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Celsia Power Profits Improve, Covid-19 Response Expands Celsia Power Profits Improve, Covid-19 Response Expands Source: Celsia

Celsia 1Q 2020 Net Income Rises 38% Year-on-Year; Covid-19 Subsidies Expand

Published in Companies Written by  May 06 2020 font size decrease font size increase font size 0
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Medellin-based electric power giant Celsia announced May 4 that first quarter (1Q) 2020 net income rose 38% year-on-year, to COP$86.7 billion (US$21.8 million).

Consolidated revenues for the quarter rose 1% versus fourth-quarter 2020, to COP$928 billion (US$234 million). Colombia revenues represented 84% of the total, with Central America operations accounting for the remaining 16%.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) dipped a slight 0.2% year-on-year, to COP$330 billion (US$83 million). Colombia contributed COP$290 billion (US$73 million) while Central America contributed COP$40 billion (US$10 million).

Consolidated debt at the end of the latest quarter came to COP$4.3 trillion (US$1.08 billion) with a leverage indicator of 3.2 times net debt to EBITDA, according to Celsia.

“This quarter the organization disbursed credits of COP$200 billion (US$50 million), of which COP$160 billion (US$40 million) was disbursement to maintain financial flexibility during Covid-19 crisis and COP$40 billion (US$10 million) to continue with the development of the 20-megawatt San Andrés de Cuerquia, Antioquia [hydroelectric plant] and the Comayagua solar farm in Honduras,” according to the company.

Covid-19 Response for 2020

As for the remainder of this year, “Celsia redirects priorities for 2020 and concentrates its efforts on supporting our clients in Valle and Tolima [departments], supporting SME [small and medium-size enterprise] suppliers and protecting direct and contractor employment” during the Covid-19 crisis, according to the company.

“As part of the initiative, this month around COP$44 billion [US$11 million] was paid in advance to more than 350 suppliers in Colombia, including individuals, small and medium-sized companies and critical suppliers.

“With these resources we hope that our suppliers have sufficient liquidity to maintain their operations and to defend the jobs that they themselves generate.

“Likewise, for the next three months, these same suppliers will receive their invoice [payments] on faster terms than those initially agreed in the contracts.”

Meanwhile, Celsia “reconnected all clients who had service problems for various circumstances [and] suspended disconnections while the required [Coronavirus quarantine] isolation lasts.

“We had an operational plan to attend to the essential circuits that serve hospitals, health centers, prisons, nursing homes, aqueducts, among others.

“Likewise, our commercial offices were temporarily closed and we strengthened the digital channels for customer service and support, designing payment facility schemes and implementing payment deferral plans that have been established jointly and with the support and leadership of the national government.

“Faced with the provisions established by the national government related to energy billing in the regulated market of users from strata 1 to 4 [low-to-medium income customers], we have carried out the following actions:

“1. Due to the voluntary implementation by the company of the mechanism called tariff option, in that market the energy tariff in Tolima has increased 1.2% between January and April. The energy rate is frozen for the next four months.

“2. In Valle del Cauca, the rate for our users has increased 6.1% so far this year, due to energy costs in the wholesale market. However, since March there have been no new increases in the rate.

“3. The company is applying payment reliefs for invoices to regulated customers in strata 1 to 4 established by the national government. These reliefs are in addition to the subsidies received by strata 1, 2 and 3 of 60%, 50% and 15%, respectively.

“For strata 1 and 2, the unsubsidized value of the energy service from the bills for April and May, up to subsistence consumption, will be deferred for up to 36 months at a rate of 0%. If the client makes payment of the total invoice for April and May in a timely manner, then the client receive a 10% discount. These resources will be disbursed to the company by Findeter and have a guarantee of payment from the nation.

“The additional value against subsistence consumption for these two strata may also be deferred at the same term, but with a preferential interest rate.

“For strata 3 and 4, the cost of the energy service may be financed in 24 months at an interest rate equivalent to inflation. These resources will also be disbursed by Findeter in a rate structure compensated with the assistance of the Ministry of Finance.

“For clients of strata 5, 6, businesses and industries, the company has established options to define payment agreements that provide support during quarantine,” Celsia added.

 

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