EPM Group Contributes to the Economic Recovery, with Revenues of COP 18.2 billion as of September 2021
According to the third quarter results, the finances of the business group and the EPM Parent Company remain healthy and solid.
- Fecha de publicación
- 2021-11-11 00:00
- Contenido
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- Net income for the third quarter of the year totaled COP 2.8 billion
- The Group’s infrastructure investments as of September totaled COP 2.7 billion, of which COP 1 billion were invested in the Ituango Hydroelectric Project
- As of September, EPM has paid the Municipality of Medellín COP 1.3 billion of the total of COP 1.4 billion to be transferred during 2021
- According to the third quarter results, the finances of the business group and the EPM Parent Company remain healthy and solid.
Thanks to higher energy sales due to the economic recovery, the increase in water inflows during the rainy season, lower operating costs and a lower impact of COVID-19 on the results, in the period from January to September 2021 EPM Group posted revenues of COP 18.2 billion, up 30 % compared to the same period in 2020.
In highlighting the positive results, Jorge Andrés Carrillo Cardoso, CEO of EPM, indicated that when EPM Group does well, the territories and communities in which it is present do well too, because its operations and projects help drive the economy, create jobs and materialize major infrastructure works that contribute to transforming the lives of millions of people. “At the third quarter of 2021, the Distributed Added Value of EPM Group totaled COP 9.3 billion. Of this total, I highlight that COP 1.3 billion were for the well-being and growth of Medellín through health, education, sports, culture and infrastructure programs, among others, through transfers made to the municipality of Medellin. Suppliers of goods and services received COP 1.3 billion and the government and financial providers jointly received COP 2.2 billion,” said the executive.
At the third quarter of the year, EBITDA of EPM Group totaled COP 5.5 billion, up 28 % compared to the same period in 2020, with a margin of 30 %. Net income of EPM Group totaled COP 2.8 billion.
Factors that influenced the results
During the third quarter, the same factors that drove results during the previous months of the year remained in place, including the good performance of commercial operations due to greater power generation thanks to high water inflows, in which the EPM reservoir level was higher than the system's average; greater power distribution sales, and the fact that costs increased at a slower pace than the increase in revenues. The lower effect of currency exchange differences also influenced the results. In this regard, the net currency exchange difference expense totaled COP 24 thousand million, which is 97 % lower than in the same period last year, arising from the translation of dollar-denominated debt in terms of the Colombian peso, which has devalued by 11.72 % year to date, with a closing rate of COP 3,834.68.
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Another item that had a positive effect on results year-to-date at September was a 94 % reduction in the effect of COVID-19 on the finances of EPM Group compared to 2020. The COVID-19 effect totaled COP 28 thousand million (lower revenues of COP 3 thousand million and greater costs and expenses of COP 25 thousand million), with an increase in accounts receivable of COP 158 thousand million at EPM and collections of COP 159 thousand million from refinancing of unpaid utility bills, as part of the special measures taken by the national government and by the business group itself.
Financial situation of EPM Group
✓ Total assets: COP 66.5 billion, up 4 %.
✓ Liabilities: COP 38.5 billion, up 5 %.
✓ Equity: COP 28 billion, up 4 %.
✓ Investments in infrastructure: COP 2.7 billion.
The EPM Parent Company remains solid
The EPM Parent Company continues to be a driver for development in the region. From January to September 2021, the EPM Parent Company reported revenues of COP 8.3 billion, up 15 %. EBITDA totaled COP 3.5 billion, up 36 % compared to the same period in 2020, with a margin of 43 %. The finances of the EPM Parent Company remain solid, with net income of COP 2.6 billion, with growth of 122 % compared to the same period in 2020, and a margin of 32 %.
Financial situation of the EPM Parent Company
✓ Total assets: COP 55.4 billion, up 4 %.
✓ Liabilities: COP 28.2 billion, up 5 %.
✓ Equity: COP 27.2 billion, up 3 %.
✓ Investments in infrastructure: COP 1.8 billion, of which COP 1 billion were invested in the Ituango Hydroelectric Project.
Financial ratios of EPM Group
✓ Financial indebtedness: Stood at 41 % both at the Group and the EPM Parent Company. ✓ Debt/EBITDA ratio: At EPM Group, as of September 30, 2021, this ratio was 3.74, compared to 4.41 at the same period last year. At the EPM Parent Company, it stood at 4.83, compared to 6.03 at the same period last year.
✓ Overall: Excluding the available cash reserve, the Net Debt/EBITDA ratio stood at 3.10 for EPM Group and 4.39 for the EPM Parent Company.