September 27, 2023

ISA Full Year 2022 Net Income Jumps 32% Year-on-Year

Medellin-based multinational electric power transmission, telecom and highways-concessionaire giant ISA announced February 23 that its full-year 2022 net income rose 32% year-on-year, to COP$2.2 trillion (US$453 million), from COP$1.66 trillion (US$342 million) in 2021.

Gross income rose 14.4%, to COP$10.3 trillion (US$2.1 billion), while earnings before interest, taxes, depreciation and amortization rose 11.3%, to COP$8.56 trillion (US$1.7 billion), according to the company.

During 2022, ISA built seven new power-transmission projects as well as a large-scale battery-storage project in Brazil. “These projects generate a total annual remuneration of approximately US$167 million, and add more than 2,200 kilometers of circuit to the transmission network,” according to ISA.

On the other hand, power-tariff reductions mandated by the Colombian government cut operating income by approximately COP$60 billion (US$12.3 million), the company added.

As for Panama future operations, “ISA made a capital contribution to ICP Panama totaling COP$15 billion (US$3.1 million), which will be used to finance the expenses related to feasibility studies of the electrical interconnection” between Colombia and Panama.

As for fourth quarter (4Q) 2022 results, net income dipped 4% year-on-year, to COP $433 billion (US$89 million), but EBITDA rose 5%, to COP$2.1 trillion (US$432 million), according to the company.

“Excluding 2022 non-recurring expenses [including asset impairments hitting the Internexa interconnections between Brazil and Argentina] and 2021 re-profiling of Interchile’s debt and the change in the income tax rate in Colombia, the profit for fourth quarter grew 15%,” the company added.

“This increase is mainly from boosts in contractual income from the operations in Colombia and Chile and the entry of new projects, which made it possible to mitigate the lower revenues in Brazil due to the behavior of the IPCA [inflation index], non-recurring income from the recognition of the cost of capital not received this year but recorded in 2Q 2021, and the higher expenses due to the effect of higher inflation rates, mainly in Chile,” according to ISA.

Net assets rose 28% year-on-year, to COP$78.7 trillion (US$16 billion), while consolidated financial debt rose 21%, to COP$34.1 trillion (US$7 billion), the company added.

In ISA’s highways-concessions businesses, the company expanded operations at the “Troncal Quinta” toll on Chile’s principal “Route 5,” while in Colombia, ISA marked a  first full year of revenue-generating operations of the “Ruta Costera” toll road.

In its telecommunications division, “in a year of great challenges in business and markets, the company achieved a customer satisfaction level of 8.41, improving two points compared to the previous year,” ISA added.

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