Grupo ISA to invest US$ 1.1 billion in Brazil
Valor Econômico
Many reasons lead the civil engineer Luis Fernando Alarcón to leave Medellín, in Colombia, and fly to São Paulo on a regular basis, at least once every three months. As Chairman of the ISA group, an energy State-owned company that is the third largest company listed in the Stock Exchange of Bogota, the Executive comes to take a close look on the everyday life of the main foreign subsidiary of the group: Companhia de Transmissão de Energia Elétrica Paulista (CTEEP). CTEEP, for which the ISA disbursed little more than US$ 1 billion between 2006 and 2007 to take over nearly 90% of the voting capital, is responsible for 55% of the consolidated income of the group, which reached US$ 1.62 billion last year. According to the Executive, the Brazilian subsidiary "was a pleasant surprise". Since its acquisition, the energy transmission company of São Paulo has only been featuring good numbers and there are plans to keep on growing aggressively, either through direct investments, winning new competitive bids, or through acquisitions - but with responsibility.
The operating income (EBITDA) of CTEEP is an example of satisfaction for the ISA group in the performance matter of the Brazilian subsidiary. It more than doubled, from R$ 611 million (US$ 251 million) in 2005 to R$ 1.36 billion (US$ 690.4 million) last year. "Better than that was the evolution of the operating margin: it went from 50.7% to 82.5%", celebrates Alarcón, without forgetting to mention the impressive growth of the payment of dividends of the company, which quadrupled during that period.
With the indebtedness under control - near R$ 1.5 billion (US$ 857 million) -, the Brazilian subsidiary has a R$ 1.9 billion (US$ 1.1 billion) program of investment ahead between this year and 2012. Nearly half of such amount will be applied in 2010. To back up this plan, in January the company made an issuance of debentures of R$ 548 million (US$ 313 million), and it may carry out another operation in the second half of about R$ 300 million (US$ 171.4 million). At the same time, it redeemed a R$ 208 million (US$ 118.9 million) promissory note.
Among the major undertakings underway is the power transmission line of Rio Madeira (RO) to São Paulo, one of the largest under construction in the world today. The company won the competitive bid in partnership with companies of the Eletrobras group. There are more projects in other States, such as a 720 km line between Tocantins and Piauí, crossing the State of Maranhão. "In two more years we will have operations in 12 Brazilian States", says Alárcon. Nearly R$ 800 million (US$ 457 million) of the investment package will be intended for the so-called "back-up" account of the park of transmission assets.
The Colombian group, present in several countries of South America and the Caribbean, does not intend to grow only in the electric sector, observes the Executive, "We want to be a reference company in transmission line infrastructure". The new businesses go through telecommunications networks, road concessions and even gas pipelines. Brazil is not outside this map of expansion. According to the Executive, the group has already discussed opportunities in telecommunications networks that would be used by companies of the sector, but it was forbidden by the regulatory matter in the country. In road concessions, in which it already has works in Colombia and Chile, the idea is to get started in the Brazilian market within three years. .
With this purpose of expansion, the goal of the group is to get to 2016 with an income of US$ 3.5 billion. From that value, the goal is that 80% are generated outside Colombia (it is currently at 60%) and 20% come from new businesses (currently at 8%).