October 1, 2020

OHL doubles its red numbers, to 38.5 million, due to the crisis


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OHL recorded a net loss of 38.5 million euros in the first halfThis means multiplying by more than two (+ 151%) the red numbers of a year earlier, due to the slowdown in construction activity in some markets caused by the pandemic.

The company owned by the Mexican brothers Amodio puts this impact at 130 million euros in terms of income and another 25 million in terms of gross operating profit (Ebitda), mainly due to the direct and indirect costs derived from less activity.

In case of discounting the effects of Covid, OHL ensures that its Ebitda would have exceeded 45 million euros, thus exceeding the records of a year earlier. However, the group’s Ebitda contracted 11.5% between January and June of this year, reaching 20.1 million euros, as its margin fell slightly to 1.5%.

The company managed to maintain its income with just a slight drop of 0.8%, which at the end of June totaled 1,350.3 million euros, thanks to the geographical diversification of its business.

OHL, which achieves 76.7% of these sales abroad, indicated that the decrease in activity derived from the pandemic in Spain and Latin America was offset by the “good performance” of construction activity in the United States, the first market on group.

The group thus managed to maintain your business at “similar levels” to those of a year earlier, since the service activity, being considered essential, was not affected “significantly”.

However, the crisis punctually interrupted the trend of loss reduction and Ebitda improvement that the construction company had been registering in recent quarters.

The group is confident that “the revival that is taking place at the beginning of the second half of the year will reverse the slowdown in tenders for the first half of the year in the markets affected by the pandemic.”

Financially, OHL, which has just started negotiations for restructure your debt and balance, closed June with a net debt of 151.8 million euros, of which 103.5 million constitute recourse debt.

To this liability are added the 593 million that it has in two bond issues, which mature in 2022 and 2023, on which the negotiation will focus, which could contemplate a conversion of debt securities into shares and also an injection of capital by of the Amodium

The company, which has a liquidity buffer of 570 million euros, is also pending to obtain the approval of these bondholders to dispose of half of the 140 million credit backed by the ICO achieved a few months ago.

In the operational area, the construction activity billed 1,104 million euros, 1.7% less, thanks to the fact that the geographical diversification of the business, which comes from 86% abroad, made it possible to compensate with the increase in activity in markets such as the United States. United the falls of activity others, as it is the case of the domestic one.

At the end of June, OHL had a portfolio of works pending execution amounting to 3,889.8 million euros, after achieving new projects for 865 million.

The branch of industrial construction contributed 93.6 million, 2.3% less, and doubled its contribution to Ebitda, to 7.3 million, after shooting up its margin to 7.8%. On its side, services contributed another 141 million, 4.3% more and also increased margin and Ebitda.

OHL has a contract portfolio in these businesses worth 225 million, thanks to new projects for the construction of renewables and 373 million respectively.

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