financial report - isagen · 2 financial report as of december 2013 isagen s.a. e.s.p. proposal to...

1Financial Report as of December 2013 ISAGEN S.A. E.S.P.

At the close of 2013, ISAGEN reported COP 2,002,814 million in revenue, 16% more than what was obtained in 2012. Operating profit was COP 581,013, 16% higher, EBIDTA was COP 692,636, 13% higher, and the net profit for the year was COP 433,966 million, which was 6% less than the previous year.

Below are the main occurrences with respect to industry regulation, the energy market and the Company’s financial results.

Industry RegulationCREG Regulatory Agenda INDICATIVE 2014

As of December 2013

Financial Report

In December, the CREG regulatory agenda for 2014 was published, which consists of the requests of the agents, the progress of the different topics in 2013 and the definition of the priorities to be taken into account in 2014, as follows:

1. The promulgation of the final Resolution of the Organized Regulated Market (ORM) in the first quarter, the implementation of the shortage risk bylaw, measures to promote competition and adjustments to the Reliability Premium auctions.

2. A study is expected to be published for the alignment of the Andean Electrical Interconnection System Initiative (SINEA in Spanish).

The following were the main regulations issued in Q4 2013:

The results of the natural gas negotiations were published as established in CREG Resolutions 089, 122 and 130 / 2013.

CREG Circular 070 / 2013

3. The remuneration methodologies will be established for distribution, sale and transmission, which are issues that were widely discussed in 2013 and are priorities in the ECSIM recommendations.

4. On the topic of natural gas, gas sales will continue to be implemented and the selection of the natural gas market manager is a relevant topic, along with the publication of the results of the assessment of the natural gas sales processes and the process of use it or sell it, which occurred at the end of 2013.

2 Financial Report as of December 2013 ISAGEN S.A. E.S.P.

Proposal to establish an Organized Regulated Market (ORM) as part of the transactions of the Wholesale Energy Market. The above proposal of ORM had been submitted by the CREG in 2011 in Resolution 090 / 2011. Unlike the 2011 version, the latter has more depth on the matter of credit risk coverage and covers the following aspects:

1. The product for the ORM of the Regulated Market has a profile that very closely follows the current intake profile of the country’s regulated demand. The product has a commitment period of one calendar year, with an hourly amount depending on the type of day.

2. The ORM will replace the Energy Purchase Bidding System for the RM (CREG Resolution 020 / 1996). In addition, there is the possibility that Non-regulated Market (NRM) resellers can also buy a specific product within an auction at the same time as the RM product.

3. Allocations shall be determined by Classic Dutch Auction or First-Price Sealed-Bid Auction (in the event of insufficient bidders). The energy requirement for one year is to be covered with allocations from at least two auctions.

4. The transactions carried out on the ORM for RM give rise to seller obligations against the market centralized and managed by the Commercial Exchange System (ASIC in Spanish), a duty that is performed by the company XM. Bilateral relationships are created for ORM transactions for the NRM.

5. The product price shall be the auction’s closing price. That will be the price for remuneration of the products allocated for all the selling agents.

6. There will be a secondary market.

7. Credit Risk Management on the ORM shall be carried out through guarantees. 3 types of guarantees have been established for the ORM:

• Participation: bid security in the submittal of bids for the Auction.

• Permanence: For the agent to honor the product from the time of allocation of the obligation to the maturity thereof.

• Commitment Period: covers the payments resulting from the obligations signed with ORM products.

8. The guarantees for buyers are bank endorsements, letters of credit and bank guarantees. There is also the option of using the Counterparty Credit Bureau and the transfer of credit rights.

CREG Resolución 117 / 2013




This Resolution contains the set of provisions that regulate the rights and obligations of resellers, as well as the rights and obligations of non-regulated users when they participate directly on the wholesale natural gas market.

This is part of a set of rules meant to adjust the regulatory framework of the natural gas sales activity issued by the Energy and Gas Regulatory Commission throughout 2013 in order for sales activities and transactions between sector agents to be carried out more smoothly and efficiently and to guarantee the provision of service to end users.

The following, among other things, are established:

• Requirements companies must meet to be a natural gas reseller.

• Obligations to provide information to the SSPD (Superintendence of Residential Public Utilities), CREG and Market Manager. Obligations of resellers in the natural gas wholesale market to submit to the Sole Natural Gas Transport Regulations (RUT in Spanish), create coverage mechanisms and submit to the assignment of amounts remaining after auctions.

• The relationship between resellers and distributors and the obligations that each of the agents has with the other, as well as the relationship between resellers.

• The information to be sued for the payment and billing for the supply, transport, and distribution of natural gas contracted in the primary and secondary natural gas market.

• Responsibilities of the suspension, cut off, reconnection and reinstatement of services.

This Resolution opened the process to select the natural gas market manager and established the rules that will be applied for the process.

The purpose of the rule is to optimize commercial relations between the agents participating on the natural gas market in Colombia, through an entity that will manage the supply and demand information of the different user sectors of the fuel in a centralized manner.

According to the timetable included in the Resolution, the market manager shall be selected and operating by October of 2014.


This Decree regulates Articles 9 and 17 of Law 56 / 1981, establishing the guidelines to Declare the geographical areas in which projects are carried out as Public Use and the execution of work for the generation, transmission and distribution of electric power.

It clarifies issues related with the necessary documentation for the Declaration of Public Use, such as: certificates, a description of the project, the concept of technical feasibility of the connection, geographic information of the area to be declared public use, certification from the Ministry of the Interior regarding the presence of ethnic groups in the project area, certificate of the existence of legally constituted indigenous reservations and collective land ownership by ethnic groups in the area within the project polygons, among others.

In addition, it specifies the demands of the entities that own the properties, once the first purchase option expires, in order to protect the rights of the property owners related to the Declaration of Public Use; it also clarifies issues associated with expropriation and dispossession.

MME Decree 2444 / 2013

CREG Resolución 204 / 2013 After receiving comments from the agents, the CREG considered it advisable

to adjust some of the articles of CREG Resolution 089 / 2013 that defined the rules for Gas Sales, by extending deadlines for implementation. The changes are due to the fact that there is no market manager yet.

The Resolution will enable the acceptance nominations in excess of the contracted amount, for both supply and transport up to June 2014.

Finally, buyers and sellers may transitionally negotiate the purchase and sale of gas directly through interruptible contracts effective up to November 30, 2014.


Energy Market

Energy Demand

Accumulated Year Tracking

National EnergyDemand

2.8%

ISAGEN EnergyGeneration

7%

Average spotprice 2013

Averange contractprice 2013

178.8 $/kWh 125.8 $/kWh

In 2013, the Domestic Demand for electrical energy in Colombia was 60,890 GWh, which is a 2.8% increase com-pared to 2012, which was 59,370 GWh. The variation of the non-regulated demand during the year was 2.5%, while the variation of the regulated demand was 3.1%.

2012 2013

Demand GWh

Number of days

Average daily

demand

Demand GWh

Number of days

Average daily

demand

Growth 2013 / 2012

%Business days 41,295 245 168.5 42,398 245 173.1 2.7

Saturdays 8,126 51 159.3 8,365 51 164.0 2.9

Sundays/holidays 9,949 70 142.1 10,127 69 146.8 3.3

Total Mes 59,370 366 162.2 60,890 365 166.8 2.8

The increase in the Energy Demand was driven mainly by the manufacturing industries and mining and quarrying.

Source: XM

National Energy Demand (GWh)

Source: XM - Portal BI

National Energy Demand 2012National Energy Demand 2013

January

4,807

5,025

February

4,631

4,610

March

5,034

5,033

April

4,725

5,106

May

5,033

5,163

June

4,894

4,955

July

5,034

5,206

August

5,104

5,196

October

5,070

5,249

4,980

5,086

September November

5,034

5,176

December

5,025

5,085


January February March April May June July August September October November December

SPOT PRICE 2012 SPOT PRICE 2013

185.0 182.2 137.7

54.2 78.5 119.8 57.5 47.0

234.3 139.1

87.4

January February March April May June July August September October November December

236.5 218.0 213.5 163.0141.2 151.9 143.8

78.6 139.3 183.6

CONTRACT PRICE 2012 CONTRACT PRICE 2013

126.0 126.2 124.1

121.7 122.1 121.0 120.5 119.3

126.6 123.8

118.5

127.6125.1 125.3 125.0

118.0 120.4 122.0 122.5 121.1 122.0

126.4 126.9 126.3

200.2 181.4166.3

In 2013, spot market prices had an upward trend, due to the low water levels and low reserves of the National Electrical Grid. On the other hand, the increased thermal power generation was also one of the determining factors of energy prices on the spot market.

With regard to contract prices, evolution remained lower than expected, given the 0.5% decrease in the IPP over the year.


Spot Market Price ($/kWh)

Average Contract Price ($/kWh)

Spot Market Prices



Energy GenerationBy the end of 2013, ISAGEN’s accumulated power generation totaled 10,322 GWh, 7% up from the Company’s generation in 2012, which was 9,684 GWh.

Generation 2012

Generation 2013

January

988

872

February

839

799

March

849

951

April

880

784

May

1.103

886

June

663

872

July

624

744

August

533

913

October

819

882

877

751

September November

852

978

December

655

890


Generation by ISAGEN Power Plants (GWh)

2013

2012

San Carlos

Miel I

Jaguas

Termocentro

Calderas

Amoyá

0

6,170.1

6,805.2

1,506.91,473.0

694.2810.5

1,614.6515.8

79.276.5

259.7-

The increased generation during the year was the result of several factors, including the start-up of the Manso River Diversion to the Miel I Power Plant reservoir, the commercial start-up of the Amoyá River Hydroelectric Power Plant - La Esperanza - in May and the significant increase in the thermal power generation at the Termocentro Power Plant.

In 2013, the weather conditions, operational availability of the power plants and increased thermal power generation enabled ISAGEN to generate 16.95% of the total energy delivered to the National Electrical Grid.


Source: XM

Source: XM

The decreased hydraulic generation is due to the fact that during 2013 the water supplied to the National Electrical Grid was below the historical average, and therefore was not sufficient to increase the reserves in the system.

The following diagram shows the percentage of the water levels with respect to the historical average. The red line represents the water level of the last month of each year:

National Electrical Grid Reserves (GWh)

Hydroelectricity Contributions to the National Electrical Grid

Jan012006

April012006

July012006

Oct012006

Jan012007

April012007

July012007

Oct012007

Jan012008

April012008

July012008

Oct012008

Jan012009

April012009

July012009

Oct012009

Jan012010

April012010

July012010

Oct012010

Jan012011

April012011

July012011

Oct012011

Jan012012

April012012

Jan012013

April012013

July012013

Oct012013

July012012

Oct012011

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

GWh

14,000.00

16,000.00

The following diagram shows the monthly behavior of the National Electrical Grid reserves since the year 2006, highlighting the last quarter of each year. As you can see, in 2013 the reserves were low compared to previous years, which has decreased hydroelectric generation.

Jan/

00

25

0

Jan/

01

Apr/

00

Jul/0

0

Oct/0

0

Apr/

01

Jul/0

1

Oct/0

1

Jan/

02

Apr/

02

Jul/0

2

Oct/0

2

Jan/

03

Apr/

03

Jul/0

3

Oct/0

3

Jan/

04

Apr/

04

Jul/0

4

Oct/0

4

Jan/

05

Apr/

05

Jul/0

5

Oct/0

5

Jan/

06

Apr/

06

Jul/0

6

Oct/0

6

Jan/

07

Apr/

07

Jul/0

7

Oct/0

7

Jan/

08

Apr/

08

Jul/0

8

Oct/0

8

Jan/

09

Apr/

09

Jul/0

9

Oct/0

9

Jan/

10

Apr/

10

Jul/1

0

Oct/1

0

Jan/

11

Apr/

11

Jul/1

1

Oct/1

1

Jan/

12

Apr/

12

Jul/1

2

Jan/

13

Apr/

13

Jul/1

3

Oct/1

3

Oct/1

2

50

75

100

125

150

175

200

225

250

(% media)


2013 fourth quater results

Revenue

EnergyGeneration

2%

OperatingRevenue

8%

OperatingCosts

OperatingProfit

EBITDA NetProfit

11% 16% 16% 14%

Main Figures Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q4 2012 % Variation

Energy Generated (GWh) 2,622 2,542 2,547 2,611 2,549 2

Revenue (Millions of $) 494,864 508,742 484,814 514,395 476,952 8

Operating Costs (Millions of $) 302,539 333,690 340,979 328,166 295,856 11

Operating Profit (Millions of $) 167,297 147,885 118,213 147,618 127,625 16

Operating Margin 34% 29% 24% 29% 27% -

EBITDA (Millions of $) 192,790 173,803 146,967 179,076 154,596 16

EBITDA Margin 39% 34% 30% 35% 32% -

Income Tax Allowance (Millions of $) (44,029) (34,528) (21,401) (30,229) 1,765 -1813

Net Profit (Millions of $) 110,891 109,852 93,677 119,544 139,034 -14

Net margin 22% 22% 19% 23% 29% -

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q4 2012 % Variation

Domestic contracts 332,345 344,942 347,792 345,022 341,938 1

International Contracts 58,295 77,217 44,111 18,844 35,182 -46

Spot Market Transactions 68,624 56,394 74,489 88,383 50,627 75

AGC 22,336 11,598 10,546 29,472 27,477 7

Deviations 265 240 220 244 328 -26

Gas 11,504 16,483 6,113 29,300 19,605 49

Technical Services 1,495 1,868 1,542 3,130 1,795 74

TOTAL 494,864 508,742 484,814 514,395 476,952 8

The revenue for Q4 of the year 2013 was COP 514,395 million, 8% up from revenue produced in the same quarter of the previous year. This behavior in the quarter’s revenue is mainly due to the following:

• Energy sales in contracts during the last quarter of the year were very similar to those of the other quarters of 2013, with a 1% increase compared to those of the same quarter of the previous year.

* Amounts in millions of pesos


Source: ISAGEN

• Revenue from power sales to Venezuela during the quarter under analysis showed a significant decrease compared to previous quarters. This is due to the start-up of two generation resources in western Venezuela, the Don Luis Zambrano 450 MW thermal power plant and the Fabricio Ojeda 510 MW hydroelectric power plant. This reduction occurred especially in the month of December.

Sales to Venezuela Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013

Millions of $ 19,247 33,374 40,548 35,182 58,295 77,217 44,111 18,844

GWh 61.85 116.20 150.77 149.70 199.10 275.00 177.60 62.90

Termocentro Generation Q1 2013 Q2 2013 Q3 2013 Q4 2013

GWh 467.36 384.52 493.42 256.16

Revenue Q4 2012 Revenue Q4 2013

• Revenue from energy sales on the spot market increased thanks to the higher energy prices and the increased generation, along with the optimization of the electricity market operation. This income accounted for 17% of the total revenue for this quarter.

• In the last quarter, Automatic Generation Control (AGC) Services increased, and resulting revenue represented 6% of the company’s total revenue.

• Revenue from gas sales were greater during the last quarter due to the gas available for sale given the re-duction in thermal power generation during the quarter as a result of general maintenance scheduled for Unit No. 2 and inspection of hot parts.

• Revenue from technical services during the last quarter were significantly greater than those reported in previous quarters, accounting for 0.7% of the quarter’s total revenue.

72%DomesticContracts

7%International

Contracts

11%Spot MarketTransactions

6%AGC

4%Natural

Gas

0.4%Others


4%International

Contracts


6%AGC

6%Natural

Gas

0.7%Others


Operating Costs

Operating costs for the quarter totaled COP 328,166 million, 11% greater than that recorded for the same quarter in 2012. This behavior of costs is due to the following factors:

• Energy purchases accounted for 30% of the total operating costs in the quarter, broken down as follows:



Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q4 2012 % Variation

Energy purchases 104,176 129,063 126,639 97,147 104,774 -7

Usage and connection to the National Transmission System charges

56,267 61,058 57,052 54,544 55,569 -2

CND, CRD'S and SIC 2,003 2,047 1,918 2,026 2,060 -2

Law 99 of 93 transfer 9,584 9,380 9,259 9,797 9,284 6

FAZNI contribution 3,009 2,911 2,914 2,988 2,995 0

Depreciation 23,847 24,000 26,924 29,133 24,853 17

Fuels 63,317 61,013 67,827 59,907 45,733 31

Other operating costs 40,336 44,218 48,446 72,624 50,588 44

TOTAL 302,539 333,690 340,979 328,166 295,856 11

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q4 2012 % Variation

ENERGY PURCHASES 104,176 129,063 126,639 97,147 104,774 -7

Energy purchases 55,447 70,640 80,947 57,247 63,959 -10

Reliability premium refund 26,039 27,419 22,820 24,258 21,846 11

Restrictions and other 22,689 31,004 22,872 15,642 18,969 -18

In the last quarter of the year, energy purchases were lower than those of previous quarters as a result of the increased generation and daily optimization on the electricity market. Energy purchases dropped 10% compared to the last quarter of 2012.

In any case, the final value of the energy purchases has had an upward swing due to the increased energy prices on the spot market.

• Fuel expenditures accounted for 18% of the quarter’s total operating costs. Expenditures on this account were lower than previous quarters due to the decrease in thermal power generation, which left gas availa-ble for sale.


Source: ISAGEN

Operating Costs Q4 2012 Operating Costs Q4 2013

• With respect to other operating costs, they showed a significant increase compared to previous quarters, mainly due to the accrual of personnel expenses associated with year-end adjustments and the contributions to the General Comptroller of the Republic, the Superintendence of Residential Public Utilities, the CREG for 2013, among others. There were also surveillance, maintenance and environmental expenses mainly; they were already budgeted, but they were only executed up to the last quarter of the year.

With regard to the same quarter of the previous year, in addition to what was mentioned in the paragraph above, this item reflects the higher costs of personnel expenses and others associated with the Amoyá Plant, which were being capitalized

35%Energy

Purchases

19%Charges for use and

connection to NTS

8%Depreciation

15%Fuels

17%Otros operation

expenses

5%Law Transferand others

30%Energy

Purchases

17%Charges for use andconnection to NTS9%

Depreciation

18%Fuels

22%Other operation

expenses



Cumulative Results 2013

7% 16% 18% 16% 13% 6%

EnergyGeneration

OperatingRevenue

OperatingCosts

OperatingProfit

EBITDA NetProfit

Main Figures 2013 2012 % Variation

Energy Generated (GWh) 10,322 9,684 7

Revenue (Millions of $) 2,002,814 1,731,539 16

Operating Costs (Millions of $) 1,305,374 1,106,249 18

Operating Profit (Millions of $) 581,013 501,455 16

Operating Margin 29% 29% -

EBITDA (Millions of $) 692,636 610,492 13

EBITDA Margin 35% 35% -

Income Tax Allowance (Millions of $) (130,187) (48,682) 167

Net Profit (Millions of $) 433,966 460,903 -6

Net margin 22% 27% -

Revenue

2013 2012 % Variation

Domestic contracts 1,370,101 1,300,901 5

International Contracts 198,467 128,351 55

Spot Market Transactions 287,890 164,480 75

AGC 73,952 47,198 57

Deviations 969 987 -2

Gas 63,400 81,819 -23

Technical Services 8,035 7,803 3

TOTAL 2,002,814 1,731,539 16

At the close of 2013, ISAGEN’s revenue rose by 16% compared to the previous year to approximately COP 2,002,814 million. This revenue trend is mainly due to:

*Amounts in millions of pesos


• Revenue from energy sales through national contracts accounted for 68% of total operating income for the year. These revenues were 5% higher than the previous year as a result of better prices of contracts.

• Revenue from energy sales to Venezuela increased 55% compared to the previous year, mainly due to the larger quantity sold and better pri-ces, where we went from exporting 478 GWh in 2012 to 715 GWh in 2013, which has been the highest on record so far.

• The increase in revenue from energy sales on the spot market was due to the higher energy prices, increased generation and the optimization of the commercial operation. Revenue on this account represented 14% of the total revenue, with a 75% increase compared to 2012.

• Revenue from gas sales dropped significantly in 2013 due to the use of gas to operate the Termocentro thermal power plant, whose generation increased 211% this year.

Source: ISAGEN

Revenue 2012 Revenue 2013


7%International

Contracts


1.6%AGC

5%Natural

Gas

1%Others


10%International

Contracts


4%AGC

3%Natural

Gas

0.4%Others


Operating Costs



At the close of 2013, ISAGEN’s operating costs amounted to COP 1,305,374 million, 18% up from figures reported for the same period in 2012. This in-crease in costs is due to the following factors:

• Energy purchases include the following

Energy purchases increased 35% in 2013, which is less than 2012 thanks to ISAGEN’s increased generation that is directly related to the increase in the refund of the reliability premium.

2013 2012 % Variation

Energy purchases 457,025 383,573 19

Usage and connection to the National Transmission System charges

228,921 222,751 3

CND, CRD'S and SIC 7,994 7,259 10

Law 99 of 93 transfer 38,020 35,885 6

FAZNI contribution 11,822 11,386 4

Depreciation 103,904 100,096 4

Fuels 252,064 170,111 48

Other operating costs 205,624 175,188 17

TOTAL 1,305,374 1,106,249 18

2013 2012 % Variación

ENERGY PURCHASES 457,024 383,572 19

Energy purchases 264,281 195,303 35

Reliability premium refund 100,536 83,176 21

Restrictions and other 92,207 105,093 -12


Operating Profit and EBITDA

Both the operating margins and the amount of EBITDA and operating profit in Q4 recovered in comparison with the two previous quarters of the year, due to the improved hydrological conditions for ISAGEN, the thermal power generation of Termocentro and the optimization of the commercial operation. Analysis of the current year shows the result of margins equal to those of 2012. However, it is important to point out the growth in the amounts of EBITDA and operating profit of 13% and 16% respectively.

Although 2013 has been a year of high levels of purchases on the spot market and increased thermal power generation, the optimization of the scheduling operation on the spot market and the increased revenue from energy sales to Venezuela and on the spot market led to satisfactory operational results.

Operating Costs 2012 Operating Costs 2013

Source: ISAGEN

35%Energy

Purchases

20%Charges for use andconnection to NTS

9%Depreciation

15%Fuels

16%Otros operation

expenses


35%Energy

Purchases

18%Charges for use andconnection to NTS

8%Depreciación

19%Fuels

16%Other operation

expenses



EEBITDA and EBITDA Margin (quarter and accumulated)

Operating Profit and Margin (quarter and accumulated)

Net Profit

At the close of 2013, the Company’s net profit was COP 433,966 million, 6% lower than last year. This number was mainly influenced by the income tax allowance and the valuations of fixed assets.

1Q 2Q 3Q 4Q

43%

38%

29%

39%

34%

30%

35%

32%

180,

147

192,

790

154,

397

173,

803

121,

322

146,

967

154,

596

179,

076

2012 2013 2012 2013

EBITDA $610,462 $692,636

EBITDAMargin

35% 35%

13% 2012 2013

1T 2T 3T 4T

36%

31%

24%

34%

29%

22%

27%

29%

152,

581

167,

297

126,

289

147,

885

94,9

61

118,

213

127,

625

147,

618

2012 2013 2012 2013

OperatingProfit $501,455 $581,013

Operating Margin 29% 29%

16% 2012 2013

* Amounts in millions of COP

Source: ISAGEN


Source: ISAGEN


Net Profit and Margin (quarter and accumulated)

Income tax allowance Ordinary CREE Deferred Total

Quarter 1 26,883 13,470 3,676 44,029

Quarter 2 17,281 11,602 5,644 34,527

Quarter 3 6,165 8,203 7,033 21,401

Quarter 4 11,289 12,212 6,729 30,230

TOTAL 61,618 45,487 23,082 130,187

Among the non-operational figures, the variation in other non-operating income and expenditures stands out. It is mainly due to the entry of the allowance of COP 4,138 million and allowance recovery of COP 8,639 million from the appraisal of fixed assets carried out every three years by experts.

Throughout the year, the Company’s net profit was affected by the income tax allowance made when implementing the country’s tax reform, and specifically due to the implementation of the CREE tax provision.

The chart below illustrates the income tax allowance entered in 2013.

1Q 2Q 3Q 4Q

29%

27%

19%

22% 22%21% 23%

29%12

2,12

3

110,

891

111,

799

109,

852

87,9

54

93,6

77

139,

034

119,

544

2012 2013 2012 2013

NetProfit

$460,903 $433,966

Net Margin

27% 22%

6% 2012 2013


Source: ISAGEN


Source: ISAGEN




Assets As of December 2013

As of September 2013

Quarterly Variation %

As of December 2012

Year-to-Date Variation %

Current Assets 652,631 839,457 -22 782,073 -16.6

Non-current Assets 6,109,626 5,830,758 5 5,320,452 14.8

Revaluations 793,084 638,993 24 639,740 24.0

TOTAL ASSETS 7,555,341 7,309,208 3 6,742,265 12.1

Liabilities and Equity As of December 2013

As of September 2013

Quarterly Variation %

As of December 2012

Year-to-Date Variation %

Liabilities 3,525,891 3,553,393 -1 3,111,208 13.3

Equity 4,029,450 3,755,815 7 3,631,057 11.0

Balance Sheet

Liabilities

AssetsISAGEN’s total assets grew 3% in Q4 2013 and 12% over the entire year. Notable movements are described below:

• Liquidation of the cost of assets under construction to assets in operation in the amount of COP 50,095 million in the quarter, corresponding to the Manso Diversion and Amoyá Plant, which began commercial operations in June. The total assets recorded for the year was COP 571,182 million.

• In 2013, assets were acquired and construction projects were undertaken for COP 1,018,807 million. In Q4, total assets were COP 350,607.

• 24% growth in appreciation due to the appraisal of fixed assets carried out every three years.

The most significant entires in the Company’s liabilities were the disbursements of the loans required to finance the construction of the Sogamoso Project. During the year COP 418,736 million and USD 69.2 million were disbursed, COP 177,675 million and USD 10 million of which were disbursed in Q4.

The following are the disbursements made during the year and Q4:

2013

• COP 418,077 million Club Deal

• COP 659 million Leasing

• USD 14 million JBIC

• USD 55 million HERME

Q4

• COP 177,675 million Club Deal

• USD 10 million HERMES

In regard to the variation of equity, it is important to men-tion the 24% growth in the item of appreciation due to the appraisal of the fixed assets and the income for the year 2013.


ASSETS December 2013

December 2012

Variation %

CURRENT ASSETS

Available 228,943 178,118 29

Taxes and contributions 212 208 2

Investment portfolio 20,335 65 31185

Accounts receivable 282,205 373,286 -24

Expenses paid in advance 21,113 13,817 53

Inventories 89,434 84,591 6

Trust rights 347 120,125 -99.7

Other assets 10,042 11,863 -15

TOTAL CURRENT ASSETS 652,631 782,073 -16.55

ACCOUNTS RECEIVABLE

Clients

Difficult collections 0 1,976 -100

Other 1,435 2,409 -40

Project advances 23,205 19,225 21

Debtors Allowance 53,805 182,687 -71

Provisión deudores (1,435) (4,384) -67

77,010 201,913 -62

Investments 513 519 -1

Property, plant and equipment, net

5,838,541 4,968,707 18

5,839,054 4,969,226 18

Deferred and other asets

Deferred charges 33,978 36,438 -7

Other Assets 83,481 37,431 123

Acq. Property Leasing 76,103 75,444 1

193,562 149,313 30

TOTAL NON-CURRENT ASSETS

6,109,626 5,320,452 15

Revaluations 793,084 639,740 23.97

TOTAL ASSETS 7,555,341 6,742,265 12.1

LIABILITIES AND EQUITY December 2013

December 2012

Variation %

CURRENT LIABILITIES

Financial obligations 35,176 49,884 -29

Bond issuance premium 6,232 6,232 0

Accounts payable 182,918 300,697 -39

Taxes and contributions 51,555 49,878 3

Labor obligations 12,208 10,633 15

Estimated liabilities 67,053 12,583 433

Other liabilities 43,520 62,934 -31

TOTAL CURRENT LIABILITIES 398,662 492,841 -19

NON-CURRENT LIABILITIES

Exterior borrowings 593,004 488,737 21

Bond obligations 850,000 850,000 0

Bond premiums 34,713 41,022 -15

Club deal credit loans 1,084,250 669,178 62

Leasing lp 76,103 75,444 1

Equity tax 0 30,321 -100

Labor obligations 62,051 64,111 -3

Contractual taxes 56,252 46,306 21

Claims and litigations 2,929 1,176 149.1

Accounts payable 0 7,406 -100

Solidaridad fund deposit 1,070 1,012 6

Deferred income tax 366,857 343,654 7

TOTAL NON-CURRENT LIABILITIES

3,127,229 2,618,367 19.4

TOTAL LIABILITIES 3,525,891 3,111,208 13.3

SOCIAL CAPITAL

Authorized: 2,726,072,000 common shares with a unit value of $25

Subscribed and paid 68,152 68,152 0

130 E,T art reserve 755,188 699,059 8

Legal reserve 51,134 51,134 0

Surplus capital 49,344 49,344 0

Equity revaluation 1,113,794 1,113,794 0

Occasional reserve investments 784,187 568,330 38

FISCAL YEAR PROFIT 433,966 460,903 -6

Pgcp-amort accum exchange effect

-19,399 -19,399 0

Appreciation surplus 793,084 639,740 23.97

TOTAL EQUITY 4,029,450 3,631,057 11.0

TOTAL LIABILITY AND EQUITY 7,555,341 6,742,265 12.1

Balance SheetAs of December 31, 2012 and 2013


QUARTER 2013 Accumulated

Q1 Q2 Q3 Q4 2012 2013 Variation %REVENUE 494.864 508.741 484.814 514.395 1.731.539 2.002.814 16

Energy 481,866 490,390 477,159 481,965 1,641,917 1,931,380 18

Gas 11,504 16,483 6,113 29,300 81,819 63,400 -23

Technical Services 1,494 1,868 1,542 3,129 7,803 8,033 3

COST OF SALES 302,539 333,690 340,979 328,166 1,106,249 1,305,374 18Energy purchases 104,176 129,063 126,639 97,147 383,573 457,025 19Usage and connection charges to the NTS 56,267 61,058 57,052 54,544 222,751 228,921 3CND, CRD'S and SIC 2,003 2,047 1,918 2,026 7,259 7,994 10Act 99/93 transfer 9,584 9,380 9,259 9,797 35,885 38,020 6FAZNI contribution 3,009 2,911 2,914 2,988 11,386 11,822 4Depreciation 23,847 24,000 26,924 29,133 100,096 103,904 4Fuels 63,317 61,013 67,827 59,907 170,111 252,064 48Other operating costs 40,336 44,218 48,446 72,624 175,188 205,624 17

GROSS PROFIT 192,325 175,051 143,835 186,228 625,290 697,439 12

ADMINISTRATIVE EXPENSES 25,028 27,166 25,622 38,610 123,835 116,426 -6

OPERATING PROFITS 167,297 147,885 118,213 147,618 501,455 581,014 16

OPERATING MARGIN 34% 29% 24% 29% 29% 29%

NON-OPERATING INCOME

Interest 5,836 4,390 3,122 4,561 32,536 17,908 -45Loans 31 29 5 - 142 66 -54Exchange rate difference - 165 1,244 288 5,959 1,699 -71Other revenue 5,207 4,729 4,045 14,570 29,381 28,551 -3

11,074 9,313 8,416 19,419 68,018 48,224 -29

NON-OPERATING EXPENSES

Interest 8,591 10,550 7,986 7,154 41,872 34,281 -18Loans - 847 - 134 475 981 107Exchange rate difference 3,515 (2,345) 1,110 1,087 1,424 3,369 137Other expenses 11,345 3,766 2,455 8,889 16,117 26,454 64

23,451 12,818 11,551 17,264 59,888 65,085 9

PROFIT BEFORE TAXES 154,920 144,380 115,078 149,773 509,585 564,153 11

INCOME TAX ALLOWANCE (44,029) (34,528) (21,401) (30,229) (48,682) (130,187) 167

NET PROFIT 110,891 109,852 93,677 119,544 460,903 433,966 -6

NET MARGIN 22% 22% 19% 23% 27% 22%

Profit and Loss StatementAs of December 31, 2012 and 2013

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