OHL recorded a record loss of 1,335.8 million euros in the first nine months of the year after reviewing its order book by eliminating failed or difficult-to-execute projects, which add to the impact of a series of extraordinary items such as the accounting adjustment to the low of the sale of OHL Concessions. Investors had already anticipated these bad results and, before they communicated at the end of the session, the stock collapsed by 18.4%, with minimums of 0.75 euros per share.
The losses in the first three quarters multiplied by almost 90 those recorded in the same period of the previous year (15.3 million) and are so high that they represent 65% of sales. These amounted to 2,048.7 million, which represents a decrease of 14% compared to the same period of the previous year, mainly affected by lower construction activity.
The new management team, led by CEO José Antonio Fernández Gallar, has proceeded to review the portfolio's projects "eliminating all those files and claims that do not have a high probability of realization," according to the company. In addition, in all those projects that have a final forecast of negative results, all of the losses have been recorded at this time. As a consequence of these criteria, gross negative margins were recognized for 286.1 million.
The accounts also carry the negative accounting adjustment of 550 million for the sale of OHL Concessions, which was already included in the half-year results, and the recognition of losses due to extra costs in the start-up of the CHUM Hospital (Canada), which has had a impact of 77 million, to which must be added a provision of 25 million for future incidents.
Other extraordinary negatives come from the lawsuit filed in the Xacbal Delta project (Guatemala) (-28.8 million); PDC costs (32.2 million) and losses related to the sale of participations in the hotels of the Mayakoba tourist complex, in Mexico, for 92.7 million.
The gross operating result (Ebitda) was a negative figure of 467 million, compared to the positive 1.9 million obtained in the first nine months of 2017, while the net operating result (EBIT) was in the – 500.8 million. The group's gross debt fell to 701 million euros, 53.8% less than at the end of September of last year.
Filtering of information
This Wednesday, the shares of OHL have sunk 18.1% on the stock market, up to 0.75 euros, which represents a new historical minimum. The titles of the construction company also mark minimums. And as is traditional, leaks have caused an 18% drop before the results were officially known at the end of the session.
Something similar to what happened on September 27, when the titles of the constructor of the Villar Mir family sank 23.68% before the results of the first semester were communicated. So far this year, the titles of the company accumulate a loss of 83.1%.