Celsia 3Q 2019 Net Income Nearly Quadruples Year-on-Year on Free-Zone Plant Sale
Medellin-based electric power giant Celsia announced November 7 that its third quarter (3Q) 2019 net income soared by 390% year-on-year, to COP$315.6 billion (US$94 million), thanks to an extraordinary US$420 million gain from the sale of its 447-megawatts “Free Zone” (Zona Franca) power plant in Cartagena, Colombia.
Earnings before interest, taxes, depreciation and amortization (EBITDA) also rose 24% year-on-year, to COP$320.5 billion (US$96 million), while 3Q revenues rose 16%, to COP$984 billion (US$294.5 million), according to the company, a division of Medellin conglomerate Grupo Argos.
Excluding net income from the sale of Zona Franca, the consolidated net profit for the latest quarter rose 3% year-on-year, to COP$66 billion (US$19.7 million), according to the company.
Besides its financial gains during 3Q 2019, Celsia also boosted its renewable energy projects and launched its power operations in Tolima, Colombia.
In the latest quarter, “there were transformational events such as the sale of the Zona Franca [free zone] Celsia thermal power plant for US$420 million; the award of 766 gigawatt hours/year in the renewable [power] auction of the national government; and the alliance with Cubico, one of the world leaders in renewable energy,” according to Celsia.
“The application of [financial] resources from the sale of the Free Zone allowed the consolidated debt/net-debt leverage indicator to be lowered to 3.0 times,” the company added.
The latest results “reflect a solid performance of our businesses, with defined growth projects, inspired by a long-term strategy to transform the customer experience and create value for our shareholders,” added Celsia general manager Ricardo Sierra.
For the first nine months of 2019, revenues hit COP$2.76 trillion (US$826 million), up 10% year-on-year. “Colombia revenues represent 83% of the consolidated revenues and Central America 17%,” according to Celsia, which excluded the Free Zone plant from the year-on-year comparisons.
“In Central America, revenues for the quarter were more than US$48 million, a decrease of 7.5% compared to the previous year, especially since 2019 has been a predominantly dry year in Panama, which has reduced [hydroelectric] plant generation,” according to the company.
So far this year, corporate nine-months net profit is up 70% year-on-year, to COP$412 billion (US$123 million), according to the company.
Excluding the financial gain from the sale of the Free Zone plant, the net gain in 2019 to date is COP$163 billion (US$48.8 million), according to the company.
As for its power distribution business, “revenues from the use and connection of networks exceeded COP$105 billion [US$31 million], growing by 52%, mainly from Tolima [acquisition] which contributed COP$15.7 billion [US$4.7 million] and the incorporation of ‘Plan5Caribe’ assets that added COP$19.88 billion [US$5.8 million],” according to Celsia.