May 19, 2024
Companies

Isagen Full-Year 2019 Net Income Rises 9% Year-on-Year

Medellin-based electric power generation giant Isagen revealed in an April 2 filing with Colombia’s Superfinanciera corporate oversight agency that its full-year 2019 net income rose 9% year-on-year, to COP$495 billion (US$123 million).

However, fourth-quarter (4Q) 2019 net income dropped 62% year-on-year, to COP$144 billion (US$35.8 million), as lower rainfall in Colombia led to a 23% net decline in hydropower output.

Isagen is the third-largest power generator in Colombia at 3.03 gigawatts (GW) capacity — 90% of which is hydroelectric power.

Full-year earnings before interest, taxes, depreciation and amortization (EBITDA) rose 28% year-on-year, to COP$1.9 trillion (US$472 million), while gross revenues rose 20%, to COP$3.2 trillion (US$795 million), according to Isagen.

During 2019, energy demand on Colombia’s national power grid (Sistema Interconectado Nacional, SIN) was up 4% year-on-year. However, accumulated generation by Isagen for full-year 2019 dipped 8% year-on-year.

During 4Q 2019, hydropower contributions to the SIN were only 77% of the historical average, although for full-year 2019, hydropower accounted for 88% of the Colombian total — still down from 2018 because of lower total rainfall.

During 2019, the average power price received by generators to the national grid was COP$229 (US$0.057) per kilowatt-hour (kWh), 98% higher than the average price recorded in 2018.

Isagen credited its over-all improvement in 2019 financial results to “higher energy sales revenue in contracts as a result of better prices” as well as sales to the national grid “largely due to the fact that since March [2019], the [820-MW] Sogamoso power plant [in Santander] started to provide power” to the national grid.

Aside from the Sogamoso plant, Isagen’s other power plants include the 1.24-GW “San Carlos” hydropower plant in Antioquia; the 396-MW “Miel 1” hydropower plant in Caldas; the 300-MW “Termocentro” thermal power plant in Santander; the 170-MW “Jaguas” hydroelectric power plant in Antioquia; the 80-MW “Amoyá” hydroelectric plant in Tolima and the 26-MW “Calderas” hydroelectric plant in Antioquia.

Isagen’s majority shareholder is BRE Colombia Hydro Investments Ltd, a division of Toronto-based Brookfield Asset Management. BRE’s strategic focus is on “development of a portfolio of renewable energies that take advantage of sources such as water, wind and sunlight,” according to the company.

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