July 12, 2024
Business Companies

EPM 2Q 2023 Net Income Jumps 27% Year-on-Year

Medellin-based multinational utilities giant EPM announced August 2 that its second quarter (2Q) 2023 net income rose 27% year-on-year, to COP$2.7 trillion (US$652 million).

Gross income also rose 21%, to COP$18.3 trillion (US$4.4 billion), while earnings before interest, taxes, depreciation and amortization (EBITDA) likewise rose 21% year-on-year, to COP$5.7 trillion (US$1.377 billion), according to EPM, which is 100% owned by the city of Medellin.

Meanwhile, for the first six months of 2023 (January through June), EPM has invested COP$2 trillion (US$483 million) in various infrastructure projects, and likewise has handed-over to the city of Medellin COP$1.02 trillion (US$246 million) in dividends.

EPM’s electric power distribution segment has accounted for 45% of EBITDA, up 7%, mainly because of higher electric power sales at higher prices, according to the company.

Electric power generation accounted for 33% of EBITDA, up 45% year-on-year, thanks to greater power generation mainly from its hydroelectric units including the Hidroituango plant in Antioquia, accounting for 18% of the total.

Meanwhile, the electric power transmission unit grew 26% year-on-year, accounting for 4% of EBITDA.

On another front, the solid-waste collection-and-disposal division added 16% to EBITDA, while benefitting from higher tariff rates.

Meanwhile, total expenses for Grupo EPM rose 21% year-on-year, to COP$13.6 trillion (US$3.28 billion), mainly from higher costs in its energy distribution segment, according to the company.

As for its financial situation, the current debt-to-EBITDA ratio dipped to 2.53, down from 2.99, while its total financial debt dipped to 40% — down one percentage point — thanks to debt repayments, according to EPM.

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