The Shareholders’ meeting approved the payment of dividends for COP 552 per share. The total disbursement will amount to COP 611.438 million, the highest amount paid so far.
During the Shareholders’ meeting, three new independent members for the Board of Directors were appointed.
In 2018, ISA exceeded operational and financial goals for the third consecutive year, with a net income of COP 1,5 trillion and ROE of 12,8%.
Corporate government, sustainability, innovation and labor environment were topics ISA also stood out in 2018.
The ISA’s Ordinary General Shareholders’ Meeting, held today March 29 in Medellín, approved to pay dividends for COP 552 per share, for the 1,107,677,894 outstanding ordinary shares. This approval means a total disbursement to shareholders for COP 611.438 million, the highest amount paid by the company so far, which corresponds to 40% of the 2018 net income (COP 1.529.155 million). Payment to minority shareholders will be made in two installments (July and December), each for COP 276 per share.
Likewise, and with the purpose of complying with investment commitments and contributing with the financial soundness of the group, an occasional reserve for COP 917,716 million was approved.
Payment to shareholders:
Board of Directors Changes
During the Meeting, it was approved the appointment of Isaac Yanovich Farbaiarz and Marcela Meléndez Arjona as independent members appointed by the Nation, in representation of the Ministry of Finance and Public Credit, to replace Carlos Caballero Argáez and Carlos Felipe Londoño Álvarez. The Technical Deputy Minister of Finance, Luis Alberto Rodríguez Ospino will replace the General Deputy Minister of Finance, Juan Alberto Londoño.
Isaac Yanovich had already been a member of ISA’s Board of Directors between 2002 and 2013. He is an industrial engineer from Universidad de Los Andes and University of Pittsburgh. Additionally, he has a Master’s degree in Industrial Management from Massachusetts Institute of Technology (MIT). In addition, he has professionally held the position of Ecopetrol’s CEO and has been a founding partner of Betainvest S.A.
Marcela Melendez is an economist from Universidad de Los Andes with a Master’s degree in Public and Private Management from Yale School of Management and a PhD in Economics from Yale University. Currently, she works as partner and project director in ECONESTUDIO. She is also an undergraduate and graduate professor from the School of Economics of Universidad de Los Andes. Similarly, she has held the position of deputy director and associate researcher of Fedesarrollo; and she has been a research economist at the Inter-American Development Bank (IDB), among other positions.
Luis Alberto Rodríguez Ospino is an economist from Universidad Nacional de Colombia, with a Master’s degree in Public Management from Columbia University. He has been Director of Economic Studies at Asobancaria and he worked for several years in the United Nations Development Programme. Additionally, he has been a researcher at Universidad Nacional de Colombia.
The Board of Directors is comprised of 9 members, 7 of which are independent:
2018 most important milestones
Although 2018 was a challenging year marked by the slowdown in growth of the region and the political uncertainty, among other factors, the Group reached consolidated results that exceeded its projections, as a result of the successful operational management, the coherence in business decision-making, and the consolidation of a profitable portfolio.
ISA’s main financial indicators have grown steadily in the last 3 years. At the end of 2018, ISA generated revenues for COP 7,2 trillion, which represented a 4% growth when compared with previous year. Net income reached COP 1,5 trillion, 6% more than income for 2017; EBITDA accumulated COP 4,8 trillion with an 8,4 increase and reached an EBITDA margin of 66,5% (73,0% excluding construction). Furthermore, the Group invested COP 2,4 trillion in its growth plans for transmission, road concessions, telecommunications infrastructure, and technological developments.
Financially, relevant news were also reported: the issue of green bonds for BRL 621 million of ISA CTEEP, the first energy transmission business company in Brazil and pioneer company of the corporate group that issued this type of bonds, whose resources will fund energy transmission infrastructure projects through which conventional and non-conventional renewable energies will be transported.
Business Units
Regarding Energy Transmission Business Unit, the group’s infrastructure reached 45,142 km of high voltage circuits, 90,921 MVA of transformation, and 408,282 GWh that supplied energy to more than 160 million people in Colombia, Peru, Brazil, Bolivia, and Chile.
1,541 km of circuits and 3,195 MVA in Colombia, Peru, Brazil, and Chile entered operation. In Colombia, relevant projects were energized, such as Sabanalarga-Caracolí-Flores 230 kV, Chinú-Montería 230 KV, Cauca-Nariño interconnection, and Hermosa-Esmeralda line. Additionally, 88,6% progress was reached in the construction of 700 km of lines that will be part of Hidroituango to the National Transmission System.
Regarding operations abroad, the most relevant projects are: Nueva Cardones-Nueva Pan de Azúcar 500 kV Line in Chile, Friaspata-Mollepata 220 kV Line, and Carapongo 500/220 kV Substation in Peru. Likewise, the Group was awarded five important transmission projects in Colombia and Brazil, which represent future revenues for around USD 20 million per year.
In the Road Concession Business Unit, one of the most important alliances of the year at a corporate level in the country was reached by signing an agreement with Construcciones El Cóndor S.A., in order to participate in the Road Concession Business Unit of Colombia and Peru. And in Chile, ISA INTERVIAL announced the investment of more than USD 500 million for safety and connectivity of relevant interurban roads. Moreover, Rutas del Loa Road Concession was officially awarded by ISA INTERVIAL, which will increase the Group’s operation up to 1,018 km of interurban roads in Chile.
Regarding the Communications Business Unit, INTERNEXA presented its own “Thunder” multi-cloud platform, to contribute to digital transformation of small and medium companies in the region, since it will allow them to effectively access services and applications in the cloud, providing tools for competitiveness.
On the other hand, in the Real-Time System Management Business Unit, XM, operator of the National Interconnected System (SIN) and administrator of the Wholesale Energy Market of Colombia, launched the control center of the National Dispatch Center, one of the most modern in the region, from which the operation of the SIN is planned, supervised and coordinated to meet the country’s energy demand.
Sustainability, ethics and corporate government
In terms of sustainability, our Conexión Jaguar® program was internationalized through the consolidation of the first project in Peru, which will contribute to biodiversity preservation, climate change mitigation, and connectivity of natural habitats of this feline, considered one of the most emblematic animals of Latin America. In 2018, over 144,328 ha of forest and headwaters, as well as around 60 fauna species, were protected.
We also celebrate 10 years of the Transformación Educativa para la Vida (Educational Transformation for Life) program, which helps improving the quality of rural education in Colombia, together with Antonio Restrepo Barco Foundation. Through the Group’s social management, over 525 thousand people benefited.
ISA, for the fourth consecutive year, was included in the Dow Jones Sustainability Index, getting the highest ratings in Corporate Citizenship and Philanthropy categories for the segment of energy transmission companies. ISA was included again in the MILA sustainability index, The Sustainability Yearbook, and the FTSE4Good, which are part of the RobecoSam group.
Regarding Corporate Government, the Group’s compliance department was created. Additionally, the Code of Ethics and Conduct was renewed. Furthermore, Transparence for Colombia catalogued ISA as a “low-risk corruption company”.
Innovation and talent
As one of the cross-cutting axis of ISA2030 Strategy, USD 4.6 million were invested in innovation, 13 patents were registered, and alliances with Microsoft, Massachusetts Institute of Technology (MIT), Ruta N, EAFIT and UPB universities, were signed.
Equally, regarding labor environment, one of the strategy pillars, the Group obtained a favorability index of 84% in the last measurement, a 2% increase compared with 2017, this is, 15% more than the regional average in the Latin American market, and 11% more than Colombia’s average of 73%.
All these important achievements have reassured ISA that ISA2030 Strategy is the right way to ensure the permanence and leadership of the transforming processes for this industry. Our strong commitment in 2019 will be to continue renewing our social license with the excellence and engagement of the Group, but also fostering innovation, promoting alliance to improve competitiveness, and adapting business models to current market challenges.
