EPM First-Half (1H) 2024 Net Income Rises 6% Year-on-Year

Medellin-based multinational electric-power producer and public utilities giant Grupo EPM announced August 13 a 6% year-on-year hike in first-half (1H) 2024 net income, to COP$2.9 trillion (US$720 million).

Revenues likewise rose 9% year-on-year, to COP$20 trillion (US$4.9 billion), while earnnings before interest, taxes, depreciation and amortization (EBITDA) rose 11% year-on-year, to COP$6.3 trillion (US$1.56 billion), according to the company, which is 100% owned by the city of Medellin.

So far this year, EPM has delivered to the city of Medellin COP$1.3 trillion (US$323 million) from its various profit streams

EPM now serves 27 million people in six countries: Colombia, Chile, Mexico, El Salvador, Guatemala and Panama.

During 1H 2024, EPM investments in infrastructure totalled COP$2.3 trillion (US$571 million), according to the company.

“Thanks to the growth in [electric] energy demand and more clients, our energy distribution segment contributed 43% of the group´s EBITDA, at COP$2.7 trillion [US$670 million],” according to EPM.

The recent completion of EPM´s “Tepuy” solar photovoltaic (PV) system in Colombia – “the first large-scale photovoltaic solar park of the EPM Group,” now delivers 83 megawatts to the national grid, equivalent to supplying a city of 400,000 inhabitants, according to the company.

Meanwhile, investments in infrastructure for its water and sewage-treatment segments so far this year have totalled COP$401 billion (US$99 million), including projects in eastern Antioquia, the Aburrá Valley, Medellin, the Caldas-La Estrella interconnection south of Medellin, and modernization of the nearby La Ayurá wáter-treatment plant.

Electric power generation investments so far have totalled COP$1.4 trillion (US$347 million), mainly at the 93%-completed, 2.4 gigawatts “Hidroituango” hydroelectric dam here in Antioquia. That plant is already operating at half-capacity, at 1.2-gigawatts.

“In the first half of 2024, the EPM Group generated added value of COP$10 trillion [US$2.48 billion], 14% more than in 2023, which has made it possible to reinvest in projects to maintain the operational capacity of the businesses,” according to the company.

“In addition, the EPM Group fulfilled its commitment to transfers from the electric sector for nearly COP$110 billion [US$27 million], allowing resources to be allocated to more than 194 Colombian municipalities, natural parks and regional autonomous corporations,” the company added.

Meanwhile, the total debt/EBITDA indicators are showing a “downward trend — which is positive — reflecting a greater growth in EBITDA over the last 12 months than the growth shown in long-term financial debt,” according ot EPM.

These trends are indicating “adequate compliance with the covenants that have been agreed in different credit operations and a level in accordance with EPM’s target risk rating,” the company concluded.