OHL maintains Sales and EBITDA in the first half of 2020 despite the effects of COVID-19

• Impact of the pandemic. It is estimated that the pandemic had a 25 million euros impact on EBITDA.
• US. Both production and EBITDA, as well as new awards, have offset the falls in other markets. Over 545 million in order intake in the first half of the year came from the US. 
• Evolution of Services and Industrial. They have consolidated their turnover levels and improved EBITDA in the first six months of the year.
• Measures rolled out in the pandemic. OHL has taken several actions to mitigate the impact of COVID-19 on the Company’s financial figures: more flexible working hours and home working, temporary lay-off measures (ERTE), wage cuts for senior and middle management and Board of Directors, as well as a syndicated loan of 140 million euros.

Madrid, 5 August 2020.- OHL’s results in the first half of 2020 reflect the effects of the pandemic on the Company’s financial figures. The worst hit regions have been: Spain, Peru, Colombia and Chile, mainly in their Construction activity.   

Between January and June 2020, OHL’s sales were above 1,350 million euros, falling barely 0.8% compared with the same period of 2019; the geographic diversification of the Construction business has made it possible to mitigate the fall of this parameter. Some 76.7% of the Company’s revenue was generated abroad. 

For its part, EBITDA reached 20.1 million euros. Despite the negative effect of the pandemic, the gross operating profit remained around the 22.7 million euros achieved in the first half of 2019. Attributable Net Loss as far as June 2020 amounted to -38.5 million euros.

It is estimated that the pandemic had a negative impact on EBITDA to the tune of 25 million euros due to the effect of the direct and indirect costs as a result of the fall in activity. Had the pandemic not struck, EBITDA would have exceeded 45 million euros, thus improving on the figures for the first half of 2019.

The Company hopes that the revival we are seeing at the start of this second half of 2020 will reverse the slowdown in public tenders in the first half of the year in the markets affected by COVID-19.

The Company’s total order backlog stood at 4,962 million euros at 30 June 2020. Europe, US and Latin America account for 43.3%, 36.4% and 18.4%, respectively. Order intake for the period amounted to 1,123 million euros. 

Liquidity

In April, with Government-backed funding under Royal Decree Law 8/2020, of 17 March, the OHL arranged a syndicated loan for 140 million euros. 

At 30 June, the Company’s recourse liquidity position stood at 570.9 million euros after redeeming in March the outstanding balance of 73 million euros of the bond issued in 2012, thereby reducing leverage.