News

With more investment in infrastructure and solutions in utility services, the EPM Group reaffirms its commitment to the well-being of the communities and the development of the territories

Fecha de publicación

2024-05-14 00:00

Contenido

• Investments in infrastructure totaled COP 1.1 billion, positively impacting the quality, reliability, continuity, and coverage of energy, water, and gas services.

• The EPM Group generated COP 5 billion in added value for its stakeholders, translating into job creation, environmental responsibility, and the promotion of development.

First Quarter 2024 Financial Results

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The EPM Group presents positive and favorable financial results for its stakeholders in this first quarter of 2024, reaffirming its purpose of promoting development in the territories where it operates through its businesses, projects, and initiatives.

Thanks to the net income of COP 1.7 billion, agile and innovative solutions have been implemented, enabling greater coverage and quality in the provision of utilities, as well as projects that strengthen relationships with all stakeholders and generate added value, employment, and sustainability.

Financial Performance

Of the EPM Group's EBITDA of COP 3.4 billion, the Energy Generation and Commercialization segment contributed 43% with COP 1.5 billion. This result underscores the availability of energy and the generation of the four units of the Ituango hydroelectric power plant, which contributed 29% of the EPM Group's energy generation, meeting the country's energy demand, mitigating the effects of the El Niño phenomenon, preventing energy rationing, and maintaining energy availability for more than 9 million customers in Colombia.

The Energy Distribution segment contributed 39% of the Group's EBITDA with COP 1.3 billion, thanks to the growth in energy demand. Despite the effects of the El Niño phenomenon, the EPM Group has continued supplying energy uninterruptedly.

The segments associated with Water and Solid Waste Management together contributed 14% of the Group's EBITDA and grew by 47%. This growth reaffirms the Group's commitment to achieving Sustainable Development Goal (SDG) 6 Clean Water and Sanitation by increasing the number of customers by 2%. This progress is the result of programs like: Housing Enablement, Prepaid Water, Closing the Gap, and Connection Legalization, among others, which aim to expand and improve water and sanitation services coverage for more than 1.5 million customers in Colombia while maintaining continuity and quality despite the scarcity of water resources and low reservoir levels due to the El Niño phenomenon.

The net income of the EPM Group was COP 1.7 billion, and that of EPM was COP 1.5 billion, including the result of subsidiaries and affiliates through the equity participation method, accounting for COP 293 thousand million, meaning they contributed 19% to the parent company's profit.

Percentage Contribution of EPM and Subsidiaries to the EPM Group's EBITDA and Results

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EPM Group and EPM's Financial Situation

Better Infrastructure, Higher Quality in the Provision of Utility Services

Infrastructure investments made by the EPM Group in the first quarter of 2024, totaling COP 1.1 billion, were 16% higher than those recorded in the same period of 2023. These investments materialized in projects and programs aimed at improving energy service indicators to reduce the duration of interruptions for all customers, and in water and sanitation services to increase the capacity and reliability of the water supply system through the modernization and expansion of networks, water purification plants, as well as control and monitoring efforts to counteract the impacts of the El Niño phenomenon on reservoirs and minor sources that contribute to the water supply.

43% of the investments correspond to the Energy Distribution and Commercialization segment, 41% to Energy Generation, 13% to Water, and the remaining 3% to other projects of the Group.

EPM's investments represent 65% of the EPM Group's total, with COP 716 thousand million, where Energy Generation and Commercialization stands out with investments of COP 445 thousand million, mainly in the Ituango hydroelectric power plant to continue advancing in generation units 5 to 8 and fulfill the commitment of contributing 17% of clean energy to the country.

On the other hand, the Energy Distribution and Commercialization segment made investments of COP 157 thousand million, which contribute to improving energy service indicators, translating into savings by reducing the duration of interruption time for all customers.

Investments in infrastructure for the Water segment totaling COP 143 thousand million provide greater capacity and reliability to the water system, enable the control and monitoring of reservoirs, and allow for the assessment of the quality and quantity of water from smaller sources.

The EPM Group's investments associated with the Energy Distribution and Commercialization segment mainly involve Afinia and EPM in infrastructure projects, expansion of public lighting, management and control of energy losses, and network replacement. These efforts aim to strengthen the Business Group's electrical infrastructure and deliver optimal service with higher standards of quality, continuity, safety, and system stability.

More Resources for Medellín to Move Forward

As it does every year, EPM provides dividends to the District of Medellín for the benefit of the city's inhabitants. This year, the contribution amounts to COP 2.1 billion, corresponding to 55% of the 2023 net profit, a significant investment to support the city's health, education, and infrastructure programs.

Added Value for Stakeholders

In the first quarter of 2024, the EPM Group generated added value totaling COP 5 billion, a 10% increase compared to 2023, enabling reinvestment in business projects to maintain the operational capacity of the businesses, as well as the payment of taxes, rates, and contributions at the national, district, and municipal levels, and investments in environmental initiatives. In addition, transfers from the electricity sector enabled the allocation of resources to over 194 Colombian municipalities, natural parks, and regional autonomous corporations.

This added value represents benefits for the EPM Group's people, financial suppliers, and suppliers of goods and services, reflected in job creation, service subscription, contract execution, and fee payments, among others.

More Employment for the People in the Territories of the EPM Group

The results of the Group's management in this first quarter demonstrate the impact of its presence on the economic dynamics of each territory, contributing through the creation of 17,178 direct jobs and 37,601 indirect jobs, and improving the quality of life in communities.

Financial Ratios

Total Debt/EBITDA ratio: In the EPM Group, this ratio closed at 2.68, compared to 2.80 in the previous period. In EPM, it was 3.25, compared to 3.63 in the previous year.

The behavior of these ratios, with a downward trend (which is positive), reflects higher EBITDA growth over the past 12 months compared to the growth in long-term financial debt. This indicates adequate compliance with covenants agreed upon in various credit operations and a level consistent with EPM's target risk rating.

Financial Indebtedness: For the EPM Group, it was 40%, and for EPM, it was 39%, maintaining the same level as in the same period of the previous year.

The EPM Group, reaffirming its interest and commitment to contributing to the sustainable development of Colombia and all the territories where it operates, focuses its actions on developing projects and partnerships that enable the implementation of innovative solutions. These solutions facilitate the connection of remote and hard-to-reach territories, the energy transition, the fulfillment of the Sustainable Development Goals (SDGs), and access to, coverage of, and payment for utility services.