% 
Short-term notes payable  32,275  21,264  (11,011) (34.1%)
Miscellaneous payables  154,217  203,840  49,623  32.2% 
Accounts payable to related companies  94,464  56,035  (38,429) (40.7%)
Accrued expenses  141,986  133,312  (8,674) (6.1%)
Withholdings  135,749  201,454  65,705  48.4% 
Income taxes payable  144,304  181,669  37,365  25.9% 
Anticipated income  5,460  6,744  1,284  23.5% 
Reinbursable financial contribution  2,942  1,621  (1,321) (44.9%)
Other current liabilities  125,762  142,309  16,547  13.2% 
         
Total current liabilities  2,926,371  2,775,771  (150,600) (5.1%)
         
 
LONG-TERM LIABILITIES         
Due to banks and financial institutions  1,150,729  1,864,065  713,336  62.0% 
Bonds payable  3,973,179  4,035,625  62,446  1.6% 
Long -term notes payable  211,633  208,777  (2,856) (1.3%)
Accounts payables  118,467  282,562  164,095  - 
Amounts payable to related companies  25,894  21,132  (4,762) (18.4%)
Accrued expenses  840,359  645,686  (194,673) (23.2%)
Deferred income taxes  -  -  -  N/A 
Reinbursable financial contribution  7,517  5,577  (1,940) (25.8%)
Other long-term liabilities  329,830  455,977  126,147  38.2% 
         
Total long-term liabilities  6,657,608  7,519,399  861,791  12.9% 
         
 
Minority interest  5,439,929  5,297,808  (142,121) (2.6%)
 
SHAREHOLDERS´ EQUITY         
Paid-in capital, no par value  4,505,625  4,479,302  (26,323) (0.6%)
Additional paid-in capital  (13,517) 8,959  22,476  - 
Additional paid-in capital (share premium) 320,128  319,854  (274) (0.1%)
Other reserves  (396,171) (423,568) (27,397) 6.9% 
     Total capital and reserves  4,416,066  4,384,547  (31,519) (0.7%)
Retained earnings  504,466  968,156  463,690  91.9% 
Net income for the period  268,918  100,408  (168,510) (62.7%)
Interim dividends  -  -  -  - 
Deficits of subsidaries in development stage  -  (338) (338) - 
     Total retained earnings  773,384  1,068,226  294,842  38.1% 
         
Total shareholder´s equity  5,189,449  5,452,773  263,324  5.1% 
         
 
         
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY  20,213,358  21,045,751  832,393  4.1% 
         

Pg. 19

PRESS RELEASE
First Quarter 2007– Consolidated Balance Sheet 
 

CONSOLIDATED BALANCE SHEET ANALYSIS

The Company’s Total Assets increased Ch$448.834 million. This was due to:

• Current Assets increased by Ch$194,094 million, equivalent to a 11.6%, mainly due to:
 
  •
An increase in accounts receivable Ch$143,829 million, principally due to a rise in billing from distribution subsidiaries Codensa by Ch$63,710 million, Costanera by Ch$16,813 million, Endesa Chile by Ch$15,460 million, Chilectra by Ch$15,721 million, Ampla by Ch$12,894 million, Emgesa by Ch$11,890 million, and Chocón by Ch$5,123 million.
 
  •
An increase in another current assets by Ch$136,359 million, principally due to an increment in of sell back instruments in Endesa Chile, Chilectra and Enersis of Ch$134,098 million.
 
  •
An increase in other accounts receivable by Ch$40,935 million due mainly to increase in Chilean generation subsidiaries as result of tolls reliquidations by Ch$8,391 million and Ch$7,810 million of suppliers anticipated payments in Chilean subsidiaries by Ch$7,810 million, in Codensa by Ch$7,188 million, in Coelce by Ch$4,971 million and in Túnel Melón by Ch$2,574 million.
 
  •
Decrease in amounts due to related companies by Ch$75,361 million, mainly due to renewal until year 2008 of an intercompany loan with Atacama Finance by Ch$91,684 million, partially offset by increasings in accounts receivable from Sistemas SEC by Ch$7,325 million and from GNL Chile by Ch$4,983 million.
 
  •
Decrease in time deposits by Ch$43,009 million, due to redeems in Codensa by Ch$50,941 million in order to pay capital reductions, CIEN by Ch$22,225 million for payment of obligations, Cachoeira Dourada by Ch$17,373 million for dividends payment and Edelnor by Ch$13,049 million. The aforementioned partially offset by an increase in time deposits of Endesa Brasil by Ch$35,655 million, Ampla by Ch$15,436 million and Costanera by Ch$15,036 million.
 
•
Fixed Assets increased by Ch$155,677 million, equivalent to 1,9% explained mainly by new fixed assets addition of approximately Ch$528,000 million, fixed assets inclusion due to consolidation of Etevensa of Ch$126,807 million. The above mentioned is in part offset by fixed asset depreciation for around Ch$420.000 million and fixed asset sales of Ch$44,866 million and also due to the real exchange rate effect on foreign companies’ assets as result of the policy settled in Technical Bulletin N°64 related to register in historical US$ non monetary assets belonging to subsidiaries located in unstable countries by Ch$13,547 million.
 
• Other assets increased by Ch$99,064 million, explained mainly as follows:
 
  •
Increase in amounts due to related companies by Ch$91,684 million, mainly due to renewal until year 2008 of a loan made to Atacama Finance by the same amount.
 
  •
Increase in other accounts receivables of Ch$56,826 million mainly due to increasing in fair value of derivative instruments by Ch$54,642 million.
 
  •
Decrease in positive goodwill by Ch$56,647 million.
 

Pg. 20

PRESS RELEASE
First Quarter 2007– Consolidated Balance Sheet 
 

Total Liabilities increase by Ch$448,834 million, due to:

• Long term liabilities increased of Ch$464,686 million or 12.9% due to:
 
  •
Increase of Ch$384,638 million in bank liabilities corresponding increase in Enersis by Ch$142,814 million, Betania by Ch$61,322 million, CGTF of Ch$61,293 million, Chocón by Ch$53,921 million, CIEN by Ch$41,923 million, Ampla by Ch$32,653 million and Edesur by Ch$20,063 million. The above mentioned is partially offset with decrease in Pehuenche by Ch$13,479 million, Tesa by Ch$12,460 million and Celta by Ch$4,407 million.
 
  •
Increase in other accounts payable of Ch$88,482 million, due to increasing in Edegel by Ch$57,840 and in Endesa Brasil by Ch$29,197 million.
 
  •
Increase in other long term liabilities by Ch$68,020 million mainly due to increasing in Enersis by Ch$38,036 million for derivatives fair value and Edesur by Ch$15,511 million.
 
  •
Decrease in provisions by Ch$104,970 million, due to lower provisions on labor and third parties contingencies of CGTF, Ampla, Coelce and CIEN by Ch$104,603 million.
 
•
Short-term liabilities decreased Ch$81,205 million or 5.1% as a result of:
 
  •
Decrease in bonds payable of Ch$219,992 million due to payments for Enersis of Ch$165,845 million, Emgesa of Ch$42,700 million, Edegel of Ch$40,823 million and Endesa Chile of Ch$38,030 million, partially offset by reclassifications to short term in Ampla of Ch$76,048 million.
 
  •
Increase in payable accounts of Ch$72,322 million due to the increase in Costanera by Ch$23,131 million, Endesa Chile by Ch$12,239, Coelce by Ch$9,291 and Edegel by Ch$9,176 million.
 
  •
Increase in miscellaneous payable accounts of Ch$26,757 million as result of increases in Coelce of Ch$7,544 million, Codensa of Ch$5,863 million and Edegel of Ch$5,457 million respectively.
 
  •
Increase in income taxes of Ch$20,147 million, it is worth mentioning the increase of Edelnor in Ch$8,481 million, Pangue with Ch$6,555 million and Codensa with Ch$5,424 million.
 

Minority interest reached Ch$2,856,631 million, decreasing near to 2.6% equal to Ch$76,633 million, almost the same amount of the actualization regard first quarter 2006, which is equal to 2.7% .

Shareholders’ Equity increased by Ch$141,986 million. This variation is mainly explained by the increase of Ch$249,844 million in retained earnings, partially offset by the negative variation of net income for the period by Ch$90,862.

Pg. 21

PRESS RELEASE
First Quarter 2007– Consolidated Balance Sheet 
 

DEBT MATURITY, MILLION CH$
Table 8
               
             
TOTAL 
     
Million Ch$ 
 2007  2008  2009  2010  2011  Balance   
               
Chile 
 26,649  405,267  342,074  128,535  48,223  1,008,985  1,959,734 
               
Enersis  1,624  179,656  1,719  1,719  1,818  435,150  621,685 
Chilectra  -  -  -  -  -  -  - 
Other (*) 2,827  2,334  238  119  -  -  5,518 
Endesa Chile (**) 22,199  223,277  340,117  126,697  46,405  573,836  1,332,531 
               
Argentina 
 44,604  61,500  67,402  39,781  33,142  2,175  248,604 
               
Edesur  10,607  29,615  27,252  8,697  -  -  76,171 
Costanera  33,996  25,594  27,569  18,503  10,675  2,175  118,512 
Chocon  -  6,291  12,582  12,582  22,467  -  53,921 
Hidroinvest  -  -  -  -  -  -  - 
CTM  -  -  -  -  -  -  - 
Tesa  -  -  -  -  -  -  - 
               
Perú  80,732  80,556  51,387  23,950  24,501  91,648  352,774 
               
Edelnor  34,648  5,080  12,574  5,080  7,602  35,150  100,136 
Edegel  46,083  75,476  38,813  18,869  16,899  56,498  252,638 
               
Brazil 
 44,722  127,281  101,227  174,063  134,514  180,843  762,649 
               
Endesa Brasil  -  -  -  -  -  -  - 
Coelce  19,693  25,776  25,196  19,417  19,417  34,746  144,246 
Ampla  15,380  93,495  68,252  93,891  53,935  52,740  377,694 
Cachoeira  2,480  587  -  -  -  -  3,067 
Cien  2,612  2,538  2,538  55,133  55,133  53,840  171,794 
Fortaleza  4,556  4,886  5,241  5,621  6,029  39,517  65,850 
               
Colombia 
 108,801  -  90,189  19,399  147,709  276,217  642,314 
               
Codensa  92,902  -  12,309  19,399  49,236  97,734  271,580 
Emgesa  1,538  -  77,880  -  -  103,396  182,814 
Betania  14,361  -  -  -  98,472  75,087  187,920 
               
TOTAL 
 305,507  674,605  652,278  385,728  388,089  1,559,868  3,966,076 
               
(*)      Includes: CAM
(**)      Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon.

DEBT MATURITY, THOUSAND US$
Table 8.1
               
               
              TOTAL 
     
Thousand US$ 
 2007  2008  2009  2010  2011  Balance   
               
Chile 
 49,423  751,594  634,398  238,377  89,433  1,871,229  3,634,454 
               
Enersis  3,011  333,183  3,188  3,188  3,371  807,013  1,152,955 
Chilectra  -  -  -  -  -  -  - 
Other (*) 5,242  4,329  442  221  -  -  10,234 
Endesa Chile (**) 41,170  414,082  630,768  234,968  86,061  1,064,216  2,471,265 
               
Argentina 
 82,720  114,056  125,002  73,777  61,464  4,034  461,052 
               
Edesur  19,672  54,923  50,541  16,129  -  -  141,264 
Costanera  63,048  47,466  51,128  34,314  19,797  4,034  219,788 
Chocon  -  11,667  23,333  23,333  41,667  -  100,000 
Hidroinvest  -  -  -  -  -  -  - 
CTM  -  -  -  -  -  -  - 
Tesa  -  -  -  -  -  -  - 
               
Peru 
 149,722  149,397  95,301  44,417  45,439  169,967  654,242 
               
Edelnor  64,258  9,422  23,320  9,422  14,099  65,188  185,709 
Edegel  85,464  139,975  71,982  34,995  31,340  104,778  468,533 
               
Brazil 
 82,940  236,052  187,731  322,811  249,465  335,384  1,414,383 
               
Endesa Brasil  -  -  -  -  -  -  - 
Coelce  36,522  47,803  46,728  36,011  36,011  64,439  267,513 
Ampla  28,524  173,393  126,578  174,128  100,026  97,809  700,457 
Cachoeira  4,600  1,088  -  -  -  -  5,688 
Cien  4,845  4,706  4,706  102,248  102,248  99,850  318,603 
Fortaleza  8,449  9,062  9,719  10,424  11,181  73,287  122,122 
               
Colombia 
 201,778  -  167,261  35,977  273,935  512,263  1,191,213 
               
Codensa  172,293  -  22,828  35,977  91,312  181,254  503,663 
Emgesa  2,853  -  144,433  -  -  191,755  339,040 
Betania  26,633  -  -  -  182,623  139,254  348,510 
               
TOTAL  566,583  1,251,099  1,209,693  715,358  719,736  2,892,877  7,355,345 
               
(*)      Includes: CAM
(**)      Includes: Endesa Chile Internacional, Pangue, Pehuenche, San Isidro, Celta and Tunel El Melon.
Pg. 22

PRESS RELEASE
First Quarter 2007– Consolidated Balance Sheet 
 

CONSOLIDATED CASH FLOW

UNDER CHILEAN GAAP, MILLION CH$

Table 9         
         
Million Ch$  1Q 06  1Q 07  Var 06-07  Chg % 
         
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES         
         
Net income (loss) for the year  145,003  54,141  (90,862) (62.7%)
         
Gain (losses) from sales of assets:         
Losses (gain) on sale of property, plant and equipment  (166) 15  181  N/A 
Charges (credits) to income which do not represent cash flows:         
Depreciation  101,448  108,100  6,652  6.6% 
Amortization of intangibles  2,600  2,171  (429) (16.5%)
Write-offs and accrued expenses  7,434  6,323  (1,111) (14.9%)
Equity in income of related companies  (2,756) (661) 2,095  76.0% 
Equity in losses of related companies  65  2,058  1,993  - 
Amortization of positive goodwill  14,022  13,993  (29) (0.2%)
Amortization of negative goodwill  (2,499) (1,128) 1,371  54.9% 
Price-level restatement, net  (179) 134  313  N/A 
Exchange difference, net  (2,117) (185) 1,932  91.3% 
Other credits to income which do not represent cash flows  (10,039) (9,893) 146  1.5% 
Other charges to income which do not represent cash flows  27,505  38,304  10,799  39.3% 
Changes in assets which affect cash flows:  -      N/A 
Decrease (increase) in trade receivables  (5,754) (78,346) (72,592) - 
Decrease (increase) in inventory  2,188  (10,685) (12,873) N/A 
Decrease (increase) in other assets  (204,447) (39,115) 165,332  80.9% 
Changes in liabilities which affect cash flow:         
Decreased (increase) in payable accounts associated with operating results  50,751  13,231  (37,520) (73.9%)
Decreased (increase) of payable interest  13,470  (5,055) (18,525) N/A 
Decreased (increase) in income tax payable  15,926  (40,199) (56,125) N/A 
Decreased (increase) in other accounts payable associated with non-operating results  20,815  56,051  35,236  169.3% 
Decreased (increase) in value added tax and other similar taxes payable, net  (2,763) 8,443  11,206  N/A 
Income (loss) attributable to minority interest  51,103  65,754  14,651  28.7% 
         
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES  221,611  183,449  (38,162) (17.2%)
         

Pg. 23

PRESS RELEASE
First Quarter 2007– Consolidated Balance Sheet 
 

Cont. Table 9         
         
Million Ch$ 
1Q 06 
 1Q 07  Var 06-07  Chg % 
         
CASH FLOWS FROM FINANCING ACTIVITIES         
         
Proceeds from issuance of shares issued to minorities  -  -  -  N/A 
Proceeds from debt issuance 
218,900 
360,372 
141,472 
 64.6% 
Proceeds from bond issuance 
51,221 
105,906 
54,685 
 106.8% 
Proceeds from loans obtained from related companies  -  -  -  N/A 
Proceeds from other loans obtained from related companies  -  -  -  N/A 
Other sources of financing  5  234  229  - 
Capital paid  -  -  -  N/A 
Dividends paid 
(33,347)
(118,443)
(85,096)
 - 
Payment of debt 
(174,914)
(260,658)
(85,744)
 (49.0%)
Payment of bonds 
(82,387)
(19,652)
62,735 
 76.1% 
Payments of loans obtained from related companies  (2,048) - 
2,048 
 N/A 
Payments of other loans obtained from related companies  -  -  -  N/A 
Payments of shares issuance costs  -  -  -  N/A 
Payments of bonds issuance costs  -  -  -  N/A 
Other disbursements for financing  (1,616) (525)
1,091 
 67.5% 
         
NET CASH FLOW FROM FINANCING ACTIVITIES 
(24,186)
67,234 
91,420 
 378.0% 
         
CASH FLOWS FROM INVESTING ACTIVITIES         
         
Proceeds from sale of property, plant and equipment  134  496  362  - 
Sale of investment  -  -  -  N/A 
Other loans received from related companies  -  -  -  N/A 
Other receipts from investments  725  -  (725) N/A 
Additions to property, plant and equipment 
(114,528)
(121,935)
(7,407)
 (6.5%)
Long-term investments 
(13,018)
(31,975)
(18,957)
 (145.6%)
Investment in financing instruments  -  -  -  N/A 
Other loans granted to related companies  -  (4,143) (4,143) N/A 
Other investment disbursements  (725) (80) 645  89.0% 
         
NET CASH FLOW FROM INVESTMENT ACTIVITIES 
(127,413)
(157,636)
(30,223)
 (23.7%)
         
NET CASH FLOW FOR THE PERIOD  70,012  93,047  23,035  32.9% 
         
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT  14,184  14,297  113  0.8% 
         
NET VARIATION ON CASH AND CASH EQUIVALENT  84,196  107,344  23,148  27.5% 
         
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR  368,926  440,971  72,045  19.5% 
         
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD  453,122  548,314  95,192  21.0% 
         

Pg. 24

PRESS RELEASE
First Quarter 2007– Consolidated Balance Sheet 
 

UNDER CHILEAN GAAP, THOUSAND US$

Table 9.1         
         
Thousand US$  1Q 06  1Q 07  Var 06-07  Chg % 
         
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES         
         
Net income (loss) for the year  268,918  100,408  (168,510) (62.7%)
         
Gain (losses) from sales of assets:         
Losses (gain) on sale of property, plant and equipment  (308) 27  335  N/A 
Charges (credits) to income which do not represent cash flows:         
Depreciation  188,142  200,478  12,336  6.6% 
Amortization of intangibles  4,823  4,026  (797) (16.5%)
Write-offs and accrued expenses  13,787  11,726  (2,061) (14.9%)
Equity in income of related companies  (5,111) (1,226) 3,885  76.0% 
Equity in losses of related companies  121  3,816  3,695  - 
Amortization of positive goodwill  26,005  25,951  (54) (0.2%)
Amortization of negative goodwill  (4,634) (2,092) 2,542  54.9% 
Price-level restatement, net  (332) 248  580  N/A 
Exchange difference, net  (3,925) (343) 3,582  91.3% 
Other credits to income which do not represent cash flows  (18,618) (18,346) 272  1.5% 
Other charges to income which do not represent cash flows  51,010  71,038  20,028  39.3% 
Changes in assets which affect cash flows:         
Decrease (increase) in trade receivables  (10,672) (145,298) (134,626) - 
Decrease (increase) in inventory  4,057  (19,817) (23,874) N/A 
Decrease (increase) in other assets  (379,160) (72,541) 306,619  80.9% 
Changes in liabilities which affect cash flow:         
Decreased (increase) in payable accounts associated with operating results  94,121  24,537  (69,584) (73.9%)
Decreased (increase) of payable interest  24,980  (9,374) (34,354) N/A 
Decreased (increase) in income tax payable  29,536  (74,552) (104,088) N/A 
Decreased (increase) in other accounts payable associated with non-operating results  38,603  103,951  65,348  169.3% 
Decreased (increase) in value added tax and other similar taxes payable, net  (5,123) 15,658  20,781  N/A 
Income (loss) attributable to minority interest  94,773  121,945  27,172  28.7% 
         
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES  410,992  340,218  (70,774) (17.2%)
         

Pg. 25

PRESS RELEASE
First Quarter 2007– Consolidated Balance Sheet 
 

Cont. Table 9.1         
         
Thousand US$  1Q 06  1Q 07  Var 06-07  Chg % 
         
CASH FLOWS FROM FINANCING ACTIVITIES         
         
Proceeds from issuance of shares issued to minorities  -  -  -  N/A 
Proceeds from debt issuance  405,964  668,333  262,369  64.6% 
Proceeds from bond issuance  94,993  196,409  101,416  106.8% 
Proceeds from loans obtained from related companies  -  -  -  N/A 
Proceeds from other loans obtained from related companies  -  -  -  N/A 
Other sources of financing  9  433  424  - 
Capital paid  -  -  -  N/A 
Dividends paid  (61,844) (219,659) (157,815) - 
Payment of debt  (324,389) (483,408) (159,019) (49.0%)
Payment of bonds  (152,792) (36,446) 116,346  76.1% 
Payments of loans obtained from related companies  (3,798) -  3,798  N/A 
Payments of other loans obtained from related companies  -  -  -  N/A 
Payments of shares issuance costs  -  -  -  N/A 
Payments of bonds issuance costs  -  -  -  N/A 
Other disbursements for financing  (2,997) (973) 2,024  67.5% 
         
NET CASH FLOW FROM FINANCING ACTIVITIES  (44,855) 124,690  169,545  378.0% 
         
CASH FLOWS FROM INVESTING ACTIVITIES         
         
Proceeds from sale of property, plant and equipment  249  920  671  - 
Sale of investment  -  -  -  N/A 
Other loans received from related companies  -  -  -  N/A 
Other receipts from investments  1,345  -  (1,345) N/A 
Additions to property, plant and equipment  (212,400) (226,136) (13,736) (6.5%)
Long-term investments  (24,143) (59,299) (35,156) (145.6%)
Investment in financing instruments  -  -  -  N/A 
Other loans granted to related companies  -  (7,684) (7,684) N/A 
Other investment disbursements  (1,345) (148) 1,197  89.0% 
         
NET CASH FLOW FROM INVESTMENT ACTIVITIES  (236,294) (292,347) (56,053) (23.7%)
         
NET CASH FLOW FOR THE PERIOD  129,842  172,561  42,719  32.9% 
         
EFFECT OF PRICE-LEVEL RESTATEMENT ON CASH AND CASH EQUIVALENT  26,305  26,515  210  0.8% 
         
NET VARIATION ON CASH AND CASH EQUIVALENT  156,147  199,076  42,929  27.5% 
         
CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR  684,197  817,809  133,612  19.5% 
         
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD  840,344  1,016,885  176,541  21.0% 
         

Pg. 26

PRESS RELEASE
First Quarter 2007– Consolidated Cach Flow Analysis  
 

CONSOLIDATED CASH FLOW ANALYSIS

During the period, the Company generated a positive net cash flow of Ch$93,047 million, comprised by the following activities:

Table 10         
         
           Effective Cash Flow (million Ch$) 1Q06  1Q07  Var 06-07  Chg % 
         
                                 Operating  221,611  183,449  (38,162) (17.2%)
                                 Financing  (24,186) 67,234  91,420  378.0% 
                                 Investment  (127,413) (157,636) (30,223) (23.7%)
         
           Net cash flow of the period  70,012  93,047  23,035  (32.9%)
         
 
 
Table 10.1         
         
           Effective Cash Flow (thousand US$) 1Q06  1Q07  Var 06-07  Chg % 
         
                                 Operating  410,991  340,218  (70,773) (17.2%)
                                 Financing  (44,855) 124,690   169,545  378.0% 
                                 Investment  (236,297) (292,347) (56,050) (23.7%)
         
           Net cash flow of the period  129,840  172,561  42,721  (32.9%)
         

Operating activities generated a net positive cash flow of Ch$183,449 million, which represent a decrease of 17.2% . The operating cash flow is comprised mainly of:

•
Net income for the period amounting to Ch$54,141 million, plus:
  •
Charges of Ch$159,215 million to the income statement that do not represent cash flow and correspond mainly to the depreciation of the period for Ch$108,100 million, write-offs and provisions for Ch$6,323 million, amortizations of positive goodwill of Ch$13,993 million, amortization of intangibles of Ch$2,171 million, losses in long term investments of Ch$2,058 million net losses in asset sales of Ch$15 million, and other charges that do not represent cash flow for Ch$38,304 million, which includes the Ch$35,984 million negative conversion effect of the application of the Technical Bulletin N°64 over foreign subsidiaries.
  •
Liabilities variation which affect operational flow of Ch$32,471 million.
 
•
The above was partially compensated by:
  •
Non cash credits for Ch$9,893 million that do not represent cash flows, of which Ch$9,149 million correspond to the positive effect of the conversion of the overseas subsidiaries.
  •
Profit on investment in related companies of Ch$661 million.
  •
Negative goodwill amortization of Ch$1,128 million.
  • Variation in net assets that affect operating cash flow of Ch$128,147 million.
 

Pg. 27

PRESS RELEASE
First Quarter 2007– Consolidated Cach Flow Analysis 
 

Financing activities resulted in a positive cash flow of Ch$67,234 million mainly due to loans obtained of Ch$360,372 million, bonds issues of Ch$105,906 million and other financing sources of Ch$234 million. The above is partly compensated by loans payment for a value of Ch$260,658 million, dividend payments of Ch$118,443 million, bonds payments of Ch$19,652 million and other disbursements of Ch$525 million.

Investment activities had a net negative cash flow of Ch$157,636 million, which represents an increase of 23.7% or Ch$30,223 million. This disbursements are mainly due to the addition of fixed assets for Ch$121,935 million, long term investments for Ch$31,974, other loans to related companies for Ch$4,143 milion and other disbursements of Ch$80 million, partially compensated by the sale of fixed assets of Ch$496 million.

CASH FLOW RECEIVED FROM FOREIGN SUBSIDIARIES BY ENERSIS, CHILECTRA AND ENDESA CHILE

Table 11                     
                     
Millions Ch$  Interest Received  Dividends Received  Management Fee  Prepayment intercompany  Capital Reductions 
  1Q06  1Q07     1Q06  1Q07   1Q06  1Q07           1Q06  1Q07     1Q06  1Q07 
                     
Argentina  1,543   381       -  -         81  42  -  -       -  - 
Peru  -  -       -  1,578     -  -  -  -       -  - 
Brazil  -  -       -  -     -  -  -  -       -  - 
Colombia  16,562  -       -  25,237     -  -  30,377  -       -  - 
                     
Total  18,105   381       -  26,815         81  42  30,377  -       -  - 
                     

     
Millions Ch$  Total Cash Received 
  1Q06  1Q07 
     
Argentina  1,624  423 
Peru  -  1,578 
Brazil  -   - 
Colombia  46,939  25,237 
     
Total  48,563  27,238 
     

Table 11.1                     
                     
Thousand US$  Interest Received  Dividends Received  Management Fee  Prepayment Intercompany  Capital Reductions 
  1Q06  1Q07     1Q06  1Q07   1Q06  1Q07           1Q06  1Q07     1Q06  1Q07 
                     
Argentina  2,862   707       -  -       150  77  -  -       -   
Peru  -  -       -  2,927     -  -  -  -       -  - 
Brazil  -  -       -  -     -  -  -  -       -  - 
Colombia  30,715  -       -  46,804     -  -  56,336  -       -  - 
                     
Total  33,577   707       -  49,731       150  77  56,336  -       -  - 
                     

     
Thousand US$  Total Cash Received 
  1Q06  1Q07 
     
Argentina  3,012  784 
Peru  -  2,927 
Brazil  -   - 
Colombia  87,051  46,804 
     
Total  90,062  50,515 
     

Source: Internal Financial Report

Pg. 28

PRESS RELEASE
First Quarter 2007– Consolidated Cach Flow Analysis 
 

PAYMENTS FOR ADDITIONS OF FIXED ASSETS AND DEPRECIATION

Table 12         
         
  Payments for Additions of  Depreciation 
             Fixed assets     
     
Million Ch$  1Q06  1Q07  1Q06  1Q07 
         
Endesa  45,441  54,687  42,254  47,976 
Cachoeira (*) 63  436  3,860  3,416 
Fortaleza (**) 65  71  1,257  1,279 
Cien (**) 93  21  2,987  3,334 
Chilectra S.A.  11,580  10,228  4,391  4,672 
Edesur S.A.  7,385  8,210  11,109  10,271 
Edelnor S.A.  3,537  4,887  4,268  4,394 
Ampla  25,951  14,865  10,511  10,242 
Coelce  14,753  20,516  9,138  10,155 
Codensa S.A.  4,074  5,988  10,535  10,894 
Cam Ltda.  206  851  287  386 
Inmobiliaria Manso de Velasco Ltda.  280  314  86  77 
Synapsis Soluciones y Servicios Ltda.  1,066  789  450  669 
Holding Enersis  33  72  314  335 
         
Total  114,528  121,935  101,448  108,100 
         

Table 12.1         
         
  Payments for Additions of  Depreciation 
  Fixed assets     
     
Thousand US$  1Q06  1Q07  1Q06  1Q07 
         
Endesa  84,274  101,421  78,363  88,975 
Cahoeira (*) 116  808  7,158  6,335 
Fortaleza (**) 121  132  2,331  2,373 
Cien (**) 173  39  5,539  6,184 
Chilectra S.A.  21,476  18,969  8,143  8,665 
Edesur S.A.  13,695  15,226  20,602  19,048 
Edelnor S.A.  6,560  9,063  7,915  8,149 
Ampla  48,128  27,568  19,493  18,994 
Coelce  27,360  38,048  16,946  18,833 
Codensa S.A.  7,555  11,105  19,538  20,204 
Cam Ltda.  382  1,579  532  716 
Inmobiliaria Manso de Velasco Ltda.  518  583  159  143 
Synapsis Soluciones y Servicios Ltda.  1,978  1,464  835  1,241 
Holding Enersis  61  134  582  621 
         
Total  212,398  226,139  188,138  200,479 
         
(*)      Consolidated by Endesa Chile until September 30th, 2005. Since October 1th is consolidated by Enersis through Endesa Brasil.
(**)      Since October 1th, 2005 is consolidated by Enersis through Endesa Brasil.
 

Pg. 29

PRESS RELEASE
First Quarter 2007–Risks Hedging  
 

ANALYSIS OF THE EXCHANGE RISK AND THE INTEREST RATE

The company has a high percentage of its loans in US Dollars considering that an important part of its sales, in the different markets where it operates, are mainly indexed to that currency. However, the Brazilian, Argentine and Colombian markets are indexed to the US Dollar to a lower extent and, therefore, subsidiaries in those markets have most of their liabilities in local currency. In the case of Argentina, the company has chosen to replace US$ denominated debt with local currency debt, when market financial conditions best allow it.

In a scenario of a high exchange rate risk, the company has continued with its policy of partly covering its liabilities in dollars in order to mitigate the effects of the fluctuations in the exchange rate upon results. Considering the important reduction in the accounting mismatch in recent years, the company has modified its policy on Dollar-Peso hedging in order to establish a policy of covering cash flows, together with a maximum permissible accounting mismatch, on which hedging operations will be performed.

As of March 31, 2007, the company has hedged in Chile, by means of US$/UF Swap operations, an amount of US$600 million on a consolidated basis and holds US$125 million in forward contracts, allowing an adequate managing of the hedging policy. In addition, the company holds US$1 million in US$/Ch$ forward contracts. At the same date one year ago, the company had already contracted US$700 million of the total Swap US$/UF as part of the establishment of the new hedging policy whereby US$100 million expired during the year 2006.There were not held forward contracts.

Regarding to interest rate risk, the company has, on a consolidated basis, a proportion of its indebtedness at a fixed rate/variable rate ratio of approximately 69.2% / 30.8% fixed / variable as of March 31, 2007. The percentage of its indebtedness at a fixed rate has decreased compared with the 79.1% / 20.9% ratio as of the same date in the previous year. This is mainly due to the fact that some subsidiaries refinanced its maturities from fix to variable rate. Nevertheless, the risk levels had maintained in the range of the coverage policies establish by the Group.

Pg. 30

PRESS RELEASE
First Quarter 2007– Breakdown by country  
 

ARGENTINA 

GENERATION

In generation business, our subsidiary Costanera recorded an increase in Operating Income of Ch$3,316 million, reaching Ch$3,922 million, mainly due to an increase in physical sales of 11.6%, resulting in total physical sales of 2,450 GWh, and also due to better average margin for the period. Production increased by 11.4% reaching 2,445 GWh as of March 31, 2007.

On the other hand, in our subsidiary Chocón Operating Income was Ch$4,804 million during first quarter 2007, a decrease of Ch$1,475 million, as a result of lower physical sales by 28.1%, caused by caudal management measures of the Argentine Energy Secretary, and a lower hydrology.

COSTANERA

Operating Income

Table 13               
               
  Million US$  Million Ch$     
           
                  1Q 06  1Q 07   1Q 06  1Q 07    Chg % 
               
       Operating Revenues  53  75    28,837  40,550    40.6% 
       Operating Costs  (51) (67)   (27,740) (36,055)   (30.0%)
       Operating Margin  2  8    1,097  4,495    - 
                       Selling and Administrative Expenses  (1) (1)   (491) (573)   (16.7%)
               
       Operating Income  1  7    606  3,922    - 
               
*      Please take note that these figures could differ from those accounted under Argentine GAAP.

Additional Information

Table 14

         
         
Costanera  1Q06  1Q07  Var 06-07  Chg % 
         
GWh Produced  2,195  2,445  250  11.4% 
GWh Sold  2,195  2,450  254  11.6% 
Market Share  9.0%  9.6%  -  6.8% 
         

Costanera Financial Debt Maturity (with third party)
US$ 220 million

Pg. 31

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

CHOCÓN

Operating Income

Table 15               
 
  Million US$  Million Ch$     
           
                 1Q 06    1Q 07    1Q 06  1Q 07    Chg % 
 
Operating Revenues  25  24    13,600  12,679    (6.8%)
Operating Costs  (13) (14)   (7,127) (7,647)   (7.3%)
Operating Margin  12  9    6,473  5,032    (22.3%)
               Selling and Administrative Expenses   (0) (0)   (193) (228)   (17.9%)
 
Operating Income  12  9    6,279  4,804    (23.5%)
 
*      Please take note that these figures could differ from those accounted under Argentine GAAP.

Additional Information

Table 16 
         
         
Chocón  1Q06  1Q07  Var 06-07  Chg % 
         
GWh Produced  1,110  735  -374  (33.7%)
GWh Sold  1,137  817  -320  (28.1%)
Market Share  4.6%  3.2%  -  (31.2%)
         

Chocón Financial Debt Maturity (with third party)
US$ 100 million

DISTRIBUTION

Edesur reported a 25.5% decrease in Operating Income, from Ch$7,348 million to Ch$5,475 million basically explained by an increase in fines resulting from quality service fixed in the Agreement Act, and also due to public thoroughfare security. The aforementioned effect was partially offset by an 8.8% increase in physical sales.

Energy losses decreased 0.1 percent point, reaching 9.1% for the period, and the clients’ base grew by 32 thousand, totalizing 2.2 million clients.

It is important to mention that the as of December 28, 2006, through Decree N°1,959, the Argentine Government ratified the Agreement Act published in January 8, 2007 on the Official Bulletin of the Argentine Republic.

Pg. 32

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

On February 5, 2007, the National Electricity Regulatory Entity (ENRE) published in the Official Bulletin its Resolution ENRE No.50/2007 approving the values of EDESUR’s Tariff Table effective as of February 1, 2007, which corresponds to consumption accrued during the period between November 1st, 2005 and January 31st, 2007, the ENRE has established that the total amount will be invoiced in 55 equal and consecutive installments.

EDESUR

Operating Income

Table 17               
               
  Million US$    Million Ch$ 
       
  1Q 06  1Q 07    1Q 06       1Q 07    Chg % 
               
                       Revenues from Sales           116           136    62,390  73,106    17.2% 
                       Other Operating Revenues  10  10    5,559  5,304    (4.6%)
       Operating Revenues           126           145    67,949  78,410    15.4% 
                       Energy Purchases           (66)          (74)   (35,390) (40,117)   (13.4%)
                       Other Operating Cost           (32)          (43)   (17,278) (23,258)   (34.6%)
       Operating Costs           (98) (118)   (52,668) (63,375)   (20.3%)
                       Selling and Administrative Expenses           (15)          (18)   (7,933) (9,560)   (20.5%)
               
       Operating Income  14  10    7,348  5,475    (25.5%)
               
*      Please take note that these figures could differ from those accounted under Argentine GAAP.

Additional Information

Table 18
         
         
Edesur  1Q06  1Q07  Var 06-07  Chg % 
         
Customers (Th) 2,170  2,202  32  1.4% 
GWh Sold  3,664  3,985  321  8.8% 
Clients/Employee  925  904  (21) (2.3%)
Energy Losses % (12M) 9.2%  9.1%  -  (1.5%)
         

Edesur Financial Debt Maturity (with third party)
US$ 141million

Pg. 33

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

BRAZIL 

ENDESA BRASIL

Table 19               
               
  Million US$  Million Ch$    Chg % 
           
  1Q 06  1Q 07   1Q 06  1Q 07     
               
               Revenues from Sales  540  514    291,142   277,130    (4.8%)
               Other Operating Revenues  16  14    8,547  7,812    (8.6%)
       Operating Revenues  556  528    299,690   284,942    (4.9%)
               Energy Purchases  (254) (215)   (136,722) (116,159)   15.0% 
               Other Operating Cost  (126)  (93)   (67,915)    (50,062)   26.3% 
       Operating Costs  (380) (308)   (204,637) (166,221)   18.8% 
               Selling and Administrative Expenses   (35)  (34)   (19,072)    (18,212)   4.5% 
               
       Operating Income  141  186    75,981   100,510    32.3% 
               
*      Please take note that these figures could differ from those accounted under Brazilian GAAP.

GENERATION

In the generation business, operating income of Cachoeira rose by 51.9%, improving from Ch$6,995 million to Ch$10,626 million, mainly due an increase in physical sales by 11.4% reaching 1,057 GWh, and also due to better average margin.

Fortaleza slightly improved its Operating Income by 2.0% reaching Ch$10,857, due to the local currency appreciation, and Chilean peso devaluation against US$.

CIEN registered a negative Operating Income of Ch$2,305 million, which represents a decrease compared to the positive result Ch$2,660 million as of 1Q06, mainly due to lower average sales margin and physical sales volumes, which is the result of the lack of supply from Argentina.

It is important to mention that CIEN is redesigning its business in order to reduce its dependency of energy supply in both countries. In that sense, the company is renegotiating its supply contracts, as well as searching for an adequate payment for its international transmission services.

CACHOEIRA

Operating Income

Table 20               
               
     Million US$  Million Ch$     
           
  1Q 06  1Q 07    1Q 06  1Q 07    Chg % 
               
         Operating Revenues     29     35    15,410  19,072    23.8% 
         Operating Costs  (14) (14)   (7,541) (7,695)   (2.0%)
         Operating Margin     15     21    7,870  11,377    44.6% 
              Selling and Administrative Expenses       (2)      (1)   (874) (751)   14.2% 
               
         Operating Income     13     20    6,995  10,626    51.9% 
               
*      Please take note that these figures could differ from those accounted under Brazilian GAAP.

Pg. 34

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

Additional Information

Table 21 
         
         
Cachoeira  1Q06  1Q07  Var 06-07  Chg % 
         
GWh Produced  3,559  4,241  682  19.2% 
GWh Sold  949  1,057  108  11.4% 
Market Share  1.1%  1.2%  -  9.1% 
         

Cachoeira Financial Debt Maturity (with third party) US$ 6 million

FORTALEZA

Operating Income

Table 22               
               
  Million US$  Million Ch$     
           
  1Q 06  1Q 07    1Q 06  1Q 07    Chg % 
               
Operating Revenues             53             46    28,339  25,012    (11.7%)
Operating Costs  (32) (25)   (17,239) (13,612)   -21.0% 
Operating Margin             21             21    11,101  11,400    2.7% 
         Selling and Administrative Expenses               (0)              (1)   (243) (324)   33.0% 
               
Operating Income             20             21    10,857  11,076    2.0% 
               

Additional Information

Table 23
         
Fortaleza  1Q06  1Q07  Var 06-07  Chg % 
         
GWh Produced  131  1  -130  (99.4%)
GWh Sold  666  664  -3  (0.4%)
Market Share  0.7%  0.7%  -  - 
         

Pg. 35

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

Fortaleza Financial Debt Maturity (with third party)
US$ 122 million

TRANSMISSION

CIEN

Operating Income

Table 24               
               
  Million US$  Million Ch$     
           
  1Q 06  1Q 07    1Q 06  1Q 07    Chg % 
               
     Operating Revenues  82             49    44,320  26,208    (40.9%)
     Operating Costs  (75) (50)   (40,629) (27,154)   -33.2% 
     Operating Margin  6  (2)   3,015  (946)   N/A 
                   Selling and Administrative Expenses  (2) (3)   (1,031) (1,359)   31.8% 
               
     Operating Income  5  (4)   2,660  (2,305)   N/A 
               

Additional Information

Table 25

         
CIEN  1Q06  1Q07  Var 06-07  Chg % 
         
GWh Produced  0  0  -  - 
GWh Sold  1,564  1,154  -410  (26.2%)
Market Share  1.7%  1.3%  -  - 
         

Cien Financial Debt Maturity (with third party)
US$ 319 million

Pg. 36

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

DISTRIBUTION

In the distribution business, our subsidiary Ampla presents as of March 2007 an improvement of 34.1% in Operating Income, which grew from Ch$11,997 million to Ch$47,185 million, due to higher demand, which boosted physical sales 3.6% reaching 2,367 GWh, better margin and lower energy losses of 0.5 percent points. The clients’ base grew in 98 thousand clients reaching 2.34 million.

Coelce presents an improvement of Ch$13,729 million in Operating Income, reaching Ch$35,068 million, as consequence of higher physical sales, which increased in 3.7% reaching 1,717 GWh, and also due to better margins. Energy losses decreased by 0.5 percent points from 13.0% to 12.5% as of March, 2007. The clients’ base grew by 115 thousand clients achieving a 4.7% increase.

AMPLA

Operating Income

Table 26               
               
  Million US$    Million Ch$ 
       
  1Q 06  1Q 07    1Q 06  1Q 07    Chg % 
               
                   Revenues from Sales  271  274    146,203  147,850    1.1% 
                   Other Operating Revenues  4  5    2,215  2,938    32.7% 
   Operating Revenues  275  280    148,418  150,788    1.6% 
                   Energy Purchases  (116) (134)   (62,785) (72,216)   (15.0%)
                   Other Operating Cost  (85) (48)   (45,929) (25,652)   44.1% 
   Operating Costs  (202) (182)   (108,713) (97,868)   10.0% 
                   Selling and Administrative Expenses  (8) (11)   (4,517) (5,735)   (27.0%)
               
   Operating Income  65  88    35,188  47,185    34.1% 
               
*      Please take note that these figures could differ from those accounted under Brazilian GAAP.

Additional Information

Table 27 
         
         
Ampla  1Q06  1Q07  Var 06-07  Chg % 
         
Customers (Th) 2,244  2,342  98  4.4% 
GWh Sold  2,284  2,367  83  3.6% 
Clients/Employee  1,637  1,682  45  2.7% 
Energy Losses % (12M) 23.3%  22.8%  -  (2.0%)
         

Ampla Financial Debt Maturity (with third party)
US$ 700 million

Pg. 37

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

COELCE

Operating Income

Table 28               
 
         Million US$    Million Ch$ 
       
  1Q 06  1Q 07    1Q 06  1Q 07    Chg % 
 
                 Revenues from Sales           186           205     100,117  110,318    10.2% 
                 Other Operating Revenues  8  5    4,429  2,959    (33.2%)
Operating Revenues           194           210     104,546  113,278    8.4% 
                 Energy Purchases           (85)          (88)      (45,610) (47,335)   (3.8%)
                 Other Operating Cost           (49)          (39)      (26,241) (21,248)   19.0% 
Operating Costs  (133) (127)      (71,851) (68,583)   4.5% 
                 Selling and Administrative Expenses           (21)          (18)      (11,356) (9,627)   15.2% 
 
Operating Income  40  65    21,339  35,068    64.3% 
 
*      Please take note that these figures could differ from those accounted under Brazilian GAAP.

Additional Information

Table 29 
         
         
Coelce  1Q06  1Q07  Var 06-07  Chg % 
         
Customers (Th) 2,456  2,571  115  4.7% 
GWh Sold  1,656  1,717  61  3.7% 
Clients/Employee  1,861  2,034  173  9.3% 
Energy Losses % (12M) 13.0%  12.5%  -  (3.5%)
         

Coelce Financial Debt Maturity (with third party)
US$ 268 million

Pg. 38

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 


CHILE 

GENERATION

Operating Income for the Chilean operations in 1Q07 were Ch$101,372, increasing 53.4% compared to . the same 2006 period. This positive variation is the result of a 11.9% increase in physical sales, an average node price over US$65 per MWh and higher energy’ spot prices. These higher spot prices are the result of the increase in electricity demand and thermo generation with diesel oil, due to the lack of supply of natural gas from Argentina.

The good reservoir level has allowed Endesa Chile to increase its hydro generation; nevertheless, Operating Cost grew 33.9% mainly due to an increase of Ch$21.911 millions in fuel and lubricant costs resulting from higher thermo generation.

It is worth mentioning that the commercial policy of Endesa has allowed it to become a net seller in the spot market, making possible to take advantage of the margins derived from selling at high prices electricity generated with hydro plants.

ENDESA CHILE

Consolidated Income Statement

Table 30                     
 
    Million US$    Million Ch$     
       
    1Q06    1Q07    1Q06    1Q07    Chg % 
 
Operating Revenues    552    731    297,603    394,424    32.5% 
Operating Costs    (310)   (396)   (166,958)   (213,751)   (28.0%)
               Selling and Administrative Expenses    (15)   (19)   (8,287)   (10,092)   (21.8%)
 
Operating Income    227    316    122,358    170,581    39.4% 
 
               Interest Income    5    8    2,922    4,284    46.6% 
               Interest Expenses    (83)   (84)   (44,816)   (45,042)   (0.5%)
Net Financial Income (Expenses)   (78)   (76)   (41,894)   (40,758)   2.7% 
               Equity Gains from Related Company    16    14    8,786    7,508    (14.5%)
               Equity Losses from Related Company    (0)   (4)   (8)   (2,026)   - 
Net Income from Related Companies    16    10    8,777    5,482    (37.5%)
               Other Non Operating Income    19    15    10,069    8,071    (19.8%)
               Other Non Operating Expenses    (45)   (74)   (24,191)   (39,699)   (64.1%)
Net other Non Operating Income (Expenses)   (26)   (59)   (14,122)   (31,628)   (124.0%)
               Price Level Restatement    (1)   0    (484)   16    N/A 
               Foreign Exchange Effect    (3)   (1)   (1,744)   (586)   66.4% 
Net of Monetary Exposure    (4)   (1)   (2,228)   (570)   74.4% 
Positive Goodwill Amortization    (0)   (0)   (239)   (222)   7.1% 
 
Non Operating Income    (92)   (126)   (49,705)   (67,695)   (36.2%)
 
Net Income b. Taxes, Min Int and Neg Goodwill Amort.    135    191    72,653    102,886    41.6% 
Extraordinary Items             -             -    -    -    - 
Income Tax    (47)   (74)   (25,246)   (39,923)   (58.1%)
Minority Interest    (29)   (27)   (15,467)   (14,376)   7.1% 
Negative Goodwill Amortization    5    2    2,489    1,118    (55.1%)
 
NET INCOME    64    92    34,429    49,704    44.4% 
 

Pg. 39

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

Additional Information

Table 31 

                 
 
Chilean Companies    1Q06    1Q07    Var 06-07    Chg % 
 
GWh Produced    4,369    5,191    821    18.8% 
GWh Sold    4,671    5,226    556    11.9% 
Market Share    37.9%    40.0%    -    5.6% 
 

Endesa-Chile Parent Company Financial Debt Maturity (with third party)
US$ 2,471 million

DISTRIBUTION

Operating Income for the Chilean operations increased by 14.3% or Ch$3,908 million, reaching Ch$31,234 million, mainly due to higher physical sales of 5.1%, which reach 3,157 GWh, reflecting favorable economic conditions of the country. Also, the increase in Operating Margin is the result of higher sales margin.

Our clients’ base rose by 34 thousand, reaching 1,44 million customers.

Pg. 40

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

CHILECTRA

     Income Statement

Table 32                     
 
   
Million US$ 
  
Million Ch$ 
             
    1Q 06    1Q 07    1Q 06         1Q 07    Chg % 
 
                 Revenues from Sales    271             309    145,934    166,852    14.3% 
                 Other Operating Revenues    19               25    10,460    13,490    29.0% 
Operating Revenues    290             334    156,394    180,342    15.3% 
                 Energy Purchases    (192)   (228)   (103,433)   (122,891)   (18.8%)
                 Other Operating Cost    (26)            (29)   (13,950)   (15,790)   (13.2%)
Operating Costs    (218)   (257)   (117,383)   (138,681)   (18.1%)
                 Selling and Administrative Expenses    (22)            (19)   (11,685)   (10,427)   10.8% 
 
Operating Income    51               58    27,326    31,234    14.3% 
 
                 Interest Income    3                 3    1,410    1,709    21.2% 
                 Interest Expenses    (12)            (12)   (6,397)   (6,634)   (3.7%)
Net Financial Income (Expenses)   (9)                (9)   (4,986)   (4,925)   1.2% 
                 Equity Gains from Related Company    12               21    6,346    11,083    74.6% 
                 Equity Losses from Related Company    (1)            -    (511)   -    N/A 
Net Income from Related Companies    11               21    5,836    11,083    89.9% 
                 Other Non Operating Income    3                 4    1,780    2,083    17.0% 
                 Other Non Operating Expenses    (0)                (0)   (217)   (222)   (2.5%)
                 Conversion Effect (BT 64)   -             -    -    -     
Net other Non Operating Income (Expenses)   3                 3    1,563    1,861    19.0% 
                 Price Level Restatement    (2)                (2)   (1,284)   (923)   28.1% 
                 Foreign Exchange Effect    -             -    -    -     
Net of Monetary Exposure    (2)                (2)   (1,284)   (923)   28.1% 
Positive Goodwill Amortization    (0)                (0)   (150)   (150)   0.2% 
 
Non Operating Income    2               13    978    6,946    - 
 
Net Income b. Taxes, Min Int and Neg Goodwill Am    52               71    28,304    38,180    34.9% 
Extraordinary Items    -             -    -    -     
Income Tax    195             (12)   105,254    (6,465)   (106.1%)
Minority Interest    1                 (0)   407    (129)   (131.6%)
Negative Goodwill Amortization    -             -    -    -     
 
NET INCOME    248               59    133,965    31,587    -76% 
 


     Additional Information 

Table 33 

 
Chilectra    1Q06               1Q07    Var 06-07    Chg % 
 
Customers (Th)   1,411               1,445    34    2.4% 
GWh Sold    3,005               3,157    152    5.1% 
Clients/Employee    1,957               2,032    75    3.8% 
Energy Losses % (12M)   4.7%               5.1%    -    9.0% 
 

Pg. 41

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 


COLOMBIA 

GENERATION

Our subsidiary Emgesa presented an increase of Ch$9,087 million in Operating Income, which reach Ch$36,899 million as of March 2007. This improve is mainly the result of higher average sales margin, higher capacity charge and higher physical sales of 3.8%, effects that more than offset the 5 GWh of lower generation.

Our subsidiary Betania reported a decrease in Operating Income of Ch$3,022 million compared to the same period in 2006, reaching Ch$1,027 million. This decrease is mainly the result of a reduction in physical sales by 230 GWh, and also lower average margin.

EMGESA

Operating Income

Table 36                     
 
    Million US$           Million Ch$     
             
    1Q 06    1Q 07    1Q 06    1Q 07    Chg % 
 
Operating Revenues    112    135    60,564       72,930    20.4% 
Operating Costs    (59)   (65)   (31,835)   (34,948)   (9.8%)
Operating Margin    53    70    28,730       37,982    32.2% 
            Selling and Administrative Expenses    (2)   (2)   (918)      (1,083)   (18.0%)
 
Operating Income    52    68    27,812       36,899    32.7% 
 
     * Please take note that these figures could differ from those accounted under Colombian GAAP.

Additional Information

Table 37 

                 
 
Emgesa    1Q06    1Q07    Var 06-07    Chg % 
 
GWh Produced    2,465    2,460    -5    (0.2%)
GWh Sold    2,959    3,071    113    3.8% 
Market Share    17.5%    17.8%    -    1.7% 
 

Emgesa Financial Debt Maturity (with third party)
US$ 339 million

Pg. 42

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

BETANIA

     Operating Income

Table 34                     
 
    Million US$    Million Ch$     
             
    1Q 06    1Q 07    1Q 06    1Q 07    Chg % 
 
Operating Revenues    14    12         7,326    6,561    (10.4%)
Operating Costs    (6)   (10)   (3,173)   (5,317)   (67.6%)
Operating Margin    8    2         4,153    1,243    (70.1%)
                 Selling and Administrative Expenses    (0)   (0)   (104)   (217)   (107.8%)
 
Operating Income    8    2         4,049    1,027    (74.6%)
 
     * Please take note that these figures could differ from those accounted under Colombian GAAP.

Additional Information

Table 35 

                 
 
Betania    1Q06    1Q07    Var 06-07    Chg % 
 
GWh Produced    511    285    -226    (44.1%)
GWh Sold    607    376    -230    (38.1%)
Market Share    3.6%    2.2%    -    (39.3%)
 

Betania Financial Debt Maturity (with third party)
US$ 349 million

Pg. 43

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

DISTRIBUTION

In the distribution business, our subsidiary Codensa registered a 8.8% increase in Operating Income, reaching Ch$34,495 million, mainly due a higher demand, which resulted in a increase in physical sales of 8.1%, lower energy losses (9.2% versus 9.4% on 2006’s same period), which were partially offset by a decrease in purchases and sales margins.

Codensa increased its client’s base by 66 thousand new customers during the period.

CODENSA

     Operating Income

Table 38                     
 
           Million US$    Million Ch$ 
         
    1Q 06    1Q 07    1Q 06         1Q 07    Chg % 
 
               Revenues from Sales    156    169    84,141    91,292    8.5% 
               Other Operating Revenues    50    62    26,919    33,610    24.9% 
Operating Revenues    206    232    111,060    124,902    12.5% 
               Energy Purchases    (92)   (107)   (49,428)   (57,505)   (16.3%)
               Other Operating Cost    (49)   (54)   (26,510)   (29,157)   (10.0%)
Operating Costs    (141)   (161)   (75,937)   (86,662)   (14.1%)
               Selling and Administrative Expenses    (6)   (7)   (3,426)   (3,745)   (9.3%)
 
     Operating Income    59    64    31,697    34,495    8.8% 
 
     * Please take note that these figures could differ from those accounted under Colombian GAAP.

Additional Information

Table 39 

                 
 
Codensa    1Q06    1Q07    Var 06-07    Chg % 
 
Customers (Th)   2,091    2,157    67    3.2% 
GWh Sold    2,545    2,750    205    8.0% 
Clients/Employee    2,265    2,302    37    1.6% 
Energy Losses % (12M)   9.4%    9.2%    -    (2.1%)
 

Codensa Financial Debt Maturity (with third party)
US$ 504 million

Pg. 44

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 


PERU 

GENERATION

On our subsidiary Edegel, Operating Income were Ch$20,994 million, an increase of 29% compared to Ch$16,268 million as of March 2006. This increase is mainly the result of higher physical production and sales, which increased by 52.5% . The higher sales level are the result of the greater demand and higher generation due to the merger between Edegel and Etevensa, which was completed on June 1, 2006, and made possible supplying this higher demand with own generation.

EDEGEL

     Operating Income

Table 40                     
 
    Million US$           Million Ch$     
             
    1Q 06    1Q 07    1Q 06    1Q 07    Chg % 
 
Operating Revenues    62    83       33,216       44,613    34.3% 
Operating Costs    (27)   (38)   (14,602)   (20,721)   (42.0%)
Operating Margin    35    44       18,614       23,892    28.4% 
                 Selling and Administrative Expenses     (4)    (5)        (2,346)      (2,899)   (23.5%)
 
Operating Income    30    39       16,268       20,994    29.0% 
 
       * Please take note that these figures could differ from those accounted under Peruvian GAAP.

Additional Information

Table 41 

                 
 
Edegel    1Q06    1Q07    Var 06-07    Chg % 
 
GWh Produced    1,317    2,002    685    52.0% 
GWh Sold    1,279    1,951    672    52.5% 
Market Share    25.0%    32.9%    -    31.7% 
 

Edegel Financial Debt Maturity (with third party)
US$ 469 million

Pg. 45

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

DISTRIBUTION

Edelnor increases its operating income by Ch$2,825 million, reaching Ch$11,698 million. This increase is the result of higher demand and an improve in unitary margins, as a consequence of the decrease in the cost of energy purchased. The higher demand makes possible to increase Edelnor’s physical sales in 6.9%, reaching 1,292 GWh as of March, 2007. The number of clients grew by 30 thousand, reaching 961 thousand customers.

EDELNOR

     Operating Income

Table 42                     
 
    Million US$    Million Ch$ 
         
    1Q 06    1Q 07    1Q 06         1Q 07    Chg % 
 
               Revenues from Sales    98    99         52,835                 53,356    1.0% 
               Other Operating Revenues    3    5    1,755    2,827    61.0% 
Operating Revenues             101    104         54,590                 56,183    2.9% 
               Energy Purchases    (64)   (60)   (34,571)   (32,290)   6.6% 
               Other Operating Cost    (12)   (14)        (6,301)                  (7,289)   (15.7%)
Operating Costs    (76)   (73)   (40,872)   (39,579)   3.2% 
               Selling and Administrative Expenses    (9)   (9)        (4,845)                  (4,906)   (1.3%)
 
Operating Income    16    22    8,873                 11,698    31.8% 
 
     * Please take note that these figures could differ from those accounted under Peruvian GAAP.

Additional Information

Table 43 

                 
 
Edelnor    1Q06    1Q07    Var 06-07    Chg % 
 
Customers (Th)   931    961    30    3.3% 
GWh Sold    1,209    1,292    82    6.9% 
Clients/Employee    1,737    1,773    37    2.1% 
Energy Losses % (12M)   8.3%    8.4%    -    1.2% 
 

Edelnor Financial Debt Maturity (with third party)
US$ 186 million

Pg. 46

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

PARTIALLY CONSOLIDATED INCOME STATEMENT
(Parent Company First Quarter 2007 Earnings Report)

UNDER CHILEAN GAAP, MILLION CH$

Table 44             
 
(in million Ch$ of 1Q07)
   1Q06    1Q07    Var % 
 
       Gross Operating Margin    857    839    (2.0%)
       S&A Expenses    (3,818)   (4,036)   5.7% 
 
       Operating Income    (2,961)   (3,197)   8.0% 
 
       Endesa    20,651    29,813    44.4% 
       Chilectra    17,853    20,312    13.8% 
       Edesur    (251)   9,412    N/A 
       Edelnor    376    2,490    - 
       Ampla    3,604    2,681    (25.6%)
       Coelce    -    -    N/A 
       Codensa    3,812    2,607    (31.6%)
       CAM LTDA    1,315    316    (75.9%)
       Inm Manso de Velasco    40    581    - 
       Synapsis    1,129    214    (81.0%)
       Endesa Brasil    4,603    5,187    12.7% 
       CGTF    -    -    N/A 
       Other    109,956    -    N/A 
 
       Net Income from Related Companies    163,088    73,613    (54.9%)
 
       Interest Income    11,301    10,358    (8.3%)
       Interest Expense    (15,310)   (13,691)   (10.6%)
       Net Financial Income (Expenses)   (4,009)   (3,334)   (16.9%)
       Other Non Operating Income    1,588    1,767    11.3% 
       Other Non Operating Expenses    (1,500)   (295)   (80.3%)
       Net other Non Operating Income (Expenses)   88    1,472    - 
       Price Level Restatement    352    (174)   N/A 
       Foreign Exchange Effect    5,222    1,364    (73.9%)
       Net Monetary Exposure    5,575    1,189    (78.7%)
       Positive Goodwill Amortization    (13,632)   (13,620)   (0.1%)
 
       Non Operating Income    151,109    59,321    (60.7%)
 
       Net Income before (1), (2) & (3)   148,148    56,124    (62.1%)
       Income Tax (1)   (3,155)   (1,994)   (36.8%)
       Negative Goodwill Amortization (2)   10    10    (0.2%)
       Minority Interest (3)   -    -    N/A 
 
       NET INCOME    145,003    54,141    (62.7%)
 
       EPS (Ch$)   4.44    1.66    (62.7%)
       EPADS (US$)   0.41    0.15    (62.7%)
       Common Shares Outstanding (Th)   32,651,166    32,651,166    0.0% 
 

Pg. 47

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

UNDER CHILEAN GAAP, THOUSAND US$

Table 44.1 

             
 
(in thousand US$ of 1Q07)
   1Q06    1Q07    Var % 
 
       Gross Operating Margin    1,589    1,557    (2.0%)
       S&A Expenses    (7,080)   (7,485)   5.7% 
 
       Operating Income    (5,491)   (5,928)   8.0% 
 
       Endesa    38,298    55,290    44.4% 
       Chilectra    33,109    37,670    13.8% 
       Edesur    (465)   17,456    N/A 
       Edelnor    698    4,617    - 
       Ampla    6,685    4,972    (25.6%)
       Coelce    -    -    N/A 
       Codensa    7,070    4,834    (31.6%)
       CAM LTDA    2,438    587    (75.9%)
       Inm Manso de Velasco    74    1,077    - 
       Synapsis    2,094    397    (81.0%)
       Endesa Brasil    8,536    9,619    12.7% 
       CGTF    -    -    N/A 
       Others    203,920    -    N/A 
 
       Net Income from Related Companies    302,457    136,520    (54.9%)
 
       Interest Income    20,958    19,209    (8.3%)
       Interest Expense    (28,394)   (25,392)   (10.6%)
       Net Financial Income (Expenses)   (7,436)   (6,182)   (16.9%)
       Other Non Operating Income    2,945    3,277    11.3% 
       Other Non Operating Expenses    (2,782)   (547)   (80.3%)
       Net other Non Operating Income (Expenses)   163    2,730    - 
       Price Level Restatement    653    (323)   N/A 
       Foreign Exchange Effect    9,685    2,529    (73.9%)
       Net Monetary Exposure    10,338    2,206    (78.7%)
       Positive Goodwill Amortization           (25,281)   (25,259)   (0.1%)
 
       Non Operating Income    280,241    110,015    (60.7%)
 
       Net Income before (1), (2) & (3)   274,750    104,086    (62.1%)
       Income Tax (1)   (5,851)   (3,697)   (36.8%)
       Negative Goodwill Amortization (2)   19    19    (0.2%)
       Minority Interest (3)   -    -    N/A 
 
       NET INCOME    268,918    100,408    (62.7%)
 
       EPS (Ch$)   4.44    1.66    -62.7% 
       EPADS (US$)   0.41    0.15    -62.7% 
       Common Shares Outstanding (Th)   32,651,166    32,651,166    0.0% 
 

Pg. 48

PRESS RELEASE
First Quarter 2007– Breakdown by country 
 

OWNERSHIP OF THE COMPANY AS OF MARCH 31, 2007

TOTAL SHAREHOLDERS: 8,698

CONFERENCE CALL INVITATION

Enersis is pleased to inform you that it will hold a conference call to review its results for the period, on Thursday, April 26th, 2007, at 12:00 PM EST (Eastern Standard Time) (12:00 noon Chilean time). To participate, please dial +1 (617) 614-3474 or +1 (800) 706-7749 (toll free USA), approximately 10 minutes prior to the scheduled start time, Passcode ID: 37135427.

The phone replay will be available between April 26th, 2007, and May 3rd, 2007, dialing 1+ (617) 801-6888 or +1 (888) 286-8010 (toll free USA) Passcode ID: 40098723.

To access the call online, or to access the replay, go to: http://www.enersis.com Investor Relations, the conference will be complemented by a Power Point “slides presentation”.

Pg. 49

PRESS RELEASE
First Quarter 2007– Contact Information  
 

CONTACT INFORMATION

For further information, please contact us:

    Susana Rey     
    Head of Investor Relations     
    srm@e.enersis.cl     
    56 (2) 353 4554     
 
 
Denisse Labarca    Ignacio González    Carmen Poblete 
Investor Relations Representative    Investor Relations Representative    Investor Relations Representative 
dla@e.enersis.cl    ijgr@e.enersis.cl    cpt@e.enersis.cl 
56 (2) 353 4492    56 (2) 353 4552    56 (2) 353 4447 
 
 
    María Luz Muñoz     
    Investor Relations     
    Assistant     
    mlmr@e.enersis.cl     
    56 (2) 353 4682     

DISCLAIMER

This Press Release contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Enersis and its management with respect to, among other things: (1) Enersis’ business plans; (2) Enersis’ cost-reduction plans; (3) trends affecting Enersis’ financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Enersis’ or its affiliates. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enersis’ Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enersis undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.

Pg. 50

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  ENERSIS S.A. 
   
  By: /s/ Ignacio Antoñanzas 
  -------------------------------------------------- 
   
  Title: Chief Executive Officer 

Date: April 27, 2007