OHL generated EBITDA of 64.8 million euros in 2019, improving on its forecasts by more than 40%
February 27, 2020
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OHL ended the 2019 financial year having met its EBITDA, Sales and Portfolio forecasts.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled 64.8 million euros in 2019, compared to a loss of 496.0 million euros in 2018. The company also posted an operating profit, compared to a loss of 561 million euros in 2018.
Of note is Construction EBITDA totalling 75.5 million euros (3.1% of sales), which represents greater profitability than the figures reported for the previous three quarters and which surpasses the company’s 2019 targets. In 2018, OHL posted a loss of 329.6 million euros in this category.
Sales totalled 2,959.9 million euros, which consolidates the gross margins of prior quarters; 72.1% of revenue was generated abroad. The two leading geographical areas in terms of sales distribution were Europe (41.0%) and the USA (33.9%).
The total portfolio stood at 5,457.9 million euros, with contracting of 2,667.7 million euros per year: 43.8% in Europe, 33.8% in the United States and 21.8% in Latin America.
Strict management of cash flow, income and structural costs
OHL’s recovery continues thanks to the measures imposed to manage cash flow, project profitability and the reduction in structural costs. The company worked hard to close 2019 with structural costs of 145.2 million euros, compared to 198 million euros in 2018 and 240 million euros in 2017. It is also of note that works generated higher cash flow of around 180 million euros.
The company posted an Attributable Net Loss of 127.8 million euros in 2019, which is a reduction of nearly 92% on the -1,577.3 million euros loss recorded in 2018. This figure has been affected by the -47.6 million euros loss incurred on the company’s participation in the Old War Office project, as current analysis suggests that the asset’s market value could be impacted by Brexit.
Milestones reached during the year
OHL reached several important milestones during the 2019 financial year. These included recognition of the company’s subsidiary Judlau Contracting as Contractor of the year by the prestigious publication ENR New York. OHL’s concessions subsidiary Senda Infraestructuras was also awarded its first contract to build, manage and maintain 465 public housing units in Ireland for 130 million euros. In addition, OHL signed new contracts to engineer, build and commission the copper sulphide processing plant for the Mantos Blancos concentrator in Antofagasta (Chile) worth approximately 150 million euros.