Ferrovial reduces its losses in the first quarter and increases its sales by 1.5%

Ferrovial reduces its losses in the first quarter and increases its sales by 1.5%

The company chaired by Rafael del Pino has recorded losses of 86 million euros until March 31.

Image of a work by Ferrovial

Ferrovial has closed the first quarter with losses of 86 million euros compared to a negative 111 million in the same period of the previous year, a period largely marked by the impact on Airports of the effects of Covid-19.

However, the accounts have reflected a 1.5% increase in sales, up to 1,365 million euros, supported by the good performance recorded by the Construction division, especially in the United States and Poland.

In the presentation of results sent to the National Securities Market Commission (CNMV), the company chaired by Rafael del Pino has highlighted its Gross Operating Income (EBITDA) of 119 million euroswhich represents a improvement of 39% year-on-year compared to the 86 million euros registered in the same period of the previous year.

The company has highlighted that it enjoys a solid financial position derived from its high level of liquidityas highlighted by the chairman at the shareholders’ meeting, at 7,554 million euros, and its net cash position ex infrastructure projects of 1,914 million euros (including discontinued operations).

Likewise, the absence of consumption of working capital has had a favorable impact, despite undertaking greater investments in the period, mainly in the I-66 in the United States.

Business’ units

The income of the business of Building have grown by 2.3% in comparable terms to reach 1,231 million euros thanks to the good progress of the projects in the United States and Spain, the company has reported.

82% of the turnover corresponded to international business, having Poland and the United States a relevant role. Particularly noteworthy is the solid performance of Webber, with a double-digit improvement in sales, and of Ferrovial Construction, with an increase in its turnover of 7.3% in comparable terms. For its part, Budimex increased its EBITDA by 46.3% in comparable terms. The division got a operating profit of 19 million euros and an RE margin of 1.5%.

The sales of Freeways have contracted 9.5% in comparable terms up to the €101 million as a result of the reduction in traffic due to the pandemicthe Snow storms offset by price increases in Texas. 76.2% of the division’s revenues came from the United States. For its part, the EBITDA fell by 10.1% in comparable terms to 67 million euros.

In airports the reduction in traffic at Heathrow has meant a drop in their income by 72.2% and its adjusted EBITDA by 106.4%. AGS airports have been significantly affected by the fall in traffic, reducing their sales by 75.1% and placing their negative EBITDA at 11 million euros.

New councilors

Ferrovial’s board of directors, at the proposal of the Appointments and Remuneration Committee, has co-opted Alicia Reyes and Hildegard Wortmann as company directorswith the category of independent.

They succeed Joaquín del Pino in the positiondirector since 2010 who in a letter has expressed reasons of a personal nature to present his resignation, and to Santiago Fernandez Valbuenawho after staying for twelve years has submitted his resignation to contribute to the renewal of the body.

In both cases, the board has expressed “its recognition and gratitude for the dedication and contribution” during his years with Ferrovial.

Ellsworth Weber