Enel Colombia reports 85.1% 9-mo profit growth following March merger

Colombian power utility Enel Colombia booked a net profit of COP 2.31 trillion (USD 479.7m/EUR 478.0m) for the nine-month period through September, boosting the bottom line by 85.1% year-on-year, the company said on Wednesday.

The results are not perfectly like-for-like given the merger combination that created Enel Colombia from four entities in March this year. As the group explained, the 2022 nine-month financials correspond to results posted by the power generation business Emgesa between January and September, and the performance of the power distributor Codensa, renewables business Enel Green Power Colombia and Central American operations in March through September.

These results are compared to the performance of Emgesa alone between January and September 2021.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the period reached COP 4.63 trillion, 113.8% more compared to what Emgesa alone earned a year ago. Enel Colombia attributed the EBITDA growth to, among others, higher income which came on the back of higher electricity sales prices, larger demand, and a higher generation output thanks to above average hydro availability.

Operational revenues rose by 153.3% to COP 8.71 trillion.

Fixed costs rose as well, to COP 600.8 billion, as staff expenses increased, along with the minimum wage and the consumer price index compared to the same period in 2021. Once the distribution and the renewables business were absorbed, the merger also added to the cost increase, the company said.

During the nine-month period, the power company generated 10,422 GWh of electricity in Colombia, up by 7.9% year-on-year. The share of hydro in that was 97%, while thermal and solar power plants generated 2% and 1%, respectively, of the total volume.

In Central America, Enel Colombia produced 1,620 GWh with hydro and solar power.

(COP 1,000 = USD 0.208/EUR 0.207)

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