September 30, 2023

ISA 2Q 2020 Net Income Jumps 25% Year-on-Year

Medellin-based multinational electric-power transmission, highways concessions and telecom infrastructure provider ISA on August 5 reported a 25% year-on-year hike in second quarter (2Q) 2020 net income, to COP$550 billion (US$147 million).

Operating revenues rose 32%, to COP$2.28 trillion US$609 million), while total earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 30%, to COP$1.85 trillion (US$494 million).

First half (1H) 2020 net income rose 17%, to COP$929 billion (US$248 million), while 1H 2020 gross revenues rose 19%, to COP$3.17 trillion (US$846 million), according to the company. Operating revenues for 1H 2020 hit COP$4.8 trillion (US$1.28 billion), up 21% year-on-year.

ISA credited the jump in profits to several factors including favorable increases in electric-power transmission tariffs at its Brazil operations, entry into operation of energy transmission projects in Colombia, Chile and Peru, as well as an “increase in the construction activity of the [highway and power-transmission] concessions.”

For 1H 2020, administration, operation, and maintenance (AOM) costs declined 1.7%, to COP$909 billion (US$243 million), “which shows an efficient management in the control of AOM costs and expenses on which the company is constantly working, and even more due to the current Covid-19 pandemic,” according to ISA.

During 2Q 2020, construction costs rose 80%, to COP$373 billion (US$99.6 million), “due to the progress of works in Chile, Peru, and Brazil,” according to the company.

Operating income for 1H 2020 rose 19.7% year on-year in part because of “higher depreciations and amortizations of new projects that entered into operation” along with “higher provisions for major maintenance in Peru” as well as “higher portfolio provision in Maipo [Chile],” according to the company.

So far this year, ISA’s investments total COP$1.8 trillion (US$480 million), of which 87% is in power transmission, 10% in road concessions 10% and 2.2% in telecom.

The Covid-19 crisis caused temporary suspension of some projects at the beginning of 2Q 2020 – since restarted – while “projects in Brazil continued constructions with some delays in supplies, maintaining at all times the appropriate measures enacted by the authorities and the new protection protocols,” ISA added.

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