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Celsia Solar Photovoltaic Power Array Celsia Solar Photovoltaic Power Array Source: Celsia

Celsia 3Q 2022 Net Income Rises 6.4% Year-on-Year

Published in Companies Written by  November 05 2022 font size decrease font size increase font size 0
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Medellin-based multinational electric-power giant Celsia – a subsidiary of Grupo Argos – on November 3 announced a 6.4% year-on-year hike in third quarter (3Q) 2022 net income, to COP$111 billion (US$22 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) also rose 34% year-on-year, to COP$$424 billion (US$84 million) thanks to “higher energy sales and a greater amount of [distribution] infrastructure made available to customers,” according to the company.

On the other hand, net financial expenses soared by 100%, to COP$136 billion (US$27 million), thanks to higher interest rates.

Celsia added that it closed 3Q 2022 with a consolidated debt of COP$5.64 trillion (US$1.1 billion) and a leverage ratio of 3.12-times net debt-to-EBITDA, while average life of the company's debt is now 5.65 years.

Following political pressure from the Colombian national government -- aiming to trim inflationary pressures -- Celsia also cut electric-power rates starting this month (November).

“The biggest challenges this year come from the volatile and uncertain macroeconomic conditions, the increase in financial expenses due to the increase in interest rates and taxes, and the accumulation of COP$175 billion [US$34.8 million] in the tariff option mechanism that softens increases in billing for customers,” added Celsia CEO Ricardo Sierra.

In Colombia, power revenues increased, “driven by higher generation and wholesale marketing both in contracts and in the stock market; an increase in gigawatt-hours-sold due to better demand, and higher revenues from the use and connection of networks due to new assets that entered into commercial operation,” according to Celsia.

“In Central America, revenues increased due to higher hydraulic generation compared to the same quarter of the previous year,” the company added.

Among 3Q 2022 Colombia-project highlights: Celsia on September 14 started-up the 200-megawatt (MW), natural-gas-fired “El Tesorito” power plant in Cordoba department. This US$210 million project --involving partners Proelectrica and Canacol -- aims to help cover local power demand whenever renewable power plants (wind and solar) aren’t generating.

Meanwhile, on another Colombia project front, Celsia just started-up the US$20 million, 19.9-MW “Sincé” solar-photovoltaic plant in Sucre department. Meanwhile, “progress is being made in the construction of nine solar farms totaling 208-MW,” according to the company.


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