OHL consolidates its first quarter EBITDA and registers growth in procurement triggered by its business in the USA

May 20, 2021

  • A growing and diversified portfolio. Procurement of the Construction division in 1Q2021 has registered a 42.8% increase with respect to the same period last year, of which the USA represents 52.9%.
  • Sale of CHUT. Last April, a sale was completed over 33.34% of Toledo New Hospital for 74.6 million, with estimated capital gains of approximately 46 million euro. The positive impact of the deal will be visible in 1H2021 results.
  • The company expects to round off the strengthening of its balance sheet structure in June 2021, thus embarking on a new growth stage. In late March 2021, OHL’s Extraordinary General Shareholders Meeting approved a refinancing and recapitalization scheme for the company.

OHL ended 1Q2021 with registered EBITDA of 14 million euro, 2.9% more than in the same period last year. To note is the solid performance of Construction, where gross operating results have increased by more than 17% until reaching 16.9 million euro. All of the company’s lines of activity have had a positive impact on its EBITDA.

OHL’s turnover figure totaled 595.1 million in the reported period, 9.2% less than the figure registered in March 2020, due to the impact of the pandemic on procurement in 2020 and its effects on 1Q production. A total of 68.8% of all Sales was completed abroad. In terms of geographical distribution, Europe represents 43.7% (of which 31.2% is located in Spain), U.S.A represents 36.5% of the total, and Latin America 19.2%.

In turn, operating results (EBIT) reached 1.9 million, an improvement over the 0.8 million euro figure registered in the same period the previous year. Net Attributable Earnings totaled -20.1 million euro, mainly affected by exchange differences and financial expenditure.

Portfolio and upward trend in procurement

The total portfolio at March 31 amounted to 5,139.1 million, 3.6% more with respect to 2020, of which 42.8% represented Europe, 39.8% U.S.A. and Latin America 16.0%. The short-term order portfolio was 4,680.6 million, able to cover Sales over a 20.2 month period.

Total procurement during the period was 711.4 million euro, 13.8% more than in the same period in 2020. Of interest is good performance in the U.S., which is still following the trend evidenced in 2020; in 1Q2021, a total of 291.3 million euro was registered representing new projects in New York, Illinois and California.

Refinancing and recapitalization scheme

Last March 26, OHL’s Extraordinary General Meeting obtained its shareholders’ approval to launch the refinancing and recapitalization scheme announced to the market last January 21.

At the time, OHL’s majority shareholders- the Amodio family, Grupo Villar Mir and a significant group of bondholders- had reached a recapitalization and refinancing agreement. This agreement was extended to all other bondholders and shareholders in successive stages and was successfully completed on April 15, 2021 with an order to approve the Scheme.

With this scheme, the company will improve its balance sheet structure by extending its bond maturities to 2025 and 2026 and by reducing its leveraging by more than 105 million; it will also bolster own funds in a range of 148 and 177 million euro, depending on demand for its capital increases.

Sale of CHUT

To note, as a subsequent event after closing of 1Q2021, is that last April OHL perfected a sale of its 33.34% stake in new Toledo University Hospital (CHUT) for 74.6 million euro. With this deal, which will have a positive effect on 1H results, approximately 46 million euro in capital gains have been estimated, which will redirect OHL on the path to profitability.