EEB's net profit grew 181% during 3Q 2012
Bogotá, Colombia, 23 October 2012
- As of September 2012, Empresa de Energía de Bogotá, EEB net profit amounted to COP 635 billion, exceeding by COP 409 billion profits reported during the same period of the previous year, which shows an increase of 181%.
Operational profit grew by 3,7% and non operational results by 582%, explaining our positive results.
Bogotá, 23 October 2012, Mrs. Mónica De Greiff, CEO of Empresa de Energía de Bogotá - EEB, headquarters to Grupo Energía de Bogotá, expressed her satisfaction on the results obtained: “Positive impact of operational income is evident during the 3Q on some of the expansion projects undertaken by the Group”. Similarly, Mrs. De Greiff referred, in particular to the second phase of the Cusiana expansion project which came on stream last August, and with which it closed the cycle that led TGI, EEB's affiliate, to increase its transportation capacity in excess of 50%. She was also optimistic regarding other projects that the company is undertaking in Colombia, Peru and Guatemala, and that shall be in operation between this year and 2015.
As of 3Q 2012, net profit grew by COP 409 billion, meaning an increase of 181%. This result is explained, mainly by growth in decreed dividends in EEB amounting to COP 343 billion, and increase of around COP 15 billion in operational profit and an increase of COP 187 billion in the exchange rate difference line item.
Operational results one may highlight those obtained in the gas transportation business and electricity distribution business in Colombia, which results explained, to a great extent, the increase in operational income. Operational income of Cusiana phase II provided momentum to the gas transportation business, whilst the operational and administrative adjustment of Empresa de Energía de Cundinamarca reflected the improved results of the electricity distribution business.
In the non operational area, the revaluation of the Colombian peso stands out with respect to the valued of the debt, which is mainly in US$. There is also evidence of a strong increase in decreed dividends, particularly those of Emgesa, Condesa and Gas Natural, which also explain improved operational results and also why in 2010 dividends were decreed based on the anticipated cutoff financial statements, dividends that would have been otherwise decreed in 2011. Lastly, there is evidence of an increase in financial expenses which is something quite specific as it related to costs incurred by EEB and TGI in the international bonds restructuring process and which allowed both companies to reduce substantially its financial liabilities, thus expecting reduced financial expenses in the future.
About Grupo Energía de Bogotá
Grupo Energía de Bogotá is a leading corporation in the Colombian energy sector. Through EEB it transports electricity to the largest and most significant markets in the country, in addition to exercising control over the largest natural gas transporter in Colombia, TGI S.A. In Perú, its company CONTUGAS has a 30 year concession to transport and distribute natural gas in the Ica Department, while Calidda distributes natural gas in Lima and Callao. In the same country, together with ISA, it participates in REP S.A. and TRANSMANTARO S.A. that operate 63% of the electricity transmission system in that country. In 2010 it incorporated TRECSA - Transportadora de Centroamérica S.A.- , a company which will build the largest and most important infrastructure power project in Guatemala and will render electricity transmission services as of q 2013. Furthermore, it has a portfolio of investments in significant companies in the power sectos, amongst which one may highlight CODENSA S.A., EMGESA S.A., GAS NATURAL S.A., la Empresa de Energía de Cundinamarca - EEC and la Electrificadora del Meta, EMSA and to a lesser extent ISA and ISAGEN.
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