EPM 3Q 2024 Net Income Grows 12% Year-on-Year

Medellin-based multinational electric power and utilities giant EPM Group announced November 5 that its third quarter (3Q) 2024 net income rose 12% year-on-year, to COP$3.8 trillion (US$861 million), with subsidiaries and affiliates accounting for 19% of the total.

Revenues also rose 10% year-on-year, to COP$30 trillion (US$6.8 billion), while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 18%, to COP$9.3 trillion (US$2.1 billion).

The group also reported investing COP$3.8 trillion (US$861 million) in various infrastructure projects, including COP$1.2 trillion (US$272 million) budgeted in 2024 to advance construction of the last four generation units at the 2.4-gigawatt Hidroituango hydroelectric plant here in Antioquia.

“In the context of the energy crisis that Colombia is currently facing, EPM has been directing its investments towards energy solutions that allow it to overcome the challenges associated with the generation, supply and demand for energy,” the company stated.

To that end, EPM is “intensifying its efforts to optimize distribution networks and apply energy efficiency technologies to respond to growing demand and mitigate the risks of shortages,” according to the company.

Besides dedicating funds to Hidroituango, “additionally, 12% [of 3Q 2024 investment capital] was allocated to high voltage projects in [money-losing power subsidiary] Afinia, with the purpose of optimizing service provision and reducing losses in the Caribbean region of Colombia.”

Other infrastructure investments included “strengthening the electrical system in Urabá and eastern Antioquia; the connection between Puerto Antioquia and the Nueva Colonia substation in Turbo; the modernization of the Córdova, Oriente, Rionegro and Piedras Blancas energy substations; the expansion of the 44 kV (2 kilometers long) and 13.2 kV (6.2 kilometers long) underground channeled networks associated with the Córdova substation in Rionegro; the expansion of the Caldas substation and the modernization of the Ancón Sur, Miraflores and Betulia substations,” according to EPM.

As for drinking water and wastewater sanitation, EPM stated that it invested COP$728 billion (US$165 million) in modernization of the La Ayurá, Manantiales and Rionegro water treatment plants, as well as the Caldas-La Estrella drinking wáter interconnection in Aburra Valley, adjacent to Medellin.

Another 4% of the investments “were mainly allocated to the Aguas Antofagasta desalination plant in Chile,” according to EPM.

EPM also boosted its tax and fee contributions to national, local and regional governments by 17% year-on-year, hitting COP$14.7 trillion (US$3.33 billion), while handing over COP$1.7 trillion (US$385 million) to the Medellin municipal government, its 100% shareholder.

Energy distribution business contributed 43% of the group’s EBITDA while water and solid waste management businesses accounted for 15%. Electric power generation and marketing accounted for 38% while its natural gas business accounted for the remaining 2%.

The total debt/EBITDA ratio improved to 2.47 compared to 2.70 in 3Q 2023, reflecting “adequate compliance with the agreements established in different credit operations and a level of indebtedness aligned with EPM’s target risk rating,” according to the company.

“Financial indebtedness in 2024 for the EPM Group corresponds to 39.5% compared to 39.2% in the previous [3Q] period,” the company added.