EPM Full-Year 2023 Profits Dip 14% Year-on-Year

Medellin-based multinational electric-power, drinking-water and waste-management giant EPM announced March 20 that its full-year 2023 net income fell 14% year-on-year, to COP$3.6 trillion (US$929 million), mainly because of higher costs of electric power.

On the other hand, earnings before interest, taxes, depreciation and amortization (EBITDA) in 2023 actually rose 9% year-on-year, to COP$10.6 trillion (US$2.7 billion), while EBITDA margin rose to 28%.

Gross revenues also rose 16% year-on-year, to COP$37.5 trillion (US$9.68 billion), with the electric-power-distribution segment account for 65% of the total, at COP$26 trillion (US$6.7 billion) — thanks to a boost in total customers.

Consolidated costs and expenses rose 23% year-on-year, to COP$29.9 trillion (US$7.7 billion), “explained mainly in the energy distribution and marketing segment due to a higher cost of commercial operation due to greater purchases of energy at a higher cost,” according to EPM.

The electric power generation division accounted for 18% of total revenues in 2023, at COP$7.3 trillion (US$1.88 billion), up 23% year-on-year.

However, the El Niño drought phenomenon cut generation from EPM’s relatively low-cost hydropower plants, forcing the company to generate more power from its higher-cost thermal power plants (natural-gas-fired).

Meanwhile, EPM’s drinking-water, wastewater and solid-waste management division saw revenues rise 21% year-on-year, to COP$3.9 trillion (US$1 billion), thanks to rate hikes and an increase in customer numbers.

As for EPM’s “Aguas de Antofagasta” subsidiary in Chile and its “TICSA” division in Mexico, both enjoyed income boosts from “services of construction for third parties,” according to the company.

Corporate financial debt dipped 3% “as a result of higher capital amortizations that were carried out during the year,” the company added.