EPM Nine-Months 2023 Net Profits Grow 11% Year-on-Year

Medellin-based multinational electric power and utilities giant EPM announced November 1 that its nine-months (January through September) 2023 net profits hit COP$3.4 trillion (US$837 million), up 11% year-on-year.

The City of Medellin — EPM’s sole owner — has netted COP$1.4 trillion (US$345 million) so far this year thanks to the profitable results, according to the company.

Capital spending also has risen 4% year-on-year, to COP$3.3 trillion (US$813 million), according to EPM.

The results cover both Colombian and international operations — including drinking water, wastewater, solid waste disposal, electric-power generation, power transmission and distribution, as well as natural gas sales, according to the company.

Earnings before interest, taxes, depreciation and amortization (EBITDA) also rose 9% year-on-year, to COP$7.9 trillion (US$1.9 billion), while gross revenues rose 16%, to COP$27.5 trillion (US$6.77 billion), according to the company.

EPM’s electric-power distribution segment accounted for 43% of EBITDA, down 7% year-on-year mainly because of a 5% hike in power-acquisition costs, which outran power-sales prices.

Electric power generation accounted for 33% of EPM’s EBITDA, at COP$2.6 trillion (US$640 million), thanks to a 30% hike in the average sales price of energy.

So far this year, EPM’s power generation (mainly from hydroelectric plants) actually dipped 7% year-on-year because of below-average river flows, according to the company.

EPM’s water, wastewater and solid-waste divisions collectively accounted for 18% of EBITDA and grew 18% year-on-year, thanks to higher demand and gains in utility rate structures.

Total costs and expenses for EPM Group rose 19%, to COP$21.1 trillion (US$5.2 billion), “mainly explained in the energy distribution segment” due to higher costs of acquiring electricity.

Despite those higher costs, EPM “mitigated [the deficits] through net income from currency exchange differences totaling COP$131 billion [US$32 million] as a result of the revaluations of the currencies of Colombia (up 15.7%) and Mexico (up 10.7%),” according to the company.

As for capital investments, “national subsidiaries represent 27% of the total, with Afinia [EPM’s power subsidiary on Colombia’s Atlantic coast] being the most representative with infrastructure and loss-control projects,” according to EPM.

“As for the international subsidiaries, they had investments that represent 13% of the total investments, where ENSA in Panama focused upon loss-reduction and asset replacement, and ADASA, in Chile, for drinking water projects,” according to EPM.

Financial debt dipped 3% year-on-year, to 39%, “as a result of greater capital amortizations that have been made throughout the year,” the company added.

2024 Budget Plan

Meanwhile, EPM simultaneously unveiled a COP$28.8 trillion (US$7.1 billion) budget plan for year-2024.

Of that total, “COP$4.2 trillion [US$1.03 billion] will be allocated to infrastructure projects, among which COP$1.7 trillion [US$419 million] stands out for the execution of civil works for power-generation-units 5-through-8 at Hidroituango,” the US$5 billion, 2.4-gigawatt hydropower project in Antioquia — now at 50% capacity and due for 100% completion by 2027.

“The budget also includes resources for the strengthening and diversification of the energy matrix associated with non-conventional renewable energies (NCRE), with projects such as the Tepuy Photovoltaic Solar Park, hydrogen initiatives and electric mobility,” according to the company.