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Medellin-based textile giant Fabricato on October 31 reported a third quarter (3Q) 2019 net loss of COP$13 billion (US$3.8 million), worse than the COP$9 billion (US$2.67 million) net loss in 3Q 2018.

However, earnings before interest, taxes, depreciation and amortization (EBITDA) improved year-on-year, to COP$3 billion (US$891,000), versus COP$909 million (US$270,000) in 3Q 2018.

Sales also improved year-on-year, to COP$107 billion (US$32 million) in 3Q 2019 versus COP$96 billion (US$28 million) in 3Q 2018.

As for nine-months 2019 results, net loss to date stands at COP$39.8 billion (US$11.8 million), worse than the COP$28 billion (US$8.3 million) losses in nine-months 2018.

Despite the losses, Fabricato cited over-all business environment improvements in 3Q 2019 -- especially in retail clothing sales, up 4.9% year-on-year.

“There is an increase in demand for ready-made [clothing] products in Colombia, which in addition to the natural growth of the period is also explained by the volatility of the U.S. dollar [against the Colombian peso] and decrees 274 and 275 of the National Development Plan, which establish a tariff of 37.9 % for ready-made imported products [sold] at a price lower than US$20 per kilogram (as of November 2019), which makes importation less attractive,” according to the company.

“The increase in demand for Colombian ready-made products carries greater demand for textile products, which in turn demand more threads,” Fabricato added.

The 11.2% year-on-year increase in demand for Colombian textiles “is the result of good performance of the national market mainly in the fashion segment, but also the institutional segment has had a higher than expected level of demand,” according to the company.

“In exports, the main growth is Brazil, a developing market for our company since 2018 with an important potential in which we continue to focus resources for its consolidation.

“[G]rowth in sales in the higher value-added segments, as recognized brands of Colombia and abroad, the reduction of fixed costs, the efficiency in administrative and financial processes and the contribution to working capital by the advance of real estate business flows” have helped Fabricato boost sales and EBITDA, according to the company.

On the other hand, “there are still favorable conditions for importation (very low thresholds and tariffs), which is why many traditional textile marketers decided to import. Because [cheap imports] represent an attractive business -- given that the majority of its origin prices are extremely low (due to unfair practices at origin) -- other non-traditional marketers also dedicated themselves to importation,” Fabricato warned.

“As these products are oriented to the production of basic clothing, attributes such as quality and design remain in the background, but the truth is that they represent more than half of the market in some segments, such as denim, which is the fabric for pants jeans.”

Even so, “it is perceived at this time that the import of basic textile products does not show growth because these have already achieved a very high participation in the market.”

In addition, “currency volatility with an upward trend in the quarter -- although it greatly impacted production costs -- impacted imported products 100%, which allows us to believe in a partial recovery of the domestic products market in the coming months,” the company added.


Spain-based Cementos Molins and Colombia-based multinational construction-materials producer and retailer Corona announced October 30 the start-up of their US$380 million, 1.5-million-tons/year, 50-50 joint venture “Empresa Colombiana de Cementos” (Ecocementos) cement plant near Sonson, Antioquia, east of Medellin.

Commenting on the start-up, Cementos Molins spokesman Julio Rodríguez said that the new plant will help the company “focus on 2020 with renewed ambition.”

“The new plant incorporates the best-available technology, putting maximum priority on energy efficiency and environmental protection, with cement production under the ‘Alion’ brand name, a new product destined for the Colombian market,” according to the company.

The plant has enabled the creation of 120 direct jobs along with 180 indirect Jobs, according to the company.

The new plant also represents continued internationalization of Cementos Molins, which now operates 11 cement plants in Spain, Argentina, Colombia, Mexico, Uruguay, Bangladesh, Tunisia and Bolivia, according the company.

Simultaneous to the announcement of the plant start-up, Cementos Molins reported a 10% year-on-year rise in third quarter (3Q) 2019 net income, hitting €70 million (US$78 million).


Voters in Medellin and the surrounding Antioquia department on October 27 continued a long tradition of electing relatively young, energetic, politically moderate mayors along with older, more-experienced governors who are more interested in delivering practical, concrete results rather than poseurs flaunting left-wing or right-wing flamboyance.

Relative newcomer Daniel Quintero Calle – an independent and technocrat who supports continuation of EPM’s giant “Hidroituango” hydroelectric project but questioned EPM’s management – took 38.56% of the Medellin vote for Mayor, beating politically moderate Centro Democratico candidate Alfredo Ramos, son of a former Antioquia governor, who nabbed 29.88% of the vote.

Quintero publicly rejected attacks coming from former Colombia President Alvaro Uribe (leader of Centro Democratico) but simultaneously denounced an endorsement from left-wing politician Gustavo Petro, who was soundly defeated by moderate conservative Ivan Duque in last year’s Colombian presidential elections.

Meanwhile, politically moderate Anibal Gaviria Correa – who won the support of numerous political parties including Liberal, Cambio Radical, La U and Alianza Verde, and likewise supports continuation of the Hidroituango project – got 35.97% of Antioquia’s votes for Governor, beating similarly moderate Centro Democratico candidate Andres Guerra, with 28.78% of the vote.

While Centro Democratico came in second in the Mayor’s and Governor’s races, it nevertheless won the majority of City Council seats and a plurality of Antioquia departmental seats, ensuring that compromise and moderation will continue to dominate Medellin and Antioquia politics.


Medellin-based multinational foods giant Grupo Nutresa on October 25 reported that third quarter (3Q) 2019 net profits grew 6.9% year-on-year, to COP$412 billion (US$121 million).

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) likewise rose 18% year-on-year, to COP$992 billion (US$292 million), while margin on sales grew by 13.8%, according to the company.

Total sales for the third quarter grew 8.9%, to COP$7.2 trillion (US$2.1 billion), while sales in Colombia rose 6.4% year-on-year, to COP$4.5 trillion (US$1.3 billion), thanks to a 5.8% rise in sales volume and a modest 0.5% hike in prices.

International sales rose to COP$2.7 trillion (US$839 million), up 1.1% in dollar terms or up 13.5% in Colombian peso terms.

The 3Q 2019 results are now stated using the new IFRS16 international accounting terms, according to the company.

“Innovation of both products and experiences for our consumers continue to be an important driver of growth and differentiation for the company,” according to Nutresa, citing a 21.9% jump in this type of sales.

Consolidated gross profit came-in at COP$3.2 trillion (US$943 million), up 7.5% year-on-year, but gross margin fell by 0.6% “mainly due to an increase in the cost of imported commodities,” according to Nutresa.

“Separating the effect of the previously mentioned new IFRS16 accounting standard, Grupo Nutresa’s operating profit would have grown by 8.0% and EBITDA by 4.7%, with a margin of 12.2% on sales,” the company added.

“Net post-operative expenses, which amount to COP$141 billion [US$41.5 million], include the accounting of the expenses related to lease contracts, as well as the reduction in financial expenses due to lower interest rates.

Meanwhile, “for the first time in its history, Grupo Nutresa was ranked as the most sustainable food company in the DJSI World Index 2019,” the company boasted.

Nutresa won this recognition because of “excellent standards in corporate practices related to tax strategy, health and nutrition, materiality, human capital development, corporate citizenship and philanthropy, operational eco-efficiency, packaging, water-related risks, and environmental reporting,” the company added.


Colombia-based Cemex LatAm Holdings announced October 24 that its third-quarter (3Q) 2019 sales of grey cement grew year-on-year, but profits declined.

According to Cemex LatAm – which produces and markets concrete and cement in Colombia, Panama, Costa Rica, Nicaragua, El Salvador, and Guatemala – 3Q 2019 produced a corporate-wide net loss of US$4 million, compared to net profit of US$19 million in 3Q 2018.

Operating earnings before interest, taxes, depreciation and amortization (EBITDA) in Colombia fell to US$20 million, down 25% year-on-year in U.S.-dollar terms or 12% lower in Colombian peso terms.

Net sales in Colombia year-over-year declined by 6% in U.S.-dollar terms but increased by 8% in Colombia peso terms, hitting US$127 million.

In Panama, operating EBITDA declined by 18% year-on-year, to US$14 million, while net sales fell 22% year-on-year, to US$45 million.

In Costa Rica, operating EBITDA fell 58% to US$5 million, both in U.S. dollar and local-currency terms. Net sales fell 25%, to US$25 million.

In the rest of its territories, operating EBITDA fell by 15% in U.S.-dollar terms or by 13% in local-currency terms, to US$14 million during the quarter. Quarterly net sales dipped 9% year-on-year, to US$51 million.

“In Nicaragua, the socio-political crisis continues without resolution and continues to affect the local economy including demand for cement,” according to the company. “Most of the highway projects sponsored by the government are in final stages of construccion -- and no new projects are replacing the prior projects."

For Cemex LatAm, corporate-wide consolidated prices in local-currency terms for domestic gray cement and ready-mix concrete declined by 1% and 2% year-on-year, while prices for aggregates increased by 1%, according to the company.

Commenting on the results, Cemex LatAm CEO Jesus Gonzalez said: “We are encouraged by the positive trends in Colombian cement demand and by our cement volume and price performance in this country during the first nine months of the year. Nevertheless, this positive trend in sales was not strong enough to offset the increases in coal, electricity and distribution costs in Colombia, and the much weaker markets across Central America.

“Despite this challenging environment, we are pleased with our free cash flow generation and debt reduction during the first nine months of this year. Our free cash flow reached US$50 million in this period, an improvement of 43% on a year-over-year basis. We reduced our net debt by US$62 million, from US$827 million as of December to US$765 million as of September [2019]”.


The 6th annual Medellin Bird Festival (organized by Sociedad Antioqueña de Ornitologia, SAO) kicks off October 10-14 with a colorful variety of birdwatching opportunities, expert conferences, special workshops and film festivals.


Colombia’s Agencia Nacional de Infraestructura (ANI, the national infrastructure agency) announced October 2 that the crucial “Vias del Nus” connecting Medellin’s northern suburbs to Atlantic ports will open for traffic by end-2020.

The 157.4-kilometers-long project includes 24.3 kilometers of four-lane divided highway, the twin-tube “Túnel de la Quiebra” tunnels, rehabilitation of 35.6 kilometers of two-lane highway between Cisneros and Alto Dolores, construction of a third lane along 2.7 kilometers of highway between San José del Nus and Alto Dolores and the construction of 15 bridges, according to ANI.

Once opened, “Vias del Nus” will become “ the main cargo outlet from Medellín to the ports of the Caribbean Coast,” according to ANI.

The new, COP$515.6 billion (US$149 million) tunnels will enable traffic to pass beneath the heretofore problematic Alto de la Quiebra mountain in just 10 minutes -- compared to the tortuous, 40-minutes-long climb-and-descent on the existing road.

Currently, the average traffic on the “Vias del Nus” corridor is 2,000 vehicles daily. But once the new highway is in operation, average daily traffic is expected to increase to around 17,000 vehicles, greatly improving freight movements between Medellin and the Atlantic with average vehicle speeds of about 80 kilometers per hour, according to ANI.

Each tube of the "Tunel de la Quiebra" will be 4.2 kilometers long, requiring excavation of tough batholitic rock. Linear progress is about 600 meters per month, with 7,500 meters of a total of 8,400 meters already excavated, according to ANI. 


Medellin-based power giant EPM on September 27 gave journalists a first public tour of the start of recovery work in the damaged machine room of the US$5 billion, 2.4-gigawatt “Hidroituango” hydroelectric project in Antioquia.

Having already reached crucial milestones including completion of the engineered spillway, raising the dam to its final height and draining water from the damaged machine room, EPM will by end-October 2019 open a new highway at the top of the dam -- bringing convenient mobility to residents in towns near the dam including the municipality of Ituango, according to the company.

At the same time, the company continues to make progress toward final installation of a second, crucial water-closure gate for the auxiliary diversion tunnel (GAD in Spanish initials), whose collapse last year forced temporary diversion of Cauca River water through the machine room, causing hundreds of millions of dollars of losses due to lost power revenues and infrastructure damages.

Meanwhile, opening of the main access tunnel to the machine room has now been completed, enabling heavy machinery to enter for repair work, according to EPM.

“To date, 80% of the caverns around the machinery, transformers, beacons and adjacent tunnels have been cleared,” according to EPM.

“Civil-works damage to infrastructure has been found in 20% of these inspected areas. As of December 31 of this year, we expect to have 100% of the complex of caves inspected and damages calculated, in order to continue with repairs.”

A nearby technical monitoring center meanwhile enables real-time evaluation of the behavior of the dam and the other works of the project.

“Currently the indicators show that the works and the rock massif [adjacent to the dam] are stable,” according to EPM. “All the typical leaks found in such projects are evaluated permanently and to date all remain within the ranges contemplated in the project design.”

The company continues to expect that initial power production from Hidroituango will start by end-2021, then gradually expand until reaching its full 2.4-gigawatts output capacity by 2024.

According to EPM, among the project’s enormous fiscal and environment benefits include:

Emissions reductions of the order of 4.4 million tons of carbon dioxide (CO2) per year -- 94% of the goal of Colombia’s entire electricity sector by 2030. “This represents a significant contribution to meeting the goals of Colombia in the commitments of COP21 [Conference of the Parties to the United Nations Framework Convention on Climate Change],” according to EPM.

“It will deliver about COP$85 billion (US$24.6 million) each year for transfers to Colombia’s regional environmental agencies [such as Corantioquia and Cornare in Antioquia] and 153 municipalities, including those in the area of the dam’s influence, which includes the Cauca River basin.

“Additionally, via regional taxes and other contributions to other entities, the project will generate approximately COP$10 billion (US$2.9 million) per year. During the operational life of the project, resources will be generated of the order of COP$8 trillion (US$2.3 billion).

“Colombia will receive national income taxes of approximately COP$240 billion (US$69 million) annually, which will correspond during the operation of the project in resources for the nation totalling about COP$18 trillion (US$5.2 billion).

“The project includes compensation and recovery of about 19,000 hectares of tropical dry forest and tropical rainforest in the 12 municipalities of the area of influence, which becomes an opportunity for [protection of] biodiversity of the territory.

“Within the framework of the environmental and social management plan and regarding connectivity, about COP$1.9 trillion (US$550 million) have been invested in the 12 municipalities in the area of influence, which has resulted in a valuable contribution to the progress of its inhabitants and to the transformation of a territory that has historically suffered from national government abandonment and violence by of illegal armed groups.”

Once in operation, “the energy supply from the project will allow a reduction close to 30% in the [national] cost of power during its first five years of operation,” according to the company.

In addition, “power generation from Hidroituango -- interconnected to the Caribbean coast -- will enable a more-than-20% reduction in power costs paid by users of the current thermoelectric power in that region.”

National power reliability also will improve -- without causing an increase of global-warming emissions that result from “firm” power plants running on coal, oil or natural gas, the company noted.

Hidroituango has a firm energy output capacity of 5,708 gigawatt-hours per year – “energy that can be produced even in the worst drought in history,” according to EPM, and without any CO2 emissions.

If not for Hidroituango, Colombia otherwise would need to build another750-MW thermal power plant to ensure reliable, 24 hours/day power-- with a consequent carbon footprint that would violate Colombia’s commitment to meeting CO2-reduction goals under the COP21 agreement, the company added.

What’s more, because “green” solar or wind power are only intermittent – they don’t work when the sun isn’t shining and when the wind isn’t blowing -- Hidroituango’s constant 2.4-gigawatts power capacity is equivalent to installing about 5 gigawatts wind power or 3.8 gigawatts of solar energy, EPM added.


Medellin-based electric power giant EPM on September 25 issued a bulletin pointing out that nothing in the latest Colombian Controller General’s report about the US$5 billion “Hidroituango” hydroelectric project in Antioquia finds any instances of corruption.

Nor does the Controller’s report point to any criminal or disciplinary actions that would result from the April 2018 collapse of a diversion tunnel that has forced a three-year delay in power sales from Hidroituango, along with many millions of dollars in infrastructure damage.

As for the Controller’s findings that the tunnel collapse is likely to cost EPM roughly US$569 million in lost sales and infrastructure recovery -- and possibly as much as COP$2.9 trillion (US$852 million) in loss of net present value – those calculations remain hypothetical, according to EPM.

“For legal reasons in the fiscal responsibility process, EPM explanations can only be delivered to [the Controller General] later; that is, during the fiscal investigation process. The company is convinced that, by that time, it will resolve satisfactorily all the doubts and concerns contained in the report,” according to EPM.

“Regarding the recognition of the costs derived from the contingency, it is necessary to wait until the amount [of insurance coverage] that the insurer will recognize and the corresponding schedule of insurance payments, which, as EPM reported [last week] will result from a rigorous analysis of the quantification of damages according to the conditions established in the policy.

“The company will promptly inform the nation of the results when the disbursed [insurance payment] resources enter EPM and go into the financial statements of the project.

“The [Hidroituango] works have met the technical specifications, construction plans and construction programs using technical rigor and administrative measures that are demanded of a megaproject of this size.

“In fact, at the time of the April 28, 2018 [tunnel collapse] contingency, project execution was on-schedule and within the estimated budget.

“The Hidroituango hydroelectric project remains technically viable and financially. It is indispensable for the energy security of Colombia and, just as important, has a note of insurance coverage issued by insurance company Mapfre [as noted last week] based, among other considerations, on not having evidence of negligence or malintention during construction of the project.

“For EPM, Hidroituango is a crucial infrastructure project for the development of the country. Its entry into commercial operation, which according to the current forecast will be a at the end of 2021, will generate 17% of the country’s energy, with clean, reliable, safe and low-cost technology, and will bring multiple benefits for Colombians.”

What The Report Actually Said

Colombia’s Controller General on September 20 first unveiled a report that questioned management decisions by EPM during construction of the Hidroituango plant. Those decisions ultimately could cost EPM at least US$246 million in infrastructure damages and another US$323 million in lost power sales, accodring to the report.

However, the actual costs of physical damage could rise by another COP$423 billion (US$124 million) if EPM ultimately discovers more damages to machinery and equipment, the report cautions.

“In addition, there are some [cost issues] whose amount is yet to be determined, such as the repair of cavities, the fracturing of rock, the installed steel shields, the civil works in the machine room and additional elements to be written off,” according to the report.

On the other hand, the Controller’s report fails to include trillions of pesos of damage-coverages that EPM now expects to recover following a decision by insurance giant Mapfre (see September 17, 2019 Medellin Herald).

Bottom line: Hidroituango’s actual infrastructure-damage and power-sales losses – covered by insurance – presumably could be excluded from the Controller’s current net-present-value calculations, now estimated at a negative COP$2.9 trillion (US$852 million).

One curious figure in the Controller’s report finds that EPM spent an extra COP$484 billion (US$142 million) to accelerate completion of the dam and the engineered spillway in the wake of a diversion-tunnel collapse last year. That tunnel collapse forced EPM to divert Cauca River water through the machine room in order to avoid a catastrophic dam collapse.

However, since EPM was going to continue building the dam and spillway in any case, it’s unclear how much of that US$142 million would have been spent no matter the impact of the tunnel-collapse contingency.

Another puzzling item in the report states that the Controller partly based its findings upon a heretofore-secret Universidad Nacional study on financial impacts of the tunnel collapse. But EPM has noted publicly thatt it had never seen this study and hence hadn’t been able to respond to its supposed conclusions.

According to the text of the Controller’s report, “one of the decisions taken by EPM that had the greatest impact on the project was the non-construction of the guides for the closing gates of the diversion tunnels.”

In addition, “the construction of the auxiliary diversion gallery [the water diversion tunnel that later collapsed] was contrary to the recommendations of the EPM Advisory Board, which always pointed out the need to conform to the original designs,” according to the Controller's report.

“On repeated occasions, the EPM Advisory Board expressed its disagreement with the so-called ‘Acceleration Plan’ and the construction of the Auxiliary Deviation Gallery [diversion tunnel], indicating that ‘the technical risks associated with acceleration are not acceptable for a project of this magnitude’ and, in addition, ‘there is still uncertainty that the multiple and delicate tasks remaining to achieve the diversion are executed in a timely manner.’

“The Board of Advisers always recommended adjusting [the project] to the original design [for diverting the Cauca River] in the first half of 2014 and, if necessary, recover [project construction] time by speeding up the construction of the dam, which was an alternative with much less risk than the acceleration of the diversion tunnel,” according to the Controller’s report.

Four years prior to the tunnel collapse, EPM had fallen behind in the original construction schedule, the report noted.

To compensate, EPM decided to invest about COP$1 trillion [US$293 million] in alternative measures aiming to recoup lost time and hence ensure timely capture of future planned electric-power sales. But when the diversion tunnel collapsed, those alternative measures turned into a costly failure, the Controller noted.

As a result, “the consolidated loss of profit from the project is estimated at COP$1.1 trillion [US$323 million]; and a presumed detriment to public equity was established at COP$2.9 trillion [US$852 million], corresponding to what is estimated as the destruction of value due to the greater investments made without entering into [timely] operation,” according to the Controller.

Prior to issuing the report, the Controller’s audit of the Hidroituango project took place between March 4 to July 17, 2019, involving “a multidisciplinary team of auditors composed of lawyers, civil and systems engineers, economists, accountants and geologists, among other professions, and all with more 15 years of association with the Controller,” according to the agency.

“Projects such as Hidroituango must comply with high design and construction standards, given the social, environmental and economic impact they produce, but the Comptroller's conclusion is that this has not been the case,” according to the report.

“There are weaknesses in the [engineering] technical studies both in initial logistics works, as well as in the main works, which resulted in modifications to the contracts due to larger amounts of works, inclusion of new items, redesigns and changes in construction techniques, which generated more time and costs for the project,” according to the report.

In addition, “EPM's economic valuation of the project currently contemplates that in subsequent years it will recover, through insurance policies, [physical] damages and lost profits that, if not received, will affect negatively the economic expectations that are had on the project in the medium and long term,” the report concludes.

 


EPM general manager Jorge Londoño de la Cuesta revealed in a September 17 press conference here in Medellin that insurer Mapfre just issued a letter of coverage worth trillions of Colombian pesos for damages at the under-construction, US$5 billion Hidroituango hydroelectric plant in Antioquia.

The exact amount of payment won’t be known for months, as a technical panel must now prepare a detailed, itemized report on the exact value of each area of the dam works and machinery damaged by a diversion tunnel collapse last year, Londoño explained.

While EPM has insurance coverages totaling about COP$8 trillion (about US$2.5 billion) for physical damages as well as US$628 million for lost power sales, EPM likely won’t be getting the maximum amount, as the damages (as roughly estimated to-date) probably will come-in at below that total, he estimated.

EPM expects that the first sales of power from Hidroituango will be in December 2021, rather than the initially planned start-up in December 2018 -- a date that was forcibly postponed by the April 2018 tunnel collapse.

So, until the company has an exact startup date -- and an exact market quote for Colombian power prices matching that start-up date -- it can’t yet quantify the value of the insurance coverages for lost and delayed Hidroituango power sales. But the payment likely will be less than the US$628 million policy-coverage maximum for lost power sales, he estimated.

“The positive response of the insurer to the efforts made by EPM to obtain the coverage for the incident was based on the investigations and findings advanced by the insurer autonomously, which concluded that the cause of the contingency is framed in the terms and conditions of the policy and therefore we will have coverage,” Londoño said.

“In this sense, once the value of the incident has been quantified, and taking into account the conditions and limits established in the insurance policy, the [insurance payment] resources will be reimbursed to EPM and will enter into the financial statements of the project.

“It is important to highlight that the insurer appointed a series of national and international experts including engineers, geologists and geo-technicians specialized in dams and underground works, as well as lawyers, among others, to review the technical information of the main fronts of project work including tunnels, caverns, dam and landfill. Likewise, they reviewed the designs, plans, technical specifications, construction processes, work logbooks, risk matrix and pre- and post-contingency studies.

“The work of this group of experts also included 12 visits to the project, multiple meetings and in-depth interviews with the EPM technical team, the main contractors and the board of experts,” he added.

The letter from Mapfre confirming insurance coverage for Hidroituango is a huge step forward, because “if we’d done something wrong, then they wouldn’t agree to pay us” for damages, he explained.

“The causes of the [tunnel collapse] are covered by this policy. This was an unpredictable accident, not negligence,” Londoño added.

“Now we’re entering the second phase, where the experts will adjust the amount of payment and determine when they pay. This involves a detailed inventory of all the damages and the value of each,” up to a maximum US$2.5 billion in insurance coverage for physical damages.

Medellin Mayor Federico Gutierrez added at the press conference that the insurance coverage announcement not only is good news for EPM but also for the city of Medellin, which gets about 25% of its annual revenue from the city-owned utility.

Chile Asset Sales

On a related financial front, EPM announced September 17 that it inked a US$138 million sale of its Chile wind-power unit to AES Gener SA and its Norgener Renovables SpA subsidiary, following a plan announced last year to sell “non-strategic” assets -- aiming to boost liquidity as a result of the Hidroituango project delay.

Combined with EPM’s continuing sale of its 10% stake in shares of Colombian power transmission giant ISA, its sale of Chile assets, its successful US$1.3 billion bond sale this year, and now the upcoming multi-trillion-peso Hidroituango insurance payment, EPM’s financial outlook has improved dramatically when compared to market worries in the aftermath of the Hidroituango tunnel collapse last year, Londoño added.

 


Page 7 of 48

About Medellin Herald

Medellin Herald is a locally produced, English-language news and advisory service uniquely focused upon a more-mature audience of visitors, investors, conference and trade-show attendees, property buyers, expats, retirees, volunteers and nature lovers.

U.S. native Roberto Peckham, who founded Medellin Herald in 2015, has been residing in metro Medellin since 2005 and has traveled regularly and extensively throughout Colombia since 1981.

Medellin Herald welcomes your editorial contributions, comments and story-idea suggestions. Send us a message using the "contact" section.

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