COLOMBIA · COMPANIES
Key Facts
- The company Celsia is a Colombian power producer and distributor with about 1.4 million customers.
- The result Third-quarter net profit fell 64.1% to about US$8.8 million.
- The cause El Niño, a Pacific warming that brings drought, cut hydropower and raised power and gas costs.
- The debt Gross debt fell to about US$1.62 billion, but debt relative to operating earnings rose to 3.51 times.
- Power Index Colombia ranks 6th of 14 in The Rio Times Latin America Power Index, with 51.1 points (November 2026 edition).
Colombian power company Celsia earned 64% less in the third quarter of 2026, as a strengthening El Niño drove up its energy costs. Net profit fell to COP 28,850 million (about US$8.8 million) from COP 80,276 million (about US$24.5 million) a year earlier.
For US readers, the result shows what El Niño, a warming of Pacific waters that brings drought to Colombia, does to a utility that depends on rain. Revenue rose while profit fell, which is a warning for investors in Latin American utilities.
What Happened
Celsia S.A. generates and sells power and runs electricity networks in Colombia’s Valle del Cauca and Tolima regions. It published the figures in its third-quarter 2026 report, and revenue rose 24.8% to COP 1.62 trillion (about US$494 million) because it sold more power on the spot market, the daily wholesale power market, at much higher prices.
Costs rose faster than sales. The cost of sales jumped 43.5% to COP 1.34 trillion (about US$408 million), as Celsia bought more energy and gas for thermal plants, which burn gas to make power.
EBITDA, which is operating earnings before interest, tax and depreciation, fell 23.0% to COP 293,363 million (about US$90 million). The EBITDA margin, the share of revenue left as operating earnings, shrank to 18.1% from 29.4%.
How El Niño Hit the Numbers
Rainfall stayed far below normal in Colombia’s main river basins, and Celsia’s hydropower output fell 34.6% to 587.7 gigawatt-hours, a unit of electricity output. Its reservoirs held 56.8% of capacity at the end of September.
The national spot price averaged 802 pesos per kilowatt-hour in the quarter (about US$0.24), against 220 pesos (about US$0.07) a year earlier. Celsia said that from September a temporary shortage rule set by CREG, the energy and gas regulator, kept spot prices below what scarcity would imply and limited its margin.
Celsia’s solar plants offered some relief, with output up 60.1% to 185.5 gigawatt-hours. For earlier coverage of the drought, see our reports on the Hidroituango dam and on a city’s offer of its Celsia stake.
Below the Operating Line
Net financial expense fell 10.1% to COP 150,321 million (about US$46 million). Income tax turned into a gain of COP 17,869 million (about US$5.5 million), helped by a tax benefit tied to Celsia’s solar farms.
Profit attributable to Celsia’s own shareholders, after minority partners’ share, fell 72.5% to COP 16,209 million (about US$5.0 million). Over nine months, net profit was COP 169,780 million (about US$52 million), down 43.4%.
Debt and the Road Ahead
Gross debt fell to COP 5.29 trillion (about US$1.62 billion) from COP 5.95 trillion (about US$1.82 billion) in the earlier period. But net debt, which is debt minus cash, stood at 3.51 times EBITDA against 3.14 times, because operating earnings fell faster than debt.
Celsia’s report says El Niño reached moderate strength in the quarter, and weather agencies expect it to become very strong in the last three months of the year. That points to more pressure on hydropower in the fourth quarter.
What It Means for You
If you hold emerging-market utility funds, this quarter shows that higher power prices do not automatically lift profit for a company that must buy energy to meet its contracts. Celsia’s shares trade in Bogotá, so most US investors meet it only through regional funds.
Celsia’s retail power revenue rose 22.1% to COP 926,859 million (about US$283 million), helped by higher demand and a higher sales tariff. Whether tariffs ease depends on how long El Niño lasts.
What Is Not Known
It is not clear how long the temporary shortage rule will stay in force, or how large its effect on Celsia was. It is also not known whether profit will recover before the end of the year.
How strong El Niño becomes in the fourth quarter will decide whether costs ease or rise further. The exchange rate also matters, because the conversions here use one day’s rate.
More: Colombia news in English, every day from The Rio Times.
Frequently Asked Questions
How Much Did Celsia’s Profit Fall?
Net profit fell 64.1% to COP 28,850 million (about US$8.8 million) in the third quarter of 2026. Over nine months it fell 43.4% to COP 169,780 million (about US$52 million).
Why Did Revenue Rise While Profit Fell?
Revenue rose 24.8% because Celsia sold more power at high spot prices and retail sales grew. Costs rose faster, because it had to buy more energy and gas during the drought.
What Is the Temporary Shortage Rule?
It is a rule set by CREG, Colombia’s energy and gas regulator, for periods when power is scarce. From September it kept spot prices below the level that scarcity would imply.
How Much Debt Does Celsia Have?
Gross debt was COP 5.29 trillion (about US$1.62 billion) at the end of September, down from COP 5.95 trillion. Net debt stood at 3.51 times EBITDA, up from 3.14 times.
Sources: Celsia S.A., Financial Results, Third Quarter 2026; RT, a financial data provider, USD/COP close of 10 November 2026 (3,274 pesos per US dollar), used for all conversions.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error