Sacyr achieved solid growth in the first quarter of 2023, thanks to its business model, focused on P3 development.
The company’s EBITDA reached €320 million, which entails a 32% increase compared to 2022. All three Sacyr business units (Sacyr Concesiones, Sacyr Engineering and Infrastructure and Sacyr Services) contributed to EBITDA growth, driven by the commissioning of new highway sections and good asset performance.
Profitability (EBITDA margin) was 24.8%, 4.5 p.p. higher than in 1Q 2022.
Revenues ended March 2023 at €1,293 million, with an 8% increase, and net profit was €31 million, 51% higher.
P3 assets make up 85% of the EBITDA, which yields a predictable and stable business model. The international backlog is 85% of the total.
Value creation
These robust first quarter results reflect Sacyr’s capacity to commission new P3 assets. In 2022, Sacyr commissioned six new pieces of infrastructure, and another four will open in 2023: Pedemontana-Veneta highway (Italy), Ferrocarril Central (Uruguay), Ruta 2 and Ruta 7 (Paraguay) and Pamplona-Cúcuta (Colombia).
Thanks to this capacity, the company increases the value of its portfolio.
Currently, Sacyr has 69 assets, 57 of which are already operational, and 12 are still under construction.
Goal: drastically reducing recourse net debt
Sacyr’s recourse net debt at 1Q 2023 close was €644 million.
The company launched a divestment plan to accomplish its goal to drastically reduce recourse net debt in 2023. This plan includes the divestment of up to 100% of Sacyr Facilities and at least 49% de Valoriza Medioambiente. However, Sacyr reserves the option to consider offers for a larger share, as well as to continue its non-strategic P3 asset rotation policy.
Concerning the Sacyr Facilities and Valoriza Medioambiente divestment processes, the company received the non-binding offers through March, and finalist offers were selected. Currently, both operations are in the confirmatory due diligence stage and binding offers are expected to be received later in May.
Backlog grows by 8%
Sacyr ended the first quarter of 2023 with a €58.8 billion backlog, 8% higher than in December 2022 after securing significant contract awards. 81% of the backlog stems from Sacyr Concesiones, 12% from Sacyr Engineering and Infrastructure, and the remaining 7% from Sacyr Services.
Relevant contracts this quarter include the recovery of the degraded Canal del Dique ecosystems (Colombia) for €560 million, or the operation of several restaurant locations in Barajas Airport (Madrid), for €111 million.
Shareholder remuneration
Shareholder remuneration is one of the foundations of the 2021-2025 Strategic Plan. Last January, the company paid a scrip dividend with options to receive a new share for every 45 old shares, or €0.058 in cash; 91% of shareholders opted for new shares.
The board of directors will subject to vote two new scrip dividends at the next Annual General Meeting.
Evolution by business area
Concessions.- Sacyr Concesiones obtained revenues for €446 million (+20%) and a €201 million EBITDA (+53%) thanks to the good performance and contribution of the newly commissioned P3s, with revenues linked to inflation and mitigated traffic risks.
Engineering and Infrastructure.- Revenues for this division were €643 million, prioritizing profitability versus volume.
In turn, the EBITDA grew 4%, to €92 million, and the EBITDA margin reached 14.2%, compared to 12.7% in the same period in 2022. Excluding the effect of the activity of the Pedemontana-Veneta and the A3 highways in Italy, profitability is 4.3%, compared to 3.7% in the same period of the previous year.
The evolution of this division is based on the development of major projects in our work backlog in countries like Chile, Colombia, Spain, the United States, Peru, Uruguay and Canada, among others.
The backlog of this division was €7,276 million, 55% of which are Sacyr Concesiones projects, and it ensures 24 months of activity.
Services.- Revenues for this division increased by 20%, up to €300 million. The EBITDA rose to €27 million, 13% higher, and the EBITDA margin stood at 9%, maintaining the division’s stable profit margins
At March 2023 close, the backlog of Sacyr Services was €3,952 million, 10% higher than in December 2022.
This year, the Services unit won street cleaning and waste collection services in cities like Soria, Moron de la Frontera (Seville), Fuenlabrada (Madrid) and Barakaldo (Biscay). Sacyr Social has won, among others, the home care contract in the Community of Madrid.
In addition, Cafestore won six new restaurant locations at the Adolfo Suárez Madrid-Barajas Airport worth over €111 million.
