EPM 9-Months 2018 Net Profits Rise 12% Despite Hidroituango Problems
Medellin-based multinational power and utilities giant EPM announced October 31 that its nine-months 2018 net profits rose 12% year-on-year, to COP$1.7 trillion (US$528 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) also rose 12%, to COP$3.9 trillion (US$1.2 billion).
So far this year, EPM has spent COP$251 billion (US$78 million) in compensation costs to cover problems arising from a diversion-tunnel collapse in the US$5 billion, 2.4-gigawatt Hidroituango hydroelectric project. But this hasn’t stopped EPM from generating profits, general manager Jorge Londoño de la Cuesta said.
“As complicated as it has been for our company to address the contingency in the Hidroituango hydroelectric project, thanks to our EPM people and their commitment to the quality of life of the community and the development of the country, we have achieved growth in the group’s profits,” Londoño added.
The city of Medellín – EPM’s sole shareholder — has netted COP$806 billion (US$250 million) in profit transfers so far this year, while EPM’s gross revenues rose 10% year-on-year, to COP$12 trillion (US$3.7 billion), the company noted.
EPM’s main holding company contributed 49% to earnings, foreign subsidiaries 33%, national energy subsidiaries 16%, and national water subsidiaries 2%, according to the company.
A hike in Colombian national power sales this year mainly explains the boost in revenues and profits, according to the company.
Meanwhile, EPM so far this year has invested COP$2.3 trillion (US$714 million) in infrastructure, 84% of which has been in Colombia, the company added.
