Sacyr ended the first year of its 2021-2025 Strategic Plan with a 28% EBITDA increase, to € 923 million.
This significant growth is due to good business results and the company’s focus on P3s. In 2021, 83% of the EBITDA came from P3s with low demand risk.
Revenues grew 3% to € 4.6 billion, and profitability (EBITDA margin) increased to 19.7%, significantly higher (+24%) than that of 2020, which was 15.9%.
The company’s growth was achieved amidst a challenging international scenario, due to the Covid-19, construction materials shortage and logistics crises.
Net profit for 2021 was - €189 million, mainly due to the change in the accounting method of the company’s participation in Repsol (Sacyr has reduced its participation from 8% to 3.1% due to some derivative structures reaching maturity) and to the recording of a provision for the Radiales project.
This negative result only has accounting effects and does not entail cashout flow for the company.
In turn, the net income attributable to business activity increased 23% to € 111 million, despite the negative impact the exchange rates had on the P3 business.
Reduction of net recourse debt
To Sacyr, reducing net recourse debt is a strategic priority. In 2021, the company cut it down by 19%, to € 681 million. This amount complies with the company’s commitment to reducing it below € 700 million by the end of FY 2021. Net recourse debt has undergone a 40% reduction since 2018; back then it was at € 1.1 billion.
The company continues to work on reducing its debt, with the aim of having it significantly lowered by the end of the Strategic Plan in 2025.
The operating cash flow increased to € 629 million in 2021, with a 15% growth compared to 2020.
Revenue backlog increases by 17%
Sacyr achieved a contracting record in 2021, with € 11 billion worth of new projects. In total, the revenue backlog amounted to almost € 46 billion at the end of 2021, with a 17% increase. Around 80% of this revenue backlog comes from P3 assets and their geographical distribution is as follows: Europe, 46%; America, 51%; and Other countries, 3%.
Last year, Sacyr won substantial contracts in its relevant markets. Such is the case of the A3 and A21/A5 (pending signature) highways in Italy; the RSC-287 highway in Rio Grande do Sul, Brazil; its first two construction projects in Canada; or four new road contracts in Florida and Texas, in the U.S.
Furthermore, there are some noteworthy projects in Portugal and a sizeable number of contracts in Spain, such as the street cleaning and municipal solid waste collection services in Barcelona and Madrid.
Participation in Repsol
Last October, Sacyr announced that some of the derivatives over Repsol shares had reached maturity, thus, at the end of 2021 its participation in Repsol was reduced to 3.1%.
This reduction has simplified the company’s balance and allows to put more focus on its strategic activities.
The shareholders’ remuneration policy is one of the pillars of the 2021-2025 Strategic Plan. In 2021, Sacyr has paid two scrip dividends with a € 0.096 gross price per share, which represents a 4.6% dividend yield; this helps fulfill the company’s goals and market commitments.
Making its activities sustainable is at the core of Sacyr’s decision making. In 2021, the Group has obtained excellent scores in international sustainability ratings, that situate us as industry leaders in Sustainalytics, Standard & Poor’s, and Carbon Disclosure Project (CDP).