OHL ends the first quarter with a 23% growth in EBITDA, reaching 324 million euros

In operating terms, OHL’s P&L account in 1Q2017 has registered a sales figure of 886.8 million euros, with a slight fall of 7.3% with respect to the same period the previous year, and EBITDA of 324.0 million euros, representing a 22.7% increase over 1Q2016. These figures have been achieved despite a devaluation in the Group’s operating currency against the euro. Without the effect of this exchange rate, growth in EBITDA would be 31.0%.

Attributable Net Profit registered 8.3 million euros in March 2017 and, in recurring terms, i.e. excluding the sale of assets, has reached 19.9 million euros over the 4.0 million euros in 1Q2016, nearly four times the figure for the same period in 2016.

Once again this quarter, Concessions has evidenced excellent performance with a 11.0% growth in sales and a 43.3% rise in EBITDA. In comparable terms, i.e. at a constant exchange rate and without the effect of the change in consolidation method of Metro Ligero Oeste, sales grew by 13.5% and EBITDA by 66.8%. Also of interest is the positive performance of our Mexican concessions, where sales and toll fee EBITDA respectively increased by 14.3% and 14.5%, in local currency.

As regards Construction, to highlight are the 1,163.5 million euros in new awards obtained during the quarter- total procurement in 2016 was 2,310.3 million euros- of which 75.5% are located in the U.S. These new awards have entailed a 9.2% increase in the short-term portfolio, until reaching 6,424.6 million euros in 1Q2017, representing 28.7 months of sales. The portfolio’s profile is balanced both geographically and by size of the works, with 89.9% being generated by our home markets, of which 35.4% is located in the U.S. and Canada and 35.5% is represented by the Pacific Alliance.

Highlights of the quarter

Asset rotation: sale of a 2.5% stake in Abertis, partial sale of assets in Mayakoba and sale of a 17.5% share in Canalejas. 

Available Recourse Cash of 646.6 million euros at the end of March 2017, including both long and short-term instruments.

Signature of a new syndicated multiproduct facility agreement for a total aggregate amount of 747 million euros, enabling the Group to ensure coverage of its various circulating needs derived from its business plan and, along with the debt reduction measures foreseen for 2017, significantly strengthening the company’s liquidity profile.

Net recourse debt in the first quarter totaled 993.2 million euros; the impact on treasury cash of our legacy projects totals 38.0 million. If we include the divestments collected in April- sale of our 17.5% share in Canalejas and 51% in the Mayakoba assets, pro forma recourse net debt would total 788.2 million euros.

Future strategy. The company held an Investor Day on 5 April 2017, during which it went over the strategy followed in each one of its activities, based on the following parameters:

• The search for a profitable and sustainable business model, with little investment needs.
• A commitment to ensure that recourse leveraging is set at a maximum of one time the EBITDA with recourse by the end of 2017.
• To prioritize profitability and risk control over growth. 

As regards our cost reduction plan, covering both the staff and other structural costs, we are targeting a total savings in costs of between 40 and 50 million euros. The Workers’ Assemblies of both Obrascón Huarte Lain, S.A. and OHL Industrial, S.L. have ratified the agreement reached with each company’s Negotiating Board, entailing the termination of 457 jobs (335 in Obrascón Huarte Lain, S.A. and 122 in OHL Industrial, S.L.); the process is expected to take place over the next few months, with the economic terms agreed. The OHL Group has estimated annual savings further to these collective dismissal proceedings of 38.4 million euros.