EEB Company Alert: 2013 preliminary financial results continue to show a sound financial performance
Company Alert: EEB – Hold 2013 preliminary financial results continue to show a sound financial performance Price: COP 1,440; Target Price: COP 1,800
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March 4, 2014 (www.investorideas.com newswire) The company issued a press release with a brief summary of 2013 key financial figures. Based on this information, and financial figures as of Sep-13 we inferred the 4Q13 results, thus these could differ from the official financial results that we expect to be released in coming weeks.
Operating revenues in 4Q13 would have grown 21% y/y in line with our expectations. Meanwhile, the adjusted EBITDA (including dividends from non-controlled investments) would have increased 62% y/y, and stood 18% above our estimates for the quarter.
Non-operating results were positively affected by EEB's and TGI's debt restructuring in previous years, causing lower interest expense during the period. On the other hand, the devaluation of the COP caused FX losses coming from a higher value of USD-denominated financial debt.
Finally, 4Q13 net income showed an increase of 7.9% y/y, which was above our estimates as we expected a worst effect from FX losses in the quarter's net income. The BoD proposed to the shareholders meeting a dividend payment of COP 64.3 per share, equivalent to a 70% payout ratio.
Preliminary results continue to show the sound financial performance of the company. We will be waiting for more information about the full financial results; we expect the report to be released in the next two weeks.
Regards, Credicorp Capital
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