AES Unit Advances to Six-Month High on Profit Surges

AES Gener SA, Chile’s second-largest power producer, rose to the highest in six months after reporting a 20-fold increase in third-quarter profit, beating some analyst estimates.

The unit of Arlington, Virginia-based AES Corp. gained 1.9 percent to 299.19 pesos at the close in Santiago, the highest price since May 8.

Net income climbed to $37.4 million from $1.78 million a year earlier, the Santiago-based company said in a Nov. 16 statement. Sales jumped 17 percent to $565 million while earnings before interest, tax, depreciation and amortization, or Ebitda, rose to $183 million from $155 million.

“We remain buyers of AES Gener,” Banchile-Citi analysts including Andrew McCarthy and Marcelo Britto wrote in a note to clients. “The results manifested strong growth in Ebitda.”

Sales and Ebitda beat Banco Santander SA’s estimates by more than 10 percent. Santander forecast a $1 million net loss, analysts including Adolfo Ortuzar wrote in a note to clients.

AES Gener has returned 19 percent over the past year, including dividends, making the stock the best performer among global peers tracked by Bloomberg. The shares fetch 11.3 times enterprise value over Ebitda, the data show. Banchile-Citi, the joint research department of Citigroup Inc. and Banco de Chile, said it trades at a 13 percent discount to its replacement cost.

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