EBITDA margin reached 74.2%, net income increased by 7.2% when compared with 1Q19, and, ROE reached 13.1%.
During the period, investments by COP 986.504 million were made, especially in the energy transmission business unit.
ISA is confident to address the impact of the current situation on the company and it prepares the reactivation of field works in a staggered way and in coordination with local authorities.
ISA starts 2020 with positive results that reflect its soundness, competitiveness, and focus on profitability. In the current crisis caused by the Covid-19 pandemic, the group has managed to focus all its efforts to protect the integrity of its employees, and achieve service continuity as a result of the decisions made by the company aiming to mitigate potential impacts on the group.
Likewise, ISA is confident since businesses are long-term, with regulated revenues that do not depend on demand, and since the natural hedging policy of each group company takes debt in the same currency of revenues.
The results for the first quarter of 2020 include significant growth when compared with the same period in 2019. Operating revenues totaled COP 2,1 trillion, with an increase by 14.0%, as a result of new projects which started operations in Colombia, Brazil, Peru, and Chile, greater revenues from inflation in Brazil and the macroeconomic variables in Colombia, added to an increased construction activity. The EBITDA accumulated COP 1,3 trillion, 7.5% higher than the first quarter of the previous year. The EBITDA margin was 63.8%, and 74.2% excluding construction. These results reflect the rigorous and efficient administration of management, operation, and maintenance (AOM) costs and expenses.
ISA’s net income amounted to COP 378.507 million, an increase by 7.2% compared with the first quarter of 2019. The net margin closed at 18.3% and the ROE reached 13.1%, as evidence of the Company’s financial efficiency and focus on profitability.
Assets ended the year in COP 51,3 trillion, an increase by 5.2% compared with 2019. As of March 2020, investments totaled COP 986.504 million, focused on the transmission energy business unit and distributed in Colombia, Chile, Peru, and Brazil.
Reactivation of field works
ISA started a reactivation plan of field works for construction projects that had been suspended in several countries since the third week of March to preserve the integrity of contractors and the communities of the influence area. It is worth mentioning that maintenance and operation works had not been suspended during the contingency to ensure efficient service delivery.
“Electric energy is a fundamental right, an essential public utility that is key in our sector for economic reactivation. For this reason, we focus all our efforts on resuming projects in a staggered way and in coordination with local authorities, with whom we have been working closely to ensure the health and welfare of communities, guaranteeing a quality and reliable service”, said, Bernardo Vargas Gibsone, ISA’s CEO.
The group has elaborated and disseminated the protocols where we provide all the prevention measures required to address the contingency against Covid-19, aligned with the regulations issued by health authorities, which have been adopted strictly to restart the works.
In the case of Colombia, works in four projects identified as a priority will be restarted. These projects must fulfill the following characteristics: 1) Be in their final construction stage; 2) If not energized, system availability and reliability, as well as the country’s energy security, could be affected; 3) Allow the connection of renewable energy sources.
The projects identified as a priority are:
1) Northwestern Interconnection (Ituango lines): construction of lines, transport of transformers, and adequacy of departmental roads.
2) Caribbean Coast Interconnection: construction of lines.
3) Ocaña Transformer: substation civil work.
Milestones for the period
ISA Peru entered into an agreement to acquire 100% of shares held by Orazul Energy Perú S.A. and Orazul Energy (UK) Holdings LTD in Orazul Energy Group S.A.C. The latter company is owner of ETENORTE and ETESELVA, which operate 6 transmission lines, totaling 746 km, receiving estimated annual revenues for USD 13 million. The transaction closing is subject to the authorizations corresponding to Peruvian regulating entities.
In March, ISA won a project in Colombia for the design, construction, operation, and maintenance of the La Loma-Sogamoso 500 kV transmission line and related works. This project will reinforce the service in the north of the country and facilitate the connection of unconventional renewable energy sources. It represents USD 9.4 million annual revenues.
In the Ordinary General Shareholders’ Meeting, dividends by COP 747.683 million were decreed, which correspond to 45% of 2019 net income, which means COP 675 per share, whereby its annual growth rate for the last 5 years is around 20%, well above inflation in Colombia.
