Celsia 3Q 2023 Net Income Falls 26.7% Year-on-Year
Medellin-based multinational electric power producer Celsia on November 8 announced a 26.7% year-on-year decline in third quarter (3Q) 2023 net income, to COP$81.67 billion (US$20.3 million) –- mainly due to soaring financial expenses.
Earnings before interest, taxes, depreciation and amortization (EBITDA) dipped 2.4% year-on-year, to COP$414 billion (US$102.6 million), while revenues actually rose 14% year-on-year, to COP$1.48 trillion (US$367 million), according to the company.
“In the midst of a complex panorama due to the onset of the El Niño [rainfall decline] phenomenon, Celsia presented results that reveal efficient and careful operation of its reservoirs and thermal power plants to contribute to the Colombian electrical reliability,” according to the company.
Celsi CEO Ricardo Sierra added that “our hydropower generation has decreased in response to the climate situation. That is why we are taking care of the aggregate levels of the reservoirs and reserving the resource to face the following months.
“Our thermal plants have delivered reliable energy at efficient costs to the electrical system. This demonstrates the importance of having a balanced portfolio like ours”
Financial results
Power generation in Colombia represent 92.4% of total output, while Central America plants account for the remaining 7.6%.
Financial expenses during 3Q 2023 soared 60% year-on-year, to COP$217 billion (US$54 million), “mostly explained by the increase in credit indexers compared to the previous year,” while financial expenses for nine-months 2023 (January through September) have jumped 96% year-on-year, to COP$685.8 billion (US$170 million), the company added.
On the other hand, 3Q 2023 income taxes fell 45% year-on-year, to COP$33.8 billion (US$8 million), while nine-months 2023 consolidated income taxes are down 30% year-on-year, to COP$163.5 billion (US$40 million), according to the company.
Meanwhile, “operational results remain positive at the beginning of the El Niño phenomenon that has already arrived in Colombia,” according to Celsia.
“This is possible thanks to the fact that we have achieved an adequate portfolio of generation assets that we hope will remain resilient until the end of the first quarter of 2024, where we should be leaving this [rainfall deficit] phenomenon behind,” CEO Sierra added.
