News

EPM Group reported net income of COP 3.7 billion in 2020, up 19 % compared to 2019

Consolidated revenue totaled COP 19.8 billion, up 8 % compared to 2019.

Fecha de publicación

2021-03-16 00:00

Contenido

• Of this total, COP 9.9 billion are of the EPM Parent Company, up 12% during the same period
• Close to 87 % of revenues are derived from the energy business, and 13 % from the water business
• The EPM Parent Company contributed 48% of the revenues, the subsidiaries abroad 32 % and the domestic subsidiaries 20%
• The business group made investments in infrastructure projects in the amount of COP 3.1 billion
• Consolidated revenue totaled COP 19.8 billion, up 8 % compared to 2019.

Mónica Ruiz Arbeláez, deputy CEO of EPM, said that “in one of the most challenging years for humanity due to the COVID-19 pandemic and its associated restrictions and uncertainty, which has created the new reality we face, EPM Group reported revenues of COP 19.8 billion, equivalent to an 8 % growth over the previous year, and EBITDA of COP 5.8 billion, which means a margin of 29 %, slightly below the level achieved in 2019, produced by an increase in operating costs related to activities undertaken to mitigate the pandemic.”

The total impact of the coronavirus (COVID-19) pandemic on EPM Group during fiscal year 2020 was COP 750,000 million; however, the Group reported net income of COP 3.7 billion, up 19 % compared to the previous year, as a result of the performance of the Group’s investments.

“These positive results enable us to continue being drivers of progress in the territories in which we are present, and creating jobs thanks to the development of infrastructure projects and social investment programs, which translate into well-being for the people,” added the deputy CEO of EPM.

In 2020, the EPM Parent Company reported revenues of COP 9.9 billion, a 12 % increase compared to 2019, with net income of COP 2.5 billion, which translates into a transfer of COP 1.4 billion to the Municipality of Medellín.

These transfers will be paid during 2021 and they are resources that contribute to the Municipality´s investment plans in social, educational, cultural and sports matters and other infrastructure projects in the capital of Antioquia.

COVID Effect

During the pandemic and the strictest lockdown periods, EPM implemented the special measures decreed by the national government, in addition to its own initiatives within the applicable legal framework to assist the citizens during such highly complex times.

Some of these measures include:

• Reconnecting water, electricity and gas services at no cost to disconnected users.
• Financing at no cost for water and electricity service customers.
• Freezing of financing installments for all the services provided, and substantial discounts for timely payment of the utility services.

These measures enabled citizens to have utility services available regardless of their capacity to pay for them. It should also be highlighted that the Company made all payments to its suppliers and contractors within the agreed terms, thereby helping to drive the economy and promoting the conservation of jobs.

We Are There for the Community

In 2020, EPM Group was a major driver for the economy, thereby contributing to the development of the territories in which it has presence. In addition to the COP 1.5 billion transferred to the Municipality of Medellín, it should be highlighted that providers of goods and services received COP 1.5 billion, and that COP 221,000 million were allocated to the communities and environmental care, as part of the greater purpose of contributing to life in harmony for a better world.

EPM Group Financial Situation

• Total assets: COP 63.8 billion, up 16 %.
• Liabilities: COP 36.7 billion, up 19 %.
• Equity: COP 27.1 billion, up 12 %.
• Investments in infrastructure: COP 3.1 billion.

EPM Parent Company Financial Situation

• Total assets: COP 53.4 billion, up 13 %
• Liabilities: COP 27 billion, up 18 %.
• Equity: COP 26.4 billion, up 8 %.
• Investments in infrastructure: COP 2.1 billion.

EPM Group and EPM Parent Company Financial Ratios

• Financial indebtedness: At the Group and the EPM Parent Company stood at 41 %.
• Debt/EBITDA: At EPM Group, as of December 31, 2020, this ratio ended at 4.37, compared to 3.49 in 2019. At the EPM Parent Company, it stood at 5.89 compared to 4.52 in 2019.
• Excluding the available cash reserve, the Net Debt/EBITDA ratio stood at 3.33 for EPM Group and 5.09 for the EPM Parent Company.
• In its capacity of external auditor, the firm KPMG issued a clean opinion on EPM’s separate and consolidated financial statements.