July 12, 2024

ISA 1Q 2016 Net Income Jumps 31% Year-on-Year

Medellin-based ISA – operator of Colombia’s national electric power transmission network – announced May 2 that its first quarter (1Q) 2016 net income rose 31.3% year-on-year (y-o-y), to COP$192 billion (US$65 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) hit COP$779 billion (US$229 million) in 1Q 2016 — with a 50.5% EBITDA margin, while net-income margin hit 12.5%, according to the company.

The improved results reflect “entry into operation of new projects in Peru, higher operating revenues in Chilean road concessions and higher revenues from UPME [Unidad de Planeación Minero Energética power-transmission] bidding processes in Colombia,” according to ISA.

“The results also include the conversion effect of the financial information from foreign subsidiaries, which generated changes in various line items of the financial statements and a net income increase of COP$17.8 billion [US$6 million],” according to the company.

Operating revenues also jumped 33.3% y-o-y. Energy transmission accounted for 72% of those revenues, hitting COP$1.1 trillion (US$377 million).

“Compared with the same period of 2015, business revenues [in 1Q 2016] increased 37.4%, given the higher construction revenues associated to the Mantaro-Montalvo project, the entry into operation of the Machupicchu – Abancay – Cotaruse project and the tariff adjustment carried out in May 2015 in Peru,” according to ISA.

“There were higher revenues in Colombia from the entry into commercial operation during the fourth quarter of 2015 of the expansion projects of substation Termocol and El Bosque, bidding processes La Reforma, Copey and Stacom of Bacatá. On the other hand, there were higher revenues in Brazil due to the tariff adjustment in July 2015 and the positive variation of the IGPM/IPCA [Brazilian inflation indices], offset by lower construction revenues.”

Road concessions in Chile contributed COP$310 billion (US$106 million), corresponding to 20.2% of total corporate revenues, while telecommunications transport contributed 5.4% of total revenues, according to ISA. Telecom transport revenues rose 20.6% y-o-y “mainly due to the increased sales of IP [internet protocol] services, information and videoconference storage in Colombia, as well as new clients in Chile and Brazil,” according to ISA.

Colombia accounted for 31.9% of corporate-wide revenue in 1Q 2016, followed by Peru (30.4%), Chile (20.5%) and Brazil (15.9%), according to ISA.

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