OHL records 19.4% increase in net profit in the first half of 2011

The OHL Group closed the first half of 2011 with very satisfactory results, with net attributable profit growing 19.4% to €78.9 million. This significant increase was obtained with equally strong growth in EBITDA and EBIT, expanding 21.1% and 34.5% respectively.

Net sales totaled €2.3141 billion, similar to that recorded in the year-earlier period.

These results were possible thanks to the good performance of the OHL Concesiones division, which recorded strong growth across the board: 17.4% in sales (30.4% discounting construction sales), 20.7% in EBITDA and 26.6% in EBIT. With this growth, OHL Concesiones has consolidated its position as the main division of the Group, increasing its weight in consolidated EBITDA and EBIT to 76.2% and 78.9%, respectively.

The OHL Construction division also registered good performance in the first half, contributing to the improved performance of the Group. Despite the 14.3% decline of in sales, derived from major international projects in the pipeline that have not yet begun and the weakness of the sector in Spain, the division achieved a significant improvement in margins. As a result divisional EBITDA increased by 28.6% and EBIT by 80.7%.

Meanwhile, other activities (OHL Industrial, OHL Desarrollos and OHL Medio Ambiente Inima) recorded sales of €235.4 million, an increase of 62.8% over the same period last year, thanks the strong momentum of OHL Industrial, which recorded a five-fold increase in sales. OHL’s Environmental subsidiary is in the process of being sold and the Group expects to close the deal this year.

Once gain, in the first half of 2001, the OHL Group has continued to consolidate its significant international presence, having recorded 70.2% of sales and 95.4% of EBITDA outside of Spain. The markets contributing the most to consolidated sales are Spain (29.8%), Brazil (22.4%), Mexico (15.7%), U.S. (11.0%) and the Czech Republic (8.0%). Brazil and Mexico generate 40.6% and 33.6%, respectively, of total Group EBITDA.

Regarding the Group’s net attributable profit, the 19.4% increase was obtained despite the higher amount of profit attributable to minority interests, which rose from €22.3 million in the first half of 2010 to €40.0 million this year, mainly due to the OHL Mexico IPO in November 2010.

Looking ahead, the main guarantee of the Group’s continued growth is its large backlog of projects. At the close of the first half, order backlog amounted to €85.063 billion, 11.2% higher than one year earlier. Long-term backlog, mainly corresponding to OHL Concesiones, stood at €78.0135 billion, an increase of 9.5% and encompassing a significant contribution from Brazil and Mexico.

Short-term backlog expanded by 34.4% to €7.0495 billion. In the OHL Construction division, total backlog pending execution reached €6.6349 billion, representing growth of 32.2% over that existing at the close of 1H10. This growth has been achieved thanks to the award of major projects in the first half of 2011, among them: a hospital in Montreal (Canada), a viaduct in Kuwait, the extension of Metro Toronto (Canada) and the expansion of a subway station in New York (USA). These works will begin in the second half of the year.

OHL Group first half of 2011 results