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; YTD revenue reached COP 3.8 trillion, with stable results but impacted by peso revaluation and reduced hydrology from El Niño.

• Net income for Q2 was COP 633 billion, down 50% year-over-year in some reports and 14.7% in others, 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 to be received from Argo.

• Strategic alignment of corporate governance and new board committees were implemented.

Financial highlights

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

• Natural gas distribution revenues fell 5% due to FX effects, but increased in local currency for Cálidda and Contugas.

• Energy transmission revenues rose 16% due to higher regional system revenues, offsetting FX impacts.

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

• Administrative expenses increased 13.3% YoY, driven by higher depreciation, provisions, and personnel costs.

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 estimates up to 3.5%.

• El Niño's impact on electricity prices and demand is expected to ease with improved rainy season; La Niña onset now forecast for Q4 2024.

• Regulatory changes (CREG Resolution 102 008) support TGI's asset value and cost recovery, improving financial outlook.

• 2024 CAPEX outlook includes environmental license approvals for major projects, with 79% of 6M24 CAPEX led by energy transmission and natural gas distribution.