Performance by segments
Of the EPM Group's EBITDA of COP 5.7 billion, the Energy Distribution segment contributed 45% with COP 2.6 billion. Its 7% growth was primarily due to a larger amount of energy sold at a higher unit cost and an increase in income from financing public utilities and leasing infrastructure and public lighting.
Power generation accounted for 33% of the Group’s EBITDA, at COP 1.9 billion. It had a growth of 45%, explained by increased power generation due to the availability of water resources and the power generation from the Hidroituango Power Plant.
In the first half of 2023, the EPM Group’s total power generation was 9,836 gigawatt-hours (Gwh), with 3% growth with respect to the same period the previous year. 18% was contributed by the two units of the Hidroituango Power Plant.
Transmission contributed 4% of the Group's EBITDA, with 26% growth, mainly due to the positive impact of the macroeconomic variables of TRM and PPI on income, and Gas participated with 2%, growing 13% due to higher sales to thermal plants.
The segments associated with Water: Water Provision, Waste Water Management and Solid Waste Management, jointly contributed 16% of the Group’s EBITDA and grew 24% due to increased consumption and tariff indexation, in accordance with current regulations.
The total costs and expenses of the EPM Group were COP 13.6 billion, growing 21%. This was mainly observed in the Distribution segment because of commercial operating costs due to energy purchases at a higher price, caused by the effect of macroeconomic variables, although fewer units were purchased.
The EPM Group's net income of COP 2.7 billion was positively impacted by a net income from accumulated exchange rate differences of COP 250 thousand million, since the Colombian and Mexican currencies have been the most revalued of the emerging markets during 2023, at 12.9% and 11.50%, respectively.
The EPM Parent Company’s profit was COP 2.5 billion, 33% higher than the same period the previous year, which includes the result of the subsidiaries through the equity method, amounting to COP 882 thousand million. This means the subsidiaries contributed 35% of the Parent Company’s profit.
Investments and Development
During the first half of the year, the business group's investments in infrastructure amounted to COP 2 billion, in order to continue providing its services with quality, continuity, coverage and availability to over 9 million customers (close to 40 million people) in six countries: Mexico, Guatemala, El Salvador, Panama, Colombia and Chile. Of these investments, 48% corresponds to the Distribution segment, 28% to Generation, 22% to Water and 2% to other projects.
Value Generation for the People
As of June 2023, the EPM Group generated COP 8.9 billion in aggregated value, 22% more than the previous year, which translates into greater benefits for its stakeholders, job creation, and a boost to the economy.
The following are the most important components of this item: EPM Group personnel (salaries and benefits) and Providers of goods and services (works and contract performance) received 14% each; the State, Communities and the Environment jointly received 18% (taxes, contributions, duties and environmental costs); Financial Providers received 9%, and the District of Medellín received 12% (for initiatives that add to the city’s development and the well-being of its population).
Financial position of the EPM Group and EPM Parent Company:
