Sacyr increases its turnover by 7% and earns 26 million euros in the first quarter

Sacyr increases its turnover by 7% and earns 26 million euros in the first quarter

Net profit has fallen by 20% because last year the extraordinary results for the sale of the Guadalmedina highway were recorded.

Sacyr has closed the first quarter of the year with a 7% increase in turnover, up to 1,057 million euros, which has allowed it to record a net profit of 26 million euros.

This last number represents a decrease of 20.6% compared to the period between January and March 2020. However, this is due to the extraordinary results for the sale of the Guadalmedina highway being recorded last year.

profit before tax (Ebitda) of the infrastructure and services company has grown by 17% in the first quarter of 2021, until reaching €194 million. The reason, as he explained, has been the good evolution of its businesses and the success of its business model, which has a marked concessional nature. In fact, the concession assets have contributed 81% of this Ebitdafour percentage points more than in the same quarter of 2020.

Profitability (margin over EBITDA) has climbed to 18.3%, significantly higher than that achieved in the first quarter of last year (16.8%). In terms of operating cash flow, it has grown by 31%, to 117 million euros.

The future income portfolio has closed the first quarter in 40,189 million euros3% more than at the end of 2020, thanks to the incorporation of new construction and concession projects.

Objective: reduce debt

Sacyr continues to make the reduction of corporate debt a priority, which this quarter increases in a timely manner due to the payment of the return of advances decreed in the 2020 award on the Panama contract.

So the company expects to reduce net recourse debt by close to 300 million euros at the end of the yeara third of the figure registered at the end of March, as explained.

For it, works in different formulas, among which is a green financing operation. The objective of this operation is to associate the debt of environmental service projects with the income generated by the activity. The resources obtained from this financing will be used to reduce the group’s recourse debt.

The surplus flows from the dividends received from the concessions will be used for this purpose, once the investments foreseen in the growth plan have been covered, and the positive flows obtained from the active management of the stake in Repsol.

Evolution by business

Sacyr’s business is divided into three main areas: concessions, which are increasingly important, engineering and infrastructure, and services.

Sacyr Concessions has obtained a turnover of 289 million euros (+6%). Ebitda has reached 104 million euros, 24% more, thanks to the entry into operation of several sections of track in the portfolio and projects such as the Tláhuac Hospital in Mexico.

the portfolio of future incomewhich is located in 31,665 million eurosdoes not yet include the awards for the A3 Naples-Salerno toll road (Italy) and the RSC-287 toll road in Brazil.

The turnover of Engineering and Infrastructures it has reached 628 million euros, 12% more than in the first quarter of 2020. Ebitda has grown 15%, to 75 million euros, and the margin has reached 12%.

The purse of this division reached 5,957 million euros, 6% more than in December thanks to the success achieved by the company in the tenders to which it has participated. The first projects awarded in Canada stand out, a country that is within the roadmap set for the 2021-2025 period.

The portfolio guarantees 28 months of activity; 50% is for Sacyr Concesiones; and 83% is international.

Finally, the turnover of the division Services it has contracted 5%, to 243 million euros. The EBITDA has reached the €21 million and the Ebitda margin has stood at 8.5%, in line with that of the first quarter of 2020.

Ellsworth Weber