November 30, 2020

ACS earns 477 million, 38% less, after the impact of Covid on Abertis


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The ACS group reduced its net profit by 38% in the first nine months of the year to 477 million euros, mainly due to the performance of Abertis, whose traffic has been strongly affected by the containment measures in most of the countries where it operates.

Without considering the impact of Abertis, which has had a negative contribution of 8 million, the net profit would have decreased by 15.7% between January and September, a period marked by the coronavirus pandemic, according to the accounts sent by the group chaired by Florentino Pérez to the National Securities Market Commission (CNMV).

For its part, ACS’s turnover totaled 27,204 million, the 5.5% less, due to sanitary measures during the pandemic, while the gross operating profit (ebitda) fell 17.1% impacted by Abertis and recorded 1,994 million.

The impact of the pandemic on the accounts

Due to the effects of covid-19, Abertis’ contribution to ebitda and ACS’s net profit has fallen by 251 and 201 million, respectively, compared to the previous year.

In addition, as a result of the pandemic, there has been a negative impact on Services (Clece) of 33 million in ebitda and 23 million in profit, while in the rest of activities the impact has been less, with falls in quarterly production of between 5% and 10%, both in the construction activity and in industrial and mining services, which have been considered essential .

Group sales, which have fallen by 5.5% in the first nine months, have fallen by 11% during the third quarter, with the highest incidence in Asia Pacific and Europe.

By region, North America concentrates more than half of sales (51%), followed by Europe (20%), Australia (17%), Asia (5%), South America (6%) and Africa (1%) . Sales in Spain account for 13% of the total.

At the end of September, the backlog stood at 73,494 million, 5.3% less, due to the impact of the exchange rate, mainly the US dollar.

Evolution by business

The Construction activity obtained a profit of 244 million, 7.2% less than the previous year, and sales reached 21,258 million, 4.6% less despite the pull of the United States.

96% of construction turnover is international with North America and Australia as the main markets. In Spain, sales account for 4.3% of the total. The works portfolio as of September amounted to 61,350 million.

Concessions recorded a profit of 16 million thanks to the contribution of 24 million from Iridium and despite the fall in the contribution of Abertis by 201 million. However, ACS has indicated that the “accelerated” recovery in daily traffic since June and the improvements in operating efficiency will allow for positive results by the end of 2020.

The Industrial Services activity obtained a profit of 243 million, 10% less, turnover was reduced by almost 10% due to the pandemic up to 4,760 million and the portfolio amounted to 9,582 million.

The Services area (Clece), affected by the health crisis, reduced its profit by 78% to 6 million and sales by 3.2% to 1,143 million.

Financial situation

The group’s net debt amounted to 3,448 million, 2,212 million more than a year before due to payments derived from the exit of BICC by CIMIC (1,080 million), operational investments (1,311 million) and financial, and the increase in treasury shares in ACS and Hochtief, taking advantage of the volatility of the markets.

Investments amounted to 867 million and divestments to 392 million. ACS shares have fallen 4.38% in the session to 20 euros.

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