September 25, 2023

ISA 1Q 2021 Net Income Jumps 32% Year-on-Year

Medellin-based multinational electric power transmission giant ISA on May 6 announced a 32.4% year-on-year jump in first quarter (1Q) 2021 net income, to COP$508 billion (US$135 million).

Operating revenues also rose 14% year-on-year, to COP$2.4 trillion (US$638 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 14.3%, to COP$1.5 trillion (US$399 million). EBITDA margin came-in at 63.8%, or 75% if excluding construction-cost factors.

Net margin closed at 21.5% and return on equity hit 17.1% for the latest quarter. Assets rose 6.7%, to COP$57.6 trillion (US$15.3 billion), while new investments totaled COP$1.9 trillion (US$505 million).

Consolidated financial debt rose 6.4%, to COP$24.2 trillion (US$6.4 billion), while the net debt/EBITDA ratio closed at 3.2-times, “complying with the required levels to maintain the current credit rating,” according to ISA.

The jump in operating revenues “was mainly due to the entry into operation of electrical power transmission projects, the consolidation of Orazul Energy Group as of the third quarter of 2020, Ruta Costera as of the fourth quarter of 2020, and Piratininga-Bandeirantes Transmissora de Energia (PBTE) as of March 2021; as well as the increase in the construction activity of concessions in Peru and Brazil,” according to the company.

Construction revenues jumped 39% year-on-year, to COP$428 billion (US$114 million), because of power-transmission construction-cost-adjustments in Brazil, increased construction activity in Peru and Brazil and construction of the Ruta Costera highway project, according to the company.

According to ISA, two acquisitions during 1Q 2021 brighten prospects for even more gains in future revenues and profits:

1. The Aguapeí Electrical Interconnection in Brazil and the project for the connection with the Quellaveco mine in Peru “will contribute annual revenues of close to COP$70 billion [US$18.6 million].”

2. The acquisition of 100% of the shares of Piratininga-Bandeirantes Transmissora de Energia (PBTE) in Brazil for COP$1 trillion (US$266 million), “which implied an asset increase of COP$1.4 trillion [US$372 million] and debt of COP$240 billion [US$64 million], will represent annual revenues of approximately COP$128 billion [US$34 million] for ISA.”

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