It is well known that climate change is a real problem and that companies around the world must move towards renewable energies to face it; as such, the achievement accomplished by Grupo Energía Bogotá (GEB) this quarter stands out. On June 28, the shareholders’ assembly approved the merger of Emgesa, Codensa, Enel Green Power Colombia, and Essa Chile. This fusion seeks to accelerate the transition to non-conventional renewable energies through prioritizing GEB’s participation in renewable energy projects.
“ Thanks to the new alliance with Enel, we will prioritize our participation in non-conventional renewable energy projects, promoting sustainable mobility to reduce air pollution, a phenomenon that has a very important impact on the health of the inhabitants, particularly in children; we will work in data analytics, distributed generation, smart lighting, and new technologies demanded by large cities, that facilitate management and the life of citizens. […]“ stated Juan Ricardo Ortega, chief executive officer
This news was accompanied by solid results in the second quarter.
Consolidated revenues for 2Q21 amounted to 1.3 billion Colombian Pesos (COP), which represents an increase of 15.1% in comparison to the last year. The advance is mainly explained by the correct performance of Natural Gas Distribution in Peru, experiencing an increase of 48.2% in comparison to the 2Q20. Accumulated revenue 6M 2021 presented an improvement too, most of it attributable to the recovery of demand and higher installations.
The recovery of demand not only implies more revenues but also higher operating costs. This quarter, operating costs rose 26.8% compared to the prior-year quarter. The increase in operating costs is associated with higher gas volumes consumed and higher installation costs.
The gross profit experienced an increase of 3.1%, going from COP 571.618 mm in the second quarter of 2020 to COP 589.265 mm in 2Q21.
While adjusted consolidated EBITDA in this quarter decreased by 1.3% in comparison to the same period last year, Adjusted consolidated EBITDA for the accumulated 6M rose by 4.7 % compared to the first two quarters of 2020.
The profit obtained through the Equity Method showed an advance, increasing by 13.5% in comparison to the same period in the previous year. The Equity Method went from COP 421.946 mm to 478.864 mm, reflecting the positive contribution of most of the companies. It is worthwhile noting that Emgesa and Promises contributions were the ones who drove most of the growth.
Consolidated net income reached COP 691.836mm, representing an increase of 15.6% compared to the prior-year quarter.
At the end of the second quarter, the Group ended with a Net Total Debt/EBITDA indicator of 3.3 x and an EBITDA/ Net Financial Expenses ratio of 6.4 x. These ratios are within the reasonable limits of indebtedness.
Total liabilities went from COP 19.529.205 mm in 2Q20 to COP 18.481.072 mm in the second quarter of the present year, experiencing a decrease of 5.3 %. In the same way, total assets had a minor reduction of 0.7%, going from COP 33.806.630 mm to COP 33.559.72 mm.
Although not all GEB’s controlling companies performed their best, there was one that actually did.
Calidda is a natural gas firm that is in charge of the design, construction, and operation of the natural gas distribution system in Lima and the province Constitucional de Callao. In this quarter the firm had stunning results, reporting growth in most of its concepts.
Revenues as operational income showed an improvement compared to the same period last year. The former grew 26.1% and the latter 31.2%. Furthermore, EBITDA presented an advance of 25.7 % in comparison to the prior-year quarter, amounting to US 49, 850.
Calidda’s net income reached US 25,000, an increase of 34.6% compared to 2Q20.
COVID-19 Management
Aside from the merger, another excellent piece of news is the progress made by GEB regarding the Covid pandemic. In this quarter, thanks to the sanitary and prevention measures, there were neither new outbreaks on operation nor administrative locations. In addition, the firm had already vaccinated 182 employees and foresees to vaccinate the remaining employees and apprentices in the next few weeks.
