Sacyr increased its Ebitda to €374 million (+38%) and posted a net profit of 109 million (+13%)
• The four divisions have improved their ebitda in the first nine months of the year: Sacyr Engineering and Infrastructure (+281%); Concessions (+12%); Services (+14%); and Industrial (+5%).
• THe company's future revenue backlog reached 41.633 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 distributions. Two scrip dividends have already been paid out in 2018.
Sacyr posted an EBITDA of €373.8 million in the first nine months of 2018, up 37.6% over the same period in 2017. The significant growth achieved between January and September reflects the expansion of all areas of the company and Sacyr's focus on the profitability of its businesses.
Its four business areas achieved EBITDA gains in the first nine months of the year: Engineering and Infrastructure (+281%); Concessions (+12%); Services (+14%); and Industrial (+5%). Business profitability, measured by the EBITDA margin, has grown from 12.1% in September 2017 to 13.8%.
Sacyr's turnover was €2.702 billion, up 20% compared to the September 2017 close.
Net profit reached €108.8 million, up 12.6% compared to the same period last year.
The results for the first nine months of 2018 reflect Sacyr's strong international focus: 58% of turnover and 71% of the order backlog are located outside Spain.
The backlog reaches €41.633 billion
The backlog of future earnings closed the month of September at €41.633 billion, representing an increase of 40% compared to the same date in 2017.
The company was awarded projects in all its divisions in the first nine months of 2018. 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, 59% 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 13% in Industrial.
The Group's proforma net debt was €3.817 billion after accounting for the divestment in Itínere, which is being sold.
The financial result between January and September was -€177 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%.
So far this year, shareholders have earned two scrip dividends, in January and June.
Change by business area
Engineering and Infrastructure.- The turnover of this division reached €1.19 billion between January and September, with 35.7% growth compared to the same period of 2017, thanks to its international activity.
The division's EBITDA increased 281.3% to €95.2 million and the EBITDA margin improved to 8.0%, compared to 2.8% in the last financial year.
The infrastructures backlog reached €5.698 billion, representing 43 months of activity. 89% of the backlog is located outside Spain. The first three contracts for the company in the United States, the construction of a stretch of highway A6 in Northern Ireland, the construction of the Alto Hospicio and Villarica hospitals in Chile and San Alejandro de Cholula hospital in Mexico should be noted.
Concessions.- Sacyr Concessions posted a turnover of €547.3 million, up 31.3% compared to that of the same period in 2017. Of the total, €318 million came from concession revenues, which grew 15.1% as a result of the start of operations of Antofagasta Hospital and Ruta del Limarí motoreway, both in Chile, also due to the improvement in highway traffic figures. The remaining €229 million (+63.2%) are from construction revenue, which grew thanks to the works in Peru, Uruguay, Paraguay, Colombia and Mexico.
EBITDA reached €195.2 million, up 11.8%.
The backlog of future revenue reached €27.287 billion, with its international business accounting for 82% of this figure.
The group obtained its first airport concession in Chile in Puerto Montt and it opened the Limarí Route, also in Chile.
It also concluded the financing of its two concession projects in Mexico (Tlahuac Hospital and the Pirámides-Pachuca Highway), the first phase in the financing of the Rumichaca-Pasto y Montes de María highways in Colombia and the refinancing of the Guadalmedina highway in Spain.
Services.- The turnover of this division grew 13.3%, to €797.8 million, owing to the positive change in all its business areas. EBITDA reached €67.7 million, up 14.3% compared to the first nine months of 2017. The EBITDA margin remained at 8.5%.
The Services backlog totaled €6.019 billion, 29% of which is international. The company achieved several significant feats during the first nine months of the year, such as the management of the integral water cycle at Sotogrande (Cadiz, Spain), the waste collection, street cleaning, maintenance of green zones and waste transport in Bogota, street cleaning and waste collection in Melilla, Lerida, Barakaldo (Basque Country) and Arona (Santa Cruz de Tenerife); and the cleaning and maintenance of lines 2 and 6 of the Santiago de Chile metro and line 3 of the Madrid metro.
Industrial.- The revenue of this division reached €388.5 million (+0.3%) in the first nine months and EBITDA totaled 27.5 million (+5.1%).
The growth posted up to September is due to the increase in the company’s activity, especially in the electrical and water infrastructures areas.
The industrial division's backlog was €2.628 billion at the end of the half-year period, a 14% increase over the same period in 2017. 13% 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 and the third water project in Australia, which consists of the design and construction of a water treatment plant for agricultural use in Adelaide and three photovoltaic solar plants in Ciudad Real.