Grupo Argos 3Q 2016 Net Profit Jumps 39% Year-on-Year
Medellin-based construction, energy, cement and port-operator giant Grupo Argos announced November 29 that its third quarter (3Q) 2016 net profits jumped 39% year-on-year, to COP$880 billion (US$286 million) on sales of COP$10.8 trillion (US$3.5 billion), up 24%.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 29%, to COP$2.74 trillion (US$891 million), while EBITDA margin hit 25.3%, according to Argos.
The growth in sales and profits are the result of improvements at Argos Cement, Celsia Energy, the Odinsa highways and ports concessions, the Compas ocean ports, urban development projects and the “Pactia” real-estate project partnership with Medellin-based Conconcreto, according to the company.
The company also recently won approval from Colombia’s Financial Superintendent (Superintendencia Financiera de Colombia) to offer to buy the remaining 45.25% of shares in Odinsa.
In addition, Argos also announced a deal to acquire 30% of the shares of Opain, which administers Bogota’s El Dorado international airport. Since Odinsa holds another 35% of the shares in Opain, the combination of Argos and Odinsa shares eventually would make Argos the biggest shareholder in Colombia’s busiest airport.
“Grupo Argos continues to accompany the definition and execution of the strategy of its subsidiaries to complete high-value transactions for its stockholders, the product of which generates a significant increase in EBITDA,” said Argos president Jorge Mario Velasquez.
The company also touted its recent acquisition of the Martinsburg cement plant in West Virginia, which will boost its U.S. annual cement capacity by 2.2 million tonnes and clinker capacity by 1.6 million tonnes.