EPM First-Half 2017 Net Profits Jump 78% Year-on-Year
Medellin-based multinational utilities giant Grupo EPM announced July 25 that its first-half 2017 earnings before interest, taxes, depreciation and amortization (EBITDA) rose 33% year-on-year, to COP$2.6 trillion (US$862 million), while net profits rose 78% year-on-year, to COP$1 trillion (US$331 million).
The city of Medellin – EPM’s sole shareholder – so far this year has netted COP$785 billion (US$260 million) of an expected full-year COP$1.6 trillion (US$530 million) in profit contribution, according to the company.
So far this year, EPM also has invested COP$1.6 trillion (US$530 million) in infrastructure in Colombia, with COP$770 billion (US$255 million) of that dedicated to the continuing construction of the US$5.5 billion, 2.4-gigawatt “Hidroituango” hydroelectric plant in Antioquia, according to the company.
EPM’s Medellin-based operations contributed 47% of earnings, while foreign subsidiaries contributed 35%. Colombian national subsidiaries contributed the remaining 18%, according to the company.
EBITDA improvement came despite lower electric-power prices in Colombia, but were offset by productivity improvements, EPM general manager Jorge Londoño de la Cuesta, said.
EPM Group’s return on equity so far this year is 12%, up from just 4% in first-half 2016, he added.
“The higher profitability is explained by the better operating results of 2017, compared to a first half of 2016 [that was] impacted by the El Niño phenomenon and by the [fire and power-outage] incident recorded at the Guatapé hydroelectric plant,” according to the company.
Financial indebtedness stands at 38%, “similar to last year. At the same time, the debt-to-EBITDA [ratio] indicator of the EPM Group closed the first half at 3.56, compared to 4.46 in 2016,” according to the company.
Total assets now stand at COP$45.1 trillion (US$14.9 billion), up 5%, while liabilities now total COP$25.6 trillion (US$8.5 billion), up 10%. Equity now stands at COP$19.5 trillion (US$6.4 billion), down 1%, while cash and cash equivalents now total COP$1.7 trillion (US$563 million), according to the company.