OHL has increased its recurrent net profit by 14.4% in the first half of 2013

The OHL Group ended the first half of 2013 with satisfactory results, including 14.4% growth in recurrent attributable net profit, of 94.3 million euros, and the increases of 12.6% and 14.7%, respectively, in EBITDA and EBIT.

The Group’s total sales amounted to 1,685.5 million euros, and attributable net profit to 94.3 million, down by 12.5% and 23.1%, respectively. This performance in net profit is due to the capital gains of 40.2 million which OHL obtained in the first half of 2012 through the sale of the Environmental Division. Not including these capital gains, recurrent net profit would amount to the aforementioned increase of 14.4%.

The lower sales figure is largely due to the Concessions and Construction business. In OHL Concesiones, although sales of concession activity increased 12.5%, underpinned by the good traffic and tariff performances, in Mexico in particular, global sales dropped 25.3%, as a result of the lower construction activity in Mexico, where the Group is completing the construction of infrastructures, and because of the change of the consolidation method in the Supervía Poetas freeway (from the proportional consolidation method to the equity-accounted method).

Sales in OHL Construcción fell by 8.7% due to the impact of the sharp drop of 44.9% in Spain. This is the division with the greatest weight in Group sales, representing 71.0% of the total: its international sales account for 58.8% of OHL’s total sales.

The rest of divisions (Other activities) were down 15.5%, largely because of the completion of certain projects in OHL Industrial.

The 12.6% increase in EBITDA of Grupo OHL, against the first half of 2012, is due to the OHL Concesiones division, which accounts for 75.9% of the Group’s total EBITDA and which has reported growth of 22.9%, underpinned by the growing contribution of freeways in Mexico, where investments are being completed and where practically all the freeways are in operation. Meanwhile, EBITDA in OHL Construcción has dropped by 12.3% due to the lower margins achieved at the start of the projects and the deferred effect of major international contracts.

This business performance has meant a fresh drive in international activity, whose weight in the Group’s activities in the first half of the year now stands at 74.2% of sales and 93.6% of EBITDA. The details of sales by geographic areas are as follows:

• Central and Southern America 26.6%
• Spain 25.8%
• The U.S. and Canada 18.7%
• Middle East and Northern Africa 16.3%
• Central and Eastern Europe 10.4%
• Others 2.2%

OHL ended 1H 2013 with a Construction portfolio of 9,000.2 million euros, equivalent to 41.2 months of sales, providing visibility to future growth in this business. This portfolio features an important number of major international contracts – Spain accounts for only 18.4% – most of which are linked with the railway and hospital sectors, where OHL has a particularly strong profile.

Some of the most important contracts awarded in this first half of 2013 include: the stations of Mushaireb & Education City in the Doha subway network (Qatar); the 72 Street station on the New York subway; a freeway between Hubová and Ivachnová in the Slovakian Republic; and the Gustavo Fricke Hospital, in Viña del Mar, and the Port of Valparaíso, both in Chile, adding up to 935.6 million euros. These projects, and others on a smaller scale, have added approximately 2,000 million euros to the Group’s portfolio.

Interest in Abertis and financial operations

Significant events in 1H13 include, in March, OHL’s acquisition of 3% of Abertis from La Caixa, raising its shareholding in this company to 18.93%, and consolidating its position as the second leading shareholder, while underlining its clear commitment to remaining in the stock.

In the financial sphere, in April the OHL Group carried out two transactions within the framework of its financial policy optimization plan which showed OHL’s prestige on the international capitals markets. On the one hand, OHL Concesiones, through its OHL Investments subsidiary, issued bonds of 300 million euros which are convertible into shares of OHL Mexico. On the other, OHL registered a commercial paper program with the Irish Stock Exchange to issue short term securities for a maximum of 300 million euros.

Lastly, in June, OHL Mexico successfully completed a 100% primary rights issue through the issue of 239,397,167 new shares for a total amount of 6,942.5 million Mexican pesos. This transaction has reinforced the balance sheet and financial structure of OHL Mexico, affording the company the capital to meet pending payments for the investments made in current concessions, and to take part in calls for tender of new transport infrastructure projects announced by the Federal Government of Mexico.

The OHL Group in the first half of 2013