Earlier, we highlighted the actions taken by Terpel regarding electric stations. We recognized that the world is moving that way and there is no better strategy than to be prepared. In this quarter, the firm kept expanding and inaugurated two new recharge points in the Chusacá and Melgar. With the creation of these new electric stations, the firm reiterated its compromise to mobilizing the Colombian people regardless of the type of energy needed. Terpel already counts with five electric stations and it is expected to keep expanding.
On the other hand, the firm innovated by launching a new product in Ecuador, Evol-T gasoline. The new super-additive plus gasoline is composed of two formulas in a single additive, having a greater performance and a greater power as well. In addition, this product is environmentally friendly due to its lower unburnt hydrocarbon emissions.
Coupled with these disruptive innovations, the firm was recognized by the Corporate Business Reputation Monitor, MERCO, as the best reputed private fuel distributor in Colombia.
The news went hand in hand with sound results.
Quarterly Results 3Q21
As we all know, the pandemic affected several firms, but the null use of vehicles produced fewer revenues in companies like Terpel. In this quarter, the results are stunning, but in light of the previous, the comparison could be tricky. However, some concepts did rise in comparison to 2Q19.
In this quarter, revenues reached a total of 6.2 trillion Colombian Pesos, not only experiencing a growth of 61.9% in comparison to the same quarter last year but also an advance of 4.2% vis-á-vis 3Q19. Almost all the regions in which the company has operations experienced double-digit growth, with Colombia being the region which accounted for the largest percentage of total revenues. Regarding the accumulated 9M revenues, they grew 37.4 compared to the same period in the previous year. The improvement is mainly due to greater volumes.
During the third quarter of the year, 753.7 million gallons were sold, representing an advance of 38.7% compared to 3Q20 and 0.3% vis-á-vis 3Q19. The increase in volumes sold is explained by the positive performance of the liquid fuel stations during the vacation season and the absence of mobility restrictions.
Gross profit amounted to COP 612.65 million, which represents an increase of 46.7% in comparison to the same period last year. In addition, gross profit rose 7.0% vis-à-vis 3Q19.
Regarding EBITDA, this concept experienced an advance of 87.7%, going from COP 171 billion to COP 321.49 billion. Furthermore, EBITDA increased 16.4% compared to the prior-year quarter in which it ended up at COP 276bn.
Although net income decreased 10.5% in comparison to the third quarter of 2019, it rocketed vis-á-vis 3Q20, increasing by more than 400.0%. In the accumulated 9M, net income overperformed the past two years, being 233.3% higher than 2020 and 71.4% respectively.
As of September 21, the company’s total assets ended up at COP 7.8 trillion, which represents an increase of 8.4% in comparison to September 2020. The increase is mostly explained by a higher cash balance, which rose 149.3%. The investments made in Property, Plants, and Equipment grew 9.4% compared to September 2019.
On the other hand, total liabilities closed at COP 5.4 trillion, remaining almost at the same level as of September 2020. Total Liabilities represent 69.5% of total assets; from those, 42.7% account for bonds, and 8.7% for financial obligations.
Terpel’s cash flow ended up at COP 720 billion, translating into an increase of 149.2% compared to September 2019. The most relevant cash flow source was EBITDA, which, as we have seen, had a solid quarter.
Concerning debt ratios, the firm reported a Net Debt/ EBITDA ratio of 2.5 x times the EBITDA.
