October 2, 2023

EPM Full-Year 2021 Profits Dip Versus Full-Year 2020

Medellin-based multinational utilities giant Grupo EPM announced March 23 that its full-year 2021 net income dipped to COP$3.3 trillion (US$872 million), down from COP$3.7 trillion (US$978 million) for full-year 2020.

Despite the profits dip, 2021 revenues grew 28% year-on-year, to COP$25.3 trillion (US$6.7 billion), while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 29%, to COP$7.4 trillion (US$1.95 billion).

EBITDA margin for 2021 came-in at 30%, according to the company, which is 100% owned by the city of Medellin.

Infrastructure investment in 2021 totaled COP$$4.2 trillion (US$1.1 billion), of which 79% went into energy projects and the remaining 21% in the water businesses.

The giant “Hidroituango” hydroelectric project in Antioquia accounted for COP$1.5 trillion (US$396 million) of investments last year.

While operating income improved, some of that gain was “offset by the growth in income tax” including the new “social investment law” enacted during 2021, according to the company.

EPM gave the city of Medellín COP$1.4 trillion (US$370 million) of its 2021 profits, “contributing to the reactivation of the local economy and providing new opportunities for citizens,” according to the company.

At year-end 2021, Grupo EPM’s total assets grew 6% year-on-year, to COP$67.8 trillion (US$17.9 billion), while liabilities also rose 6%, to COP$39 trillion (US$10.3 billion), according to EPM.

Financial indebtedness stood at 40%, while the long-term debt-to-EBITDA ratio closed at 3.36, compared to 4.37 for 2020, the company added.

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