Companies 514
Medellin-based multinational cement, electric power, highways/airport concessionaire and real-estate giant Grupo Argos announced August 12 that its second quarter (2Q) consolidated net income rose 5% year-on-year, to COP$411 billion (US$98.7 million).
Revenues jumped 46% year-on-year, to COP$5.9 trillion (US$1.4 billion), while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 7%, to COP$1.39 trillion (US$334 million).
The Cementos Argos division produced the highest revenues in the group, at COP$5.4 trillion (US$1.3 billion), followed by the Celsia electric power division (COP$2.5 trillion/US$600 million), the highway/airport concessions businesses (COP$921 billion/US$221 million) and finally the Pactia real estate joint venture (COP$159 billion/US$38 million).
“Increased revenue from financial activity during 2Q 2022 is mainly explained by good business performance and by non-recurring revenues for Grupo Argos from sales and contributions to the roadway division (FCP Odinsa Vías),” according to the company.
On the other hand, operating-cost-hikes pinched results, “especially in the cement business where the cost of fuel increased substantially,” the company added.
The new “FCP Odinsa Vias” 50-50 joint venture with Macquarie Asset Management is now operating major highway concessions in Colombia, including “Autopistas del Café,” “Malla Vial del Meta,” “Pacífico 2” and “Túnel Aburrá Oriente.”
The new joint-venture will continue projects including expansion of the existing “Túnel de Oriente” highway-tunnel project linking Medellin eastward to the Jose Maria Cordova (JMC) airport in Rionegro, Antioquia, as well as the “Perimetral de la Sabana” highway in Cundinamarca and the “Conexión Centro” highway in Colombia’s southwest coffee-growing region.
“Divestment of 50% of our share in the roadway concessions and the subsequent incorporation of ‘FCP Odinsa Vías’ give rise to certain accounting changes for Odinsa, which come into effect as of June [2022],” the company explained.
“These changes imply deconsolidation of the Autopistas del Café, Malla Vial del Meta, and Túnel Aburrá Oriente concessions and consortiums, which will now each have a single entry in Odinsa’s financial statements as a joint business under the equity method,” the company added.
Medellin-based multinational banking giant Bancolombia announced August 9 that its second quarter (2Q) 2022 net income rose 2.76% year-on-year, to COP$1.73 trillion (US$405 million).
Gross loans totaled COP$243 trillion (US$56.8 billion), up 19.4% year-on-year. “When excluding the foreign-exchange effect, the increase during the last twelve months was 15.3%,” according to the company.
Commercial loans grew 18.8% while consumer loans grew 23.5%, according to the company.
“Net interest income before provisions increased 16.6% and totaled COP$4.3 trillion [US$1 billion],” according to Bancolombia.
“Net interest margin expanded from 6.0% in 1Q 2022 to 6.7% in 2Q 2022. This performance is mainly driven by the loan portfolio growth of 9.3% in the latest quarter and loan portfolio repricing as an effect of the contractionary monetary policy in Colombia.”
Among the loan portfolios,”30-day past due loans stood at 3.86% and 90-day past due loans at 2.72%. Total provision charges, net for 2Q 2022, was COP$613 billion [US$143 million], which indicates a lower release compared to 1Q 2022 and higher provisions in the consumer and commercial portfolio in line with the growth of the loan book,” the company added.
“Basic solvency stood at 10.28% and the total consolidated solvency ratio was 12.93% for 2Q 2022, decreasing mainly because of the loan dynamism and the depreciation effect, but widely exceeding the minimum regulatory requirements.”
As for its digital banking segment, “Bancolombia shows a positive trend in line with 2021 results. As of June 2022, the bank has 7 million active digital customers in the retail app, as well as 19.3 million accounts in its financial inclusion platforms: 6.3 million users in ‘Bancolombia a la Mano’ and 13 million in ‘Nequi,’” the company explained.
“During the second quarter 2022, the Colombian peso depreciated 10.5% against the US dollar and has depreciated 10.7% in the last 12 months. The average exchange rate was 0.1% higher in 2Q 2022 versus 1Q 2022, and 7.9% higher in the last 12 months.
“During the last 12 months peso-denominated loans grew 16.9% and the dollar-denominated loans (expressed in US dollars) grew 12.4%,” the company added.
Operations at its “Banco Agricola” subsidiary in El Salvador, “Banistmo” in Panama and “BAM” in Guatemala represented 27.5% of total gross loans for 2Q 2022.
“Likewise, the gross loans denominated in currencies other than COP -- generated by operations in Central America, the international operation of Bancolombia Panamá, Puerto Rico and the US dollar-denominated loans in Colombia -- accounted for 35.4% of the portfolio, up 16.2% (when expressed in COP) as well as 5.2% as expressed in US dollars,” the company added.
“During 2Q 2022, the loan portfolio at a consolidated level continues with good dynamism in all geographies. Growth in commercial and consumer markets are remarkable. Banco Agricola reported the highest quarterly growth (6.5% when measured in US dollars), mainly driven by the commercial portfolio, which grew 11.2% and reached 45.3% of the total loan portfolio.
“Consumer loans grew 3.6% in the quarter, but slightly declined to 40.4% in terms of loan book share compared to 1Q 2022. Banco Agricola is closely followed by the Colombian operation, which presents an increase of 6.4% in the loan portfolio for 2Q 2022, driven by commercial and consumer.
“Banco Agromercantil reports a stable performance across all loan portfolio segments for 2Q 2022, growing at 1.9% consolidated in US dollars. The consumer portfolio continues increasing its loan book share, reaching 16.8% for this quarter, in line with the good performance experienced in 2021.
“Banistmo grew 1.8% (measured in US dollars) in the loan book during the quarter, basically due to the positive dynamics of the commercial portfolio, which grew 3.6% for the quarter and continues to be the largest share in the credit portfolio,” the company added.
Medellin-based multinational cement/concrete giant Cementos Argos announced August 8 that its second quarter (2Q) 2022 net income fell 97% year-on-year, to COP$5 billion (US$1.15 million).
“Net income decreased due to non-recurring operations of asset sales that were reflected in the results of the second quarter of 2021,” according to the company.
However, revenues jumped to an all-time quarterly high of COP$2.8 trillion (US$648 million), up 15% year-on-year.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 2.6%, to COP$525 billion (US$121 million), according to the company.
“Ready-mix volumes were favored by solid sales dynamics, especially in the United States and Colombia,” according to the company. “Record revenues were mainly leveraged by the company's commercial strategy and by the higher volumes.”
The company also cited “stable operating results in an environment of high-cost inflation, thanks to the success of its commercial strategy in all geographies, the flexibility of its fuel matrix and the partial hedging of fuel prices.
As for its efforts to cut “global warming” emissions, “the company began a pilot test for the use of calcined clay in the United States and expects to reach production of 3 million tons of clay per year in all of its geographies by 2030, which translates into the production of green cement and concrete,” according to Argos.
Colombia Results
In Colombia, “strong market dynamics continued during the second quarter of the year were supported by the retail segment, residential construction and infrastructure projects,” according to Argos
As a result, Colombia revenues grew 27.1% year-on-year, to COP$678 billion (US$157 million), while adjusted EBITDA increased 12.7%, to COP$136 billion (US$31 million).
“Continuing with the positive performance, concrete sales rose 25.1% and reached 656,000 cubic meters, cement sales increased 13.3%, for a total of 1.5 million tons shipped. Housing sales and the start of residential projects continue to be a support of the market. In terms of infrastructure, projects such as the Bogotá Metro and 5G [fifth-generation highway construction] will bring significant demand in the coming years,” the company added.
USA Results
USA revenues rose 7.5% year-on-year, to US$416 million, while adjusted EBITDA “remained stable at US$75 million, achieved in part by the US$11 million in savings derived from the fuels hedging strategy.”
As for sales volumes, “the company experienced strong demand across most of its operations. Therefore, dispatches of ready-mix rose 6.4% and totaled 1.2 million cubic meters, as did cement dispatches, which also increased 6.4% and totaled 1.7 million tons,” according to Argos.
Caribbean and Central America (CCA) Region
For the CCA region, 2Q 2022 revenues were US$138 million, while adjusted EBITDA fell 18.8% year-on-year, at US$32 million, “affected by the combination of lower volumes in Honduras and Haiti and the already known inflationary pressures,” according to Argos.
“In this region, shipments of concrete were positive, increasing 58.9% and stood at 71,000 cubic meters. For its part, cement volumes reached 1 million tons, with an improvement in those of the local market with respect to the first quarter of the year, but a lower dynamic on the trading business, which resulted in a decrease in shipments of 30% cement. If this line is excluded, cement volumes fell 4.7%.”
Medellin-based electric power producer Celsia (a division of Grupo Argos) announced August 5 that its second quarter (2Q) 2022 net income fell to COP$152 billion (US$35 million), a 23% decline from the COP$198 billion (US$51 million) net in 2Q 2021.
Consolidated 2Q 2022 revenues hit COP$1.21 trillion (US$279 million), with 89% of that coming from Colombia operations (COP$1.08 trillion/US$249 million). The other 11% came from Central America operations (COP$132 billion/US$30 million), according to the company.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) reached COP$458 billion (US$105 million) in 2Q 2022, of which Colombia accounted for COP$397 billion (US$91 million). Celsia credited the positive results to higher total power sales along with recent upgrades to power distribution networks.
EBITDA margin in the latest quarter came-in at 37.9%.
Meanwhile, for the first half (1H) of 2022, consolidated net profit so-far totals COP$318 billion (US$73 million), while net 1H 2022 investments totaled COP$827 billion (US$190 million), mainly in “expansion and technological updating of networks, as well as the growth of solar-power farms,” according to the company.
Celsia added that it closed the latest quarter with a consolidated debt of COP$5.13 trillion (US$1.18 billion) and a leverage ratio of 3.04-times debt to-EBITDA.
Medellin-based multinational gold miner Mineros SA on August 3 reported a 10% year-over-year hike in net income for second quarter (2Q) 2022.
Revenue likewise rose 7% year-on-year, to US$137 million, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 12%, to US$46.7 million.
Gold production also rose by 10% year-on-year, to 74,062 ounces, according to the company.
“Along with increased production, the company has seen reductions in both the all-in sustaining-cost per ounce of gold sold and the cash-cost per ounce of gold sold, compared to the same period in 2021,” added Andrés Restrepo, Mineros CEO.
Net debt-to-adjusted-EBIDTA ratio fell 57%, to 0.11-times, “following repayment of project acquisition loans,” according to the company.
During the latest quarter, Colombia’s environmental licensing authority (ANLA) approved Mineros’ application for its Nechí alluvial property, “sufficient to support planned operations for a four-year period,” according to the company.
Meanwhile, Mineros also received environmental-management and health-and-safety-management certifications for its Hemco mining operations in Nicaragua.
At its Gualcamayo mining property in Argentina, Mineros is undertaking more drilling “to upgrade mineral resources, provide material for metallurgical test work, resource expansion and evaluation of the remaining gold in the heap leach pads,” the company added.
