1Q2019 Financial Results
|
1Q2019 |
1Q2018 |
VARIATION % |
Million Colombian Pesos (COP) |
|
|
|
REVENUES |
956,821 |
877,859 |
+9.0% |
EBITDA |
552,509 |
504,380 |
+9.5% |
EBIT |
496,041 |
449,959 |
+10.2% |
NET INCOME |
291,181 |
234,095 |
+24.4% |
NET FINANCIAL DEBT (1) |
2,899,862 |
2,907,125 (2) |
-0.3% |
INVESTMENTS |
36,216 |
24,164 |
+49.9% |
(1) Short-term Financial Debt + Long-term Financial Debt - Cash and other Financial Assets
(2) Figures as at December 31, 2018 including IFRS 16 impact to compare figures
Lucio Rubio, Enel’s Country Manager for Colombia, commented: “The results in the 1Q2019 are positive, not only did EBITDA increase and we obtained a growth in net income, but we also made important investments in Termozipa and the hydroelectric plants. These achievements were obtained due to the execution of a successful commercial and business strategy that allowed us to increase the acquisition of long-term contracts in the portfolio”.
During the 1Q2019, revenues increased compared to the same period in 2018, due to the optimal commercial strategy focused on a better management of new non-regulated market contracts in line with a spot market price rise as a result of low rainfall rates that occurred during the first months of the year and a bigger growth in contract prices because of a higher Producer Price Index (PPI).
- EBITDA evidenced an annual growth, reflecting an increase in revenue and an active costs and expenses management and operating costs. The aforementioned was partially offset by the rise evidenced in fuel costs due to an increase in thermal power generation of the Termozipa Thermal Power Plant.
- EBIT increased compared to the 1Q2018, evidenced by the behaviour of the aforementioned factors and also due to an improvement in impairment losses as a result of a higher loan portfolio recovery, an effect that was offset by an increase in depreciations, after the entry into operation on the investments made effective during 2018, in line with the current asset maintenance plan.
- Net income increased during the 1Q2019 compared to the same period of last year due to the effects explained above and as a result of:
- The reduction of net financial expenses which may be explained by a decrease in average debt balance during the fiscal year, as well as less debt costs due to a lower Consumer Price Index (CPI) level during 2019 from that registered in the same period last year; to said indicator the 64% of the debt is indexed.
- A lower effective tax rate after reducing the income tax rate by 4 points in 2019.
- Net financial debt decreased with respect to last year, because the cash flow generated by the operation have been enough to fulfil the investment needs and dividend payment to shareholders.
Investments reached a total of 36,216 million COP in the 1Q of the year with main focus on the Termozipa Thermal Power Plant’s project to extend the plant’s useful life and provide installation of batteries, investments associated to the Bogotá River water concession and the execution of hydroelectric plants’ maintenance plan.
Operating results 1Q2019
|
1Q2019 |
1Q2018 |
VARIATION % |
GWh(*) |
|
|
|
TOTAL GENERATION COLOMBIA |
16,823 |
16,494 |
+2.0% |
ENEL-EMGESA GENERATION |
3,442 |
3,280 |
+4.9% |
CONTRACT SALES |
3,409 |
3,455 |
-1.3% |
SPOT MARKET SALES |
707 |
881 |
-19.8% |
PLANT AVAILABILITY |
90.3% |
92.3% |
-2.1% |
(*) Estimated figures
- Enel-Emgesa’s generation grew in the 1Q2019 compared to the same period of 2018, particularly due to a higher thermal plant generation, as a result of high price levels, achieving an optimal management of scarce water resources during the first months of the year.
- The total energy production of Enel-Emgesa was as follows:
- 90.2% hydroelectric: 7.2% less than last year, mainly due to low water levels evidenced in reservoirs during most part of the 1Q quarter of the year.
- 9.8% thermal: 257.2% more than in the 1Q2018, because of the activation of thermal power stations, particularly Termozipa.
Dividends:
During the 1Q2019, Enel-Emgesa paid 154,284 million COP worth of dividends to its shareholders.
|
1T 2018 |
1T 2019 |
Million Colombian Pesos (COP) |
|
|
Current Asset |
703,125 |
956,583 |
Non-current asset |
8,153,389 |
8,019,740 |
Current Liability |
1,663,229 |
1,928,444 |
Non-current liability |
3,383,382 |
3,588,437 |
Equity |
3,809,903 |
3,459,442 |
|
|
|
Revenue |
956,821 |
877,859 |
Operating costs |
355,770 |
323,009 |
Contribution margin |
601,051 |
554,850 |
Earning before interests and taxes (EBIT) |
496,041 |
449,959 |
Earnings before taxes (EBT) |
431,995 |
370,432 |
Fiscal year’s profit |
291,181 |
234,095 |