September 27, 2023

Celsia 1Q 2022 Profits Jump 43% Year-on-Year

Medellin-based multinational electric-power generator Celsia announced May 4 that its first quarter (1Q) net income rose 43% year-on-year, to COP$166 billion (US$40.4 million).

Revenues also rose 33.6%, to COP$1.3 trillion (US$317 million), while consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 35%, to COP$455 billion (US$108 million).

Celsia – a division of industrial giant Grupo Argos – credited the profits jump to “higher generation, a better energy sale price, and income from the use and connection of networks driven by the higher independent power producer price (IPP).”

As for future “green” power growth, Celsia noted that it currently has six solar-photovoltaic farms under construction, collectively representing nearly 100 megawatts (MW) of additional installed capacity.

The company also touted its recent investment platform deal with Grupo Bancolombia “for the development of solar generation projects” with various companies aiming to install nearly eight MW.

Operations in Colombia accounted for COP$1.13 trillion (US$275 million) or 86.3% of 1Q 2022 revenues, “driven by higher generation and a better sale price,” while Central America operations added COP$180 billion (US$44 million), accounting for the remaining 13.7%.

The EBITDA improvement “was mainly led by the positive contribution of all businesses in Colombia,” but Central America EBITDA actually fell 20.4% year-on-year “due to the dry period that affected hydropower generation and increased the amount of energy purchased at a much higher price,” according to Celsia.

Also during 1Q 2022, “investment was almost COP$355 billion [US$86 million], including the expansions and technological updates of networks, as well as the growth of solar farms,” according to the company.

Consolidated debt finished 1Q 2022 at COP$4.8 trillion (US$1.17 billion) with a leverage ratio of 3.03-times net-debt-to-EBITDA, according to the company.

The company’s “Caoba” transmission division saw a 14.5% hike in income and 15.1% in EBITDA. “This platform today has assets of COP $1.4 trillion [US$341 million] and an expansion projection for the next four years of more than COP$1.0 trillion [US$244 million],”  the company added.

Meanwhile, the “C2 Energía” solar-power division grew 31.6% in revenues, 21.2% in EBITDA and continues to add assets. “Between this and next year the solar division will reach a total operating capacity of 300-MW,” according to Celsia.

As for the “Tesorito” thermal-power generation project, this unit “is in the final phase of construction, which will start operating in the second half of this year, with 200-MW of natural-gas-fired generation capacity, equivalent to supplying approximately 950,000 homes,” according to Celsia.

On another front, Celsia’s recent alliance with Medellin-based supermarket giant Grupo Éxito is committed to planting 1 million native trees in Colombia.

“The goal is for Grupo Éxito, together with its collaborators, allies, clients and suppliers, to contribute 500,000 trees and Celsia an additional 500,000, which will be planted through the ‘ReverdeC’ program in strategic ecosystems to increase forest cover and the ecological restoration of hydrographic basins throughout the country,” Celsia added.

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