Company News Oct 12, 2021 4:04 PM
EPM announced a strategy to get resources to finish the Hidroituango project.
The company plans to raise resources with the sale of its shareholding in UNE, to be used to finish the Hidroituango project, La Republica reported.
Martha Lucía Durán, EPM’s Executive Vice President of Finance, highlighted that EPM’s goal with the optimization of its portfolio is to improve its financial metrics and have resources to focus investment in units where it has full control of the operation.
“Ituango has a development level of over 85%, the project is running at full speed, and this is the issue on which we have to concentrate our efforts to guarantee that the work continues. The schedule is to start with the first two generation units in the second half of 2022, we are focused on meeting it,” Durán said.
Darío Amar Flórez, Vice President of New Business Innovation Technology of EPM, said that the money will be used to advance in elements such as electromechanical equipment at the site, the launching of power cables, the shielding of pressure wells, and underwater works, among others.
“We are focusing resources on a project that will not only improve the company’s revenues and EBITDA, but will also help us lower the debt-EBITDA ratio, and it is a project that EPM operates 100%. That is the importance of selling these shares,” Amar said.
Alejandro Jaramillo, Vice-President of Business Growth at EPM, said that this option of getting resources from companies that are not part of EPM’s core businesses was one of the recommendations given by international consultants.
Bottom-Line: EPM desperately needs to raise resources to move forward in Hidroituango, and the sale of non-strategic assets is a good alternative to get them. The challenge, however, is not only financial, with the Inspector General trying to force existing contractors to leave the project.