Celsia 3Q 2026 Net Income Drops 64% Year-on-Year

Medellin-based electric power giant Celsia (a división of Grupo Argos) announced November 10 a 64% year-on-year plunge in third quarter (3Q) 2026 net income, to COP$28.5 billion (US$8.6 million) versus COP$80 billion (US$24 million) in 3Q 2025.

Despite the profits decline, revenues actually rose 24.8% year-on-year, to COP$1.6 trillion (US$483 million) verus COP$1.3 trillion (US$393 million) in 3Q 2025.

Earnings before interest, taxes, depreciiation and amortization (EBITDA) fell 23% year-on-year, to COP$293 billion (US$88 million), versus COP$381 billion (US$115 million) in 3Q 2025.

Profits were slashed by Colombia’s declining rainfall this year, which hurt Celsia’s mainly hydroelectric production. That forced the company to turn to higher-cost thermal power generation, which the goverrnment actually penalizes via a temporary “shortage statute” tariff imposed by the Energy and Gas Regulatory Commission (CREG).

“The implementation of this [power tariff] mechanism altered the spot market price, setting it at COP$600 [US$0.18]per kWh [kilowatt-hour] — well below the COP$1,433 [US$0.43] per kWh scarcity price,” Celsia explained.

“Consequently, a significant portion of the thermal generation required to meet the target set by the CREG is being dispatched for grid security reasons. This means that only variable costs are covered, with no profit margin included, thereby excluding — among other ítems — operational costs such as maintenance and financial expenses,” Celsia added.

On the other hand,“revenues [in 3Q 2026] grew by 24.8%, driven by higher energy sales on the wholesale market and retail commercialization (+22.1%), alongside continued growth in demand. However, the cost of purchasing energy and gas for thermal power generation increased significantly,” Celsia noted.

“A substantial portion of this revenue growth reflects the pass-through of higher energy costs, which does not generate additional EBITDA. Furthermore, in September, thermal power generation saw lower remuneration, which accounts for a 23% decline in EBITDA.”

Because of the national shortage in rainfall this year — expected to intensify in early 2027 — “the company’s strategy focused on conserving water in its reservoirs. This resulted in lower hydroelectric generation and, consequently, the need to purchase energy on the wholesale market — a proactive measure to prepare for the [early 2027 drought] season and the expected price trends toward the end of this year,” according to Celsia.

“Compared to December 2025, [corporate] debt increased by COP$331 billion [US$100 million], driven by the higher working capital requirements imposed by the El Niño [drought] phenomenon, while electricity tariffs now reflect the increased cost of energy.

“Based on quarterly performance and the impacts of the temporary “Shortage Statute” — which altered the assumptions underlying the year’s initial projections — Celsia now anticipates a consolidated net profit of approximately COP$250 billion [US$75 million] for 2026, below the initial forecast, and a consolidated EBITDA of COP$1.4 trillion [US$423 million], representing a 23% margin.

“Margins will remain under pressure as long as the El Niño phenomenon and the current conditions under the Shortage Statute persist,” the company added.