Corporate

Sacyr raises Ebitda by 6.5% to 724 million euros

  • The multinational’s management of the COVID-19 crisis has allowed it to operate normally and avoid any significant impact on the business. 

  • In the complicated global scenario of 2020, Sacyr improved its turnover, EBITDA, and operating cash flow, underscoring the strength of the multinational’s strategy, which focuses on concession assets. 

Sacyr

26/02/2021

Sacyr increased its EBITDA by 6.5%, to 724 million euros, in an extremely challenging environment complicated by the global COVID-19 crisis. 
Turnover grew 9.1%, to 4.548 billion euros, and profitability (margin-to-EBITDA) stood at 15.9%, slightly below 2019 levels (-0.4 pp). 

This growth represents the strength of the multinational’s business model, which focuses on concession activity with low demand risk. In fact, 78% of the EBITDA generated in 2020 originated from the concession activity. Thanks to this approach, the company has managed to successfully weather the effects of the pandemic. 

The group’s attributable net profit reached 36 million euros, compared to losses in 2019 due to the to the accounting impact caused by the holding in Repsol.

The multinational has anti-COVID protocols in place at all of its work centers and has helped alleviate the effects of the pandemic among vulnerable populations. 

With regard to business evolution, net profit reached 181 million euros, relative to 120 million in 2019.

Backlog

At the close of 2020, the group’s net debt totaled 5.212 billion euros, compared to 4.315 billion in 2019. This increase is attributable to the company’s investment activity in new P3s. Recourse net debt remained relatively unchanged (836 million vs. 848 million in 2019), while debt associated with projects grew to 4.367 billion euros. 

Sacyr continues its strategy of rotating mature assets: divesting 95% of its interest in the Guadalmedina highway, and selling nine power plants in Spain and several water assets in Portugal.

At its most recent meeting, Sacyr’s Board of Directors approved a scrip dividend disbursement of one new share for every 54 held, in addition to the February payout of one new share for every 46 held. The company’s dividend yield exceeds 4%. 

The group’s cash outlook for 2020 shows available liquidity devoid of tension, given that a large portion of financing has long-term maturities. In conjunction with the group’s cash, Sacyr has 300 million euros in available credit facilities.

In July, the company signed a derivatives agreement on 10 million Sacyr treasury shares, five million with an initial strike price of EUR 1.80/share and average maturity of one year, and another five million with an initial strike price of EUR 1.80/share and average maturity of two years. This operation demonstrates the company’s unmitigated confidence in the security and its future evolution. 

Evolution by business area

Concessions.- Sacyr Concessions obtained turnover of 1.381 billion euros (+23%). Most assets are free of demand risk and their remuneration is based largely on availability criteria.

Of total turnover, 675 million euros correspond to concession revenue, which climbed 8%, while construction revenue rose 42% to 706 million. 

EBITDA reached 365 million euros, up 5%. Over the course of the year, the company invested 1.161 billion euros of equity in infrastructure and water concessions. 

The future revenue backlog, which stands at 30.895 billion euros, does not yet include the contract for the A3 Naples-Salerno highway (Italy), the Buin Paine Hospital in Chile and the RSC-287 highway concession in Brazil.

In 2020, Sacyr Concessions was awarded its first asset in the US, the management of energy services at the University of Idaho. The company has 45 assets in operation and 13 under construction.

In the past year, Sacyr has commissioned the Pirámides-Tulancingo-Pachuca highway and the Tláhuac Hospital, both in Mexico. The company has also made considerable progress on the development of its other assets, including the Pedemontana-Veneta highway in Italy (86%), the Autopista al Mar 1 in Colombia (83%), the Américo Vespucio Oriente highway in Chile (61%), and the Puerta de Hierro-Cruz del Viso highway in Colombia (100%). 

Engineering and Infrastructure.- In this division, turnover reached 2.612 billion euros, a 12% increase on 2019. 

EBITDA also grew 12%, to 291 million euros, and EBITDA margin remained stable at 11.1%.  

These results reflect Sacyr Engineering and Infrastructure’s incorporation of Sacyr Industrial in 2020. This simplified structure has yielded greater synergies. 

This division’s backlog reached 5.622 billion euros, representing 29 months of activity, roughly 50% of which corresponds to the work of Sacyr Concessions. 

In 2020, the company closed the sale of construction activity in Africa, thereby reducing construction risk in non-strategic countries in order to focus its efforts on home-market countries and concessions. 

Services.- Turnover for this division declined 3%, to 992 million euros. EBITDA reached 89 million euros (-3%), while EBITDA margin remained at 8.9%, consistent with 2020 figures. 

The Services backlog totals 2.668 billion euros, with the incorporation of new contracts. 

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