ISA Full-Year 2023 Net Income Jumps 12% Year-on-Year

Medellin-based multinational electric-power transmission, highways and telecom provider ISA announced February 26 that its full-year 2023 net income rose 12% year-on-year, to COP$2.5 trillion (US$635 million).

Operating income likewise grew 6% year-on-year, to COP$14.2 trillion (US$3.6 billion), while earnings before interest, taxes, depreciation and amortization (EBITDA) also rose 6% year-on-year, to COP$9.1 trillion (US$2.3 billion).

“The entry-into-operation of new projects, efficiencies in energization improvements and reinforcements in Brazil, and the largest financial returns from cash surpluses, explain most of the increase observed this year, compared to 2022,” according to ISA.

Corporate asset values dipped 10% year-on-year, to COP$71.2 trillion (US$18 billion), “mainly explained by the revaluation of the Colombian peso against the U.S. dollar (21%), the Brazilian real (14%) and the Chilean peso (23%). Without these exchange effects, the assets grow 5%,” according to the company.

Capital investments (CAPEX) during 2023 amounted to COP$4.6 trillion (US$1.16 billion), while consolidated financial debt fell 9%, to COP$31.1 trillion (US$7.9 billion).

“The decrease is mainly explained by the effect of conversion (revaluation of the Colombian peso against the dollar, the Brazilian real and the Chilean peso, without which [debt] growth would be 6%,” according to ISA.

As for fourth quarter (4Q) 2023, operating income dipped 6% year-on-year, to COP$3.6 trillion (US$914 million), while EBITDA dipped 1%, to COP$2.1 trillion (US$533 million).

Net income for 4Q 2023 amounted to COP$433 billion (US$110 million), unchanged from 4Q 2022. CAPEX for the quarter amounted to COP$1.2 trillion (US$304 million).

As for its sectoral results, ISA reported the following:

Highways: operating income during 2023 fell 25% year-on-year, “explained mainly due to the impact of the monetary correction on the financial assets, and for the termination of the Ruta del Bosque concession [in Chile].”

Telecommunications: Revenues fell 16% year-on-year, “due to [lower] retail customer capture, disconnections of connectivity services, lower capacities, and lower internet services in Brazil, Colombia and Peru.”

Electric power transmission: Revenues rose 2% year-on-year, entirely because of a 16% jump in Colombia power revenues.

By contrast, Brazil power sales dipped 7% year-on-year, Peru sales declined 1%, and Chile sales fell 3% year-on-year, according to ISA.