Isagen 3Q 2023 Profits Drop 49% Year-on-Year
Medellin-based electric power generator Isagen announced November 9 that its third quarter (3Q) 2023 net income fell 49% year-on-year, to COP$157.7 billion (US$39 million), partly because of soaring financial costs.
The company saw its financial expenses jump 33% year-on-year, “mainly due to the increase in the level of debt and the increase in interest rates,” according to Isagen.
On the other hand, operating income rose 12% year-on-year, to COP$1.3 trillion (US$321 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) dipped 14% year-on-year, to COP$705 billion (US$174 million).
Electric power demand on Colombia’s National Interconnected System (SIN) during 3Q 2023 rose 6% year-on-year, to 20,594 gigawatt-hours (GWh).
But hydropower generators — like Isagen — saw their power sales to the nationwide grid dip 24% year-on-year due to lower rainfall. Aggregate water levels in reservoirs also closed 1% below the historical average at end-September.
“Isagen’s generation during the third quarter 2023 was 3,138 GWh, 31% lower than that registered in the same period from the previous year, due to lower water contributions during the trimester,” according to the company.
Nevertheless, “operating income was 12% higher than those obtained in the same period of the previous year, this mainly due to higher energy sales. But operating costs were 65% higher compared to the same period in 2022, mainly due to higher costs of energy transactions on the national market,” the company added.
