Investor Report 1H 2014 0 - GEB · 0 Investor Report 1H 2014 Bogotá D.C., 12 August 2014 TABLE OF...
Transcript of Investor Report 1H 2014 0 - GEB · 0 Investor Report 1H 2014 Bogotá D.C., 12 August 2014 TABLE OF...
Investor Report
1H 2014
0
Bogotá D.C., 12 August 2014
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY AND HIGHLIGHTS ................................................................................................................... 1
1.1 Overview of Electricity and Natural Gas Sectors Served .......................................................................................... 1
1.2 Summary of Financial Results EEB 1H 2014 ........................................................................................................... 2
1.3 Highlights of EEB and Grupo Energía de Bogotá ..................................................................................................... 2
2. FINANCIAL PERFORMANCE OF GRUPO ENERGÍA DE BOGOTÁ .............................................................................. 6
3. PERFORMANCE OF CONTROLLING COMPANIES....................................................................................................... 9
3.2. DECSA – EEC ........................................................................................................................................................ 11
3.3. Transportadora de Gas Internacional - TGI ............................................................................................................ 12
3.4. CALIDDA ................................................................................................................................................................ 13
3.5. CONTUGAS ........................................................................................................................................................... 14
3.6. TRECSA ................................................................................................................................................................. 14
3.7. EEBIS Guatemala y Perú ....................................................................................................................................... 15
3.8. Empresa de Movilidad de Bogotá ........................................................................................................................... 15
4. PERFORMANCE OF COMPANIES WITHOUT CONTROL ........................................................................................... 16
4.1. EMGESA ................................................................................................................................................................ 16
4.2. CODENSA .............................................................................................................................................................. 19
4.3. PROMIGAS ............................................................................................................................................................ 20
4.4. GAS NATURAL ...................................................................................................................................................... 23
4.5. REP y CTM Perú .................................................................................................................................................... 24
5. Annexes ......................................................................................................................................................................... 26
Annex 1: Legal notice, clarifications and definitions of EBITDA included in this report ................................................ 26
Clarifications .......................................................................................................................................................................... 26
Annex 2: Definitions of EBITDA included in this report. Consolidated adjusted EBITDA reconciliation ...................... 26
Annex 3: EEB Consolidated Adjusted EBITDA UDM and Quarterly .................................................................................. 27
Annex 4: Link to EEB´s consolidated and stand-alone financial statements ................................................................... 28
Anexo 5: Technical and regulatory terms ............................................................................................................................ 28
Annex 6: Tables and graphics footnotes. ............................................................................................................................ 29
Annex 7: Overview of EEB .................................................................................................................................................... 31
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1. EXECUTIVE SUMMARY AND HIGHLIGHTS
1.1 Overview of Electricity and Natural Gas Sectors Served
Table N° 2 - Overview of the natural gas sectors 2Q 14
Colombia Perú
Reserves, proved and probable - TCF (2012) 5.508.00 23.1
Domestic demand - Mm cfd 1085.1 GBTUD 1,034 MMCFD
Change in domestic demand 2Q 14 / 2Q 13 -
% 6.20 -8.3%
Explanation for demand variation
The thermoelectric consumption experienced an increase of 23%, mainly due to hydrological conditions that remained on alert for the second quarter due to the high probability of occurrence of the El Niño phenomenon, raising the consumption within this sector.
The change in demand between 2Q 14 to 2Q 13 is -93 MMCFD due to lower domestic demand despite an increase in the consumption of Lima (in Lima increased by 26%).
Sources: UPME, CON, MEM, Osinergim
Table N° 1 - Overview of the electricity 1H 14
Colombia Perú Guatemala
Installed capacity – MW 14,699 8,339* 2,979
Demand - GWh 31,189 3,457 2,309
Demand growth 2Q 14 / 2Q 13
- % 4.3 5.1 2.8
Growth drivers 2Q 14 / 2Q 13
The growth of
electricity demand
presented a
higher growth for
the regulated and
unregulated
markets and
economic activity
related to mining
and quarrying
exploitation.
Two power plants began
operations; (i) Marcona
Wind Farm (Ica) began
to produce electricity (32
MW); (ii) Huanza
hydroelectric plant,
which began producing
at 100% capacity in May.
The Huanza
hydroelectric belongs to
Egehuanza, a subsidiary
of Cia. De Minas
Buenaventura and
provides 90.6 MW to the
system.
Demand was driven by better
economic performance,
installation of new networks,
new residential, domiciliary or
industrial circuits. Installed
capacity also increased
comparatively from the first
half of 2013, by the incursion
of new power plants, two
hydroelectric plant and solar
power.
Sources: XM, UPME, COES – Peru, AMM – Guatemala
* Value extracted from the COES Annual Statistics of 2013.
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1.2 Summary of Financial Results EEB 1H 2014
Table N° 3 - EEB´s consolidated financial indicators
COP Millions 2Q 14 2Q 13 Var.
Operating revenue 1,123,980 943,195 19.2
Operating income 434,354 340,898 27.4
Consolidated Adjusted EBITDA Qtrly. 322,220 232,594 38.5
Consolidated Adjusted EBITDA LTM 1,970,539 1,621,817 21.5
Dividends and reserves declared to EEB 863,450 799,800 8.0
Net income 956,772 718,900 33.1
Dividends and reserves declared by EEB 590,533 403,604 46.3
Latest international credit ratings L/T: S&P – May 14 BBB-; stable
Fitch – April 14 BBB-; stable
Moody’s - April 14 Baa3; stable
At the end of 1H 2014, the net profit of EEB, head of Grupo Energía de Bogotá –GEB-, closed at COP 956,772
million exceeding in COP 237,872 million the result obtained during the same period of the preceding year, meaning
an increase of 33%. This performance results primarily from the growth of operating profit in COP 93,456 million,
including operating results obtained by the natural gas distribution business in Peru (an increase in residential
connections in Cálidda and the commercial commissioning of Contugas) and electricity distribution in Colombia
(through Empresa de Energía de Cundinamarca -EEC-). On its part, Transportadora de Gas Internacional -TGI-,
largest natural gas transportation company in Colombia maintained its performance and consolidation in terms of the
generation of operating revenues and the EBITDA arising from recent expansions in its transport capacity.
Non-operating profit benefited from the increase of COP 63,650 million in dividends decreed in favor of EEB,
particularly those provided by Emgesa, Codensa and Gas Natural. On the other hand, the revaluation of the
Colombian peso during the first half of 2014 had a positive impact on the foreign exchange account, shifting from an
expense of COP 217,988 million during the same period of the preceding year, to a revenue of COP 27,552 million in
June of 2014; these records are for accounting purposes only and do not correspond to an inflow or outflow of cash.
The consolidated EBITDA LTM (Last Twelve Months) of GEB continued growing consistently until reaching COP
1.97 billion, representing an increase of 22% vis-à-vis the same period of 2013, and 11% vis-à-vis the closing of
2013, and 54% vis-à-vis the closing of 2012. The above reflects the permanent commitment of Grupo Energía de
Bogotá towards strengthening the operating performance of its affiliates.
1.3 Highlights of EEB and Grupo Energía de Bogotá
04.04.14 Empresa de Energía de Bogotá announced the acceptance by The Rohatyn Group (formerly Citi
Venture Capital International -CVCI) of its offer to acquire 31.92% of Transportadora de Gas Internacional (TGI)
for an amount of USD 880 million, increasing the direct and indirect participation of EEB in TGI to 99.97%. The
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above, as per decision dated December 11, 2013 whereby the Board of Directors of Empresa Energía de Bogotá
approved making an offer for this participation, which makes part of the 2013-2017 investment plan of the
Company valued at USD 7.5 billion and currently under execution.
14.04.14 On April 14 the incorporation of Empresa de Movilidad de Bogotá S.A.S. E.S.P., in which EEB has
99.98% participation, was recorded at the Chamber of Commerce of Bogotá. In December 2013 EEB received
authorization from the Board of Directors to assess the participation in electric mobility projects with a third-party
operator of mass passenger transport systems. In development of this authorization the first step was the
incorporation of the mobility company.
07.05.14 The Energy and Mining Planning Unit (UPME) awarded Empresa Energía de Bogotá (EEB) the UPME–
01–2013 Sogamoso-Norte-Nueva Esperanza project for a net present value of revenues totaling USD 171.4
million. The project comprises the design, equipment acquisition, construction, operation and maintenance of the
500 kV North Substation and the 500kV Sogamoso-Norte-Nueva Esperanza transmission line. This project is
included in UPME’s 2013-2027 Expansion Plan and joins other projects currently being executed by EEB in
different areas of the country.
08.05.14 The Extraordinary Shareholders Assembly of Empresa de Energía de Bogotá (EEB) appointed new
members for its Board of Directors. Among the independent members are Mr. Mauricio Cabrera, Mr. Mauricio
Cárdenas Müller, and Ms. Claudia Castellanos; and among the members representing main shareholders are
Mr. Gustavo Petro, Mayor of Bogotá, Mr. Guillermo Perry, ex-Finance Minister, Mr. Fernando Arbeláez
Bolaños, Researcher and Coordinator of Universidad Externado de Colombia’s Economics and Numeric
Operations Observatory - ODEON, Mr. Alberto Merlano Alcocer, Manager of Empresa de Acueducto y
Alcantarillado de Bogotá -EAAB-, Mr. Saúl Kattan Cohen, President of Empresa de Telecomunicaciones de
Bogotá -ETB-, and Mr. Germán Corredor Avella, Coordinator of Universidad Nacional’s Colombian Energy
Observatory.
08.05.14 Credit rating agency Standard & Poor’s confirmed debt ratings as issuer of debt and TGI’s corporate
debt with investment grade of BBB- with stable outlook. EEB’s rating reflects the company’s strong competitive
position primarily resulting from its low risk regulated businesses in countries with stable regulatory and
institutional frameworks. In the case of TGI the rating reflects a satisfactory business profile, the predictability of
stable and predictable generation of cash flow.
20.05.14 The Energy and Mining Planning Unit (UPME) ratified the awarding to Empresa Energía de Bogotá
(EEB) of invitation to bid project UPME 05-2012 - Bolívar-Termo Cartagena 220 kV Second Transmission Line.
This project includes the construction of a 220 kV simple-circuit transmission line with a length of approximately
21 km, the installation of a 220 kV line module at the Bolívar 220 kV substation, and the installation of a 220 kV
line module at the Cartagena 220 kV substation. One of the main points characterizing this project is the
existence of a 3.8 km underground line to be executed with digital horizontal drilling. EEB uses innovation and
technology in benefit of Colombian users.
30.05.14 Empresa Energía de Bogotá (EEB) informed that through Consorcio Transmantaro -CTM- and ISA, in
which it has a participation of 40% and 60%, respectively, it was awarded a new electric transmission line in Peru
to develop the design, financing, construction, operation and maintenance of a 220 kV transmission line aimed at
strengthening the demand in Lima.
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13.06.14 In development of the transaction to purchase the 31.92% participation owned by The Rohatyn Group
(formerly CVCI) in Transportadora de Gas Internacional S.A. (TGI), which was announced on April 4, 2014
Empresa de Energía de Bogotá S.A. E.S.P. (EEB) constituted the company Transportadora de Gas
Iberoamericana S.L., domiciled in Madrid, Spain. EEB is the sole shareholder of this limited liability company,
which includes in its corporate purpose the activities enabling it to execute the aforementioned transaction, such
as the management and administration of securities representing the equity of companies and other entities, in
particular companies dedicated to gas transport and investment in companies and other entities, whether
residing or not in Spanish territory, all of which is subject to the applicable laws (CNAE 6420 - Spain).
Additionally, it may participate in financing activities of the Group’s affiliates or companies in the terms laid out in
Article 42 of the Spanish Trade Code and the applicable laws (CNAE 6492), among other activities.
TGI
- 01.07.14. TGI acquired 7.78% of the share in Oleoducto al Pacífico, a project intended to transport heavy oil
from the Llanos Orientales to Buenaventura and ultimately export it to the markets of Asia Pacific and the
western coast of North America. The construction of Oleoducto al Pacífico (OAP), which is to cross the three
mountain ranges to connect San Martín (Meta) and Buenaventura (Valle del Cauca), with an approximate
cost of USD 5,000 million, is expected to be in operation in 2018. The diameters of this 760 km length
pipeline range between 30 and 36 inches and its six pumping substations are expected to transport between
250 and 400 barrels of oil per day. The partners of Colombian company Oleoducto al Pacífico SAS are
Talisman, Vitol, ISA, CENIT, Enbridge, and TGI.
- 02.07.14 EEB acquired 31.92% of the stock of Transportadora de Gas Internacional (TGI) upon purchasing
special purpose vehicle Inversiones en Energía Latino América Holdings, S.L.U., IELAH domiciled in Spain,
on behalf of which The Rohatyn Group (formerly CVCI) maintained its investment in TGI. To this end, on
June 26, 2014 EEB capitalized in USD 264 million the company Transportadora de Gas Iberoamericana
S.L, -TGISL-, a vehicle incorporated in Spain by EEB for this transaction, according to the financing plan
announced during the past month of April. Short-term intercompany loans obtained by TGISL for an amount
of USD 616 million were added to complete the total value of the transaction of USD 880 million.
- 02.07.14 The Company proceeded to initiate commercial operation of the natural gas compression station to
increase transport capacity of La Sabana gas pipeline. This project joins the gas transport increase of 215
MMPCD in the country to which the company has committed.
- Throughout this year, the average volume transported by TGI’s infrastructure is of 543.6 Mmpcd, exceeding
what was initially budgeted by the company.
- TGI reached 51.5% market share at the closing of 1H 2014.
Cálidda
- On the first half of 2014, Cálidda reached a client base of 215,000, achieving a new record in monthly
connections during the month of June with 10,808 new clients.
- Early in July 2014, OSINERGMIN, the regulator of the Peruvian energy sector, published the final resolution
establishing the distribution rate for Cálidda for the period comprised between 08 May 2014 and 07 May
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2018 (approved average distribution rate). This resolution is in line with Company expectations and showed
an increase of approximately 6.37% duly recognizing past and future investments.
Contugas
- 30.04.14 Contugas successfully carried out the inauguration and commercial start-up (POC) of the regional
pipeline of Ica complying with one of the most important milestones of the concession agreement signed
with the Peruvian Government. This shall transform the area in the first decentralized energy gas region of
Peru, as it comprehensively provides natural gas for household users, commercial businesses, Vehicle
Natural Gas service stations, and capital-intensive industries, improving the quality of life of people and
contributing to the progress of the region. This investment totaled USD 345 million and was financed by
institutions such as Corporación Andina de Fomento -CAF-, Banco de Bogotá, and Banco Davivienda.
Consorcio TransMantaro -CTM and Red de Energía del Perú
- 11.07.14 The Seventh Issue of Bonds Series A of the Third Corporate Bond Program took place, with REP
placing an amount of USD 20 million at an Annual Nominal Interest fixed rate of 3.75% and an amortizable
7-year term. The placement reached a total demand of USD 41.4 million with the participation of all
investment groups, among which are Pension Funds Associations (AFPs), insurance companies, mutual
funds and government funds. It is worth indicating that REP carried out its last placement of bonds in dollars
in February 2013 for an amount of USD 10 million, at a 4.62% rate and a 5-year term.
- 22.07.14 Mr. Eleodoro Mayorga, Minister of Mines and Energy, inaugurated “Línea de Transmisión Trujillo-
Chiclayo-Piura en 500 kV”, a project that was built by Consorcio Transmantaro (CTM) with an investment by
the company of approximately USD 128 million, and comprising 327 km of 500 kV line with which CTM
completes over 1,000 km of circuits in operation in this voltage level, with a total investment of around USD
500 million.
EEB ENERGY Re Ltd: The company was founded in the city of Hamilton / Bermuda on January 7, 2013 and is
intended to serve as an instrument of transfer to the insurance market, the risks of companies of Grupo Energía
de Bogotá, both Colombia and abroad.
Fundación Grupo Energía de Bogotá: The Foundation was created in 2008 as an instrument for the
implementation of social policies and projects of the companies belonging to Grupo Energia de Bogota (GEB).
The Foundation works to identify, build and implement programs, projects and actions which potentiate its ability
to promote social development through energy, through four strategic axes: Knowledge Management, Human
Development Projects with Communities and Communication for Development. The foundation works in more
than 80 municipalities in the area of influence of the group, in the departments of Cundinamarca, Huila,
Putumayo, Nariño, Meta, Cauca, Tolima, Antioquia, Bolívar, Santander, Casanare, Cesar and Boyacá, where
more than 30,000 people benefit from our projects.
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2. FINANCIAL PERFORMANCE OF GRUPO ENERGÍA DE BOGOTÁ
Table N° 4 - EEB’s consolidated financial results
COP Million Var. COP
Var. %
USD Million Var. USD
Var. %
2Q 14 2Q 13 2Q 14 2Q 13
Operating revenue 1,123,980 943,195 180,785 19.2 597.5 489.0 108.5 22.2
Cost of sales -566,843 -492,788 -74,055 15.0 -301.3 -255.5 -45.9 18.0
Gross profit 557,137 450,407 106,730 23.7 296.2 233.5 62.7 26.8
Operating expenses -122,783 -109,509 -13,274 12.1 -65.3 -56.8 -8.5 15.0
Operating profit 434,354 340,898 93,456 27.4 230.9 176.7 54.2 30.7
Dividends 863,450 799,800 63,650 8.0 459.0 414.6 44.4 10.7
Non-operating expenses -116,504 -376,729 260,225 -69.1 -61.9 -195.3 133.4 -68.3
Net income before taxes and
minority interest 1,181,300 763,969 417,331 54.6 628.0 396.0 231.9 58.6
Minority interest -84,449 -7,596 -76,853 1011.8 -44.9 -3.9 -41.0 1,040.0
Provision for income tax -140,079 -37,473 -102,606 273.8 -74.5 -19.4 -55.0 283.3
Net income 956,772 718,900 237,872 33.1 508.6 372.7 135.9 36.5
Consolidated operating revenues of the Group increased 19.2% during 1H 2014 as compared with the same period
of 2013 due to: (i) Increase of revenues from natural gas distribution in Peru, owing to increased connections of
household and commercial users that are enabled and connected to the network in Cálidda and to higher distributed
and billed volume; (ii) Start-up of Contugas on April 30, 2014; (iii) Commissioning of the Alférez substation on March
30, 2014 favoring electricity transmission revenues by means of construction contracts and connection agreements;
(iv) Improved operating performance of Empresa de Energía de Cundinamarca; and (v) Higher revenues on account
of gas transport in Colombia, TGI, thanks to the current tariff scheme that remunerates investment and is linked to US
dollars.
Operating profits increased at a faster pace than operating revenues given that operating costs and expenses
showed moderate growth, as follows: (i) TGI experienced a slight increase in operating costs and expenses of 4.1%
mainly because of a reduction of fuel gas costs (negotiation of new rates) and an increase in contingency provisions;
(ii) On their part, Contugas and Cálidda showed an increase primarily in the cost of third-party internal facilities in the
Peruvian gas distribution business, which had a significant increase in connections and clients during the first
semester of 2014; (iii) EEB Transmisión and TRECSA showed an increase of expenses on account of fees and
services, supplies and personnel services; and (iv) an increase of the cost of energy purchased by Empresa de
Energía de Cundinamarca both in contracts and in the Stock Exchange. As a result of the above, operating profit
during 2Q 2014 reached COP 434,354 million representing an increase of 27.4% vis-à-vis the same period of the
preceding year.
As regards revenues and non-operating expenses, the main variances corresponded to (i) Dividends decreed by non-
controlled companies amounting to COP 863,450 million and representing an increase of 8.0%; (ii) Increased
financial expenses as a result of new contracted debt in 2013 by Cálidda and Contugas and the reopening of EEB
bond in 2021; (iii) Colombian peso revaluation during first half of 2014 positively impacted the exchange rate
difference account, shifting from expenses of COP 217,988 million in March 2013 to revenues of COP 27,552 million
in June 2014, as a result of upgrading the Group’s financial obligations denominated in dollars; these records are for
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accounting purposes only and do not correspond to a cash disbursement. The Group continues working in structuring
operations aimed at establishing a loss cap for existing contracted coverage limits at the level of some affiliates.
Finally, net profit for the first semester closed at COP 956,772 million representing a growth of 33% vis-à-vis the
same period of the preceding year.
Table N° 5 - EEB’s Financial indicators
Millions COP Millions USD
2Q 14 2Q 13 Var. COP
Var. % 2Q 14 2Q 13 Var USD
Var %
Consolidated adjusted EBITDA Qtrly 322,220 232,594 89,626 38.5 171.2 120.5 50.7 42.1
Consolidated adjusted EBITDA LTM 1,970,539 1,621,817 348,722 21.5 1047.5 840.7 206.7 24.6
Consolidated EBITDA margin % 62.7 61.5 62.7 61.5
The Adjusted Consolidated EBITDA of 2Q 2014 (QoQ), including the dividends received from non-controlled
affiliates, totaled COP 322,220 million, representing an increase of 38.5% vis-à-vis the figure generated in the same
period of 2013, and explained by (i) higher earned dividends and interests for a value of COP 29,169 million and (ii)
improved operating performance for a value of COP 57,945 million.
The Adjusted Consolidated EBITDA LTM (last twelve months) (YoY) totaled COP 1,970,539 million, showing a
growth of 21.5% also resulting from (i) higher earned dividends and interests for a value of COP 149,718 million; and
(ii) improved operating performance for a value of COP 93,446 million.
232,594 248,733284,226
1,115,360
322,220
2Q 13 3Q 13 4Q 13 1Q 14 2Q 14
Figure 2 - Quarterly Consolidated Adjusted EBITDA - COP
2Q 13 3Q 13 4Q 13 1Q 14 2Q 14
Consolidated AdjustedEBITDA
1,621,817 1,668,543 1,775,908 1,880,913 1,970,539
Var. 1.1% 2.9% 6.4% 5.9% 4.8%
Figure 1 - Consolidated Adjusted EBITDA LTM - COP
Consolidated Adjusted EBITDA Var.
Table N° 6 - EEB´s Consolidated debt structure
2Q 14 Part. 2Q 13 Part.
2Q 14 2Q 13
COP Millions
% COP Millions % USD
Millions USD
Millions
Financial debt in COP 327,543 7.0 1,363 0.0 174.1 0.7
Financial debt in USD 4,148,081 88.4 3,781,610 94.3 2,205.0 1,960.4
Derivatives position 216,939 4.6 227,271 5.7 115.3 117.8
Total financial debt 4,692,563 100 4,010,244 100 2,494.5 2,078.9
Net Debt/Consolidated Adjusted EBITDA LTM – OM: <4.5 1.25 - 1.41 - 1.25 1.41
Consolidated Adjusted EBITDA LTM / Interest – OM: >2.25 11.44 - 13.18 - 11.44 13.18
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Total consolidated financial debt grew 17% (YoY) vis-à-vis the balance on first half of 2013, owing to (i) repayment of
short-term syndicated bank loans in Contugas (USD 215 million) and disbursement of a new loan for USD 300 million
-additional net USD 85 million-; (ii) reopening of EEB 2021 bond -USD139 million minus repayment of debt with
multilateral banks (CAF) for USD 14 million-; and (iv) taking on of indebtedness in EEC to finance its investment plan.
Total consolidated financial debt grew 1.3% (QoQ) vis-à-vis Q1 2014, on account of (i) taking on of indebtedness with
local banks for COP 223,000 million in EEB to finance the acquisition of TGI; compensated by (i) lower balance for
exchange difference account.
Figure 3 – Debt Indicators
1.41 1.60 1.481.39
1.25
4.5
2Q 13 3Q 13 4Q 13 1Q 14 2Q 14
Net Debt/ Consolidated Adjusted LTM EBITDA
Net Debt / Consolidated Ajusted EBITDA OM <
13.18
9.1011.06
10.9611.44
2.5
2Q 13 3Q 13 4Q 13 1Q 14 2Q 14
Consolidated Adjusted EBITDA / Interest
Consolidated Adjusted EBITDA / Interests OM >
N.B: In accordance with the definitions of the agreement of bonds issued by EEB in November 2011, leverage and
interest coverage indicators are calculated based on the Adjusted Consolidated EBITDA, including the dividends and
reductions of equity received by EEB from its affiliates.
The net leverage indicator (YoY) experienced a reduction due to an increase of the EBITDA (+21.5%) and a
reduction in net indebtedness (-6.5%).
The interest coverage indicator (YoY) shows a moderate increase of 21.5% in the Adjusted Consolidated EBITDA
vis-à-vis an increase in the net financial expense on account of interest (+20.7%).
Figure No. 4 – Debt Maturity Profile
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3. PERFORMANCE OF CONTROLLING COMPANIES
Table N° 7 – Financial indicators of Controlled investments 2Q 14
COP Millions USD millions
EEB* TGI Calidda EEB* TGI Calidda
Operational revenue 55,037 486,881 391,726 29.3 258.8 252.8
Operational utility 31,209 317,352 60,511 16.6 168.7 34.7
EBITDA LTM 69,859 741,211 190,340 37.1 394.0 105.8
Net income 19,622 195,552 36,512 10.4 104.0 19.3
*Transmisssion Business directly operated by EEB.
Table N° 8 - Overview of the EEB group – Controlled companies expansion projects
Project / Company Country Sector USD MM Status In operation
La Sabana/CApiay – TGI Colombia T NG 120 On stream* On stream
ICA Perú – Contugas Perú T + D NG 358 On stream** On stream
Lima Callao – Cálidda Perú D NG –network extension- 500 Under construction 14-18
Guatemala – TRECSA Guatemala T Electricity 376 Under construction 14-15
Substations – EEB Colombia T Electricity 611 Under construction 14-16
EEC Colombia D Electricity 114 Maintenance 14-17
EEBIS Guatemala T Electricity 111 Planning 15-18
T: Transporte; D: Distribution ; NG: Gas Natural; E: Electricity * La Sabana Compresor Station. 7/7/2014 **Contugas Start-up: 30/4/2014 .
Transmission EEB, USD 24.7 ,
17%
EEC, USD 13.0 , 9%
TGI, USD 22.6 , 15%
Calidda, USD 41.0 , 28%
Contugas, USD 10.5 , 7%
TRECSA, USD 31.5 , 22%
EEBIS Guatemala, USD 3.0 , 2%
Figure 5 - Executed Companies 2Q 2014 -Controlled Companies USD 146.3 MM
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3.1. EEB – Transmission Business
Table N° 9 - EEB´s selected transmission business indicators
2Q 14 2Q 13 Var %
Operating income - COP MM 31,209 24,724 26.2
EBITDA Qtrly. - COP MM 69,859 63,626 9.8
Investments - COP MM 46,500 17,421 166.9
Infrastructure availability - % (1) 99.93 99.96 -0.030
Compensation for unavailability - % (2) 0.036 0.1595 -77.4
Maintenance program compliance - % (3) 100 100 0.0
Participation in Colombia’s transmission activity - % (4) 8.22 8.06 2.0
Technical indicators show stability in the company’s operating management maintaining compliance exceeding
the regulatory requirements without harming the Company.
The investments of the period include amounts associated to the construction of expansion projects in the
National Transmission System in Colombia.
Progress of Investment Projects of EEB Transmission Business:
Armenia Project (UPME 02-2009): As of June 17, 2014 the ANLA (National Association of Environmental
Licensing) notified EEB S.A. ESP of Resolution 0582 dated June 5, 2014 whereby an environmental license was
granted for this project. With respect to easements, 64 tower sites have been released by means of registration
and legal inspection, accounting for 77% of all the tower sites of the project. The project shows 56.23% progress
as compared to the expected 78.59%; in the meantime, construction activities of the project have initiated.
Tesalia Project (UPME 05-2009): As of June 30, 2014 the overall project shows a weighted progress of 66.74%
with respect to the expected 84.77%. For the Tesalia-Altamira section, the reconfiguration of the Betania-
Jamondino line, the Tesalia substation, and the expansion of the Altamira substation the progress is of 82.29%.
This part of the project ensures energy connection and evacuation for El Quimbo project. The Tesalia-Altamira
transmission line and the reconfiguration of Betania-Jamondino required the assembly of 75 towers from a total
of 116, achieving 65% progress regarding this activity. This line is currently being laid out. As regards
substations: the assembly of the Tesalia substation shows physical progress of 85%; the assembly of the
Altamira substation expansion was completed and the expansion of the Alférez substation was finalized in 2014.
Completion of the remaining 11 km of the Tesalia-Alférez transmission line is expected, in order to conclude the
200 km design stage. We will file the Environmental Impact Assessment before the ANLA in September 2014.
North Project (UPME 03-2010): As of June 30, 2014 the detailed design of transmission lines was completed in
the Chivor-Chivor II and Chivor II-Norte sections. The Norte-Bacatá section shows a few access restrictions, thus
this activity will be completed using aerial photographs. Collectively, the line design shows 89.4% progress. The
Environmental Assessment of Alternatives was filed at the ANLA on October 31, 2013; we are still waiting for a
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statement from ANLA on the selected alternative. The project shows 28% progress with respect to the expected
37%.
SVC TUNAL: As of June 30, 2014 the bases for several of the main equipment were installed and progress was
made in the control room. The month of June showed good performance in civil works due to the increase of
work fronts. The nationalization process is under way for the first shipping of equipment of the SVC project. The
project shows progress of 63.4% vis-à-vis the expected 68.7%.
3.2. DECSA – EEC
Table N° 10 - EEC’s selected indicators - Controlled by DECSA*
2Q 14 2Q 13 Var %
Number of clients 270,575 259,991 4.07
Operating revenue - COP MM 151,219 141,954 6.53
Operating income - COP MM 28,274 21,691 30.35
EBITDA Qtrly. - COP MM 19,972 14,720 35.68
Net Income - COP MM 13,381 10,296 29.97
Dividends and reserves declared to DECSA 0 8,898 -
Losses - % (1) 10.4 11.5 -9.71
Net Debt / EBITDA LTM 1.18 -0.07 -1785.7
EBITDA LTM / interest UDM 17.33 24.66 -29.7
* Controlled by DECSA (SPV)
A 4% growth was experienced in the number of clients between 2013 and 2014 equal to 10,584 new clients of the
regulated market, mainly strata 1, 2 and 3 households and the commercial segment.
National demand for electricity grew 1,176 GWh equal to 3.92%, primarily driven by construction, manufacture,
and trade sectors.
Growth in operating revenues for COP 9,265 million, equal to +6.53% with respect to 2T 2014 due to an increase
in energy sales of 6.9% resulting from market seasonality in which vacation and holiday periods are important; the
second quarter included the energy sold during Easter week and in June.
Improved performance of the contribution margin on account of a lower index of energy losses, higher sales, and
better control of fixed costs.
There is a reduction in the TAM index of energy losses of 1.12 percentage points resulting from the development
of the action plan for losses where macromedia equipment were installed and commercial visits were carried out.
Operating profit grows at a higher pace in comparison with the growth of operating revenues, primarily due to a
decline in fixed costs of O&M.
During 2Q 2014, perceived as twelve accumulated months, there is an improvement of the EBITDA margin for
COP 1,580 million mainly because of a lower fixed cost on account of improved performance in the control of
O&M costs compensating the largest average plant of personnel. The EBITDA LTM totaled USD 36.5 million as
compared with USD 34.8 million for the same period of the preceding year.
The amount of net debt vis-à-vis the same period of the preceding year showed an increase primarily due to
taking on of financial debt in local currency with national banks.
EEC decreed dividends for an amount of COP 2,000 MM payable in November 2014 to all its shareholders.
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Lastly, particularly noteworthy is that EEC expects an upgrade of distribution costs on account of the revision of
the new tariff period, although amendments shall be published in 4Q 2014 according to CREG’s agenda.
3.3. Transportadora de Gas Internacional - TGI
Tabla N° 11 - TGI’s selected indicators
2Q 14 2Q13 Var %
Operating revenue - COP MM 486,881 421,684 15.5
Operating income - COP MM 317,352 258,786 22.6
EBITDA YTD - COP MM 398,868 331,820 20.2
EBITDA LTM - COP MM 741,211 603,938 22.7
Net income - COP MM 195,552 2,427 7958
Transported volume - Mm cfd 544 436 24.7
Calificación crediticia internacional: S&P - may. 14:
Fitch - abr.14: Moody’s – abr. 14
BBB-, sstable BBB-, stable Baa3, stable
Operational revenues during 2Q 2014 showed an increase of 15.5% vis-à-vis the same period of the previous
year. In addition to the tariff scheme in force, which was fully applied at the end of 1Q 2013, this increase was
mainly the result of an increase in transported volume, growing by 24.7% with respect to 2Q 2013, as well as the
increase in firm contracted capacity, which showed an increase of 3.5% for this period.
When compared with the previous quarter, at closing of June 2014, operational profit increased by 22.6%, well
above the increase in operational revenues. This growth was the result of the sound financial performance of
operation revenues and operation costs and expenses showed a slight positive variation of 4.1% due mainly to
the provision, depreciations and amortizations line item.
With respect to the non-operational line items, these showed a net reduction of 94.6%. During 2Q 2013, expenses
in the in the exchange rate difference account amounted to COP 179,497 million, generated by the devaluation of
the Colombian peso and its impact on re-expressing TGI’s debt in legal tender, which was originally agreed in
US$. For this period, the reduction of the loss on the exchange rate difference was (COP 51,906 million) and
revenues perceived on account of the valuation of hedging operations represent the accounts with greater impact
during the period. Accordingly, net profit of the company increased by COP 193,125 million, when compared with
the same period in 2013.
Progress of TGI investment projects:
La Sabana Station:
Construction of the La Sabana natural gas compression station (ECGSB), which is part of the gasduct expansion
project having the same name, shows progress of 68.8%. On 7 July, the company began the commercial
operation in this station, to increase transport capacity of the gas pipeline in La Sabana from 140 MMPCD to 215
MMPCD and an expected peak of 270 MMPCD. Start-up of ECGSB represents an opportunity to ensure the
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supply of service in coming years and the possibility of securing industry development in the city of Bogota and
the Cundiboyacense Sabana. To date, construction of civil work is under way, as well as the installation and
connection of transformers, switch gear, and grids required for the control system, among others, to complete the
entire station.
Enhancement Cusiana - Apiay – San Fernando.
The company is currently assessing alternatives intended to make a project viable, consisting on increasing the
capacity in the stretch Cusiana-Apiay, considering that ECOPETROL stated that it did not required, at least for
now, natural gas transport capacity from Cusiana to San Fernando. TGI has been introducing the enhancement
project of the transport system to its major customers.
3.4. CALIDDA
Table N° 12 - Cálidda’s selected indicators
2Q 14 2Q 13 Var %
Number of clients 215,170 124,732 72.5
Operating revenue - USD Thousands 252,829 199,336 26.8
Operating income – USD Thousands 34,706 23,965 44.8
EBITDA Qtrly – USD Thousands 24,398 15,898 53.5
EBITDA LTM – USD Thousands 85,117 64,188 32.6
Net Income – USD Thousands 19,309 3,495 452.5
Operation profit grew by 45% from USD 24 million to USD 35 million, while year-to-date EBITDA grew by 33%
due to (i) greater volume invoiced by the three generation plants (Fenix, Termochilca and Kallpa); (ii) Greater
volume sold to GNV stations; (iii) Greater revenues on account of services of internal installations; (iv) Greater
demand in volume due to a growing client base.
As of 1Q 2014, the client base reached 215.170. A new record was achieved in monthly connections during the
month of June, with 10.808 new clients (vis-à-vis 3.431 connections in June 2013).
In April 2014, a significant industrial client was connected to Calidda’s distribution network: Quimpac II, meaning
that consumption amounts to 1 MMPCD. The former adds to the 10 industrial plants connected in over 30
districts.
In June 2014, Cálidda begins its connection to residential clients in a new district known as Santa Anita. As a
result thereof, Cálidda has now presence in 15 district for the residential and commercial segment.
At the beginning of July 2014, OSINERGMIN, regulator of the Peruvian energy sector, published a definite
resolution setting a distribution tariff for Cálidda for the period comprised between 8 May 2014 and 7 May 2018
(Approved average distribution tariff). Such resolution is in line with the expectation of the Company and had an
increase of approximately 6.37%, duly acknowledging future and past investments.
Progress of Calidda investment projects:
There is continuity of project, start-up is individual and by stretches built. However, one may highlight that both
the Enhancement of the Main Network and the Chilca Generators have been completed.
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3.5. CONTUGAS
The Commercial Start-up of Contugas’ Infrastructure was conducted on 30 April 2014, after entering into a joint
deed with the Ministry of Mines and Energy of Peru and Enbridge Technology INC, international inspector, the
final Minutes of tests certifying that these works have met all applicable standards, declaring that the natural gas
system is fit for service. The Peruvian State had granted 33 additional days for the commercial start up, on
account of force majeure, mainly due to lack of water in water sources foreseen for the hydrostatic tests of the
gas pipeline, thus the new deadline is 10.05.14, but as previously explained, they were able to conduct such
test within the time frame set.
During 2Q 2014 the connection of industrial clients is still being conducted, having connected 4 fishing
industries, the first GNV station, Aceros Arequipa (major consumer steel mill), among others.
The volume of contracts signed amounts to 41.35 MMPCD or m3 std/day and the corresponding volume to
contracts under negotiation, exceed 54 MMPCD or m3 std/day.
At the closing of June 2014, the company has over 17.900 enabled clients (with over 30.700 residential sales
performed and 27.900 internal installation built).
As of May 2014, the Board of Directors of Contugas appointed Mr. Bruno Seidel as the new General Manager
of Contugas for this new operating phase, which the Company has started. Mr. Bruno has over 20 years of
experience in the power sector, he has been Assistant manager of Transmission and Distribution if EPM,
General Manager of Central Hidroeléctrica de Caldas (Chec) and Gas Natural Eje Cafetero.
Progress of Contugas investment projects:
As of 2Q 2014, project execution was set at 94% with a total investment to date of US$ 316 million.
The project comprises over 340 km of the main network and high-pressure branches and over 700Km of low-
pressure polyethylene networks. The gas pipeline will have a capacity exceeding 300 MMPCD and will connect
50,000 residential clients in the first six years after the Start-up of the Commercial Operation.
3.6. TRECSA
Progress of Trecsa investment projects:
At 2Q 2014 the project’s progress is 79%.
Energizing el Pacífico Substation. TRECSA has started the operation of the Transmission Expansion Plan
PET-01-2009, one of the most important power infrastructure projects in Guatemala, by means of energizing the
Pacifico substation, which will allow to increase reliability of the power system, allowing connection to new
generation projects and industrial, commercial and residential users to the system, as well as improving
electricity coverage to new Guatemalan populations.
Project Permits
100% of land acquired for the substations
Over 60 municipal endorsements (81%) for lines.
2350 forest licenses have been obtained (ECUTs before the INAB) representing 70% of the total estimated.
Agreements have been entered on 670 km (81%), of which title has been granted to 613 km (74%) and there
are 477 km available (57%) for construction works of transmission lines
There are 1,166 available sites (57%) for construction works of transmission line structures
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Construction
There are 944 (46%) civil work structures completed and 829 (40%) structures that have been mounted.
Conductor cable laying has taken place of 74 km (9%).
Progress in civil works of substation is at 58% (work is being conducted in 17 substations), of which 45%
mounted (in 15 substations) and 26% under tests (8 substations).
Supplies
Transmission Lines; 98%
Substations; 89%
Environmental Licenses EIA (Environmental Impact Studies)
All properties have been granted an environmental license.
3.7. EEBIS Guatemala y Perú
On April 7, 2011 the company EEB Ingeniería y Servicios, Sociedad Anónima was incorporated in Guatemala, whose
objective is to provide comprehensive solutions in electrical engineering and related areas.
Progress of EEBIS Guatemala investment projects:
Currently a project is under execution, which consists of the construction of 90km of transmission lines, 4 new
substations and enhancement of 3 existing ones and it is being developed jointly with 5 sugar mills located in
the southwestern area of the country. The corresponding contract was formalized and made official on July 11,
2013. Project Investment amounts to US$ 43.4 million approximately. The project shows execution progress of
7% as of 2Q 2014.
EEBIS Guatemala currently negotiates the construction and mounting of projects of substations with generators
and cement plants in Guatemala. .
Progress of EEBIS Peru investment projects:
The incorporation of an affiliate in Peru was authorized by EEB”s Board of Directors on 18 April 2013, with the
purpose of materializing market opportunities in said country, regarding engineering services and projects,
particularly in the energy sector (gas and electricity). The company was incorporated on 25 June 2013.
3.8. Empresa de Movilidad de Bogotá
The Board of Directors of EEB authorized the Company to participate in mobility projects that incorporate a significant
electrical component, once profitability and convenience thereof is assessed. To that end, it incorporated the
company Empresa de Movilidad de Bogotá SAS ESP. The main purpose of this new company is (i) generation,
distribution and commercialization of electric power for mass transport systems, passengers, freight or other
modalities, (ii) planning, preparation of studies and designs, supply, construction, installation, supervision, auditing,
operation and maintenance of the power and gas infrastructure for mass transport systems, of passengers, freight or
other modalities, and (iii) manage the electrical and gas component of passengers mass transport projects. It is
currently assessing its participation in some mass transport projects in Bogota, which have a high involvement of the
electrical component, and is being performed by means of public-private joint ventures.
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4. PERFORMANCE OF COMPANIES WITHOUT CONTROL
Table N° 13 - Non-controlled investments financial indicators 2Q 14
COP Millions USD Thousands
Emgesa Codensa Gas Natural Promigas REP CTM
Operating revenue 1,274,073 1,668,868 711,688 172,813 63,686.0 45,275.0
Operating income 757,682 399,002 162,152 86,613 26,713.0 23,572.0
EBITDA LTM 830,410* 530,315* 162,152 49,790 33,659 96,756
Net income 489,961 243,513 125,707 202,528 11,850.0 12,709.0
Dividends and reserves declared to EEB 450,465 277,944 67,311 44,189 5.93 -
Capital reductions to EEB - - - - - -
Emgesa Total, USD 199 , 55%
Codensa, USD 58 , 16%
Promigas, USD 19 , 5%
Gas Natural, USD 6 , 1%
REP, USD 29 , 8%
CTM, USD 53 , 15%
Figure 5 - Executed Non controlled companies 2Q 2014 USD 364.1 MM
4.1. EMGESA
Table N° 15 Overview of Emgesa 2Q 14
Instaled capacity - MW 3,041
Capacity´s Composition 9 Hydro y 2 thermo
Generation - Gwh 6,154
Sales - Gwh 7,398
Control
EEB’s stake 51.5% - 37.4% ordinary shares; 14.1% preferred
non-voting shares
*EBITDA YTD Table N°14 - Expansion projects of non controlled companies 2Q 2014. Execution
Proyecto Company Sector Country Capex
In operation USD MM
Quimbo/Others Emgesa G Electricity Colombia 199 1S 2015
New Demand Codensa D Electricity Colombia 58 14
Concessions / Extensions REP T Electricity Perú 29 15-18
Concessions / Extensions CTM T Electricity Perú 33 14-17
Concessions / Extensions PROMIGAS T + D natural gas Colombia 53 14
Maintenance GAS NATURAL D natural gas Colombia 6 14
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5,504
2,461
7,965
5,222
2,176
7,398
Contracts Spot Total
Sales GWh
2Q 13 2Q 14-5.1%
-11.6%
-7.1%
6,397
62
1592 1654
6,154
87
1256 1343
Power Generation Contracts Spot Total Supply
Supply GWh 2Q 13 2Q 14
-3.8%
40.3% -18.8%-21.1%
At the closing of 1H 2014, Emgesa maintains within its sales make up 71% through bilateral long-term contracts
and 29% in the spot market and AGC mechanism.
Emgesa total sales in the spot market and contracts market decrease as a result of reduced generation and due
to low water levels in hydric plants (Pagua and Guavio) and to maintenance in thermal plants (Cartagena and
Termozipa). The sales make up was 69% (3,593 GWh) through contracts with clients in the wholesale market
and the remaining 31% (1,629 GWh) through the non-regulated market.
Sales cost was reduced by 0.4%, compared to the first half of 2013, as a result of coal generation instead of fuel
oil.
Emgesa’s generation represented 19.5% of the total system and was slightly lower to generation during the same
period in 2013. In terms of gross installed capacity, Emgesa represents 20.7% of the country’s installed capacity.
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Table N° 16 - Selected financial indicators of Emgesa
COP Millions USD Millions
2Q 14 2Q 13 Var % 2Q 14 2Q 13
Operating revenue 1,274,073 1,184,578 7.6 677.3 614.1
Cost of sales 500,696 502,935 -0.4 266.2 260.7
Administrative expenses 15,695 12,589 24.7 8.3 6.5
Operating income 757,682 669,054 13.2 402.8 346.8
EBITDA YTD 830,410 744,491 11.5 441.4 385.9
EBITDA Margin 65.2% 62.8% 65.2% 64.3%
Net income 489,961 421,829 16.2 260.5 218.7
Dividendos y reservas decretados a EEB 450,465 405,659 11.0 239.5 210.3
Dividends and reserves declared to EEB - - -
Debt / EBITDA LTM 2.38 1.80 58.3 7.30 1.80
EBITDA / Interests 13.26 12.70 56.0 13.26 12.70
Pies de página en anexo 6
Operational profits grew at a greater pace vis-à-vis operations revenues as a result of lower hydric and thermal
generation, and therefore lower purchase of energy in the spot market and reduced fuel consumption levels. The
intermediation in the spot market has allowed Emgesa to offset these lower levels of generation.
Net profit showed an increase of 16.2%, compared to the first half of 2013, due mainly to an improved operational
result and lower sales costs, resulting from lower consumption of fuels.
On 16 May 2014, within the program Issuance and Placement of Ordinary Bonds, EMGESA S.A. E.S.P.
announced the placement of the sixth stretch of up to COP 590,000 million and by a Dutch bid through the
Electronic System of the Colombian Stock Exchange. Resources thereof will be destined to finance construction
investment of el Quimbo Hydro electrical Plant, to pre-finance bond expirations and to service working capital
needs of Emgesa S.A. E.S.P. during 2014.
On 29 May 2014, the General Shareholders Assembly of EMGESA S.A. E.S.P. during its extraordinary session,
elected the new Board of Directors with 7 principal members and 2 independent members who will make up the
Good Governance and Audit Committees as per that announced by EMGESA S.A. E.S.P. on 18 June 2014.
On 19 June 2014, the Board of Directors during its ordinary session authorized the enhancement of the global
limit of the issuance and placement of local bonds from COP 315,000 million to a total of COP 3,065,000 million,
while at the same time it approved amendments to regulations of the program to implement such increase and
further authorized the General Manager, or whoever he appoints, to conduct all processes and enter into all the
required contracts or documents to implement such enhancement before competent bodies.
EMGESA’s international rating is BBB with stable outlook, granted by Standard & Poor’s and Fitch Ratings, and
local AAA granted by the same Entity. These ratings were ratified on 12 and 13 May 2014. Risk Rating Agencies
highlight the sound competitive position, low cost generation and efficient operation, its sound financial
performance, generation of cash flow, healthy financial metrics and moderate financial leverage expectations
during the el Quimbo construction.
Progress of EMGESA investment projects:
Tabla N° 17 – Capex
2Q 14 2Q 13 Var %
COP Million 374,357 251,130 49.1
USD Million 199.0 130.2 52.9
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Expansion investments undertaken by Emgesa were concentrated in the construction of Central Hidroeléctrica El
Quimbo and the revamping of the generation chain Salaco. Likewise, preventive maintenance investments were
also undertaken in hydraulic and thermal plants of the company to ensure reliability and availability thereof.
The El Quimbo hydro electrical project: Investment in El Quimbo project as of 2Q 2014 amounts to US$ 702.8
million and shows progress of 71.8%. Quimbo will increase Emgesa’s generation capacity in excess of 18% by
2015.
Progress on the revamping of the Salaco generation chain is 86.5%, and will add installed capacity of 185 MW.
4.2. CODENSA
Tabla N° 18 - Panorámica de Codensa al 2T 14
Number of clients 2,733,186
Market share - % 23.4%
Codensa’s demand – Gwh 7,226
Var % - Codensa’s demand 2Q 14 / 2Q 14 2.21%
Losses Index (%) 7.12
Control Endesa from Spain
EEB’s stake 51.5% -36.4% ordinary shares; 15.1% preferred
non-voting shares
Energy demand in Codensa’s area grew by 1.46% as of June 2014, resulting from the recovery of the regulated
market (residential and commercial clients), chemical and plastic industries and the use of Codensa’s lines by
other energy retailers.
Electric power national demand grew 3.14% as of June 2014, maintaining a slight recovery in the mining and
manufacturing industries in the country’s central region and due to high temperatures in the northern and eastern
areas of the country.
Tabla N° 19 - Indicadores financieros seleccionados de Codensa
COP Millones USD Millones
Al 2T 14 Al 2T 13 Var % Al 2T 14 Al 2T 13
Ingresos operacionales 1,668,868 1,570,572 6.3 887.1 814.2
Costo de ventas 1,226,938 1,134,021 8.2 652.2 587.9
Gastos administrativos 42,927 38,927 10.3 22.8 20.2
Utilidad operacional 399,002 397,625 0.3 212.1 206.1
EBITDA YTD 530,315 524,605 1.1 281.9 272.0
Margen EBITDA (%) 33.7 34.3 33.7 34.3
Utilidad neta 243,513 251,247 -3.1 129.4 130.2
Dividendos y reservas decretados a EEB 277,944 264,951 4.9 147.7 137.4
Reducciones de capital - - - - -
Deuda Neta / EBITDA UDM 0.95 0.90 4.8 0.95 0.90
EBITDA / Intereses 14.6 15.2 -63.0 14.6 15.2
Pies de página en Anexo 6
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During the period, Codensa generated operational revenues amounting to approximately COP 1.6 billion,
meaning an increase of 6.3% with respect to the 1Q 2013, as a result of: (i) Growing demand by 1.46% in its area
of influence and (ii) Greater revenues related to the increase in the acknowledgement of maintenance costs in
the tariff. (iii) increase of energy sales volume in the regulated market.
Sales cost increased by 8.19%, compared to first half 2013, as a result of greater purchases of energy for
possible Niño phenomenon expectations.
Codensa’s Year-over-Year EBITDA as of 2Q 2014 reached COP 530,315 million, which represents an increase of
+1.1% vis-à-vis 2Q 2013, mainly due to greater operating revenues.
Codensa reached a COP 243,513 million of net income, compared to first half 2013,
Codensa managed to reach a total loss index of 7.12% at the closing of 2Q 2014, which represents a reduction
of 3.1% due to an increase the financial costs (higher inflation rate, Codensa’s debt is indexed on the 94% to this
indicator as of June 2014).
On 18 June 2014, the General Shareholders Assembly approved, during its ordinary meeting, the new list of
Board Members, which is made up of 7 members of which, 2 are independent who also make up the Corporate
Governance and Auditing Committees.
CODENSA S.A. ESP informed that by means of Resolution No. 0407 of 13 March 2014 issued by the Colombian
Financial Superintendence, it authorized increasing the global cap on the Issuance and Placement Program for
ordinary bonds of Codensa by one hundred and eighty five billion pesos (COP$185 billion) thus, increasing the
total global cap of the Program to seven hundred and eighty five billion pesos (COP$785 billion).
Table N° 20 – Capex
2Q 14 2Q 13 Var %
COP Million 109,109 93,502 16.7
USD Million 58.00 48.47 19.7
Progress of CODENSA investment project:
Investments are mainly focused on: (i) servicing demand growth to ensure the supply of energy in the country, (ii)
improve the quality and continuity of service and (iii) control operating risks and non-technical loss control.
4.3. PROMIGAS
Table N° 21 - Overview of Promigas 2Q 14
Number of clients 11
Volume of sales - Mm cfd 370.3
Market share - % 40
Network – km 2,367
Ingresos operacionales - COP MM 172,813
EEB’s stake - % 15.6
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21
Table N° 22 – Capex Promigas
2Q 14 2Q 13 Var %
COP Million 36,271 37,003 -2.0
USD Million 19.3 19.2 0.5
Table N° 23- Selected indicators of Promigas
COP Millions USD Millions
2Q 14 2Q 13 Var % 2Q 14 2Q 13
Operating revenue 172,813 141,360 22.3 91.9 73.3
Cost of sales 40,376 36,928 9.3 21.5 19.1
Administrative expenses 33,311 31,324 6.3 17.7 16.2
Operating income 86,613 59,119 46.5 46.0 30.6
EBITDA Quarterly 49,790 36,095 37.9 26.5 18.7
EBITDA Margin 202,528 280,383 -27.8 107.7 145.4
Utilidad neta 44,189 37,662 17.3 23.5 19.5
Net income 0 0 - 0.0 0.0
Dividends and reserves declared to EEB 4.96 5.75 -79.0 5.0 5.8
Capital reductions to EEB 3.53 2.62 91.0 3.5 2.6
Net debt (1) / EBITDA 172,813 141,360 22.3 91.9 73.3
Pies de página en anexo 6
Operational profit grew at a greater pace mainly due to greater operational revenus when compared to 1Q 2013,
resulting from (i) increase in transported volume due to more severe hydrological conditions during 2014 (El Niño
phenomenom), increasing gas demand as a result of increased thermal dispatch; (ii) it began with invoicing
Gascaribe within the netwrok construction contracts, and increased of contracted capacity due to the
involvement of Termocandelaria (40 MMPCD), which increased transport capacity from 575 MMPCD to 615
MMPCD. On the other hand, operational costs and expenses show a slight increase vis-à-vis the same period in
2013 on account of registration of costs on works undertaken at Gases del Caribe and Chevron’s invoice on gas
inbalance.
Promigas net results grew at a rate of 17% due to an increase in non-operational revenues, resulting from
greater profits on account of the sale of a pipeline.
On 25 March 2014, the General Shareholders Assembly took place in which it decreed dividends amounting to
COP 207,289 million, of which COP 61,658 million correspond to dividend on shares.
Award of bid to Sociedad Portuaria El Cayao - SPEC, with the participation of Promigas with 49% for the
construction and operation of the first import and LNG regasification plant in Colombia. The plant will have a
regasification capacity of 400 MMPCD and operations are expected to start in 2016.
During the 1H, Promigas was awarded the construction of the Bosconia gas pipeline of Gases del Caribe, which
amounts to COP 101,500 millions with an extension of 260 km in steel and 90 km in polyethylene; works should
be completed by November 2014.
Promigas informed that its Legal Representative had been authorized by the Board to constitue a Letter of Credit
for US$ 27 million. This guarantee is required to process the pipeing purchase for the gas pipeline San Mateo –
Mamonal and would be handed in favor of Tubomar, acting as the selling party.
The Board of Directors of Promigas S.A. E.S.P., authorized the legal representative to contract the loan to pay
working capital needs amounting to seventy billion Colombia Pesos to the entities offering the best market
conditions.
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The Board of Directors of Promigas authorized contracting a Bank Guarantee for US$ 24.710.000 in favor of
SENER INGENIERIA Y SISTEMAS S.A., Spanish engineering and construction company with over 50 years of
experience. The foregoing to comply with the obligations set forth in the turnkey contract with SENER for the
construction and start up of the LNG micro plant and the Atlantico Department.
On 12 June 2014 Fitch Ratings confirmed the ratings AAA(col) and F1(col) as short and long term national
ratings for Promigas S.A. E.S.P. respectivelly. The outlook is stable. This is grounded on the sound competitive
position of the company in terms of distribution and commercialization of natural gas and the regulated nature of
the business, which provided a stable and predictible influx of cash-flow. Promigas and its subsidiaries operate
under regulated businesses, which are characterized by moderate legal and regulatory risk exposure. The rating
also reflects adequate cash-flow position and manageable debt expiry profile.
Issuance by CREG of resolution 082 of 2014, regarding the new tariffs on account of the change on standard of
useful life of gas pipelines.
Progress of Promigas investment projects:
Promigas, together with five international companies in the electric power, fuel, land and maritime transportation
signed a Development Agreement to assess possibilities of building a terminal for the import of LNG in the
Dominican Republic and study the options of supplying such fuel to the country’s industrial sector.
The “Mini Loop” project consits on the construction of 24” loops between Palomino and Don Diego rivers, and
estimated length of 6 Km, to increase transport capacity. Start-up is expected in 2016.
The project “Loop 14 Hocol - San Mateo - Mamonal” consists on the construction of a gaspipeline between
HOCOL and San Mateo wells in 12” diameters and approximately 22 km in length, a 14” loop between San Mateo
and Mamonal and approximately 163 Km in length to transport 60 million cubic feet. The project will come on
stream in 2016.
The prooject “Microplanta GNL La Arenosa” consists on the construction of a micro plant for liquefied natural gas,
with a capacity of 78,000 gallons/day to reach markets that are not serviced through the Traditional Gaspipeline
System and the GNV market. Its start-up is foreseen for 2016.
Project “Enhancement of SRT Loop Mamonal” consisting on the construction of a loop to service the expansion
project and new requirements of clients in the industrial area of Mamonal. Start-up is foreseen for 2018.
Project “Sistema de Filtración Tramo Arenosa-Caracolí” consisting on the installation of a Sand Filtering Station, a
line which will connect crossing of 32” diameter with 18” diameter to take gas to Caracolí. The project has not
started yet and its start up is foreseen for 2015.
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4.4. GAS NATURAL
Table N° 24 - Overview of Gas Natural 2Q 14
Number of clients 1,956,557
Volume of sales - Mm cfd 536
Market share - % 94.1
Network – km 96.2
Operating revenue - COP MM
711,688
EBITDA YTD - COP MM 162,152
Controlled by Gas Natural de España
EEB’s stake 25%
Table N° 25 - Selected indicators of Gas Natural
COP Millones USD Millones
Al 2T 14 Al 2T 13 Var % Al 2T 14 Al 2T 13
Operating revenue 711,688 635,511 12.0 378.3 329.5
Cost of sales 491,440 412,709 19.1 261.2 213.9
Administrative expenses 58,097 51,915 11.9 30.9 26.9
Operating income 162,152 170,887 -5.1 86.2 88.6
EBITDA YTD 162,152 186,955 -13.3 86.2 96.9
Net Income 125,707 135,780 -7.4 66.8 70.4
Dividends and reserves declared to EEB 67,311 62,630 7.5 35.8 32.5
Pies de página en anexo 6
Operational revenues grew at a 12% rate resulting from greater sales due mainly to GNV and ATR markets.
Table N° 26 – Capex
2Q 14 2Q 13 Var %
COP Millions 11,172 8,834 26.5
USD Millions 5.94 4.58 29.7
Investments performed during 2Q 2014 reach COP 11,172 million, growing by 26.5% concentrated in (i)
distribution networks, 104,119 km of network, with progress set at 48% as of 1H 2014; (ii) 1 Regulation Station
for the Municipality of el Colegio, showing progress of 29.9% as of 1H 2014. (iii) Ancillary installations in the
network, progress as of 1H 2014 is 31.5%; and (iv) Maintenance and infrastructure CAPEX amounting to COP
2,060 million for that same period.
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4.5. REP y CTM Perú
Table N° 27 - Selected financial indicators of REP
USD Thousands
2Q 14 2Q 13 Var %
Operating revenue 63,686 60,585 5.12
Cost of sales -36,973 -34,545 7.03
Operating income 26,713 26,040 2.58
EBITDA LTM 33,659 30,761 9.42
Net income 11,850 10,679 10.97
Dividends declared to EEB 14,000 20,000 -30.00
Capital reductions to EEB - - -
Pies de página en anexo 6
Increased operational revenues as a result of increases in the annual guaranteed remuneration due to
adjustments in the Finished Goods Less Food and Energy Index; and the increase in the annual remuneration
on account of enhancements.
Increase in the cost of sales due to a greater provision on maintenance and replacements of products with
respect to the forecasts in the Asset Streamline Plan..
Less financial expenses as a result of greater capitalized expenses from construction enhancement, which
require greater amounts in terms of investments in June 2014, vis-a-vis the same period in 2103
The Seventh Issuance of Series A of the Third Program of Corporate Bonds took place on 11 July 2014, in
which REP placed US$ 20 million at a fixed Annual Nominal Interest rate of 3.75% and a 7-year amortizable
term. Demand placement amounted to US$ 41.4 million and the participation of investment groups, among them
AFPs, Insurance Companies, Mutual Funds and Government Funds. It is worth mentioned that the last
placement of bonds conducted by REP took place on February 2013, for US$10 million at a rate of 4.62% for a
five-year term bullet payment.
According to the report “Merco Personas 2014” prepared by Monitor Empresarial de Reputación Corporativa
(MERCO), the first world-wide and well-reputed verified report and audited by KPMG; Red de Energía del Perú
(REP) is placed among the best 100 companies in terms of human talent and second in the energy sector and
best place to work. The “Merco Personas 2014” report was conducted with more than 7 thousand surveys
under the multiskateholder methodology among workers, university alumni, and exalumni of business schools,
experts in HR topics in the labor market in addition to a corporate analisys on management policies. The labor
quality, employer brand and internal reputation were the three values considered by MERCO to measure the
reputation of a good employer among 30 sector companies.
Enhancement No 13. Consists of the construction of the Pariñas 220 kV - Reactor R-10 of 20 MVAR
substation and 220 kV connection cell from the Talara substation to Pariñas substation. Progress of this project
is set at 90.6% and it is expected to come on stream during 1Q 2015.
Enhancement No 14. Consists of the construction of Reque substation and the installation of an additional
100MVA transformer in the Trujillo Norte Substation. Progress is set at 73% and it is expected to come on
stream during 1H 2015.
Enhancement No 16. Construction of the new Amarilis substation, capacity enhancement of 138kV
transmission lines Paragsha II-Huánuco of 45 to 75 MVA and a link between Amarilis substation and Huánuco
substation. Bypass at the exist of the Paragsha substation. Progess is at 46% and it is expected to come on
stream during 1Q 2015.
Table N° 28 - Selected financial indicators of CTM
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USD Thousands
2Q 14 2Q 13 Var %
Operating revenue 45,275 40,408 12.0
Cost of sales -21,703 -19,972 8.6
Operating income 23,572 20,436 15.35
EBITDA 96,756 57,150 69.3
Net income 12,709 -418 29.
Dividends declared to EEB 7.32 - -
Capital reductions to EEB - - -
Net debt (2) / EBITDA 5.36 8.12 -33.9
EBITDA / Interests (2) 4.49 2.28 96.8
Pies de página en anexo 6
Increased revenues, +12%, due to start-up of por TL Talara - Piura and LT Pomacocha - Carhuamayo
Increased revenues due to POC of private TL FENIX and Termochilca, which began their commercial
operation in March and August 2013 respectively.
Increased expenses on account of maintenance and amortization due to start-up of the previously mentioned
lines.
Increased interest related to the volume of disbursments for construction projects. 2Q14, shows a reduction
as a result of lower levels of disbursements.
Increase in adjusted EBITDA is the result of greater revenues due to the Commercial Start Up of the
previously mentioned projects and due to the extraordinary revenues on the controversy of Addendum No.
10, which will be charged during a 17-year period as of May 2014.
On 22 July 2014, Mr. Eleodoro Mayorga, Ministry of Energy and Mines inaugurated the “Transmission Lines
Trujillo-Chiclayo-Piura in 500 thousand volts”, built by Consorcio Transmantaro (CTM). This project required
an investment of approx. US$128 million by the company and comprises 327 km of 500 thousand volt lines,
with which CTM completed over 1,000 km of operation circuits at this power level, total investment amounted
to appox. US$ 500 million. On 29 May 2014, CTM was awarded the ‘Buena Pro’ of the Project “Transmission Line 220 kV La Planicie
Industriales and Related Substations” during the envelope opening activity of the agency - Agencia de
Promoción de la Inversión Privada – ProInversión, in charge of undertaking this bidding process. The value
of the investment offered was US$ 35.3 million and will be included in the electrical power tariff and will be
paid by the demand serviced by such facilities.
The 220 kV Transmission Line kV Planicie-Industriales is part of the Investment Plan 2013-2017 approved
by OSINERGMIN, its estimated length is 16,6 km and capacity of 400 MVA per circuit, made up by 11.7 km
of overhead lines and 4.9 km buried lines. Such transmission line will allow the supply of energy to
Industriales Substation in 220kV. Similarly, it will facilitate the expansion system in 220kV in the Metropolitan
are of Lima, which is necessary to service forseen growing demand in that area in a timely manner and
under adequate quality condtions.
Among the main projects currently under way is the Machupicchu-Abancay-Cotaruse, 421 km and 220 kv,
investment amounting to arround US$ 107 million and physical progress is of 74.5% as of 1H 2014 and its
coming on stream is expected to take place during 1Q 2015.
In this regard, the transmission line project consisting of 920 km and 500 kv Mantaro-Marcona Nueva-
Socabaya-Montalvo 500kV, which investment is US$ 446 million, with progress of 8.89% as of 1H 2014 and
its start-up is expected during the last quarter of 2016.
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5. Annexes
Annex 1: Legal notice, clarifications and definitions of EBITDA included in this report
This document contains projections and estimates, using words such as “anticipate,” “believe,” “expect,” “estimate”,
and others having a similar meaning. Any information other than historical information included in this report,
including but not limited to the Company’s financial condition, its business strategy, plans, and management
objectives for future operations are projections.
Such projections are based on economic, competitive, regulatory and operational scenarios and involve known and
unknown risks, uncertainties and other important factors that could cause the Company’s results, performance or
actual achievements to be materially different from the results, performance or future achievements that are
expressed or implicit in the projections. For these, reasons, the results may differ from the projections. Potential
investors should not take them into consideration and should not base their decisions on them. Such projections are
based on numerous assumptions concerning the Company’s present and future business strategies, and the
environment in which the Company will operate in the future.
The Company expressly states that it will be under no obligation to update or revise any projections contained in this
document.
The company´s previous results should not be taken as a pattern for the company´s future performance.
Clarifications
Only for information purposes, we have converted some of the figures in this report to their equivalent in
USD, using the TRM rate for the end of the period as published by the Colombian Financial
Superintendency. The exchange rates used are as follows:
− 2Q 14: 1,881.19 COP/USD
− 2Q 13: 1,929.00 COP/USD
En las cifras presentadas se utiliza la coma (,) para separar los miles y el punto (.) para separar los decimales.
Annex 2: Definitions of EBITDA included in this report. Consolidated adjusted EBITDA reconciliation
EBITDA is not an acknowledged indicator under Colombian or US accounting standards and may show
some difficulties as an analytical tool. Therefore, it must not be taken on its own as an indicator of the
company´s cash generation.
EBITDA: EBITDA for a specific period of time (LTM; Q1) has been calculated by taking operating income
(loss) and adding amortization of intangibles and depreciation of fixed assets for that period.
EEB Consolidated EBITDA for a period, consists of operating revenues of EEB and its consolidated
subsidiaries for such period, minus the sum of (i) cost of sales, (ii) administrative expenses allocated to cost,
(iii) administrative expenses and (iv) interest income on investments of pension assets, plus dividends and
interest earned (which includes dividends declared by EEB’s related companies, whether such dividends are
actually paid or not), taxes (other than income taxes), amortization and depreciation, pension payments and
provisions.
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EEB Consolidated Adjusted EBITDA for a specific period is calculated taking the Consolidated EBITDA for
such period and adding the cash flows coming from investing activities during such period to the extent
attributable to capital distributions by EEB’s related companies.
Annex 3: EEB Consolidated Adjusted EBITDA UDM and Quarterly
Table N° 29 – EEB’s Consolidated financial results
Millions COP Var. Millions USD
2Q 14 2Q 13 % 2Q 14 2Q 13
Operating revenue (1) 1,123,980 943,195 19.2 597.5 489.0
Electricity transmission 55,222 52,218 5.8 29.4 27.1
Electricity distribution 151,056 141,852 6.5 80.3 73.5
Natural gas transportation 486,881 421,684 15.5 258.8 218.6
Natural gas distribution 430,821 327,441 31.6 229.0 169.7
Cost of sales (2) -566,843 -492,788 15.0 -301.3 -255.5
Electricity transmission -23,828 -22,491 5.9 -12.7 -11.7
Electricity distribution -112,285 -108,892 3.1 -59.7 -56.4
Natural gas transportation -122,075 -128,181 -4.8 -64.9 -66.4
Natural gas distribution -308,655 -233,224 32.3 -164.1 -120.9
Gross income 557,137 450,407 23.7 296.2 233.5
Operating expenses -122,783 -109,509 12.1 -65.3 -56.8
Electricity transmission -10,656 -6,521 63.4 -5.7 -3.4
Electricity distribution -16,750 -16,564 1.1 -8.9 -8.6
Natural gas transportation -35,053 -22,937 52.8 -18.6 -11.9
Natural gas distribution -60,324 -63,487 -5.0 -32.1 -32.9
Operating income 434,354 340,898 27.4 230.9 176.7
Dividends (4) 863,450 799,800 8.0 459.0 414.6
Interest temp. investments & pension trusts (5) 59,726 34,515 73.0 31.7 17.9
Foreign exchange (6) 27,552 -217,988 -112.6 14.6 -113.0
Other revenue (8) 19,091 14,297 33.5 10.1 7.4
Non-operating expenses (9) -97,150 -83,258 16.7 -51.6 -43.2
Financial expenses -120,786 -119,928 0.7 -64.2 -62.2
Other expenses -4,937 -4,367 13.1 -2.6 -2.3
Net income before taxes and minority interest 1,181,300 763,969 54.6 628.0 396.0
Minority interest (10) -84,449 -7,596 1011.8 -44.9 -3.9
Provision for income tax -140,079 -37,473 273.8 -74.5 -19.4
Net income 956,772 718,900 33.1 508.6 372.7
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Table N° 30 – GEB's Consolidated EBITDA LTM breakdown
EBITDA LTM COP MM Var. USD MM
2Q 14 2Q 13 % 2Q 14 2Q 13
Operating revenue 2,139,306 1,780,988 20.1 1137.2 923.3
Operating costs -1,118,063 -935,624 19.5 -594.3 -485.0
Operating expenses -319,823 -214,448 49.1 -170.0 -111.2
Operating depreciation 114,746 113,401 1.2 61.0 58.8
Operating amortization 69,300 47,703 45.3 36.8 24.7
Operating Taxes 5,292 4,323 22.4 2.8 2.2
Dividend & interests earned 1,021,648 871,836 17.2 543.1 452.0
Hedging -17,716 -17,622 0.5 -9.4 -9.1
Interests in autonomous equity -9,166 -11,486 -20.2 -4.9 -6.0
Administration expenses -170,976 -184,740 -7.5 -90.9 -95.8
Retirement pensions 33,594 39,139 -14.2 17.9 20.3
Amortizaciones 32,066 36,955 -13.2 17.0 19.2
Amortization 6,753 6,317 6.9 3.6 3.3
Depreciation 103,712 18,529 459.7 55.1 9.6
Taxes 79,866 66,546 20.0 42.5 34.5
Capital reductions - - - 0.0 0.0
Consolidated adjusted EBITDA 1,970,539 1,621,817 21.5 1047.5 840.8
Table N° 31 – GEB's Consolidated EBITDA quarterly breakdown
CONSOLIDATED EBITDA QUARTERLY COP MM Var. USD MM
2Q 14 2Q 13 % 2Q 14 2Q 13
Operating income 217,547 169,981 28.0 115.6 88.1
Operating depreciation 28,887 27,798 3.9 15.4 14.4
Operating amortization 21,448 12,166 76.3 11.4 6.3
Operating taxes 1,150 936 22.9 0.6 0.5
Dividends & interests earned 57,296 32,723 75.1 30.5 17.0
Hedging Operations (7,761) (12,357) -4.1 -6.4
Interests in autonomous equity (1,344) 4,178 -132.2 -0.7 2.2
Administration expenses (48,466) (39,637) 22.3 -25.8 -20.5
Retirement pensions 9,569 9,967 -4.0 5.1 5.2
Amortization 6,809 9,314 -26.9 3.6 4.8
Depreciation 1,780 1,348 32.0 0.9 0.7
Provisions 18,621 2,687 593.0 9.9 1.4
Taxes 16,684 13,490 23.7 8.9 7.0
EBITDA 322,220 232,594 38.5 171.3 120.6
Annex 4: Link to EEB´s consolidated and stand-alone financial statements
http://www.grupoenergiadebogota.com/en/investors/financial-statements
Anexo 5: Technical and regulatory terms
BLN: US billion (109)
CAC: Compound Annual Growth
COP: Colombian Peso
CHB: Central Hidroeléctrica de Betania
CTM: Consorcio Transmantaro
CFD: Cubic feet per day
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CREG: Comisión de Regulación de Energía y Gas de Colombia. (Colombia’s Energy and Gas Regulating
Commission). Colombia’s state agency in charge of regulating electric power and natural gas residential
public utility services.
D Electricity: electricity distribution,
D Natural Gas: Natural Gas Distribution,
DANE: Departamento Administrativo Nacional de Estadística (National Administrative Statistics
Department). Agency responsible for planning, collecting, processing, analyzing, and disseminating official
statistics in Colombia.
G Electricity: electricity generation,
Gwh: Gigawatt hour; unit of energy equivalent to 1,000,000 kwh
GNV: Natural Gas for vehicles
IPC: Colombian Consumer Price Index
KM: Kilometers
KWH: Unit of energy equivalent to the energy produced by a power of one kilowatt (kW) for one hour
LTM: last twelve months
MEM: Mercado de Energía Mayorista de Colombia; Wholesale Energy Market in Colombia
Mm: million
Ml: thousands
MW: Megawatt, power unit or work which equals one million watts
N.A. Not applicable.
Non Regulated Electricity User: electricity consumers who have a peak demand greater than 0,10 MW or a
minimum monthly consumption above 55.0 MWh
Natural Gas Non Regulated User: user with consumption above 100 kcfd
SIN: Sistema Interconectado Nacional, National Interconnected System
STN: Sistema de Transmisión Nacional, National Transmission System
SF: Superintendencia Financiera – Financial Superintendency. State entity in charge of regulating,
overseeing and controlling the Colombian financial sector
T Electricity: Electricity transmission ,
T natural Gas: natural gas transportation,
TRM: Market Representative Exchange Rate; it is an average of the transactions carried out in peso–dollar,
and it is calculated daily by the SF
UPME: State agency responsible for planning Colombia’s mining and energy sectors
USD: US dollars
N.B. Figures in this English report in terms of one USD billion corresponds to COP 1,000,000,000 and one
COP trillion corresponds to USD 1.000.000.000.000.
Annex 6: Tables and graphics footnotes.
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Table 9 - EEB´s transmission business indicators
(1) Percentage of the infrastructure available in a period of time.
(2) Percentage of the revenue discounted due to accumulated unavailability of specific assets above the regulatory
target.
(3) Ratio between the number of maintenance operations carried out and number of scheduled maintenance
operations to be executed as part of the semi-annual Maintenance Plan.
(4) Ratio of the number of transmission assets owned by EEB and the total number of transmission assets in
Colombia.
Return
Table 10– Selected financial indicators of EEC - DECSA
(1) Percentage of energy losses.
Return
Table 16 - Selected financial indicators of EMGESA
(1) It is the result of the financial debt in force at the end of the period under analysis, less cash and temporary
investments in the same period.
(2) Accrued interest on financial debts for the previous twelve months
Return
Table 19 - Selected financial indicators of Codensa
(1) It is the result of the financial debt in force at the end of the period under analysis, less cash and temporary
investments in the same period.
(2) Accrued interest on financial debts for the previous twelve months.
Return
Table 23 – Selected financial indicators of Promigas
(1) It is the result of the financial debt in force at the end of the period under analysis, less cash and temporary
investments in the same period.
(2) Accrued interest on financial debts for the previous twelve months.
Return
Table 25 – Selected financial indicators of Gas Natural
(1) It is the result of the financial debt in force at the end of the period under analysis, less cash and temporary
investments in the same period.
(2) Accrued interest on financial debts for the previous twelve months.
Return
Table 27 – Selected financial indicators of REP
(1) It is the result of the financial debt in force at the end of the period under analysis, less cash and temporary
investments in the same period.
(2) Accrued interest on financial debts for the previous twelve months.
Return
Table 28 – Indicadores financieros seleccionados de CTM
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(1) It is the result of the financial debt in force at the end of the period under analysis, less cash and temporary
investments in the same period.
(2) Accrued interest on financial debts for the previous twelve months.
Return
Table 29 - Consolidated results of EEB
(3) Operating revenue for transmission services rendered directly by EEB, natural gas transmission and distribution
of TGI and Cálidda, respectively; as well as energy distribution services that Decsa consolidates for its
participation in EEC.
(4) Cost of sales of the transmission services rendered directly by EEB, natural gas transportation and distribution
services and electricity distribution services conducted by its controlled companies. It includes personnel,
materials, operation and maintenance costs, depreciation, amortization and insurances related to those activities.
(5) Transmission activity is operated directly by EEB. Administrative costs are allocated by the ABC system.
(6) Dividends declared by non-controlled companies and temporary investors and pension funds autonomous
equity.
(7) Interests of temporary investments that are generated by pension funds autonomous equity.
(8) Refers to net losses or earnings due to exchange rate variations and its impact on assets and liabilities
expressed in foreign currency.
(9) Valuation of hedging operations contracted by EEB and TGI to reduce currency risk.
(10) Income from recovery of investments, leases and expenses.
(11) Expenses are not related to operational activities.
(12) Proportion of net income corresponding to minority investors in the company’s consolidated by EEB.
Return
Annex 7: Overview of EEB
EEB is an integrated energy company with interests in the natural gas and electricity sectors and operations
in Colombia, Peru and Guatemala.
EEB was founded in 1896 and is controlled by the District of Bogota (76.2% ownership). The company, as a
public company in Colombia, adhered to global standards of corporate governance.
EEB has an expansion strategy focused on the transmission and distribution of energy in Colombia and
other countries within the region.
EEB participates in the entire electricity value chain and in almost all the natural gas value chain, except for
exploration and production.
Since 2009, EEB shares have been traded on the Colombian stock market. In November 2011, EEB finished
a Re-IPO in the Colombian stock market for approximately USD 400 million.
EEB is one of the largest Colombian corporate debt issuers. In October 2007, EEB and TGI issued
corporate bonds in the international markets for USD 1.36 billion. In 2011 and the beginning of 2012 both
companies refinanced their notes extending their maturities and lowering its costs.
Investor Report
First Half 2014
Investor Relations Management, Phone: +57(1) 3268000 ext 1675 / 1827 E mail:[email protected]
www.grupoenergiadebogota.com/inversionistas
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100%*
100%*