Company News Jul 30, 2021 1:00 PM
Emgesa announced its financial results for the first half of the year.
Revenues went from CoP$2.1T in 1H20 to CoP$2.2T in 1H21, La Republica reported.
EBITDA increased 6.8% to CoP$1.35T in 1H21 compared to CoP$1.27T in the first period of 2020.
Emgesa highlighted that this led to the company’s earnings also growing by 13.8%; this metric went from CoP$719B in 1H20 to CoP$818B in 1H21. This was thanks to a decrease in financial expenses due to a lower debt balance and a reduction in its average cost.
Emgensa highlighted that cash generation allowed it to amortize 60% of its international bonds without refinancing and to meet new funding needs with short-term borrowing.
In addition, the Extraordinary General Shareholders’ Meeting of Emgesa approved the merger commitment to create Enel Colombia.
Codensa, Enel Green Power Colombia and ESSA2 will unify to form this single company.
The assembly considered that certain synergies could be generated, as participating companies operate substantially in the same sector and could generate greater benefits.
“The merger appears to be an ideal option to unify the companies’ operations, reducing the impact of fixed costs by eliminating duplicated functions,” Emgesa explained.
The company highlighted that the total equity value of this new company could be CoP$30.8T.
“It is a win-win deal in which both shareholders are increasing their value. Under a litigation scenario there is always a loser, when there is an agreement there are two winners. Also, this agreement allows us to renew the public-private partnership that has been so successful over the years,” Enel Colombia’s Lucio Rubio said.
Bottom-Line: Enel Colombia will undoubtedly be a powerful player in the Latin American energy market.
This new company will play an important role in the process of energy transition and growth of the sector.