GRUPO ARGOS S.A.
Grupo Argos, the holding company of the listed companies Argos (cement) and Celsia (energy) and with investments in ports, real estate and other sectors of the economy, a very positive first quarter with growing results in all the strategic units.
Consolidated net income in the first half of the year was 306 billion pesos, representing a growth of 126% compared to 2013. The positive financial results confirm the advantages of the corporate strategy to maintain sustainable and diversified investments in sectors that contribute with the progress and development of economies.
During the second quarter, the company received a AAA rating from the BCR. This rating, being the highest applied to long-term debt instruments, indicates that as an issuer, Grupo Argos has ample and strong capacity to meet its financial commitments. This represents a guarantee of confidence for investors, while also reflecting the strategic management of the company that seeks to continue generating profit and sustainable value for its various stakeholders.
Also, in seeking to improve the debt structure and ensure the availability of resources for expansion plans, the Board of Directors approved the Straight Bonds and/or Commercial Papers Placement and Issuance Program for a total value of up to one trillion pesos (COP
1,000,000,000,000).
In this specific case, the Placing and Issuance Program has the objective of granting the Company with the flexibility necessary to turn to the market in moments that are considered appropriate in order to be able to take advantage of its advantages, and therefore establish the company's financing scheme, allowing for proper financial planning that was structured some time ago.
Revenues up to 4.5 trillion pesos, an increase of 22%.
Consolidated EBITDA totalized 1.2 trillion pesos, an increase of 22%.
Net income up to 306 billion pesos, an increase of 126%
Assets up to 30.4 trillion pesos, an increase of 11%
Equity totalized 13.5 trillion, an increase of 9%
Most important information about Grupo Argos businesses: Cement Business
Argos reports a solid semester where the results of operations in Florida and Honduras are included in their entirety. In addition, 81 days of results were established that respond to the French Guyana assets. The Colombian region continues with a positive momentum, with 3% and 7% growth in volumes of cement and concrete respectively compared with the firs t semester of the previous year. In the US region, solid second quarter performance is highlighted, where an EBITDA of USD 24 million was recorded. This number is greater than that recorded for all of
2013. The Caribbean and Central American region present satisfactory results for the establishment of operations in Honduras and French Guyana, as well as for the increase in sales in Panama.
Celsia's growth in thermal power generation and the increase in stock prices due to water conditions are highlighted. Likewise, it is wor th noting that although these contributions have been lower than the national historical average, in Celsia's case, they were higher than the previous year and the System average. For Cucuana, the production business reached an increase of 88%, while Bajo Tuluá reached 86%. Two power plants are set to enter into commercial operation at the end of this year.
Real Estate BusinessDuring the second quarter, deed registration was carried out for lot C1 of the Genovés II Port project located in the Municipality of Puerto Colombia, sold for a general services project. The total value of this negotiation was COP 6.478 billion. Likewise, a deed was registered for lot D6 of the same project in order to develop a residential project. The sale of this lot was carried out through a bid or call, with a value of COP 5.466 billion. As to rental properties, in July Grupo Argos bought Cementos Argos assets in Ciudad Empresarial Sarmiento Angulo Torre 3 in Bogotá for their real-estate business. Assets are 4,900 m2 of office space, representing an investment of approximately COP 39 billion.
Ports BusinessIn the second quarter of the year, the arrival of the first shipment of 60,000 barrels of Diesel to the Compas port in Barranquilla destined for the Zona Franca de Celsia is highlighted. Thus, the most modern hydrocarbon operations facility opened at this port.
GRUPO ARGOS S.A.
NON-CONSOLIDATED P&L STATEMENT
YTD at June
In millions of Colombian pesos or US dollars
jun-14
Operating revenues
US$ do/lars
Di'v1dends and participations Revenues 'v1a equity method Revenue from sales of investments Real Estate Business
Gross profit
Gross margin
Operating expense Expense 'v1a equity method Administrative expense Pro'v1sions for investments Depreciation and amortization
Operating profit
Operating margin
EBITDA
US$ do/lars
EBITDA margin
Non-operating revenues
Other income
Non-operating expense
Financial
Retirement pensions
Other expense
(loss) profit exchange rate
Pre-tax earnings
Pro'v1sion for income tax
Net income US$ do/lars Net margin
487.101247
88.765
189.597
164.858
43.881
323.22266, 4%
57.79910.221
40.722
5.056
1.800
265.42354,5%
267.223135
54,9%
92.60392.603
44.98927.965
306
16.718
-4.415
308.6222.942
305.680156
62,8%
GRUPO ARGOS S.A.
NON-CONSOLIDATED BALANCE SHEET
In millions of Colombian pesos or US dollars
jun-14Gash and equivalents Accounts receivable lnventories
Diferidos
CURRENT ASSETS
Permanent investments
Deudores
lntangibles and deferred items Property, plant and equipment, net appraisals
Other assets
NON-CURRENT ASSETS TOTAL ASSETS
US$ dollars
Financial obligations
Suppliers and accounts payable
Di'vidends payable Taxes and rates Labor liabilities Other liabilities
CURRENT LIABILITIES
Financial obligations Convertible bonds Taxes and rates Labor liabilities
Other liabilities
NON-CURRENT LIABILITIES TOTAL LIABILITIES
US$ dollars
SHAREHOLDERS' EQUITY US$ dollars
TOTAL LIABILITIES + SHAREHOLDERS' EQUITY
35.017
455.236
39.387
502
530.1428.184.750
8.243
135.003
185.259
7.491.917
1.554
16.006.726 16.536.8688.791
385.842
95.140
150.236
997
786
60.995
693.996427.609
581.136
o
2.253
53.595
1.064.593 1.758.589935
14.778.2797.856
16.536.868GRUPO ARGOS S.A. CONSOLIDATED P&L STATEMENT YTD at June
In millions of Colombian pesos or US dollars
jun-14
Operating revenues
US$ dollars
Variable costs
Cost of goods sold
Depreciation and amortization
Gross Profit
Gross margin
Overheads Administrative expense Selling expense
Depreciation and amortization
Operating Profit
Operating margin
EBITDA
US$ dollars
EBITDA margin
Non-ope rating re ve nues Dividends and stakes Other income
Non-operating expense Net financial expense Other expense
Exchange difference
Pre-tax earnings
Provision for taxes
Minority interest
Net income US$ dollars Net margin
4.483.2222.291
3.104.0032.878.171
225.832
1.379.21930,8%
455.384293.446
110.748
51.190
923.83520,6%
1.200.857613
26,80;6
206.95035.833
171.117
314.909160.936
153.973
-4.783
811.093253.603
251.810
305.680156
6,8%
GRUPO ARGOS S.A. CONSOLIDATED BALANCE SHEET
In millions ofColombian pesos or US dollars
jun-14
Cash and equivalenls Trade receivables Accounls receivable, nel ln-.enlories
Prepaid expenses
CURRENT ASSETS
Permanenl in-.eslmenls
Accounls receivable ln-.enlories
Deferred ilems and inlangibles Property, plani and equipmenl, nel Appraisals
Olher assels
NON-CURRENT ASSETS TOTAL ASSETS
US$ dollars
Financial obligalions Bonds oulslanding Commerciai Paper
Suppliers and accounls payable
Dividends payable Taxes and rales Labor liabililies Sundry credilors Olher liabililies
CURRENT LIABILITIES
Financial obligalions Labor liabililies Deferred ilem s
Bonds oulslanding
Band placemenl premium
Sundry credilors
NON-CURRENT LIABILITIES TOTAL LIABILITIES
US$ dollars
Minority interest
US$ dollars
SHAREHOLDERS' EQUITY US$ dollars
TOTAL LIABILITIES + SHAREHOLDERS' EQUITY
1.180.468
1.093.900
918.659
695.736
103.633
3.992.396
1.435.622
15.346
53.898
2.215.854
8.958.648
13.725.223
14.151
26.418.742
30.411.138
16.166
1.049.304
123.586
o
926.168
320.552
130.476
74.585
26.901
1.016.541
3.668.113
2.496.608
322.633
91.677
3.615.959
-6.568
26.901
6.547.210
10.215.323
5.430
6.693.724
3.558
13.502.091
7.177
30.411.138
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