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Companies 341

Written by March 05 2020 0

Medellin-based multinational electric power transmission, highways concessions and telecom service provider ISA announced March 4 that its full-year 2019 net income rose 7.5% year-on-year, to COP$1.6 trillion (US$457 million).

Revenues rose 12.5% year-on-year, to COP$8.1 trillion (US$2.3 billion), while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 9.8%, to COP$5.3 trillion (US$1.5 billion), according to the company. EBITDA margin came-in at 64.9%.

Return on equity came-in at 13.2% for 2019, the highest in ISA’s history.

As for fourth quarter (4Q) 2019, net income fell 24% year-on-year, to COP$440 billion (US$126 million), while revenues rose 5.6%, to COP$2.3 trillion (US$658 million).

EBITDA in 4Q 2019 came to COP$1.4 trillion (US$400 million) and EBITDA margin was 61.7%; according to ISA.

Assets at year-end 2019 were COP$48.8 trillion (US$13.9 billion), up 8.5%, while liabilities rose 6.4%, to COP$27.6 trillion (US$7.9 billion). Meanwhile, investments during 2019 topped COP$2.6 trillion (US$744 million).

The net debt/EBITDA ratio and the EBITDA/financial interest indicators closed at 2.45 times and 5.96 times, respectively, “complying with the appropriate levels to maintain the current credit rating,” according to ISA.

Among 2019 operating highlights:
• ISA brought nine power-transmissions projects into operation in Colombia, Chile, Brazil, and Peru. “These projects will generate annual revenues of US$57.4 million,” according to ISA.

• In 4Q 2019, ISA CTEEP -- ISA’s affiliate in Brazil -- won three projects in a public auction held by the National Energy Agency of Brazil (ANEEL). “These energy transmission projects represent revenues close to US$20 million per year,” according to the company.
for the ISA’s Group.

• In October 2019, ISA signed a contract to buy 100% of the Cartagena-Barranquilla Coastal Concession, the company’s first highway concession asset in Colombia. “Through this transaction, the organization takes an important step towards its strategy of becoming as an important player in the Colombian road business,” according to ISA.

• Construction revenues for 2019 totaled COP$1.4 trillion (US$400 million), up 45.4% “This change was explained by an increase in construction dynamics of road concessions and energy transmission (COP$310 billion [US$88 million]), and higher gains from the capex optimization and schedules in advance in ISA CTEEP and its companies, for a total of COP$140 billion [US$40 million],” according to the company.

• The highway concessions business unit grew by 7.2% (COP$73 billion/US$20.8 million) “due to an increase in higher maintenance services (COP$30 billion/US$8.5 million) and the implementation of the ‘Free-Flow’ system in Ruta Del Maipo [Chile], plus the increase in management services (COP$37 billion/US$10.5 million),” according to ISA.

• In the telecommunications business unit, revenues rose 11.5% (COP$37 billion/US$10.6 million) “mainly due to the increase in the customer base for connectivity services in Colombia, Chile, and Peru,” according to ISA.

Written by March 04 2020 0

Medellin-based multinational gold mining giant Mineros SA on March 4 reported a 27% year-on-year profits drop for full-year 2019 -- due to an accounting calculation for costs of its Argentinian mining acquisition, which it got at a relatively favorable price in 2018.

Full-year 2019 net income came-in at COP$123 billion (US$35.6 million), with the dip “explained by the accounting effect we had in 2018 on the purchase of the Argentine operation in advantageous terms,” according to Mineros.

Despite the one-off accounting effect on profits, gold-equivalent production in 2019 actually rose 41% year-on-year, to 296,443 ounces, with Nicaragua contributing 43.2% of production, Argentina 32.8% and Colombia 23.9%, according to the company.

Gross revenues soared 67.7% year-on-year, to COP$1.35 trillion (US$391 million), “helped by the new operation in Argentina and a higher gold price and [COP-to-U.S. dollar] exchange rate,” according to Mineros.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 55% year-on-year, to COP$411 billion (US$119 million), with EBITDA margin at 30.5%.

Investments in 2019 totaled COP$188 billion (US$54 million), “mainly for maintenance, exploration, mine development, projects and the implementation of [advanced practices] in Nicaragua and Argentina,” the company added.

“We closed a satisfactory 2019, reflecting the results of our growth and diversification strategy,” said Mineros SA president Andrés Restrepo. “We see 2020 with optimism, hoping to maintain production levels, accompanied by a high gold price that allows us to continue working on the plans we have drawn up,” he added.

Written by March 02 2020 0

Medellin-based highway, tunnel and buildings-construction giant Constructora Conconcreto on March 2 reported an 11% decline year-on-in full-year 2019 profits, to COP$64.8 billion (US$18 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) also dipped 13%, to COP$170 billion (US$48 million), while gross revenues fell 12%, to COP$945 billion (US$268 million), according to the company.

Conconcreto blamed the dip in profits in part on lower revenues, as well as delays in approvals for housing and commercial construction projects, plus a COP$21 billion (US$5.9 million) fine imposed by Colombia’s Superintendencia de Industria y Comercio (SIC) for alleged anti-competitive practices relating to bids on a Bogotá-Girardot highway construction project.

On the positive side, Conconcreto cited its completion of concrete lining of the giant “Tunel de la Linea” project in 2019, which soon will ease crucial freight movements between Bogota and the Pacific port of Buenaventura.

Project backlogs registered in 2020 eventually would generate revenues worth some $2.8 trillion (US$795 million), up from COP$1.5 trillion (US$426 million) registered in 2019.

Another proposed project that could deliver more income for Conconcreto is the proposed “double calzada oriente” (DCO) project east of Medellin between the Las Palmas highway and the Tablazo sector near the Jose Maria Cordoba (JMC) international airport, according to the company.

The DCO project is up for bidding with a March 25, 2020 deadline, according to the company.

Written by February 28 2020 0

Medellin-based highway construction giant Construcciones El Condor on February 27 reported a 37% decline in full-year 2019 profits, to COP$73 billion (US$20.6 million) – principally due to a COP$74 billion (US$20.8 million) temporary write-down of its participation in the “Vías de las Américas” highway project.

Full-year 2019 revenues from ordinary activities totaled COP$875 billion (US$247 million), including operating revenues of COP$720 billion (US$203 million), or 82.33% of revenues from ordinary activities. Administrative expenses reached 3.75%, according to El Condor.

Operating margin at the end of 2019 was 25% of revenues, including a non-recurring event -- the October 2019 sale of its partial stake in the “Concesión Túnel Aburrá Oriente,” the new highway tunnel that connects Medellin to the JMC International airport at Rionegro.

Earnings before interest, taxes, depreciation and amortization (EBITDA) hit COP$202 billion (US$57 million) with an EBITDA margin of 23% -- including its sale of the stake in the Túnel Aburrá Oriente. Excluding that sale, EBITDA was COP$162 billion (US$45.8 million) equivalent to an EBITDA margin of 18.5%, according to the company.

Total assets at year-end 2019 were COP$2.24 trillion (US$633 million), of which 47% are current assets and 53% non-current assets, according to the company.

Liabilities decreased 10% compared to 2018 and closed at COP$1.16 trillion (US$328 million). Of that total, 54% of liabilities are current -- down 79% year-on-year.

“Financial debt ended 2019 at COP$713 billion (US$201 million) represented by COP$539 billion (US$152 million) of bank loans and bonds, and COP$173 billion (US$49 million) of leasing,” according to the company

As for fourth quarter (4Q) 2019 results, revenues rose 3.5% year-on-year, to COP$237 billion (US$67 million), while operating costs were COP$180 billion (US$51 million), or 75.9% of revenues, “contributing greatly to the improvement of the accumulated results,” according to El Condor.

Operating profit for 4Q 2019 was COP$89 billion (US$25 million), including the sale of the Tunel del Oriente. Excluding that sale, operating profit was COP$48 billion (US$13.5 million), up 100% over 4Q 2018 operating profit.

Net income for 4Q 2019 was COP$78 billion (US$22 million), according to the company.

Consolidated net worth as of December 2019 was COP$1.08 trillion (US$305 million), while the working capital indicator -- calculated by subtracting current liabilities from current assets -- was COP$462 billion (US$130.6 million).

Meanwhile, the company’s construction backlog -- the balance between works-contracted and works to-be-executed -- was COP$1.03 trillion (US$291 million).

“This calculation takes into account COP$237 billion (US$67 million) of the turnover executed during the [latest] quarter for construction services, discounting dividends and income not associated with said services,” according to El Condor.

Written by February 28 2020 0

Medellin-based multinational insurance, pensions and finance giant Grupo Sura on February 27 reported a full-year 2019 27.9% hike in net income year-on-year, to COP$1.7 trillion (US$523.8 million) – an all-time high.

Revenues also rose 13.3% year-on-year, to COP$21.9 trillion (US$6.68 billion), while expenses rose less -- by 12.3%.

While Sura’s corporate-wide, full-year 2019 profits rose, fourth-quarter (4Q) 2019 net income actually dipped 5% year-on-year, to COP$226 billion (US$64 million).

Despite the 4Q profits dip, 4Q 2019 revenues actually rose 9% year-on-year, to COP$5.7 trillion (US$1.6 billion), according to the company.

The company mainly credited its full-year 2019 record net income to “sound levels of business performance recorded by Sura Asset Management and Suramericana” as well as its profitable holdings in Medellin-based multinational banking giant Bancolombia and Medellin-based pension-fund administrator Protección.

“This level of performance was made possible even in what was a demanding social and economic environment, taking into account the impact that Argentina’s complex macroeconomic reality had on our operating performance as well as the recent protests in Chile and the current situation of the Colombian health care system,” according to the company.

Consolidated operating income also rose 19.5% year-on-year, to COP$3 trillion (US$920 million) while corporate debt fell 7%, “in keeping with our strategic priority of strengthening our financial position,” according to Sura.

Meanwhile, total assets dipped 2.9% year-on-year, to US$21 billion, thanks to “non-strategic divestments.” Shareholders’ equity rose by 4.4%, to US$8.57 billion, according to the company.

The Sura Asset Management division (pensions, savings and investment) saw net income jump 95% year-on-year, to (US$221 million), along with a 35% rise in operating income.

“The year 2019 was important for more than 20 million of our clients in terms of seeing their savings grow,” added Sura Asset Management CEO Ignacio Calle. “We have seen a significant recovery with the investment market that in turn is allowing us to provide much higher rates of return.”

Revenue improvements in 2019 mainly came from the “Suramericana” division including life insurance segment (up 22.2%); property and casualty (up 4%); and health care (up 24%), plus boosts from Sura Asset Management’s mandatory pensions fund (up 8.3%) and its voluntary pensions fund (up 17.7%), according to the company.

Nevertheless, the Suramericana division’s full-year 2019 net income actually declined 25.6% year-on-year, to COP$390 billion (US$111 million).

“This drop is mainly due to the results obtained by our Argentinean subsidiaries, having sustained a greater loss due to the prevailing macroeconomic conditions that in turn increased the average costs of claims and the reserves for long term coverage,” according to Sura.

“Likewise, the Chilean subsidiary presented an increase in its claims rate in the last quarter of the year due to a burst of mass social protest.

“Meanwhile, the EPS health care subsidiary in Colombia posted at year-end a higher cost of services rendered, compared to the previous year, but this was nevertheless lower than for the first half of 2019. This subsidiary also recorded a higher than expected increase in users due to the mandatory migration of users from other EPS that were being closed down, which produced a negative impact on costs due to a higher claims rate sustained on issues pending from prior failed health care providers.”

Even so, the life insurance segment showed a gain of 24.2% in net income, to COP$58.7 billion (US$16.7 million), “this mainly driven by the results obtained by our Colombian subsidiary which included a 30.1% growth in written premiums corresponding mainly to the health care, group life and workers compensation solutions,” according to Sura.

“The health care segment showed a 137.8% growth in its net income for this past quarter, this driven by lower costs for services rendered given the way the health care segment and claims rate have been handled [in Colombia] especially over the last two quarters of the year. The cost to income ratio came to 87%, compared to 88% for the same period last year,” according to the company.

While Sura’s corporate-wide, full-year 2019 profits rose, fourth-quarter (4Q) 2019 net income actually dipped 5% year-on-year, to COP$226 billion (US$64 million). Nevertheless, 4Q 2019 revenues actually rose 9% year-on-year, to COP$5.7 trillion (US$1.6 billion), according to the company.

The company mainly credited its full-year 2019 record net income to “sound levels of business performance recorded by Sura Asset Management and Suramericana” as well as its profitable holdings in Medellin-based multinational banking giant Bancolombia and Medellin-based pension-fund administrator Protección.

“This level of performance was made possible even in what was after all a demanding social and economic environment, taking into account the impact that Argentina’s complex macroeconomic reality had on our operating performance as well as the recent protests in Chile and the current situation of the Colombian health care system,” according to the company.

Consolidated operating income also rose 19.5% year-on-year, to COP$3 trillion (US$920 million) while corporate debt fell 7%, “in keeping with our strategic priority of strengthening our financial position,” according to Sura.

Meanwhile, total assets dipped 2.9% year-on-year, to US$21 billion, thanks to “non-strategic divestments,” while shareholders’ equity rose by 4.4%, to US$8.57 billion, according to the company.

The Sura Asset Management division (pensions, savings and investment) saw net income jump 95% year-on-year, to (US$221 million), along with a 35% rise in operating income.

“The year 2019 was important for more than 20 million of our clients in terms of seeing their savings grow,” added Sura Asset Management CEO Ignacio Calle. “We have seen a significant recovery with the investment market that in turn is allowing us to provide much higher rates of return.”

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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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