Daily Colombian Equities Bulletin and Fundamentals 7-28-14
July 29, 2014 (www.investorideas.com newswire) The Colcap index closed at 1,714 points (0.82%). Total turnover reached USD 151 mm. The best performers were Fabricato (+5.33%), PfBancolombia (+2.74%) and PfDavivienda (+2.58%). On the other hand, the worst performers were Valorem (-4.41%), Isagen (-1.22%) and Mineros (-1.06%).
Grupo Argos | 2Q14 Results
2Q14's individual revenues were COP 261.2 billion, +177.4% YoY. Excluding the non-recurrent effect of the divestiture of preferred shares of Grupo Sura (COP 127.7 billion), the increase would be of 35.6% YoY. Additionally, 2Q14's revenues via equity method were COP 110.5 billion, +96.9%YoY. The results were positively impacted by the good performance of the cement and energy businesses. EBITDA in the same period was COP 117.7 billion, +195.2%, which represents a margin of 45.06%, 276 bp above 2Q13 figures.
Grupo Argos' individual net income was COP 184 billion, +798% YoY. This significant increase was reflected in the other income line, as during 2014 an exchange was made in the real estate assets, which generated an extraordinary profit of COP 91 billion. Excluding this non-recurring operation and the divestitures made by holding, the increase in net income was 285.7%.
EEB | 2Q14 Results
EEB published its financial statements as of June 2014. During 2Q14, operating revenue was COP 581,726 million, +18% YoY. Revenue from the natural gas distribution business presented the highest growth during the quarter (+23% YoY), followed by the natural gas transportation business (+17% YoY), electricity distribution (+10% YoY) and electricity transmission business grew +5% YoY. Operating income in 2Q14 was COP 217,547 million, +28% YoY. 2Q14's non-operating income was COP 151,536 million positive affected by an exchange gain of COP 83,865 million during the quarter. Finally, 2Q14's net income was COP 103,455 million, higher in COP 151,799 million vs. 2Q13 (COP -48,344 million). Source: SuperFinanciera
The company revealed its operational update 2Q14. We highlight that production is 2.6% lower than our estimate, while sales volume is 3.8% lower.
Our estimates of combined selling price and operating netbacks are in sequence with those published by the company today.
In general, because the production is below our estimate, we could find negative surprises in the 2Q14 financial results that will be publish on August 14. We remain cautious about the company perspectives, due to growth in the volatility of the stock in recent weeks as concerns remain about how will be replaced the Rubiales field production. Source: Corredores Asociados
Isagen | EPM
EPM insist in their proposal of Isagen's 13.6%; the company will ask permission to the Council so that their shareholding stake of Isagen could be alienated to the solidarity sector. "That is a necessary step to participate in the public offer of voluntary acquisition that must be made by the new controlling shareholder of Isagen within 60 days after the auction, scheduled for August 22" explained EPM in a document. The new majority shareholder must be prepared to pay EPM an amount of approximately USD 650 million. Source: El Espectador
Under the brand 'Gran Plaza', which gives identity to malls built and operated by Conconcreto, the company prepares their landing in Bogota: 'Gran Plaza San Mateo' in Soacha and two in the south of Bogota (Bosa and El Ensueño sector). At the end of 1Q14, investment held by Conconcreto in malls was approximately COP 478,000 million, equivalent to 47% of the total investment of the company. Source: Portafolio
JPMorgan raised its price target on shares of Bancolombia S.A. from USD 62.00 to USD 75.00 in a research report issued on Monday. JPMorgan Chase & Co.'s price target suggests a potential upside of 19.24% from the company's current price. JPMorgan recommendation on Bancolombia goes from 'neutral' to 'overweight'. Source: Dinero
ISA | Electric Interconnection Project between Colombia and Panama
Colombia and Panama reactivated the Electric Interconnection Project, which involves the construction of a transmission line of 600 km between the two countries with an investment of USD 450 million, official sources said today. The transmission line will connect the substation Cerromatoso in the department of Cordoba with the Panama II Substation. The official information indicated that the export of energy could represent an annual income of USD 250 million for Colombia. The implementation of this project is in charge of the consortium 'Interconexión Colombia-Panamá' (ICP), conformed by ISA of the Colombian side and Etesa of Panama. Source: CM& and El Colombiano
Corredores Asociados S.A. Comisionista de Bolsa is not responsible for investment decisions that may be derived from the information and analyses presented in this document. These decisions, their effects and consequences will be the sole responsibility of the investor. The information published is informative and has been taken from reliable sources, but Corredores Asociados S.A. does not guarantee that they are free of errors. Total or partial reproduction of this document is not allowed without the prior and express authorization of Corredores Asociados S.A.
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