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.