ISA 1Q 2024 Net Income Falls 23% Year-on-Year

Medellin-based multinational electric-power transmission, highways and telecom operator ISA announced April 30 that its first quarter (1Q) 2024 net income fell 23% year-on-year, to COP$634 billion (US$162 million).

Operating income (excluding construction) dipped 12% year-on-year, to COP$2.7 trillion (US$689 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) fell 16% year-on-year, to COP$2.3 trillion (US$587 million), according to ISA.

EBITDA margin came in at 62%, or 80% if excluding construction, according to the company.

Average return on equity remained stable at 14%, while backlog (committed investments, pending execution) closed at COP$29.4 trillion (US$7.5 billion), according to the company.

“In a comparative look at the results of the first quarter of 2024 compared to those of the first quarter of 2023, we highlight the effect of the appreciation of the Colombian peso against the dollar (18%), the Brazilian real (14%), and the Chilean peso (30%).

“This appreciation of the Colombian peso generates a conversion effect that decreased our consolidated income in the first quarter by 12%, compared to the same period in 2023.

“However, if we exclude this exchange rate effect, our businesses continue to grow in their functional currencies, thanks to contractual escalators and the income associated with the entry into operation of new projects, among others,” the company added.

During 1Q 2024, “we executed investments for a total of COP$1 trillion [US$255 million], distributed as follows: 29% in Colombia, 46% in Brazil, 13% in Chile and 10% in Peru,” according to ISA.

“At the end of March we have 34 projects under construction, which when energized will add around COP$1.7 trillion [US$434 million] to our annual income. These projects will strengthen our asset and revenue base.”

Among 1Q 2024 business highlights:

• In Brazil, ISA CTEEP won eight reinforcement contracts for its electricity transmission network, which together will represent a capex of BRL$57.4 million (~COP$44 billion/US$11 million).
• In Colombia, ISA won project approvals for a second transformer in its Primavera Substation and a fourth transformer in the Sogamoso Substation. Those projects represent a capex of US$38 million (~COP$146 billion), according to the company.

Also during 1Q 2024, “the following came into operation: (i) in Colombia, the connection to the Portón del Sol photovoltaic park, which incorporates clean energy from renewable sources; (ii) in Brazil, 14 reinforcements to the ISA CTEEP network; (iii) in Chile, the expansion of the Nueva Pan de Azúcar substation; and iv) in Peru, the connection to Puerto Chancay,” according to ISA.

As for its highway concessions unit, during 1Q 2024 “ISA won the tender to rehabilitate, improve and maintain 246 kilometers of the Panamericana Este highway,” according to the company.

“In January, the Ministry of Public Works of Panama awarded [ISA subsidiary] Interval Chile a project with a reference investment value of US$283 million (~COP$1.1 trillion),” the company explained.

As for its telecommunications unit, “on April 1, the sale of Internexa Brasil Operadora de Telecomunicações S.A. to Megatelecom Telecomunicações S.A was completed, at a final price of BRL2.7 million (~COP$2.1 trillion/US$536 million),” the company added.