Besides protecting human talent and working for business continuity during this health emergency, ISA has focused its efforts on resuming construction activities for energy transmission projects.
Financially speaking, the group achieved positive results in the first semester: EBITDA margin was 66,8%, net profit increased by 17,3% compared with 2019, and ROE was 14,4%.
During the health emergency, the company has implemented a humanitarian aid strategy for more than COP 10 billion in Colombia and USD 1,3 million in the other countries where it operates. These resources have been focused on research, healthcare, hospital network strengthening, and support to communities.
This year, 2020, has been of significant challenges for organizations not only in financial terms, but also with respect to operations and protection of human resources and communities of influence. This scenario has compelled companies to think about new ways of doing business, of relating to stakeholders, and of generating value to society.

The results for the first semester show the resilience of the business units operated by the company: revenues from the Energy Transmission business unit depend on system availability instead of demand, and in the case of the Road Concessions business unit, a decrease in mobility is offset by an increase in the concession period. These results also show an efficient management of Administration, Operation and Maintenance (AOM) expenses.

For the period, net income amounted to COP 928.923 million, an increase by 17,3% compared with June 2019. Net margin was 19,6% and ROE reached 14,4%.

Operating revenues for the semester amounted to COP 4,8 trillion, an increase by 21,3% compared with June 2019. EBITDA reached COP 3,2 trillion, an increase by 19,6% compared with the same period of the previous year, and EBITDA margin was 66,8%. As of June, assets reached COP 49,9 trillion, an increase by 2,3% compared with 2019.

In the first semester of the year, investments totaled COP 1,8 trillion: Energy Transmission business unit 87,5%, Road Concessions business unit 10,3%, and Telecommunications business unit 2,2%. These investments were focused on the construction of transmission projects, the construction of reinforcements in ISA CTEEP and its companies, new road concessions, and the expansion of the fiber optic infrastructure.

The accumulated growth as of June is also explained by positive relevant events in ISA CTEEP, which increased the affiliate’s revenues and, when consolidated, had an effect of COP 168.050 million on ISA’s net income.

On the closing of the first semester of 2020, Bernardo Vargas Gibsone, ISA Group’s CEO, said “In the financial aspect, we are focusing on generating profitability, analyzing new investment alternatives, and reformulating the way we do business. During this emergency, now more than ever we realize the importance of working on our innovation, sustainability, cultural change and digital transformation projects to improve our processes, be more competitive, and ensure the permanence of the group over time, but above all to achieve the development of communities and progress of countries.”

Since the beginning of the quarantine, ISA has been implementing a humanitarian aid strategy as a group, aimed at taking an active part in economic revival and mitigating the impact of the pandemic. So far, more than COP 10 billion have been invested in Colombia and USD 1,3 million in Chile, Peru, and Brazil for scientific projects and provision of hospitals, food, and water kits for communities, among others.

Milestones for the period

On June 1, the Chief Road Business Unit Office was created, reaching one of the main goals set out in the ISA2030 Strategy.
The ISA Group and Construcciones El Condor created Interconexiones Viales to participate in the road infrastructure sector in Colombia and Peru. ISA will control the new company through its affiliate Intervial Chile S.A. through a 65% stake. Additionally, Construcciones El Condor’s stake will be 35%.
ISA is one of the top three companies with the best Private Social Investment practices in Colombia thanks to its social and environmental strategy, according to the Private Social Investment Index 2020 of the firm Jaime Arteaga & Asociados, allied with Semana Sostenible, and supported by the U.S. Agency for International Development (USAID).
EBITDA