EBITDA grew 20.9% in the first half of the year to 466 million euros

July 28, 2017

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On the operating level, the OHL Group’s income statement for the first half of 2017 presents an EBITDA figure of 466.0 million euros, signifying +20.9% growth with respect to the same period in the previous year, while sales were placed at 1.8 billion, declining by 13.1%.

Both EBITDA as well as the Attributable Net Profit have been affected by the estimated total cost of the collective redundancy procedure initiated in OHL, S.A. and OHL Industrial, which totals 34.2 million euros –an amount that has been recognized in full in the second quarter of 2017-. Consequently, if the extraordinary effect of that process is excluded, the EBITDA figure would be placed at 500.2 million euros (with 29.8% growth with respect to June 2016) and the Attributable Net Profit would total 2.1 million euros, an amount similar to that obtained in the first half of 2016.

Debt reduction

In the financial sphere, the company continues to place its focus on the reduction of its borrowings. Thus, in the first half of the year, gross recourse debt was placed at 1.4 billion euros, that is, a reduction of 8.6%. At the same time, the net recourse debt in the period of reference totaled 814 million euros, reaching the lowest position attained in the last five years thanks to asset rotation and to the improved performance of the business activity, particularly in Construction, which has generated cash in the amount of 40 million euros in the second quarter of 2017.

Business lines

The excellent performance of the Concessions Division stands out, with sales worth 216.4 million euros and an EBITDA figure of 480.8 million. In comparable terms, that is, at a constant exchange rate and excluding the effect of the change in the consolidation method of Metro Ligero Oeste and of Autovía de Aragón following the sale of a percentage of the stake held, sales and EBITDA grew 2.2% and 80.6%, respectively. The good performance of the concessions in Mexico deserves particular mention, where sales and EBITDA from tolls grew 17.0% and 17.3%, respectively, in local currency.

With respect to Construction, the volume of contracting in the first six months of the year reached 1.7 million euros, a figure that already equals 74% of the total contracting in 2016, which was worth 2.3 billion euros.

The volume of activity of this division declined 16.0% in the first half of the year with respect to the same period in the previous year, due to the finalization of significant projects, the delay in the start of work for new concessions and the as yet highly initial status of major projects that will contribute greater activity in the near future. With respect to EBITDA, the figure for the first half of the year dropped 23.2%. In terms of profitability, an important note is that the margin of EBITDA on sales improved in the second quarter of 2017 in relation to the first quarter of the year, with 2.6% in comparison to 1.5%.

Transactions in progress

During the month of June, two significant transactions involving concession assets of the Group have been undertaken:

  • The launch in conjunction with IFM through Magenta (100%-owned by OHL Concesiones) of a Takeover Bid on the entire free float of OHL México (41.99%) at the price of 27 pesos per share. Finally, on the 27th of July, the success of the bid was announced, having reached 85.85% acceptance of the capital. This is a neutral transaction in cash terms for the OHL Group, although it signifies a reinforcement of OHL México both on the economic as well as the reputational level, on incorporating a strategic partner of the category of IFM, governed by the United Nations Socially Responsible Investment Principles.
  • The launch of a market prospecting process to assess the possibility of incorporating a minority partner into OHL Concesiones with OHL, in any case, retaining the majority and the control. It is estimated that the process could be completed by the end of this financial year. The resources obtained through the transaction would be used for stepping up the recourse debt reduction plan

17.07.28 Ndp . ENG OHL Resultados Primer Trimestre

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