ISA to pay 70% of its profits as dividends: the highest amount in the company’s history

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  • The Group will pay dividends in the amount of COP 1.303 per share.
  • The total disbursement amount will reach COP 1.443.304 million, an unprecedented figure in the organization.
  • Despite the challenges of the pandemic, ISA’s financial performance was outstanding: 15,6% ROE, one of the highest in the history of ISA, exceeding the previous year’s profit for the fourth consecutive year.
  • The results presented at the Shareholders’ Meeting demonstrate that the company keeps growing in a profitable, sustainable manner. This ratifies ISA as one of the strongest, most attractive investments for local and foreign investors.
  • In the meeting, three new independent members of the Board of Directors were appointed.

ISA’s shareholders keep hearing good news: not only the company’s share was the best performing in 2020, but shareholders will also receive a dividend never seen before, in the amount of COP 1.303 per share, an increase of 93% over the dividend paid the previous year.

This was approved at the Ordinary General Shareholders’ Meeting of today, March 26, 2021, which was held online to protect the health of shareholders, employees, and other stakeholders. An ordinary dividend of COP 744 per share, equivalent to 40% of net income will be paid, as usual. An extraordinary dividend of COP 559 per share, equivalent to 30% of net income will also be paid, generated from the outstanding results obtained during the year. The dividend distributed by ISA remains in an upward trend showing an annual growth of 35% in recent years, well above inflation in Colombia and the performance of other investment alternatives available in the market.

“We remain committed to our investors by making their investment increasingly profitable, by making the best decisions for maintaining our leadership, by being competitive and up-to-date, and by focusing on generating value in a society that increasingly requires organizations to understand and address major global affairs. To maintain these growing results, we must optimize the portfolio and focus even more on businesses with a risk-return payoff that is more adjusted to our profile and the characteristics of our businesses,” Bernardo Vargas Gibsone, ISA’s CEO, said.

It is worth highlighting that this increase in dividends will be funded with the company’s own cash and new debt is not required since, in addition to starting the year with a significant availability of resources, during 2021 there will be an 87% increase in the amount of dividends we receive from our affiliates. This will allow ISA to continue financing its investments planned to 2030, to keep a leverage level that will ensure that the credit rating is maintained, and to count on financial flexibility for future growth.

Changes in the Board of Directors

The appointment of three new independent members of the Board was approved at the Meeting. They are: Ana Fernanda Maiguashca Olano, nominated by the Ministry of Finance and Public Credit; Jorge Andrés Carrillo Cardoso, nominated by Empresas Públicas de Medellín; and Diego Muñoz Tamayo, nominated by the Pension Funds.

Maiguashca Olano is an economist from Universidad de los Andes, MBA from the Columbia Business School. She has held high-responsibility positions in the public sector as Financial Regulation Director, Deputy Minister of Finance, and Co-director at Banco de la República, for 8 years.

Carrillo Cardoso is a civil and environmental engineer, with a Master’s Degree in Environmental Management, both from the Universidad de los Andes. He has 15 years of experience as a senior government officer and as a business consultant on sustainable management affairs. He has served as Vice Minister of Water and Basic Sanitation, advisor to the Senior Presidential Advisor for the Regions, Deputy Superintendent for Water, Sewage, and Wastewater, among other key positions.

Muñoz Tamayo is a lawyer from the Universidad de los Andes with a specialty in Commercial Law from the same University. MSc in Public Policy in Latin America from the Oxford University, International Financial Law and Political Science LLM from the London School of Economics, and a degree in Law, Social Sciences, and Economics (DEUG) from the Université Paris. Founding partner of Muñoz Tamayo & Asociados, with extensive experience in corporate law in the mining, energy, financial, insurance, and infrastructure projects sectors.

Main financial results for the year

  • 15,6% ROE, one of the highest in the history of ISA.
  • COP 2,1 trillion net income (USD 558 million), 25,7% more than in 2019 (surpassed for 4 consecutive years).
  • COP 6,6 trillion Ebitda (USD 1.781 million), 24,4% higher than in the previous year.
  • 64,6% Ebitda margin.
  • COP 10,2 trillion operating revenues (USD 2.754 million), an increase of 24,9%.
  • COP 54 trillion assets (USD 15.739 million), an increase of 10,7%.
  • Share growth: 31,1%, now the share with the highest valuation in the Colombian Stock Exchange. ISA’s share exceeded its historical peak six times and closed the year again with a historical peak of COP 25.700 (USD 7,49). Today, the peak is COP 29.250.




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