May 19, 2024
Business Companies

ISA 3Q 2023 Net Income Drops 23% Year-on-Year

Medellin-based multinational electric-power, highways and telecom giant ISA announced November 2 that its third quarter (3Q) 2023 net income fell 23% year-on-year, to COP$512 billion (US$126 million).

Operating revenues likewise dipped 11%, to COP$3.2 trillion (US$789 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) fell 15%, to COP$1.9 trillion (US$468 million), according to the company.

Most of the profit decline is explained by adjustments on financial assets as measured in Chilean pesos, termination of the “Ruta del Bosque” highway concession in Chile, lower construction activity in roads, and lower results from jointly-controlled entities in Brazil, according to ISA.

While 3Q 2023 shows declines in both profits and revenues, nine-months 2023 (January through September) actually shows gains year-on-year, with corporate-wide profits up 15%, to COP$2 trillion (US$493 million), and EBITDA up 9%, to COP$7 trillion (US$1.7 billion), according to the company.

Assets closed at COP$72.8 trillion (US$17.9 billion), “8% less than at the end of 2022, mainly due to the revaluation of the Colombian peso against the U.S. dollar (16%), the Brazilian real (12%), and the Chilean peso (19%),” according to ISA. “Excluding these exchange-rate effects, assets increased by 5%.”

Meanwhile, capital investments executed during 3Q 2023 amounted to COP$1.1 trillion (US$271 million), while nine-months 2023 investments total COP$3.5 trillion (US$863 million), according to the company.

“Consolidated financial debt closed at COP$30.9 trillion [US$7.6 billion], 9% less than at the end of 2022. This decrease is mainly due to the exchange rate effect (revaluation of the Colombian peso against the U.S. dollar, the Brazilian real, and the Chilean peso),” the company added

Despite the profits dip in 3Q 2023, ISA boasted that it has nabbed new projects in Brazil and Peru worth COP$3.5 trillion (US$864 million) and generating about COP$317 billion (US$78 million) in revenues once operating.

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