ISA 1Q 2023 Net Income Soars 92% Year-on-Year
Medellin-based multinational electric-power-transmission builder-operator, highways concessionaire and telecom provider ISA announced May 3 that its first quarter (1Q) 2023 net income jumped 92% year-on-year, to COP$828 billion (US$177 million).
Operating revenues rose 41% year-on-year, to COP$3.9 trillion (US$835 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 38%, to COP$2.7 trillion (US$578 million).
The boost in profits came “mainly from the entry-into-operation of energy transmission projects in Brazil and Colombia, increased construction activity in Brazil, Peru, and Chile and the positive effect of contractual escalators, including higher revenues due to the change in the treatment of financial assets of road concessions in Chile,” according to ISA.
Executed capital investments rose 73%, to COP$1.4 trillion (US$300 million), the company added.
The hike in operating revenues came “mainly due to the energy transmission business with total revenues of COP$3 trillion [US$642 million], 35% more than 1Q 2022,” according to ISA.
ISA’s electric power transmission unit saw a 27% hike in revenues, thanks to positive results in Brazil and Colombia, including “the favorable exchange rate effect of Brazilian reais to Colombian pesos,” according to ISA.
Revenues in Peru also rose 27% year-on-year, mainly “due to the favorable effect of the conversion of U.S. dollar revenues into Colombian pesos.”
In Chile, ISA’s revenues rose 30% year-on-year “due to the favorable effect of the conversion of U.S. dollar revenues into pesos in the 2023 consolidation and the positive effect of escalator clauses,” the company added.
In its highways-concession businesses, ISA enjoyed a 58% hike in operating revenues, excluding construction revenues. “In Chile, the increase in revenues is explained by the change in the financial treatment of its road concessions and the positive exchange rate effect of conversion to Colombian pesos,” according to the company.
In Colombia, “we realized higher revenues from Ruta Costera Concession,” the company added.
In its telecommunications unit, revenues rose 16% year-on-year, thanks to a rise in indexed contractual prices and “higher sales of connectivity services, capacities, along with internet and datacenter services in Colombia and Peru,” according to the company.
As for the future, “we have ambitious growth prospects, supported by a US$20 billion portfolio of opportunities and the financial capacity required to continue expanding ISA’s footprint in the region,” according to the company.
As for ISA’s ongoing environmental sustainability efforts, “we highlight the carbon neutrality certification granted by ICONTEC to 11 of our company divisions. This certification is proof of the company’s efforts not only to reduce and offset emissions derived from its operations, but also to generate positive environmental impact and voluntarily address the effects of climate change,” the company added.
