Chile's largest power producer, Empresa Nacional de Electricidad SA (EOC, ENDESA.SN), said Thursday its second-quarter net profit dropped to 64.87 billion Chilean pesos ($142.2 million), from CLP114.81 billion in the year-earlier period, due to tax changes in Colombia and a drought in Chile.

A severe drought in Chile, where Endesa has 38% of its installed capacity, crimped hydroelectric power generation and pared back the company's bottom line.

Endesa has 13,846 megawatts of installed capacity distributed in Argentina, Chile, Colombia and Peru. It also an equity stake in 987MW of installed capacity in Brazil.

Some 59% of the company's capacity is in hydroelectric generation and the rest is in thermal-generation plants.

The power generator's second-quarter revenue slipped to CLP596.03 billion from CLP625.68 billion in the year-earlier period.

Endesa is controlled by power-holding company Enersis SA (ENI, ENERSIS.SN), which in turn is controlled by Spain's Endesa SA (ELEZF, ELE.MC).

-By Anthony Esposito, Dow Jones Newswires; 56-2-715-8929; anthony.esposito@dowjones.com