By Graciela Ibanez

Chile's largest power generator, Empresa Nacional de Electricidad SA (EOC, ENDESA.SN) will likely report a gain in second-quarter net profit on higher hydroelectric generation and an increase in the company's Chilean revenue.

The power producer is seen posting 75.51 billion Chilean pesos ($152.7 million) in second-quarter net profit, a 16% gain from the same period a year ago, according to the median estimate of three analysts polled by Dow Jones Newswires.

With a total installed capacity of 14,832 megawatts in Latin America, Endesa operates in Chile, Argentina, Colombia and Peru and has an equity investment in Brazil.

The company's largest energy source is hydroelectric generation, which represented 61% of Endesa's capacity in Chile, as of March.

"June rain benefited Endesa's results in Chile," said Rodrigo Jacob, head of research at Bice Inversiones.

Endesa likely posted CLP198.45 billion in earnings before interest, taxes, depreciation and amortization, or Ebitda, a 7% increase versus the same period of 2011.

Endesa's parent company, Enersis SA (ENI, ENERSIS.SN), meanwhile, will likely report a 27% year-on-year decrease in second-quarter profit to CLP77.51 billion, according to the analysts' median estimate.

Variations between the Brazilian real and the Chilean peso contributed to Enersis's lower profit as the real depreciated more against the dollar than the peso did against the U.S. currency last quarter, said Mr. Jacob.

Enersis, owned by Spain's Endesa SA (ELEZF, ELE.MC), has power generation, distribution and transmission businesses in Argentina, Brazil, Chile, Colombia and Peru.

Endesa and Enersis are expected to release second-quarter earnings Wednesday.

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

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