EPM First Half 2022 Net Income rose 10% Year-on-Year

Medellin-based multinational utilities giant EPM announced July 29 that its first half (1H) net income rose 10% year-on-year, to COP$2.1 trillion (US$491 million), versus COP$1.9 trillion (US$483 million) in 1H 2021, even while the net margin actually dipped two percentage points.

Revenues rose 28% year-on-year, to COP$15 trillion (US$3.5 billion), versus COP$11.7 trillion (US$2.97 billion) in 1H 2021.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 34% year-on-year, to COP$4.7 trillion (US$1.09 billion), versus COP$3.5 trillion (US$890 million) in 1H 2021.

Investments in infrastructure projects during 1H 2022 amounted to COP$2 trillion (US$467 million), according to EPM, which is 100% owned by the city of Medellin.

“Of the COP$1.8 trillion [US$420 million] that EPM will transfer to the city of Medellin during 2022, in the first half of this year we have already paid COP$1.2 trillion [US$280 million), up 28% year-on-year,” according to the company.

Of the COP$2 trillion (US$467 million) invested in infrastructure so far this year, COP$887 billion (US$207 million) went for continuing development of the 2.4-gigawatt Hidroituango hydroelectric project in Antioquia, scheduled for initial startup of two generating units in October 2022.

“Thanks to the high volume of rains in Colombia and especially in Antioquia, plus the effect of the ‘La Niña’ weather phenomenon, the aggregate reservoir among EPM’s hydraulic power generation system rose from 90% to 100%,” according to the company.

“With this, the total energy generation of the EPM Group in the first half of the year was 9,578 gigawatt-hours, up 8% compared to the same period of 2021,” the company added.

“EPM’s diversified business portfolio and presence in Mexico, Panama, Guatemala, El Salvador, Colombia and Chile were also fundamental in the results achieved.

“Of the COP$15 trillion [US$3.5 billion] in revenues that we achieved in the Group in the first six months of 2022, the EPM parent company contributed 41%, foreign subsidiaries 28% and national subsidiaries of energy and water 31%.

“Of the total EBITDA of $4.7 trillion (US$1.09 billion), parent company EPM contributed 57%, the national subsidiaries of energy and water 25%, and foreign subsidiaries 18%. The Group’s EBITDA margin was 31%, one percentage point higher than the same period last year.”

Electric power local distribution segment contributed 55% of the consolidated revenues, power-generation 29%, power-transmission 4%, natural gas 2%, water supply 7%, and wastewater and solid-waste management 3%, according to the company.

Grupo EPM now has assets totaling COP$69 trillion (US$16.1 billion), up 2%, while liabilities grew 4% year-on-year, to COP$ 40.7 trillion (US$9.5 billion), according to the company.

Financial indebtedness for both Grupo EPM and the EPM parent company now stand at 41%.

The debt to EBITDA ratio for EPM Group closed at 2.99, compared to 4.03 in 2021, while the debt/EBITDA ratio for the EPM parent company stood at 4.17, down from 5.17 from 1H 2021, according to the company.