OHL highlights before its shareholders the return to normal of the company and its firm decision to resume the profit-making path

Juan Villar-Mir de Fuentes, Chairman of OHL, commenced the Shareholders’ Meeting expressing his sympathies with the families affected by the COVID-19 pandemic and pointing out the great effort made by the healthcare sector to face it.

He likewise pointed out the work performed by OHL, a reference company in the construction of hospitals, whose employees are providing essential services during this state of alarm in the services and infrastructure maintenance areas.  “I should like to thank all employees for the great effort made and for their commitment to each of the communities where we are present”.

On the management of the company in 2019, he pointed out: “OHL has achieved all the targets set and we are on the way, with great excitement and trust, to meet our main challenges, profitability and financial stability”. To achieve this, he pointed out: “we will use for support a solid and independent corporate governance and a highly reinforced compliance system”.

In turn, the CEO, José Antonio Fernández Gallar, explained in depth the measures undertaken by the Crisis Committee created to meet the effects of the pandemic on the company in the “socio-healthcare, labor and financial” contexts.

With regard to the progress made by OHL, he pointed out that they had managed to “establish the grounds to return to normal and become once again a competitive company, given that all our business lines sum positive EBITDA, we have adjusted the structure expenses, we have reduced our debt, after redeeming the bond maturing in March 2020, and we have managed to increase our liquidity, after making last April a syndicated loan agreement for 140 million”.

Pillars and future targets

Focusing on the strategic pillars, José Antonio Fernández Gallar reported that OHL had “a solid and independent corporate government, the company is focusing on cash generation, reinforcing cost control, working on the management of its portfolio and risk control and encouraging the concession business”.

With regard to the lines of action in 2020, the CEO focused on “increasing the company’s contracts, optimizing and improving the operating margins, opting for cash control and the active management of real estate projects and reducing leverage”.        

To achieve this, he pointed out, OHL would have “an efficient business-focused structure, solid presence in its three reference geographical areas: Europe, the USA and Latin America, proven experience and know-how, independent management and a team fully in line with the strategic plan”.

He then established the mean-term future targets of OHL at Sales exceeding 4,000 million euros, a business EBITDA margin of over 4%, a lower leverage and promotion of the concession business.

José Antonio Fernández Gallar (left) and Juan Villar-Mir de Fuentes at the Shareholders’ Meeting of OHL, held remotely from the head office of the company, at Torrespacio, (Madrid).