Sacyr increased its EBITDA to €239 million (+25%) and posted a net profit of €72 million (+20%)
• The four divisions have improved their results in the first half of the year: Sacyr Infrastructure (+184%); Concessions (+15%); Services (+13%) and Industrial (+5%).
• The company's future revenue backlog reached 42.122 billion euros. 71% of the backlog is located outside Spain.
• The strength of the results and the business allow the company to resume regular dividend distribution. Two scrip dividends have already been paid out in 2018.
Sacyr posted an EBITDA of €239 million in the first half of 2018, up 25% over the same period in 2017. The significant growth achieved between January and June reflects the expansion of all areas and Sacyr's focus on the profitability of its businesses.
Its four business areas achieved EBITDA gains in the first six months of the year: Engineering and Infrastructure (+184%); Concessions (+15%); Services (+13%); and Industrial (+5%). Business profitability, measured by the EBITDA margin, grew from 12.5% in the first half of the last financial year to 13.2%.
Sacyr's turnover was €1.803 billion, up 18% compared to the first half of 2017.
Net profit reached €72 million, up 20% compared to the same period last year.
The results for the first half of 2018 reflect Sacyr's strong international focus: 60% of turnover and 71% of the order backlog are located outside Spain.
The backlog reaches €42.122 billion
The future revenue backlog closed in June at €42.122 billion, up 40% over the same date in 2017 and 3% from the close of the previous financial year.
The company was awarded large projects in all its divisions between January and June. These include the U.S. construction subsidiary's first three contracts, worth €115 million. This was one of the most significant milestones of the company’s Strategic Plan for 2015-2020.
In Engineering and Infrastructure, several sports-related infrastructures in Peru stand out, as well as the renovation and updating of urban areas in Bogota (Colombia).
For its part, Sacyr Concessions was awarded the concession contract for El Tepual airport in Puerto Montt (Chile) for a period of six years. Sacyr Services began its activities in Bogota with a contract for the collection and transportation of waste, street cleaning and maintenance of green areas. Finally, Sacyr Industrial will design and build a water treatment plant in Adelaide (Australia).
71% of Sacyr’s backlog is international. Of this amount, 30% is located in Europe, 38% in the Americas and the remaining 3% in Oceania, Africa and Asia.
By activities, in Infrastructure, international contracts accounted for 89% of the total, 82% of Concessions, 29% of Services, and 14% in Industrial.
The group's financial debt closed at €3.719 billion at the end of June, compared to €3.421 billion at the end of 2017. The growth is mainly due to the major investment effort in the Concession business.
The financial result between January and June was -€114 million.
Reactivation of the regular dividend policy
The solid results and the good performance of the company's businesses signaled the resumption of a regular dividend policy, with an annual target yield of 4.2%.
Thus far this year, shareholders earned two scrip dividends, in January and June.
Change by business area
Engineering and Infrastructure.- The turnover of this division reached €804 million in the first half, with 27% growth compared to the same period of 2017, thanks to its international activity.
The division's EBITDA increased 184% to €61 million and the EBITDA margin improved to 7.6%, compared to 3.4% in the last financial year.
The infrastructures backlog reached €5.859 billion, representing 43 months of activity. 89% of the backlog is located outside Spain. Of note were the company's first three contracts in the United States and the construction of a section of the A6 motorway in Northern Ireland.
Concessions.- Sacyr Concessions posted a turnover of €326 million, up 25% compared to that of the first half of 2017. Of the total, €200 million came from concession revenues, which grew 15% as a result of the start of the Antofagasta Hospital operations and the improvement in highway traffic figures. The remaining €126 million (+45%) are from construction revenues, which grew thanks to the works in several concessions in Peru, Uruguay, Paraguay, Colombia and Mexico.
EBITDA reached €128 million, up 15%.
The backlog of future revenue reached €27.429 billion, with its international business accounting for 82% of this figure.
The group obtained its first airport concession in Chile in Puerto Montt and, after the close, it opened the Limarí Route, also in Chile.
In addition, in the first half of the year, it closed the financing of its two concession projects in Mexico (Tlahuac Hospital and Pirámides-Pachuca Highway).
Sacyr is the sixth largest infrastructure concession manager in the world, according to Public Works Financing.
Services.- The turnover of this division grew 14%, to €528 million, owing to the positive change in all its business areas. EBITDA reached €44 million, up 13% compared to the first half of 2017. Profitability, measured by the EBITDA margin, remained at 8.2%.
The Services backlog totaled €6.097 billion, 29% of which was international. The company achieved a number of important milestones during the first half of the year, such as being chosen as preferred bidder for the construction and operation of a waste treatment plant in Connecticut (USA), the management of the integral water cycle in Sotogrande (Cadiz, Spain) or the collection of waste, street cleaning, maintenance of green areas and waste disposal in Bogota.
Industrial.- The revenue of this division reached €260 million (+0.3%) in the first half of the year, and EBITDA totaled €18 million (+4.6%).
The growth posted up to June is due to the significant increase in the company’s activity, especially in the electrical and water infrastructures areas.
The industrial division's backlog was €2.737 billion at the end of the half-year period, a 19% increase over the same period in 2017. 14% of the backlog is international.
Some major projects were contracted during the period, such as the construction of a fuel storage and distribution terminal in Mollendo (Peru), the construction of photovoltaic plants in Spain or the third water project in Australia, which consists of the design and construction of a water treatment plant for agricultural use in Adelaide.