In a task that has been developing for several months, Grupo Argos is reorganizing the house not only to consolidate its operation and electric power projects, but also in road concessions and airports to strengthen the infrastructure segment, with which they will seek to be listed in the New York Stock Exchange or an “efficient” stock market.
Thus, the organization’s management seeks on this front to develop assets with similar characteristics in which stable cash flows and long-term investment stand out, not only to expand the portfolio of road projects, but also to grow in profits, thanks to that it will allow an optimization of the structure to maximize operational, tax and capital efficiencies.
“In the last 10 years, Grupo Argos achieved a series of strategic advances that today allow it to make the transition to consolidate itself as a great manager in infrastructure works. Since the spin-off of the operation cement company, the organization has built an important base of alternative assets focused on this business,” the organization said.
On the road concessions front, the organization has short- and medium-term investment projects for more than $4.5 billion in the new vehicle with the Macquarie investment fund, and for Argos this means a perspective that, together with the outstanding performance of airport and road assets, consolidates a growth outlook.
In addition, it is advancing three new award processes. “Infrastructure programs represent an opportunity to continue in the process of closing the country’s gap in this matter, developing projects in addition to roads, airports, railways and rivers,” the company highlighted.
And in the international operation, the organization is evaluating the expansion of its portfolio to Chile and Peru, exploring various projects in the stages of structuring, construction, operation and maintenance “that meet the strategic fundamentals, risk appetite and profitability expectations that defines the platform and association”.
The total EBITDA (earnings before taxes, depreciation and amortization) registered in the concession business at the Grupo Argos level grew 39% year-on-year and closed the first quarter of 2022 at $438,000 million, with a growth of $178,000 million in the contribution from Opain (operator of the Bogotá airport).
“It is important to highlight that the financial statements registered by Odinsa (subsidiary of the holding) do not include the consolidation of Opain (another subsidiary), since this asset is consolidated at the Grupo Argos level”, the company clarified.
The total traffic of Odinsa’s road concessions closed the quarter at 104,000 vehicles per day, which represents a decrease of 9% year-on-year, but with an increase of 17%, when excluding the contribution of Autopista del Nordeste and Boulevard Turístico del Atlantic.
On the other hand, Odinsa presented positive results with increases in traffic and financial results. “El Dorado Airport not only recovered, but closed March with traffic 7% higher than that registered in 2019,” said the spokesperson for Grupo Argos.
At a financial level, the air terminal of the country’s capital registered an Ebitda of $91,000 million in the first quarter of this year, growing 11% compared to that registered in the same period of 2019, and a net profit of $21,000 million, 4.1 times higher than that reported between January and March, also in 2019.
On the 5G tracks
For the technicians of the Argos Group, the 5G concessions pose a great business opportunity since their focus transcends the roads and seeks to potentiate the air, river and rail transport infrastructure.
“This look is even more relevant if we understand the topographical conditions of the country and the possibility of accessing multimodal transport that connects the entire national territory, understanding the conditions of each region,” said Argos.
The conglomerate also explained that the organization sealed an alliance with Macquarie Asset Management, one of the most important asset managers in the world, to create an investment platform and manage road assets in Colombia such as: Pacífico 2, Túnel Aburrá Oriente, Autopistas del Café and Malla Vial del Meta, in addition to the private initiatives that are currently being led, such as Conexión Centro y Perimetral de la Sabana, which, if awarded, will have significant financial support and technical strength for their execution.
Likewise, within the framework of this strategic alliance, Grupo Argos will continue to explore opportunities to continue contributing to the connectivity and competitiveness of the country with works such as Accesos Norte 2 in the north of Bogotá and Magdalena 1 and Magdalena 2.
“The 5G concessions respond to the needs of the market and have an important participation of the private sector,” the source stressed.