Grupo Argos 3Q 2019 Net Income Jumps 26% Year-on-Year
Medellin-based cement, electric power and highway/airport concessionaire Grupo Argos on November 13 reported a 26% year-on-year rise in third quarter (3Q) 2019 consolidated net income, to COP$516 billion (US$150 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) likewise rose 39% year-on-year, to COP$1.4 trillion (US$408 million), according to the company.
Gross revenues likewise jumped 44% year-on-year, to COP$5.2 trillion (US$1.5 billion), according to the company.
Consolidated results “show double-digit growth in all [business] lines,” according to Argos, which boasted that its Odinsa concessionaire subsidiary bought 53% of the new “Tunel de Oriente” road tunnel between Medellin and the international airport at Rionegro.
“In the energy business, thermal power assets in Zona Franca Celsia were disinvested, progress was made in the consolidation of the [electric power] distribution operation in Tolima and the largest investment platform in solar projects in Colombia was established with the alliance with Cubico Sustainable Investments,” Argos noted.
Its “Cementos Argos” cement/concrete subsidiary boosted deliveries by 36% year-on-year for the “fourth generation” (4G) highway projects in Colombia. That division also boosted sales volumes 10% in the USA, helping Cementos Argos realize a 13% income rise year-on-year, to COP$2.5 trillion (US$729 million), according to the company.
Corporate-wide consolidated cement volumes increased by 0.9% year-on-year, although concrete volumes dipped 1.1%.
“Cement volumes reflect a positive dynamic in the United States, as well as a reduction in Colombia and in the regional Caribbean and Central America, which continues to be impacted by the Panama market and the complex political situation in Honduras,” the company added.
As for its real-estate division, “cash flow for the [latest] quarter amounted to COP$32 billion [US$9.3 million], growing more than 2.8 times, reflecting the business concluded in previous periods,” according to Argos.
Real estate sales in 3Q 2019 totaled COP$24 billion (US$7 million), up sharply from COP$4 billion (US$1.1 million) in 3Q 2018.
Gross revenue rose 59% year-on-year, to COP$54 billion (US$15.7 million), which included “valuations, dividends and leases,” according to Argos. In addition, “we signed promises of sale for around COP$50 billion [US$14.6 million] that we hope to write at the end of this year or early 2020,” according to Argos.
In the real estate rental business, the “Pactia” real estate fund has been delivering effective yields of 6.84% since its incorporation date on January 20, 2017, the company added.