In the first six months of the year all our activities increased their EBITDA: Concessions (+26%, 212 M€), Engineering and Infrastructures (+8%, 158 M€) and Services (+8%, 44 M€). Net profit shrinks due to the lack of extraordinary results in 2021. Discounting this effect, profit grew by 233% (from 12 million to 40 million). Profitability, measured on the margin on EBITDA, grows and reaches 18.6%, as opposed to 16.7% a year ago.
Our backlog grows 15%
The backlog is the best indicator of our success at securing new projects. The future revenue backlog ended the first half of the year at 45,091 million euros, 15% higher than at the end of 2020. We grow in all our priority markets, with the first infrastructure project in Canada, new P3 projects in Chile, Italy and Brazil and other construction and services projects in the United States, Spain, Italy and Chile, among others.
402 MILLION EUROS OF EBITDA 1H 2021
45,092 MILLION EUROS OF FUTURE REVENUE BACKLOG
18.6% MARGIN ON EBITDA
In the first semester of 2021, our concession business has contributed 82% of the company’s EBITDA, five points more than last year. Furthermore, 80% of the group’s backlog is from concession assets, which contain latent EBITDA of over 22,500 million euros to come to fruition in the future.
One of our goals is to reduce net recourse debt. This year, Sacyr has used two innovative financial instruments linked to sustainability targets: green financing of up to 160 million euros (120 million already drawn and 40 million as previously awarded projects come into operation) in Valoriza Servicios Medioambientales, directly linked to the fulfillment of green KPIs; and the first social bond issued in Latin America linked to an infrastructure project for US$ 209 million to refinance the Montes de María road (Colombia).
Evolution by business area
Concessions. Sacyr Concesiones achieved a turnover of 566 million euros (+1%). Most of its assets have limited demand risk, and remuneration is based primarily on availability criteria.
EBITDA totalled 212 million euros, up 26% due to the entry into operation of several stretches of road and projects such as Tláhuac Hospital in Mexico and the University of Idaho in the USA.
The future revenue backlog, which stands at 35,992 million euros (+16%), includes the award of the A3 Naples-Salerno highway (Italy) and the RSC-287 in Brazil.
Engineering and infrastructure. Turnover of this division reached 1,283 million euros, 5% higher than the first half of 2020. EBITDA grew by 8% to 158 million euros, and EBITDA margin reached 12.3%, compared to 11.9% in the previous year. This division’s backlog reached 6,421 million euros, 14% higher than in December thanks to the company’s success in the tenders in which it participated.
The first projects awarded in Canada, which are included in the road map set for the 2021-2025 period, the increase in the backlog in the US and Chile, and several construction projects and concessions in Italy are noteworthy. The backlog is 82% international and ensures 30 months of activity. 50% corresponds to Sacyr Concesiones projects.
Services. Turnover of this division shrunk by 1% to 494 million euros. The EBITDA amounted to 44 million euros (+8%), and the EBITDA margin was 9%, up from 8.3% in the first half of 2020. The services backlog stood at 2,678 million euros (+0.4%), with the incorporation of new contracts.