We work towards responsible growth that generates economic and social development and promotes long-term bilateral relationships with our stakeholders.
GRI (3-3) Our financial management is essential because it contributes to the company’s purpose of creating sustainable value over time for its shareholders and other stakeholders. Positive economic results are generated by directing coherently, managing responsibly and consciously optimizing the available resources, in harmony with the social and environmental environment in which we carry out our activities.
Our Management
GRI (3-3) (2-25) Our financial management creates value through processes that support continuity, take care of the business’ solvency and promote sustainable growth initiatives and strengthen the capital structure for the company’s expansion. These are some of the actions:
- Securing resources to support growth and ensure optimal capital structure.
- Financially structuring business cases to favor obtaining the rates of return desired by the company, with a margin on the cost of capital.
- Continuously monitoring interest rates, exchange rates and other macroeconomic variables, risks, accounting/tax regulations, and other topics.
- Managing partnerships to develop power generation projects that contribute to the stability of the energy portfolio.
- Accounting, tax and treasury management to guarantee business continuity and constant process improvement.
- Complying with activities governed by control entities and the transparent and timely communication of relevant information and the company’s periodic results.
Relevant Events in 2023
- There are the necessary resources for the growth and expansion of the company, in accordance with what has been projected.
- We maintained our investment grade AA+ credit rating.
- We achieved the growth and consolidation of investment platforms with new projects.
- We reorganized the company’s geographic presence and released debt.
- We had the necessary resources to start the share buyback program.
Sustainable credits
OWN INDICATOR C-FS-1 We have three sustainable credits from Bancolombia, Banco de Bogotá and IFC (International Finance Corporation), the latter revolving, tied to compliance with environmental, social and corporate governance indicators, and associated with energy efficiency and sustainable infrastructure solutions.
On the other hand, we have been issuing green bonds since 2018. This has allowed us to materialize our decisive and tangible commitment to sustainability, by executing projects that contribute to a model of growth and economic development, low in carbon emissions and resilient to climate change.
Business Progress
Home and Business Customers
In the sales business, our policy of purchasing energy in long-term contracts allowed us to offer stable rates to our more than 1.3 million customers in Valle del Cauca and Tolima. By optimizing energy purchases in contracts, we managed to keep the rate in both departments below the national average, despite the fact that we are still debiting the outstanding balances of the rate path that resulted from the reliefs of the pandemic period.
In 2023, we delivered 3,885 GWh with an annual growth of 5%, of which 2,354 GWh went to the regulated household market. In the business market, we sold 1,531 GWh.
We are creating mechanisms for massive access to credit, with a rapid approval program. The value of financed sales amounted to COP 85 billion for customers to be able to purchase products that improve their quality of life and optimize energy consumption at home.
Generation
Our installed generation capacity at the end of 2023 was 1,959.6 MW, of which 1,764.3 MW were in Colombia and 195.2 MW in Central America. More than 75% of our capacity comes from renewable sources. Our current configuration combines water assets with good reserves. For example, the Meriléctrica thermal power plant takes center stage at this time of low rainfall, as well as growing solar generation in Central America and additional coverage mechanisms.
In addition, we managed to have the plants ready. We executed investments to remotely operate minor plants from our control center and excellently managed the portfolio of contracts, purchases and sales on the energy stock exchange, which can be seen in a very good result for the year.
In Colombia, hydroelectric power reached 3,680 GWh-year, with a 29.5% decrease for the mentioned reasons, and the thermal energy produced by the Meriléctrica power plant totaled 378.3 GWh-year. The energy originated in Central America was 759.3 GWh-year, with a decrease of 4.6% due to the sale and transfer process of some assets in the second half of the year. Generation activities in Colombia recorded an EBITDA of COP 613.791 billion and had a return on capital employed (ROCE) of 13.2%.
New Growth Initiatives
enerBit is our new digital energy seller, a technological intrapreneurial venture with over 7,000 customers. It has developed a true disruption in the way of serving and interacting with customers, with product, service, monitoring and attention systems that allow it to grow exponentially. With their own hardware and software, the work team has a special digital culture and has achieved high ratings in service quality measurements
Celsia Internet, which was born in 2019 to take advantage of our optical fiber network, an asset we already had to connect substations and distribution assets, has a complementary use that generates additional income, adds profitability and allows us to solve Internet access problems for our customers. We are present in 23 municipalities in Valle and Tolima, with a differential and competitive offer. At the end of 2023, it reached more than 71 thousand customers and added COP 35.491 billion in revenue, one year ahead of initial forecasts. We must add the commitment we made to install free internet to each public school through which our optical fiber cable passes. Today, there are 352 schools connected with high-speed internet and more than 175,000 students benefited in Valle and Tolima.
Investment Platforms
In 2023 we ratified our strategic partnerships with high-level players. The total energy generated by these vehicles was 1,031 GWh, driven by the 629 GWh of thermal power of El Tesorito, followed by the 367 GWh of the C2 Energía solar farms and the 35 GWh of the Laurel photovoltaic systems.
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- Large-scale solar projects (>8MW)
- 300 MWp Capacity ’23
- 500 MW Capacity ’25E
Partners
Income
Where Are We Heading?
We currently have 124 MW under construction and another 156 MW in the development phase, which have a high probability of moving to the construction phase.
- Transmission and distribution projects
- BRAe
Partners
Income
Where Are We Heading?
We estimate an expansion of more than COP 1 trillion in the next 4 years.
- Distributed generation solar projects (>8MW)
- 34 MWp Capacity ’23
- 166 MW Capacity ’25E
Partners
Income
Where Are We Heading?
We have 58 photovoltaic systems in the construction phase, with a capacity of 42.5 MW. The goal is to reach more than 160 MW installed in the coming years.
- Natural gas thermal power plant
- 200 MW of installed capacity
Partners
Income
Where Are We Heading?
Maintaining the best quality support for the Colombian electrical system.
Main Results
GRI (3-3) Results of our Businesses in 2023:
We opened a new frontier with the pursuit of wind projects in Peru and, at the same time, we reorganized our presence in Central America, which will continue to focus full steam ahead on the solar portfolio. In addition, we closed the year with 18 operational projects in Honduras and 8 in Panama, totaling more than 42 MW of installed solar energy in the region, and we have a pipeline of an additional 31 MW that will be in operation by the end of 2024.
Consolidated income
(+11.6% Y/Y).
consolidated EBITDA
(+3.8% Y/Y)
Consolidated Net profit
(-21.2% Y/Y).
Consolidated net income decreased by 21.2% as a result of a 39% increase in financial expenses, an exchange difference expense of -$43.398 million related to the sale of some generation assets in Central America, and higher generation costs due to the El Niño phenomenon.
Taxes
We are responsible businessmen committed to paying taxes in the countries where we operate, thus contributing to the development and dynamization of the respective economies and their collective needs.
Generated and Distributed Value
Topic / Indicator | Own indicators | CSA S&P Indicator | SASB indicator | GRI indicator | TCFD | External assurance |
|---|---|---|---|---|---|---|
Generated and Distributed Value | IR | – | – | 201-1 | – | |
Sustainable Financing | C-FS1 | – | – | – | – |
Income: Resources from managing the company’s operation.
EBITDA: A financial indicator of the profitability of our company. It is calculated as earnings before interest, taxes, depreciation and amortization.
Net profit: The result after deducting all corresponding expenses and taxes from the income obtained by the organization
