Q COSTA RICA — The recent financial report from the Instituto Costarricense de Electricidad (ICE)—state power and telecom utility—reveals a striking contrast between its reported profits and its core business performance.
Although the ICE announced a 65% increase in net profits—from ¢73.15 billion colones to ¢120.6 billion—this surge is largely attributed to massive gains from currency exchange fluctuations rather than its operational business activities.
Digging deeper, the financial statements show that ICE’s actual business revenues have taken a significant hit. Operating revenues dropped by 5% between 2024 and 2025, falling from ¢1,497 billion to ¢1.46 billion. Even more concerning is the reported 43% plunge in business earnings, a sharp decline that the sizable foreign exchange gains effectively mask in the headline profit figures.
This situation poses a complex challenge: while the institution’s bottom line appears robust thanks to favorable exchange rate movements, the underlying business health is deteriorating.
The reliance on currency fluctuations to bolster financial results raises questions about sustainability, especially since this dynamic is impacting private companies that contribute taxes and are essential to the broader economic ecosystem.
In short, the ICE’s impressive profit headlines conceal a deeper struggle within its core business operations—a warning sign that calls for close attention to the institution’s long-term financial stability and the wider economic implications for Costa Rica’s business environment.
Translated and curated from SemanarioUniveridad.com