ISA 2Q 2023 Net Income Up 3% Year-on-Year

Medellin-based multinational electric-power transmission, highways concessionaire and telecom provider ISA announced August 1 that its second quarter (2Q) 2023 net income rose 3% year-on-year, to COP$694 billion (US$173 million).

“This increase is mainly due to the entry-into-operation of energy transmission projects in Brazil and Colombia; increased construction efficiencies in Brazil; and the net effect of contractual escalators, including higher revenues due to the change in the treatment of the financial asset of road concessions from Chilean pesos as of July 2022,” according to ISA.

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Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to COP$2.4 trillion (US$599 million) in the latest quarter, up 7% from 2Q 2022, according to the company.

Operating revenues for the latest quarter rose 9% year-on-year, to COP$3.5 trillion (US$873 million), according to the company.

Assets at the end of 2Q 2023 closed at COP$75.4 trillion (US$18.8 billion), down 4%, “mainly due to the revaluation of the Colombian peso against the US dollar (13%), the Brazilian real (6%), and the Chilean peso (7%). Excluding these exchange rate effects, assets increased by 2%,” according to ISA.

Capital investments executed during the latest quarter totaled COP$1.1 trillion (US$274 million), while first-half (1H) 2023 capex now totals COP$2.4 trillion (US$598 million).

“Consolidated financial debt closed at COP$32.47 trillion [US$8.1 billion], 5% less than at the end of 2022, mainly due to the exchange rate effect (revaluation of the Colombian peso against the US dollar, the Brazilian real, and the Chilean peso), without which growth would be 3%,” according to ISA.

In Peru, ISA’s operating revenues grew 25% year-on-year, “due to the favorable effect of the conversion of US dollar revenues into Colombian pesos upon consolidation in 2023 and the positive effect of the contractual escalator (PPI),” according to the company.

In Colombia, revenues rose 5% year-on-year, due to the entry-into-operation of three new electric-power substations “as well as the favorable effect of contractual escalators,” according to ISA.

In Chile, revenues rose 20% year-on-year, “due to the favorable effect of the conversion of US dollar revenues into Colombian pesos upon consolidation in 2023 and the positive impact of contractual escalators (IPC),” according to ISA.

In Brazil, revenues fell 8% year-on-year, “due to the unfavorable effect of contractual escalators,” according to ISA.