Grupo Energía Bogotá S.A. (GEB) Q3 2024 earnings summary

Executive summary

• Revenue for 3Q 2024 reached COP 2.022 trillion, with adjusted EBITDA at COP 1.208 trillion and controlled net income at COP 802 billion; for the first nine months, revenue was COP 5.9 trillion, adjusted EBITDA COP 4.2 trillion, and net income COP 2.1 trillion.

• Net income rose 5.4% year-over-year to COP 849 billion, with stable results amid sectoral, regulatory, and climate challenges.

• Diversification across energy and gas chains and geographies supported stable and competitive results.

• Recognized among Forbes Colombia's 25 leading companies in sustainability; Fitch Ratings affirmed BBB International and AAA National ratings with a stable outlook; Moody's upgraded rating to Ba1.

• Dividend yield reached 13.2%, with COP 251 billion approved for distribution.

Financial highlights

• Operating revenues grew 8.1% year-over-year in 3Q 2024 to COP 2.022 trillion, mainly due to higher revenues in natural gas distribution (up 11.1%) and energy transmission (up 14.3%).

• Adjusted EBITDA for the quarter grew 33.4% year-over-year, with a 155% increase in energy transmission segment and 23% in energy distribution.

• Operating income rose 11.3% year-over-year; net financial expense decreased by 8.8%; income taxes dropped 38.4%.

• Organic CAPEX for the quarter was USD 117 million, up 14% year-over-year, mainly in transmission projects.

• Dividend yield at 13.2% and LTM ROE at 12.9%.

Outlook and guidance

• Five-year CAPEX projection increased 14% to USD 1.6 billion, reflecting expanded investments in transmission and distribution projects.

• Cálidda is negotiating a major concession extension in Peru, targeting seven regions and USD 400–500 million investment.

• Continued focus on maintaining leverage below 4x and investment-grade rating.

• Growth opportunities in Brazil remain, but no major transactions expected in the near term.

• Continued focus on regional growth, especially in Brazil, supported by material dividends from Argo.