Fri. Apr 10th, 2020

Ferrovial earns 60 million until September and returns to profits | Economy

Ferrovial earns 60 million until September and returns to profits | Economy



Ferrovial obtained a profit of 59 million in the first nine months of the year, with which returns to benefits After digesting the provision made at the beginning of the year to the problems arising in a service contract in Birmingham, in the United Kingdom, and despite the drop in revenue recorded in Services, the division that analyzes sales and the most exposed to the British market. The company chaired by Rafael del Pino ensures, however, that its profit would amount to 294 million in case of discounting this provision, of 237 million euros.

Ferrovial manages to compensate this annotation, which led it to close with Red numbers the accounts of the first quarter and the first half of the year, thanks to the "good behavior" of the businesses and the 429 million euros in dividends that reported their Crown jewels, the ETR 407 highway in Toronto and the London Heathrow airport.

The sales of the construction, services and concessions company decreased by a slight 0.9% between January and September, to 9,114 million euros, burdened precisely by the services branch, which reduced its turnover by 10% "due to the lower contribution of the services area, in turn derived from the decline in activity in the United Kingdom and Australia ".

Indeed, Ferrovial recently announced that it was analyzing the eventual sale of part or all of its Services division, the first of the group by turnover and the one with the most exposure to the United Kingdom, the company's first market ahead of Spain.

On the other hand, the gross operating profit (Ebitda) stood at 344 million euros, which represents a decrease of 51.6%, although it would amount to 580 million if the aforementioned provision is discounted.

By divisions, for the time being, Services remains as the first by group income, contributing 4,884 million and despite this amount is a decrease of 10.1%.

Ferrovial explains this fall due to its strategy of prudence and withdrawal that continues in the UK in the process of 'brexit' and the dispute that it has with the Birmingham City Council, which has led the company to come out of "unprofitable contracts".

He also attributed the fall to the termination of management contracts of immigration centers that he had in Australia, before the decision of the company to leave this type of activities.

The portfolio of this business remained stable, however, and presented future income of some 19,300 million euros.

On the other hand, the traditional construction activity grew 13% and generated 3,837 million euros, although 84% of this turnover comes from abroad, specifically North America and Poland.

In this case, the portfolio of projects pending to be undertaken grew by 3% and reached 11,485 million euros, 90% abroad, and to which it is pending to add contracts for 800 million achieved after the end of September.

Ferrovial nevertheless recognizes lower profitability and margins in these two businesses, which in the case of the construction branch expects to improve next year.

The toll road business, on the other hand, reported 339 million, the same amount as a year before, and the airport concession, another 10 million.

In the financial chapter, at the end of September, Ferrovial had a consolidated net debt of 3,875 million euros, 11.8% higher than at the beginning of the year.

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