Positive financial statement of Empresa Energía de Bogotá at the closing of 3Q 2011
Bogotá Colombia, 10 November 2011
The company recorded consolidated operational profits with an increase of 26.4% and 16% EBITDA, when compared to the same period of the previous year.
Bogotá, 11 November 2011. Ratifying the soundness of its investment portfolio, Empresa de Energía de Bogotá, through its CEO, Mrs. Mónica de Greiff, reported positive results at the closing of 3Q 2011 with an increase close to COP84 billion in its operational profit, when compared to the same period of the previous year. This figure represents an increase of 26.4%.
Also, the company's cash generation - measured through EBITDA– grew significantly with a positive result of 16%, driven by better results of its controlled business and due to the acquisition of the natural gas distribution company, Calidda in Peru.
The performance was due in part to TGI results, the greatest natural gas carrier in the country, which at the closing of 3Q recorded in increase in operational profit amounting to 11%, in part due to the start-up of its three expansion projects –Guajira and Cusiana Fase I–. It is expected that upon start up of the third expansion project Cusiana Fase II by the end of this year it will achieve said result. Once the projects have been executed, TGI would have increased in transport capacity by around 55%.
On the other hand and as a result of the acquisition of shareholding control of Calidda at the beginning of this year, EEB began to consolidate the results of this company in its financial statements. Calidda is a company with exclusive rights for the distribution of natural gas in Lima and Callao. Currently it services around 60 thousand customers and its area has a potential greater than Bogota, a city that has around 1.6 million gas customers.
EEB reported a reduction in net profit, which is explained, mainly because the three companies - Emgesa, Codensa and Gas Natural – decreed dividends at the end of last year, based on an anticipated cut of its financial statements. This transitory situation that should revert in 2012 when EEB reflects in its financial statements the dividends decreed by these companies based on 2011 profits. In fact, net profits and EBITDAs of these three companies grew by around 4.5% and 8%, respectively, between 3Q and the same period during the previous year.
In addition, it is important to highlight significant milestones that took place during 2011 as the issuance of shares through which the market trusted EEB resources amounting to approx. US$400 million and that will be used to finance the expansion plan, valued in US$ 1.8billion.
In this regard, Mrs. De Greiff expressed that “the importance of the issuance is not only limited to the financial arena, as it is also about the incorporation of more than 8500 new shareholders, which was an important objective for the Group”.
Another relevant issue for the results obtained, were the resources from the international notes issuance - US$610million, 6.125%, 2021-, which will be totally used to pay notes issued by the company in 2007 -8.75%, 2014-. The company expected to reduce substantially the cost of its debt.
Thus, the soundness and trustworthiness of the company's investment portfolio as manager and headquarter of Grupo Energía de Bogotá, and it continues progressing firmly in its expansion plan that included electricity and natural gas transport and distribution project in Colombia, Perú and Guatemala.
About Grupo Energía de Bogotá
Grupo Energía de Bogotá is a leading corporation in the Colombian energy sector. Through EEB it transports electricity to a market enjoying one of the largest demand in the country and greatest in size, in addition it has control of the largest natural gas carrier in the country, TGI S.A. In Perú, it company CONTUGAS has a 30 year concession for the transportation and distribution of natural gas in the Ica Department, while CALIDDA is in charge of distributing natural gas in Lima and Callao. In that same country, ISA, participates in REP S.A. and TRANSMANTARO S.A., which operate 63% of the electricity transmission system in the country. In 2010, it incorporated TRECSA - Transportadora de Centroamérica S.A.- that will build the most important energy infrastructure project in Guatemala and will render electricity transmission services as of 2013. In addition, it holds a portfolio of significant investments in large companies in the energy sector, amongst which the following stand out CODENSA S.A., EMGESA S.A., GAS NATURAL S.A., Empresa de Energía de Cundinamarca - EEC and Electrificadora del Meta, EMSA and in a lesser scale ISA and ISAGEN.