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Companies 234

Written by November 15 2018 0

Medellin-based insurance and asset manager Grupo Sura announced November 14 that its third quarter (3Q) 2018 net income fell 10.2% year-on-year, to COP$413 billion (US$139.2 million).

“The decrease is due to the impact of the difference in the rate of exchange [falling Colombian peso versus U.S. dollar],” the company noted.

However,  Suramericana insurance-division profits rose 33.2% year-on-year, while profit for the Sura AM division dipped 2.6%, as a results in differences in the rates of exchange.

Grupo Sura saw a 1.5% dip in assets, to COP$67.9 trillion (US$22.86 billion), while liabilities decreased by 1.4%, to COP$42.2 trillion (US$14.2 billion). Equity dipped 1.6%, ending at COP$25.8 trillion (US$8.68 billion).

“For the third quarter of 2018, we showed a positive operating performance for our subsidiaries, strategic decisions to not participate in some businesses, and external issues such as the volatility of capital markets,” according to the company.

For nine-months 2018, net income is up 0.7%, at COP$1.1 trillion (US$371.9 million), according to the company. The nine-month gain “is the result of a 7.7% increase in net income for Sura Asset Management, to COP$479 billion (US$161.3 million), plus a 0.5% increase for Suramericana, for a total of COP$394.8 billion (US$132.8 million),” as well as income from its partial holdings in Bancolombia and Grupo Nutresa.

Total revenue dipped 4.3%, to COP$14.5 trillion (US$4.48 billion), as a result of a “decision to not participate in pension insurance in Colombia, lower revenue from the investments in the portfolios of the subsidiaries, and the devaluation in Argentina,” according to Sura.

“These factors have been partially offset by higher revenue from commissions for the pension business, and the provision of health services in Colombia.

“Sura Asset Management, our subsidiary expert in pensions, savings, and investment, had a 6.6% increase in revenue from commissions in its mandatory pension business, while the voluntary savings business rose by 15.1% in comparable terms. It had a total of 19.8 million clients, an annual increase of 3.6%, while assets under management (AUM) represent COP$412.8 trillion (US$138.9 billion) and grew 7.5% compared to September 2017.

“In turn, Suramericana, our subsidiary specialized in insurance management, trends and risks, had increase revenue, in comparable terms, from all its segments: general (8.1%), life (13%), and health (20.5%).

“In addition, the rate of retained claims improved by going from 55.5% to 54.3%, and technical results increased to 8.3%, in spite of the decrease in premiums for not participating in retirement insurance in Colombia,” according to the company.

Written by November 15 2018 0

Medellin-based cement, electric power and road/airport concessionaire Grupo Argos announced November 14 that its third quarter (3Q) 2018 net income rose 37% year-on-year, hitting COP$410 billion (US$128 million).

As for nine-months 2018, Argos has posted an accumulated profit of COP$864 billion (US$269 million), up 31%.

Consolidated revenues of Grupo Argos in 3Q 2018 were COP$3.6 trillion (US$1.1 billion), “which is in line with adjusted revenues in the same quarter of the previous year,” according to the company.

The revenues were “supported by positive contributions from all the strategic businesses -- cement, concessions and energy -- that were COP$97 billion [US$30 million] higher than the same quarter of the previous year,” according to Argos.

Earnings before interest, taxes, depreciation and amortization (EBITDA) hit COP$1.02 trillion (US$318 million) in 3Q 2018, with EBITDA margin at 28%.

Also in 3Q 2018, “Grupo Argos was recognized as the most sustainable company in the world of the construction materials industry by the Dow Jones Sustainability Index,” the company bragged.

The company added that it will start reporting during the next quarter “environmental, social and corporate governance” (ESG) data together with financial results.

On the electric power front, “Odinsa (through Opain) and Celsia, our subsidiaries in concessions and energy, began the installation of 10,000 solar panels that will generate 12% of the energy in [Bogota’s] El Dorado airport, which will consolidate it as the airport with the largest photovoltaic installation in Latin America,” according to Argos

Meanwhile, the under-construction “Pacifico 2” road concession in Antioquia “reached 100% of execution of ‘functional unit 1’ and has an overall works-compliance of 55%, with a 7% advance with respect to the schedule,” according to Argos.

On the cement front, “Cementos Argos closed a financing operation with a US$600 million syndicated loan which, in addition to the favorable impact in reducing the cost of debt without affecting the debt ratio, confirms the market’s confidence in the company,” according to Argos.

“Cement shipments grew 2% thanks to the better performance of the Colombian region, where we grew above the sector. At the same time, there were higher volumes of concrete sales, which grew by 3% in Colombia, thanks to higher shipments to civil works, demonstrating the leadership that Cementos Argos has taken in the infrastructure projects in the country,” the company added.

Written by November 09 2018 0

Medellin-based banking giant Bancolombia announced November 7 that its third quarter (3Q) 2018 net income rose 20.5% year-on-year, to COP$543 billion (US$172 million).

However, this positive year-on-year result in 3Q 2018 was offset by an 8.2% decline in net income compared to 2Q 2018.

“Gross loans [in 3Q 2018] grew by 4.0% when compared to 3Q 2017 and 0.9% during the quarter. This annual growth shows moderation in the credit demand in Colombia,” according to Bancolombia.

Colombian peso-denominated loans grew 5.8% in 3Q 2018 versus 3Q 2017.

“Net interest income was COP$2.57 trillion [US$813 million] for 3Q 2018, increasing by 0.6% when compared to 3Q 2017. This positive performance is mainly explained by the growth in the loan book [as] net interest income increased by 0.9% during the [latest] quarter,” according to the company.

“The annualized net interest margin for the quarter was 5.8%. The margin decreased by 10 basis points during the quarter and registered the same number when compared to 3Q 2017, mainly affected by the reductions in the reference rate in Colombia that were reflected in the repricing of the loan portfolio.

“Provision charges for the quarter were COP$1.0 trillion [US$316 million] and the coverage ratio for 90-day past due loans was 160.7%. Provision charges increased by 4.3% when compared to 3Q 2017 and by 3.8% compared to 2Q 2018.

“These provisions allow us to maintain a solid coverage ratio amid a challenging environment [even as] new past-due loans totaled COP$847 billion [US$267 million] for the quarter.

“Net fees were COP$631 billion [US$199 million] and increased by 4.1% compared to 3Q 2017. This growth was mainly driven by an increase in fees related to credit and debit cards and trust services, [although] net fees decreased by 2.1% during the quarter,” the bank added.

Bancolombia “maintains a strong balance sheet supported by an adequate level of loan loss reserves,” according to the company. Allowances for the principal for loan losses were 5.7% of total loans at the end of 3Q 2018, increasing as compared to 2Q 2018, the company added.

 

Written by November 08 2018 0

Medellin-based multinational electric power transmission and highway concessionaire ISA announced November 7 that its third quarter (3Q) 2018 net income rose 30.2% year-on-year, to COP$413 billion (US$131 million).

Gross revenues rose 8.3% year-on-year, to COP$1.9 trillion (US$605 million), with power transmission revenues showing the biggest yearly gain, by 16.7%, according to the company.

Earnings before interest, taxes, depreciation and amortization (EBITDA) hit COP$1.4 trillion (US$446 million), up 15% year-on-year, while EBITDA margin came-in at a hefty 71.7%, according to ISA.

The positive results don’t include any extra income from a one-time-only power-transmission tariff “regularization” program in Brazil last year, but do include power-tariff increases this year.

Revenues improved this year mainly thanks to recent entry-into-operation of power-transmission and highway-concession operations in Peru, power-transmission expansions in Colombia and Chile (since September 2017), and the incorporation of results from recently acquired Brazilian and Chilean power operations.

As for investments, ISA so far this year has invested COP$1.9 trillion (US$605 million) in infrastructure expansions and upgrades, according to the company.

Colombia revenues rose 8.4% year-on-year, to COP$447 billion (US$142 million), while Chile revenues rose 12.8%; Brazil revenues rose 12% and Peru operations declined 7.6%, according to the company.

Power transmision revenues in Colombia rose mainly because of a boost in national power tariffs, favorable COP/US dollar exchange rates, plus a new transformer connection, the company added.

Written by November 07 2018 0

Medellin-based electric-power giant Celsia announced November 6 that its third quarter (3Q) 2018 net profit dropped 31% year-on-year, to COP$64 billion (US$20 million).

However, nine-months 2018 net profits so far have risen 35% year-on-year, to COP$243 billion (US$77 million), according to Celsia.

Consolidated revenues for 3Q 2018 rose 8.5% year-on-year, to COP$852 billion (US$271 million), with Colombian revenues rising 18%, to COP$698 billion (US$222 million).

Earnings before interest, taxes, depreciation and amortization fell 12% year-on-year in 3Q 2018, to COP$259 billion (US$82 million), but nine-months 2018 consolidated EBITDA rose 0.5%, to COP$818 billion (US$260 million).

“In Colombia, accumulated energy demand during the [latest] quarter rose 4% with respect to the same period of 2017. The regulated market demand grew at a rate of 3% and the increase exceeded 6% in the unregulated market,” according to Celsia.

While Colombian average energy prices fell 4% year-on-year in 3Q 2018, the average marginal cost of energy in Panama was US$73 per MW-hour, 98% higher than in 3Q 2017, according to Celsia.

Commenting on the results, Celsia president Ricardo Sierra emphasized that the company “has a great emphasis on the development of renewable energies . . . The wind and solar projects that we have will lead us to add, over the next five years, 560-megawatts [MW] of renewable power in addition to the current 77-MW,” he said.

Four of the wind-power generation projects are in the Guajira region (northern Colombia), totaling 330-MW. These power projects already won environmental licenses and grid-connection approvals, according to Celsia.

In solar projects, Celsia Central America acquired in Panama its first photovoltaic plant, incorporating 33,000 solar panels, with a net capacity of 9.9-MW and a transmission line of 2.8 kilometers, according to the company.

“In Colombia, the Celsia Solar Bolívar photovoltaic farm is about to enter into operation. Located in Santa Rosa de Lima in Bolívar, Colombia, with a capacity of 8.06-MW and an estimated generation of 15,542-MW-hours per year, it will deliver the equivalent of the energy consumed by 7,400 households,” according to Celsia.

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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.

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