OHLA earns 57.3 million euros until September 2021

OHLA, a renovated company. The company successfully completed its refinancing and recapitalization operation on June 28 and launched its new corporate image on July 6.
Boosted EBITDA. The company’s gross operating profit reached 60.3 million euros until September, 12.7% more than in 2021. Of interest is the 4% EBITDA margin in construction activity, improving those of previous quarters.
Growing contract portfolio. The total contract portfolio amounted to 5,116.1 million euros: USA represents 40.9%, Europe 39.5%, and Latin America 18.6%.
Divestment policy to reduce debt. Following the recent divestments in Old War Office, Hospital de Toledo, Sociedad Concesionaria Aguas de Navarra and Hospital CHUM –these last two in October- OHLA completes its process of divestment of non-strategic assets in the short term focused on reducing its debt.

 

OHLA has registered net attributable results of 57.3 million euros until September 2021 compared to the losses of 114.2 million in the same period of 2020. This evidences that the company is again generating a profit for the second consecutive quarter.

OHLA has achieved outstanding total procurement in the period of reference, registering 2,595.3 million euros until September 2021, this represents an advance of 29.1% with respect to the same period of 2020. In turn, its total portfolio at September 30, 2021 amounts to 5,116.1 million euros: USA represents 40.9%, Europe 39.5%, and Latin America 18.6%.

With respect to other economic parameters, of interest are 2,028.5 million euros in Sales, maintaining until September 2021, a similar figure to the first nine months of 2020. A total of 70.4% of the turnover figure has been generated abroad. In turn, EBITDA grew by 12.7% to 60.3 million euros, consolidating the improvement trend that began in 2018 and in line with the goal of ending 2021 above 80 million euros. It is worth highlighting the EBITDA margin in construction activity which is 4%, improving the margins of previous quarters.

Focused on the Construction activity, hiring in the first nine months of the year grew by 29.2% compared to the same period in 2020, reaching 2,178.9 million euros. More than 870 million euros, that is, 40% of the Construction contracts, correspond to awards obtained in the United States. For its part, Europe represents 34.1% and Latin America 25.5%.

Focusing on USA, reference should be made to the Interstate 5 (I-5) highway in California, the largest contract won by the company since 2017 for more than €321 million euros. OHLA has been recently selected by Engineering News-Record (ENR) California & Northwest as the region’s 2021 Contractor of the Year. The company was also recognized by the publication for its participation as design-build contractor on the Patsaouras Plaza Busway Station in Los Angeles, which was designated a Regional Best Project Winner in the Transportation category.

 

Divestment policy

Following the recent divestments in Old War Office, Hospital de Toledo, Sociedad Concesionaria Aguas de Navarra and The Centre hospitalier de l’Université de Montréal (CHUM) –these last two in October- OHLA completes its process of divestment of non-strategic assets in the short term and focuses on the consolidation of its construction and concessions business.

These divestitures are part of the company’s non-strategic asset divestment policy in order to progressively reduce its debt

 

Successful restructuring and capitalization process

In relation to the company’s restructuring and capitalization process that OHLA concluded last June, this has resulted in the following for the company:

• Reinforcement of Own Funds by 205.2 million euros, thanks to the success of its capital increase, with top-ranking rights and debt capitalization.
• Reduced leveraging by more than 105 million euros. Thus, the nominal value of bond debt is 487.3 million euros, over the previous 592.9 million euros.
• Three-year extension of debt maturities. The new bond will mature in March 2025 (50% maturity %) and March 2026 (50% maturity), over former maturities in March 2022 and 2023.

On completion of the first nine months of the year, OHLA has return to profitability and has been able to strengthen its main economic parameters: EBITDA its on track to exceed the 80 million euros planned for 2021, while the company’s procuring registers significant progress compared to 2020 and the EBITDA margin of the Construction business is now at 4%. This demonstrates the strengths of a company that has successfully closed its restructuring and recapitalization process this year and has launched its new corporate identity, strengthening itself in its main geographical areas: USA, Latin America and Europe.

Main Figures	9M21	9M20	Var.(%)
Sales	2.028,5	2.070,4	-2,0%
EBITDA	60,3	53,5	12,7%
% o/ Sales	3,0%	2,6%
EBIT	22,4	-1,2	n.a.
% o/ Sales	1,1%	-0,1%
Attributable net profit	57,3	-114,2	n.a.
% o/ Sales	2,8%	-5,5%

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