OHL México reports solid growth in the third quarter of 2015

OHL México S.A.B. de C.V. (“OHL México” or “the Company”) (BMV: OHLMEX), one of the main operators in the private transportation infrastructure concession sector, announced today its results for the third quarter (“3Q15”) and the nine-month period ended September 30, 2015 (“9M15”). 

The toll roads operated under concession by OHL México significantly increased their traffic flows: Mexiquense Beltway by 15.9% in 3Q15 and 13.5% in 9M15; Bicentennial Viaduct by 10.7% in 3Q15 and 8.5% in 9M15; Amozoc‐Perote by 16.9% in 3Q15 and 11.2% in 9M15; Northern Urban Toll Road by 16.2% in 3Q15 and 12.1% in 9M15; Poetas Expressway by 19.2% in 3Q15 and 20.5% in 9M15 and Luis Cabrera Viaduct  by 26.9% in 3Q15 and 31.5% in 9M15. 

As a result, toll revenues increased 29.1% in 3Q15, moving from 935.3 million pesos in 3Q14 to 1.2 billion pesos. In terms of the first nine months of the year, toll revenues increased 26%, from 2.7 billion pesos in 9M14 to 3.4 billion pesos in 9M15. 

“In the third quarter our toll road concessions continued showing positive performance both from the operational as well as the financial perspective. In this way, toll revenues increased 29%, while the EBITDA from tolls grew 46% in the quarter”, Sergio Hidalgo, OHL México Chief Executive Officer, said. 

“We are keeping ourselves focused on our business strategy, which consists of providing mobility options to people, significantly improving the travel times of our users in the metropolitan area of the Valley of Mexico and Puebla”, he added. 

The EBITDA from tolls, generated by the operation, increased by 276 million pesos, reaching 874.1 million pesos in 3Q15 (72.4% margin), that is, 45.9% with respect to the 599.2 million peso figure obtained in 3Q14 (64.1% margin). For the first nine months of 2015, EBITDA from tolls increased 749.9 million pesos, reaching 2.4 billion pesos in 9M15 (70.7% margin), 44.8% above the 1.7 billion pesos registered in 9M14 (61.7% margin). 

The Company produced a consolidated net profit of 1.88 billion pesos in 3Q15, representing a reduction of 6.4% on the 2 billion pesos obtained during 3Q14. For the first nine months of 2015, this figure reached 4.9 billion pesos, remaining on the same level as that registered during 9M14.

Financial highlights

Financial highlights

Key figures (thousands of  pesos)	3Q15	3Q14	Var. (%)	9M15	9M14	Var. (%)
Toll revenues	1,207.849	935.259	29.1 %	3,427.691	2,714.152	26.3 %
EBITDA from tolls	874.149	599.198	45.9 %	2,424.362	1,674.467	44.8 %
EBITDA margin from tolls	72.4 %	64.1 %		70.7 %	61.7 %

After 5 years of contribution to the company, the Board of Directors decided to restructure the Board with the replacement of 3 independent members. This decision is in line with the Company’s commitment to strengthening corporate governance, following the recommendations of the Audit Committee. 

The new independent directors are José Guillermo Kareh Aarun, well-known attorney for a number of multinational companies; Antonio Hugo Franck Cabrera, partner of Jones Day, and Carlos Cárdenas Guzmán, former president of the Mexican Institute of Certified Public Accountants (IMCP, by its Spanish acronym). In short, these appointments to OHL México’s Board of Directors signify three important additions of outstanding professionals with proven experience in the world of Corporate Governance, which will be of great importance for implementing improvements, strengthening the Company’s control bodies and addressing new challenges in the future. 

Company description  

OHL México ranks among the main operators in the private transportation infrastructure concession sector in Mexico and leads the sector in the Metropolitan Area of Mexico City in terms of the number of concessions granted and the number of kilometers managed. The Company’s current backlog includes seven toll road concessions, five of which are in operation and two in progress. These toll road concessions are strategically located and meet basic transportation needs in the urban areas with the highest vehicle traffic density in the Federal District, the State of Mexico and the State of Puebla, entities that taken together generated close to 30% of the country’s GDP in 2013 and accounted for 27% of the national population and 29% of the total number of vehicles (10 million) registered in Mexico. In addition, the Company holds a 49% stake in the concession company operating the Toluca Airport, which is the second largest airport in Mexico City’s Metropolitan Area. OHL México commenced its operations in 2003 and is controlled directly by OHL Concesiones in Spain, one of the largest companies in the world in the transportation infrastructure sector. For more information, visit our website www.ohlmexico.com.mx