April 13, 2024

ISA 2Q 2022 Net Income Rises 14% Year-on-Year

Medellin-based multinational electric-power transmission, highways concessionaire and telecom provider ISA announced August 1 that its second quarter (2Q) 2022 net income rose 14.4% year-on-year, to COP$670 billion (US$155.7 million).

Operating income rose 10% year-on-year, to COP$1.9 trillion (US$441.7 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) likewise rose 10%, to COP$2.2 trillion (US$511 million).

The boost in net income came “mainly due to the positive effect of inflation in Brazil (IPCA) and Colombia (IPP) on operating revenues and a lower tax expense due to the incorporation of Brazilian capital interest in the effective tax rate,” according to ISA.

On the other hand, net income “was partially reduced by higher financial expenses due to the effect of higher inflationary indexes, mainly in Chile and Brazil,” the company added.

Net margin for 2Q 2022 came-in at 20.6%, while return on equity was 11.1%, according to the company.

During the latest quarter, investments totaled COP$846 billion (US$197 million), including 33 energy transmission projects totaling more than 4,900 kilometers of new power lines.

Consolidated financial debt totaled COP$29 trillion (US$6.7 billion), up 3.1% year-on year.

ISA’s debt/EBITDA ratio closed at 4.05-times, “maintaining adequate levels to continue supporting the growth of ISA and its companies and to maintain the current credit rating,” the company added.

Electric-power transmission revenues rose 12% year-on-year, to COP$225 billion (US$52 million), due to entry-into-service of projects in Peru, Brazil, Chile and Colombia.

Among the revenue boosts from power start-ups, highway/telecom expansion projects and price-indexing effects during 2Q 2022:

Colombia: higher power revenues of COP$108 billion (US$25 million).

Brazil: higher revenues of COP$51 billion (US$11.8 million), “mainly due to the positive effect of the inflation adjustment of revenues in ISA CTEEP [power tariffs].”

Peru: higher revenues of COP$41 billion (US$9.5 million), “mainly due to higher revenues in energy transmission contracts” as well as “the favorable effect resulting from the exchange rate in dollars to pesos.”

Chile: higher revenues of COP$16 billion (US$3.7 million), “mainly due to the entry into operation of new projects and the increase in Producer Price Index (IPP) and Consumer Price Index (IPC).”

Road concessions: increase in revenues of 110% “mainly due to higher returns on financial assets and higher revenues from the operation and maintenance of concessions and toll management in Chile, and higher revenues from the Ruta Costera concession.”

Telecommunications: increase in revenues of 7.7% “mainly due to higher sales of connectivity services, sales of internet and ethernet capacities and other telecommunications services in Colombia and Peru, and the growth of the ‘Over the Top Operators’ segment in Colombia,” the company added.

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