OHL places EBITDA at 53.5 million euros to September, 33.4% up, despite the effects of the pandemic

November 13, 2020

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OHL’s results to September mirror the impact of the pandemic on the financial figures.

From January to September 2020, OHL’s sales totalled 2,070.4 million euros, 2.3% below the same period of 2019, due to the pandemic. 76.3% of the Company’s revenue was generated abroad. In terms of geographic areas, the US accounted for 42.3% of sales, Europe 37.0% and Latam and other regions 20.7%.

EBITDA stood at 53.5 million euros, entailing a 33.4% improvement on the first nine months of 2019. Important to underline are that in the Industrial segment, gross operating profit rose by 79.1% during the period, and by 65.3% in Services. Both divisions continued the recovery seen in the previous quarters to achieve higher margins than in the same period of the previous year.

Regarding the impact of Covid-19 on the company’s EBITDA, it is estimated at around 30 million euros, most of which was quantified in the first half of the year.

US, a reference for order intake

Construction in Spain and Latam was most impacted by the fall in business and contracting due to the effects of COVID-19. Despite the pandemic, Construction Division Sales reached 1,703.7 million euros, a similar level to the same period of 2019.

It is noteworthy the good performance of the US. Here, order intake totalled 1,066.9 million euros during the year to date. Projects awarded include the South Corridor Rapid Transit, valued at over 310 million euros, this being OHL’s most important project in Florida and one of the main projects in the US.

Order book

The Company’s total order backlog stood at 5,020.2 million euros at 30 September 2020: Europe, the US and Latam account for 43.2%, 39.0% and 16.1%, respectively. Order intake during the period amounted to 2,010.7 million euros, with a book-to-bill ratio of 0.97x.

Attributable net result

An attributable net result of -114.2 million euros was posted to September 2020. This figure was impacted mainly by COVID-19, affecting the Construction business line (which are estimated at approximately 30 million euros at the operational level in OHL Construcción and Industrial), the Developments business line (26.3 million euros in the shares of Centro Canalejas and Ciudad

Mayakoba), as well as by the impairment of financial assets receivable from related companies (Grupo Villar Mir).

As regards the amount of 133.8 million euros payable by Grupo Villar Mir to OHL under two loans (one granted to GVM in the amount of 93.2 million and the other to Pacadar for 40.6 million euros, including accrued interest), in view of the negotiations in progress and regardless of the fact that OHL expects to reach an agreement allowing the recovery of most of the amount owed, the Company has estimated the recoverable value based on the fair value of guarantees in place. As a consequence, OHL has recognised a provision of -35.8 million euros.

Liquidity

At 30 September, the Company’s recourse liquidity position stood at 511.2 million euros after redeeming in March the outstanding balance of 73.3 million euros of the bond issued in 2012.

Recovery trend

OHL’s strategy of recovery followed by growth continues. In 2020, conditioned by the pandemic, the Company’s primary strengths are a clean, diversified order book and business segments which, in general terms, have maintained and even improved margins in relation to 2019.

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