Wednesday, May 18, 2022

Become part of our community

EPM Revenues, EBITDA, Net Income: 2017 (grey) vs. 2016 (light green) vs. 2015 (dark green) EPM Revenues, EBITDA, Net Income: 2017 (grey) vs. 2016 (light green) vs. 2015 (dark green) Source: EPM

EPM 1Q 2017 Net Income Jumps 460% Year-on-Year

Published in Companies Written by  April 28 2017 font size decrease font size increase font size 0
Rate this item
(1 Vote)

Empresas Publicas de Medellin (EPM) – now a multinational electric power, water, sewer and natural-gas utility – announced April 27 that its first quarter (1Q) 2017 net income soared 460% year-on-year, to COP$606 billion (US$206 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) likewise rose 98% year-on-year, to COP$1.1 trillion (US$374 million), although revenues dipped slightly year-on-year, to COP$3.57 trillion (US$1.2 billion) because of a dip in electric power sales prices, according to the company, whose sole owner is the municipality of Medellin.

The improving profits “make it easier for the EPM Group to deliver [dividends] this year to the municipality of Medellín totalling COP$1 trillion [US$340 million] for social development programs,” according to the company.

Surging profits also help enable EPM to invest COP$3.8 trillion (US$1.3 billion) in the continuing construction of Colombia’s biggest hydropower plant: the 2.4-gigawatt “Hidroituango” plant in Antioquia as well as a massive sewage-treatment plant in the Medellin suburb of Bello, the company added.

EPM general manager Jorge Londoño de la Cuesta pointed out that the improved 1Q 2017 results versus 1Q 2016 reflect the impact of wetter weather in Colombia this year versus last year (resulting in improved hydropower output) as well as repairs and replacement of cables that had been damaged by fire during 1Q 2016 at its Guatape, Antioquia, hydropower plant.

Meanwhile, thanks to continuing portfolio diversification, EPM Group subsidiaries accounted for 51% of revenues and 36% of EBITDA in 1Q 2017, while the parent company accounted for 49% of revenues and 64% of EBITDA.

EPM’s general manager also touted improved financial risk-rating reviews during the last quarter.

“On the one hand, Moody’s ratified EPM’s financial strength by raising our international risk rating to ‘Baa2’ with a ‘stable’ outlook,” Londoño de la Cuesta said. “In turn, Fitch Ratings revised the outlook for EPM’s international debt rating from ‘negative’ to ‘stable’ and ratified its ‘BBB+’ rating. Fitch also reiterated the local ‘AAA’ [risk] rating, the maximum possible in Colombia," he said.

Financial debt of the EPM Group stood at 36% -- one percentage point lower than in 2016. Meanwhile, the corporate debt-to-EBITDA ratio indicator improved to 3.16, compared to 4.29 in 2016, the company added.

Read 3070 times Last modified on Last modified on April 28 2017

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

About Medellin Herald

Medellin Herald is a locally produced, English-language news and advisory service uniquely focused upon a more-mature audience of visitors, investors, conference and trade-show attendees, property buyers, expats, retirees, volunteers and nature lovers.

U.S. native Roberto Peckham, who founded Medellin Herald in 2015, has been residing in metro Medellin since 2005 and has traveled regularly and extensively throughout Colombia since 1981.

Medellin Herald welcomes your editorial contributions, comments and story-idea suggestions. Send us a message using the "contact" section.

Contact US

logo def
Medellin Herald: Find news, information, reviews and opinion on business, events, conferences, congresses, education, real estate, investing, retiring and more.
  • COL (4) 386 06 27
  • USA (1) 305 517 76 35
  •  This email address is being protected from spambots. You need JavaScript enabled to view it. 
  • Medellin, Antioquia, Colombia

Medellín Photo Galery

Medellin, contrasting colors and styles by Gabriel Buitrago