SAO PAULO, Aug 14 (Reuters) - Profit at Brazilian power generator and distributor Cia Energetica de Sao Paulo , Brazil's largest utility by market value, rose 85 percent from a year earlier due to the high price of energy on the spot market.
Consolidated net profit at the utility, known as Cesp, was 489.4 million reais ($215 million) in the three months ending June 30, up 85 percent from 264.3 million reais a year ago, the company said in a securities filing.
The results came in below the average 518 million reais estimate of four analysts surveyed by Thomson Reuters.
Despite a sharp drop in generation from all five of Cesp's hydroelectric plants compared with a year ago due to severe drought over the company's region of operation, revenue from sales of energy on the spot market soared 77 percent.
The lowest hydroelectric reservoir levels in more than a decade in the main southeast/center-west subsystem pushed spot energy prices to an average 722 reais/MWh over the quarter, well above the average of 245 reais/MWh a year ago.
Meanwhile, operational costs fell 5 percent from a year ago.
Net sales, or sales minus sales taxes, rose 38 percent to 1.3 billion reais, compared with 940 million reais a year ago.
Cesp is based in Sao Paulo and controlled by the state government of Sao Paulo.
Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, a measure of a company's ability to generate cash from operations, rose 49 percent to 1.09 billion reais, while EBITDA margin grew 6 percentage points to 84 percent.
$1 = 2.27 Brazilian reais Reporting by Jeb Blount; Editing by Dan Grebler