Grupo Energía Bogotá S.A. (GEB) Q2 2024 earnings summary

Executive summary

• Operational revenue for Q2 2024 was COP 1.9 trillion, flat year-over-year, with YTD revenue at COP 3.8 trillion; performance was impacted by peso revaluation and reduced hydrology from El Niño.

• Net income for Q2 was COP 633 billion, down 50% year-over-year, mainly due to FX losses and increased administrative expenses from TGI provisions.

• Adjusted EBITDA for the last six months was COP 3 trillion, down 5.2% year-over-year, with LTM adjusted EBITDA at COP 4.7 trillion.

• Dividend distributions included COP 1.2 trillion paid (50% of approved), with a yield of 13.2%, and BRL 580 million declared by Argo.

• ESG milestones include external verification of carbon footprint across all subsidiaries, making the group the first in Colombia to achieve this certification.

Financial highlights

• Operational revenues decreased 0.9% year-over-year, mainly due to 11% peso revaluation against the USD.

• Natural gas distribution revenues fell 5.2% due to FX effects, but increased in local currency for Cálidda and Contugas.

• Energy transmission revenues rose 16% year-over-year, offsetting FX impacts.

• Operational costs fell 1.9% year-over-year, mainly from lower natural gas distribution costs.

• Net controlled income for Q2 2024 was COP 544 billion, down 14.9% year-over-year.

Outlook and guidance

• Five-year CapEx projection remains at $1.4 billion, focused on energy transmission and gas infrastructure.

• Colombia's GDP growth for 2024 is projected at 1.1%, lagging behind regional peers; Peru and Brazil expected at up to 3.5%.

• El Niño's impact on electricity prices and demand is expected to ease with improved rainy season, but reservoir levels remain low.

• La Niña phenomenon anticipated to be less intense and delayed to Q4 2024.

• Major CAPEX execution in 2024 includes environmental license approvals and focus on transmission and gas distribution.