ISA 2Q 2024 Net Income Up 2% Year-on-Year

Medellin-based multinational electric-power transmission, highways concessionaire and telecom giant ISA announced July 31 a 2% year-on-year gain in second quarter (2Q) 2024 net income, to COP$708 billion (US$173 million).

Revenues for 2Q 2024 declined 3% year-on-year, to COP$3.4 trillion (US$832 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) dipped 7%, to COP$2.2 trillion (US$538 million) – that is, when including the effect of currency conversions, according to the company.

“Excluding the conversion effect, net income grew 19%, while EBITDA margin was 65% — 80% without construction — and the net margin went from 20% in 2Q 2023 to 21% in this [latest] quarter,” according to ISA.

“Our revenues continue to grow in the currencies with which the assets are remunerated in each country, thanks to the entry into operation of new projects and contractual escalators. However, given the conversion of the financial statements of our subsidiaries to Colombian pesos, a decrease in some of the consolidated figures is reflected,” the company added.

1st Six-Months (1H) 2024 Results

As for first-half (1H) 2024 results, EBITDA rose 1% year-on-year, to COP$4.5 trillion (US$1.1 billion), excluding the currency-conversion effect.

But if including the conversion effect, then 1H 2024 EBITDA actually decreased by 12% year-on-year, according to ISA.

For 1H 2024, ISA’s net profit rose 3% year-on-year, to COP$1.3 trillion (US$318 million), excluding the conversion effect. The profit boost came “mainly due to the projects that came into operation since July 2023, which generate new revenues,” according to the company.

Power Transmission Segment Highlights

In Brazil, ISA won 24 reinforcement projects for its transmission network, requiring an estimated COP$542 billion (US$132 million) capex.

“In Colombia, ISA signed a private contract for the execution of the Atlántico Photovoltaic5 connection project, which seeks to connect a bay at the Sabanalarga 500Kv substation in the department of Atlántico. Additionally, ISA, through Transelca, signed a connection contract to the Valledupar I, II and II photovoltaic plants in the department of Cesar,” according to the company.

Highway Sector Highlights

ISA just won a contract from Chile´sMinistry of Public Works to “design, build and operate the Ruta Orbital Sur that will connect the western area of Santiago de Chile with the Ruta 78, Ruta 5 Sur and Ruta 79 concessions, facilitating mobility at one of the main exits of the Chilean capital. This project has a reference investment9 of US$505 million,” according to the company.

Telecom Sector Highlights

On May 31, ISA sold its shareholdings in Transamerican Telecomunication S.A in Argentina. “With this operation, [ISA subsidiary] InterNexa is seeking to focus on operations in the geographies where it has the greatest relevance in the telecommunications business,” according to the company.

“In Colombia, the ´Connectivity to Change Lives´ project is advancing, in collaboration with the Ministry of Telecommunications, which contributes to closing the digital gap in the country. During this quarter, a fourth agreement was signed, through which, together with the Internet service providers of the regions where the project is being developed, 62,000 families will be connected in 32 municipalities in Chocó, Nariño, Cauca and Antioquia,” ISA added.