October 2, 2023

Grupo Argos 2Q Net Income Rises 5% Year-on-Year

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.

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