ISA Projects $33 Billion Investment Through 2040, Highlights Growth Strategies

ISA expects to invest $28.4 to $33.1 billion by 2040, primarily in power transmission projects. CEO Jorge Carrillo noted plans for growth in telecommunications and potential expansion into new markets. The company’s net profit increased by 14% to 2.8 trillion pesos in 2024, supporting a planned dividend distribution.

ISA, a prominent Colombian conglomerate, anticipates investments ranging from $28.4 billion to $33.1 billion through the year 2040, as disclosed by Chief Executive Officer Jorge Carrillo on Thursday. A significant portion, approximately 67%, of this investment will be allocated towards power transmission projects, while about 25% will support new electricity ventures and the remainder is earmarked for roadway development.

Additionally, ISA plans to engage in divestitures within telecommunications and infrastructure services, according to CEO Carrillo. “In the transmission business, we will continue where we are and look to expand into new countries in Latin America, as well as new solutions like energy storage. Besides being in the region, we would like to enter the U.S.,” Carrillo stated, highlighting the company’s strategic growth trajectory.

ISA is currently operational in Colombia, Brazil, Chile, Peru, Bolivia, Central America, and Argentina, having invested 4.8 trillion pesos ($1.17 billion) in 2024 alone. Carrillo emphasized that the planned investments aim to more than double the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA), which amounted to 9.7 trillion pesos last year.

The company’s net profit demonstrated a notable increase of 14% in 2024, reaching 2.8 trillion pesos ($678.5 million). To reward shareholders, the conglomerate intends to distribute 50% of its 2024 profits, proposing a dividend of 1,265 pesos per share.

In summary, ISA’s planned investment of up to $33 billion through 2040 reflects a strategic focus on power transmission, electricity projects, and roadway development. The growth strategy includes potential expansion into new markets, including the United States. These investments aim to significantly enhance the company’s EBITDA, while also providing dividends to shareholders from increased profits.

Original Source: www.tradingview.com