Good morning. This is Karen Guzmán, Grupo Energía Bogotá's financing and investor relations manager. Welcome to the second quarter 2024 financial and operating results conference call. Our results reports were published yesterday and are available on GEB's website for your reference. Please note that this conference call is being recorded. Today's agenda starts with an overview of the quarter results, the main events in the economic and industry environment of the countries where we operate, followed by the group's financial and sustainability milestones. At the end of the presentation, a Q&A session will follow. To that end, we invite you to register with your name and the name of the company you represent so we can easily identify you.
On the top right corner of your screen, you will find a question and answer section for you to write your questions at any time, or you can raise your hand at the end of the presentation if you would like to ask your questions live. In today's conference, we will have our CEO, Juan Ricardo Ortega, the CFO, Jorge Tabares, the Sustainability Director, Eduardo Uribe, and I, Karen Guzmán. We will start our call with the presentation of our CEO, Juan Ricardo Ortega.
Thank you, Karen, and welcome everyone once again to our quarterly results call. This has been a tough semester. However, the group has managed, through active cost control, to continue resilient towards the slow growth of the Colombian economic environment. Our operational revenue for the quarter reached COP 1.9 trillion, in line with the same period 2023, and COP 3.8 trillion on a year-to-date basis. Total net income amounted to COP 633 billion this quarter, and COP 1.4 trillion for the first half of the year, a 50% decrease versus the second quarter last year, primarily impacted by 11% Colombian peso revaluation effect and an increase in administrative expenses due to provisions related to TGI, which we will discuss in further detail later.
The Adjusted EBITDA for the last six months reached COP 3 trillion, decreasing by 5.2% year-over-year, primarily impacted by the revaluation of the Colombian peso against the U.S. dollar and other currencies in the region. TGI and the lower dividend from Enel Colombia due to the 2023 one-off related effect to the Windpeshi project impairment and the elimination of the Chucás account receivable in Costa Rica. In compliance with the general shareholders meeting resolution in July, GEB distributed COP 1.2 trillion in dividends, representing 50% of the approved amount. On the other hand, Argo's board of directors approved a dividend distribution to GEB for BRL 580 million, 50% to be paid between September and December 2024. Being the first material dividend received from the investment in Brazil, this is good news. We're anticipating these cash flows that were previously planned to come later.
Regarding our ESG initiatives, I am pleased to share some of the most relevant activities. First, on the environmental front, we conducted an external verification of the carbon footprint at the corporate level and at all our subsidiaries, Cálidda, Electrodunas, Enlaza, Conecta, TGI, and Contugas. All of them have been verified in the carbon footprint, and that's becoming the group, the first business to achieve this certification in Colombia. This careful process ensures that activities are evaluated according to the highest standards, promoting transparency and environmental responsibility in all the countries where we operate. It is a strong commitment on behalf of the group that all data that is non-financial is equally reliable and accountable for, therefore elevating the standards of revelation of information that we upheld.
In collaboration with Enlaza and partners such as The Biz Nation, through the Legado para el Territorio, we foster the training of the population in areas relevant to the energy transition. As of the end of the second quarter, over 120 people in La Guajira have benefited, with an estimated 67% of this population being women or diverse individuals from ethnic communities. In terms of governance, the process of updating our corporate governance systems involved integrating and supporting the subsidiaries adopting our sustainability strategy with the aim of aligning with the national and international standards and strengthening our control architecture. Particularly in aspects of human rights and employees-based diversity, the group is at the highest standards. Moving on to the next macroeconomic context slides. The growth dynamics in Colombia have lagged behind those in the region.
With the IMF update, the GDP projection for 2024 is just 1.1%, compared to better estimates in Peru, 2.5%, Brazil, 2.1%, and Guatemala, 3.5%. In Colombia, the low investment levels that drop almost 24%, high interest rates due, an inflation that has become resilient and is not getting any lower, it is one of the main reasons that explain the poor performance in this economy. Part of the inflationary impact on the electricity prices in Colombia during the first half of the year, it is attributable to the increased intensity of the droughts associated with El Niño phenomenon. This was expected to just have lasted until the month of March, but it extended all the way to April, being this one of the driest months in Colombian history.
El Niño exerted upward pressure in the market prices, reaching its 2024 maximum price of COP 879 per kilowatt-hour in the month of April. At the end of June, there is a decrease that has been observed thanks to a better rainy season, and the price is COP 424 per kW to a 6,505 GWh demand. Simultaneously, the increase in demand for natural gas during the first half of the year was largely influenced by the increased generation in the thermoelectric sector. Since the month of May, it is observed that the demand levels for natural gas are reduced, reaching 888 gigajoules per day in the month of June. However, accumulated demands during the first six months of the year grew 16% compared to the same period, 2023.
In contrast, Peru experienced a less intense effect of the climatic phenomenon, which facilitated the increased activity of several economic sectors and contributed to an increase in business confidence. For the group, the net impact of El Niño in the first half of the year was negative. The recovery of the reservoirs' levels in Colombia has been evident since May, but not at the levels desired. According to information from XM, as of July 2024, reservoirs in the national interconnected system are at 59%. For the second half of the year, it is anticipated that La Niña phenomenon may be less intense than initially forecasted and could even experience a delayed onset. Now it is expected in the fourth quarter of the year, according to the latest IDEAM Climate Prediction Report.
One has to remember that the electricity accumulated during those months are critical for the beginning of the year that is usually quite dry. Finally, in regulatory terms, I would like to highlight some advances of great relevance for our operation. The CREG's issuance of Resolution 102 008 on June 24th, 2024 amends Resolution 175 of 2021 and recognizes the opportunity cost of assets reaching their regulatory useful life, as well as allowing the recovery of part of the cost of foreign exchange hedges on debt currency incurred by TGI when its functional currency was modified from USD to COP. This would definitely help the financial statements of TGI and solves one of the main concerns regarding the value of its assets. With the disclosure of the Natural Gas Supply Plan 2023-2038 adopted by UPME, it identifies TGI's three prioritized expansion projects.
The CREG has notified through the definite resolution, the investment value, the AOM expenses, and annual cost of those key projects, Ballena Barranca Bidirectionality, that allows importation of gas from the Caribbean into the interior of Colombia, Mariquita Gualanday Expansion, and Ramal Jamundí Expansion. These projects will require an investment of about $22 million, and this is a significant news for TGI's new CapEx commitments. Okay, our operational milestones are the following. In transmission Guatemala, the National Electricity Commission confirmed the commercial activation of the Modesto Méndez Substation 230 to 69 kW, as well as the transmission line tower 690 in development of the PET 1 2009 project, resulting in an annual revenue increase of over $4 million. Regarding transmission in Colombia, the Colectora project received through Resolution 1060 of June 2024, the environmental license for the Colectora Cuestecita line.
In response to some specific issues that were not clear in the license, there is a reconsideration that is being subjected and ANLA should be ruling on the 26th of August so we can begin construction of the line at the beginning of September. In the energy distribution segment, we highlight the investment initiative of over COP 4 million in the expansion and renovation of the primary and secondary distribution network by Electrodunas. This investment aims to promptly meet demand and provide reliability to the system. I also highlight the completion of the public lighting and household energy project, Las Lomas de Ocucaje initiated at the end of 2023, which benefits over 2,000 vulnerable families in the Ica region. People highly appreciate the increase in security and quality of service that this project provides.
On the other hand, Enel Colombia announced the beginning of the modernization and capacity expansion of the substation Techo, one of the oldest in Bogotá. This project involves the technological renewal of various equipment and an investment of COP 10 billion to support the growing demand for service, benefiting around 400,000 residents of the Kennedy, Puente Aranda, and Fontibón areas of the city of Bogotá. In generation, Enel Colombia's board of directors approved the construction of the Guayepo III and Atlántico solar parks, with capacity of 267 and 256 MW respectively. Both located in Atlántico, contributing to the shift towards cleaner and more efficient energy matrix. Additionally, in June, commercial operations began for the solar parks, La Loma in Cesar, 150 MW, and Fundación in Magdalena, 90 MW.
Regarding to our operations in the natural gas segments, we like to highlight, as I said, in transportation, the Resolution 102 008 of June 2024, which I already explained, modifies the previous regulatory framework that was badly impacting TGI. In distribution, Cálidda successfully completed the phase I of the Laderas pilot project, consisting of the installation of almost 200 m of natural gas networks in the high areas of the city, involving significant. The project has four phases, and we're aiming to a total network of at least two kilometers that will benefit over 400 families in the most vulnerable areas of the city of Lima. Meanwhile, Contugas continue with a good pace of residential connections, reaching over 9,000 as of June. Now, Jorge, please go into the financials. Thank you so much for your attention.
Thank you, Juan Ricardo. Good morning, everyone. Our results for the quarter reveal the impact of the peso revaluation versus other currencies of operation. Group operational revenues decreased marginally by 0.9% when compared to the same period last year, mainly due to the 11% annual revaluation of the Colombian peso versus the U.S. dollar. Natural gas distribution revenues decreased by 5%, explained by the FX effect of COP 155 billion. Yet, in its functional currency, the total revenues of Cálidda and Contugas increased. Cálidda obtained PEN 9.5 million positive variation as a result of the increase in the average distribution rate and higher income from customer financing, and Contugas, PEN 6.5 million due to higher gas distribution revenues favored by a positive season. Similarly, the energy distribution segment, where revaluation was about 17% of the Colombian peso against the Peruvian sol.
There were lower revenues from energy distribution and commercialization, although it was partially offset by an annual increase of 11% in revenues from the natural gas transportation segment, primarily due to the additional contracts with several shippers associated with the consumption of gas during the El Niño phenomenon. There was also an increase of about 16% in the energy transmission segment related to higher revenues from the regional transmission system, assets for use on private projects, which counteracted the effect of the Colombian peso/U.S. dollar revaluation on the national transmission system revenues, which are U.S. dollar based. On the other hand, operational costs for the quarter fell by 1.9% compared to the same period last year.
This is mainly due to lower cost in natural gas distribution segment, decreasing by 5%, explained mainly by a FX conversion effect of minus COP 110 billion, partially offset by higher costs associated with a growing customer base. It was partially offset by the annual increase from the natural gas transportation segment costs of 5.1%, associated with personnel expenses and a 5.4% increase in energy transmission costs due to higher depreciation from the activation of assets that recently completed construction, higher personnel expenses due to salary adjustments, and a higher execution in maintenance contracts. Some of the cost efficiency initiatives that have been implemented at GEB and our subsidiaries include prioritization of service and consulting contracts, negotiation of insurance premiums, organizational changes, among others. Regarding administrative and operating expenses, there is a mixed behavior across segments due to the above-mentioned revaluation.
The increase of COP 24 billion in the natural gas transportation segment due to provisions is the result of invoice losses generated during Q2 of 2024, with some clients over the amounts for transportation services and the impairment of COP 29 billion receivable, influencing the 13% annual increase in this category. The operating income for Q2 2024 showed a 0.8% annual reduction. In this quarter, we had higher financial expenses with a variation of 16% year-over-year, due to increased interest on the Club Deal loan subscribed by TGI in COP in December. Net controlled income for the quarter decreased by 15% compared to the same period last year. Let's continue to the CapEx and equity method. The group's equity method contribution amounted to COP 544 billion in the second quarter, increasing 14% versus 2023.
In semi-annual terms, we reached COP 1.1 trillion, growing 7% against last year. The variation is primarily explained by higher contributions from three of the non-controlled companies. Enel Colombia increases its contribution by 11% as a result of higher profits due to better semi-annual performance of operating income, lower impairments and expenses compared to the first half of 2023 related to the Costa Rica Chucás Hydro plant, as well as tax incentives in its energy projects with non-conventional sources in Colombia. Promigas and Vanti also had positive variations in the first semester results associated with higher gas demand due to El Niño. The executed CapEx during the quarter totaled $120 million equivalent, of which $66 million were allocated to the transmission business in Colombia, followed by $29 million from Cálidda.
In Transmission Colombia, CapEx execution was primarily directed towards the Sogamoso, Colectora, Refuerzo Sur Occidental, and Chivor II Norte projects, is in line with the 2022-2026 investment plan. The five-year CapEx projection remains at $1.4 billion, mainly driven by energy transmission segment, which include the Colectora, Membrillal, and Huila projects, as well as the purchase of equipment for the Refuerzo Sur Occidental project. Let's move to the EBITDA next page. The consolidated adjusted EBITDA for this quarter amounted to COP 842 billion, a 5% decrease compared to 2023, as a result of the impact of the peso revaluation of several business segments, and to the adjustment in methodology that includes operating taxes in the calculation as of 4Q of 2023, or COP 70 billion. Our consolidated adjusted EBITDA for the last 12 months amounts to COP 4.7 trillion, approximately $1.1 billion.
TGI contributes to 49% of the total adjusted EBITDA, followed by Cálidda with 25%, representing a 10% contraction due to the revaluation effect, as in its functional currency, Cálidda increases 6%. Transmission Colombia, with 17% of the total contribution. I reiterate, the dividend declared by Argo for BRL 580 million we received this semester. Lastly, on a segment view of the consolidated adjusted EBITDA, natural gas transportation stands out with 4.5% growth during the quarter associated with the demand for El Niño phenomenon. Let's continue with Karen to explain debt portfolio and the evolution.
Thank you, Jorge. GEB's consolidated debt amounts to $4.6 billion equivalent, with a similar distribution between GEB and its subsidiaries. Notably, 38% of our debt is at a fixed rate, while the remaining is indexed to SOFR, CPI, and IBR. Regarding the distribution by currency, 66% of the debt is denominated in U.S. dollars, followed by 31% in COP. This includes the TGI Club Deal amounting to around COP 1 trillion, and TGI's net cross-currency swap on its 2028 international bonds, as a result of the company's strategy to reduce its exposure to U.S. dollars. Concerning GEB's leverage ratios, our goal is to maintain a sustained leverage below 4 x in the medium term as part of a strategic commitment to uphold our investment grade. For the second quarter of 2024, our net debt to EBITDA ratio was 3.7 x, and 5.1 x EBITDA or financial expenses.
As previously stated, we continue to prioritize timely refinancing of our maturities, specifically $ 320 million owed by Contugas with the warranty of GEB and TGI, currently under review by the Ministry of Finance and Public Credit of Colombia for several months now, and around $150 million from our subsidiaries in Guatemala. Finally, we would like to highlight that during the second quarter, TGI made a partial prepayment of COP 90 billion to its Club Deal loan. Let's now continue with the sustainability advances for the quarter.
Okay. In the environmental area, perhaps the most important achievements are related to the climate change. Last year, the energy group and its subsidiaries conducted an independent verification of the footprint, and we are actually the first company in Colombia to do that. We verified this footprint by a third party, independent party. On its part, TGI certified the carbon neutrality of 10 of its stations. The most important thing would be the reduction in emissions during year 2023. Most of our subsidiaries reduced emissions by more than 20%. That perhaps be our most important achievements. In the social area or dimension, we have what we call the Programa Fabio Chaparro, which is a very ambitious education project.
As part of that project, we sign an agreement with the Fundación Santo Domingo and with the United States Department of State, to train people from Colombian and American universities. We have an exchange program undergoing now. 16 universities, Colombian universities from different regions are participating, and we hope to send students from here to the U.S. to be trained in areas relevant to the energy transition, and also professors and researchers from American universities coming to Colombian universities to have academic interchanges. Talking about human rights, especially in Enel and TGI, we trained field managers and workers in areas of human rights and due diligences. The human rights issue has become of increasing interest to the group, we are very interested in training not only them, but also our providers and contractors. We have now an ethical channel.
We opened an ethical channel with a line that specializes on human rights-related issues. In Peru, Cálidda, our gas distribution company in the city of Lima, is currently giving a second air, improving and augmenting the coverage of what we call the Comedores Cálidda, which is community dining rooms for underprivileged communities. Finally, during year 2023, we spent almost COP 4 million in social projects, benefiting about 45,000 people.
Thank you, Eduardo. Finally, I would like to highlight some key points from this quarter's results. Amid the challenges facing the energy sector, the recent regulatory definition issued by the CREG for the natural gas transportation segment in Colombia fosters confidence in the sector institutional framework, given the technical nature with which the matter was resolved. The pressure on this quarter results is seen from different sources, the appreciation of the Colombian peso, TGI one-off related provisions for invoice losses, and the Enel Colombia impact in generation from El Niño. Advances in corporate governance have enabled the strategic alignment on sustainability issues across the entire group. This medium and long-term effort and investment will allow us to consolidate and realize our higher purpose in the context in which we operate. As a group, we continue to demonstrate our resilience in adapting in a challenging environment.
Together with Enel, we continue to advance in the development of generation projects that contribute to the diversification of the country energy matrix and energy transition. Thank you again for your interest, we'll now open for the Q&A session.
Thank you, Jorge. We invite you to write your questions in the Q&A section, or you can raise your hand if you have any questions. So far, we have no questions. We are going to wait a couple of minutes for you to raise your hands in case you want to participate live or if you want to write your questions on the Q&A section that you find above your screen. Let us check.
While we wait, Karen, I would like to emphasize the three key elements of our results on our strategy. Growth, we are growing the quantities, the volumes are growing, the client base is growing, and Enel is developing a lot of solar power in Colombia, which are key sources of growth for us. Our currency diversification, which has a negative impact this quarter because of the Colombian peso appreciation, but that is a strength of the group as we do not see that that appreciation can be maintained over time given the status of the Colombian economy and investment climate in Colombia. As I mentioned, the regulatory solution for the Resolution 175 from TGI is something very, very important for the group and a signal from the regulatory body about technical nature of the solutions.
Thank you, Jorge. So far, we have no questions, just a comment from Rafael Prieto. Hello, when will we have available the video presentation? It will be available later today, but you can check on our website for reference. Once again, we wanted to thank you. Okay, Rafael, do you have your hand Let me check. Okay, no. You just put it down, okay. We want to thank you everyone for joining us today. As a reminder, the IR team at GEB is always available at any time to resolve your questions. Thank you, and we appreciate your participation today.
Thank you. Bye