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Sat March 23 2019

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Amey drags down Ferrovial results

1 Mar Ferrovial made a net profit of €460m (£394m) last year from its continuing operations but a €774m impairment charge for Amey has resulted in an overall net loss of €448m.

Revenue from assets including toll roads increased
Revenue from assets including toll roads increased

The €460m net profit from continuing operations was 8.6% more than in 2017. Revenues from continuing operations amounted to €5,737m, and earnings before interest, taxes, depreciation and amortisation (EBITDA) to €484m.

However, a non-cash provision of €774m was booked to recognise the current value of the stake in Amey, resulting in the net loss of €448m. The company now values Amey at €103m (link opens in new tab).

Revenues from continuing operations increased by 11.3% to €5,737m due to the higher contribution from construction, attributable to the start of large projects in the United States. International business accounted for 77% of total revenues. EBITDA amounted to €484m, a 1.4% increase in like-for-like terms.

The company collected €623m in dividends from its assets, a 12.6% increase on the €553m euro received in 2017. Heathrow and the UK regional airports (AGS) reported growth in revenues and EBITDA. EBITDA increased by 4.5% at Heathrow on 3.0% growth in revenues, while it increased by 5.7% at AGS on 1.8% growth in revenues, in local currency in both cases. Ferrovial collected €144m from Heathrow and €39m from AGS. It also collected €131m from Ferrovial Services, most of it from Spain.

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The Construction backlog is close to €11bn, 89% of which is outside Spain. Notable events in the year included: the inauguration, three months ahead of schedule, of the NTE35W in the Dallas-Fort Worth area; the start of construction to renovate the international terminal at Denver Airport; approval of Heathrow Airport’s expansion by the UK Parliament; the award of a second high-tension line in Chile; and the financial close of the Ruta del Cacao toll road.

A number of road construction contracts were signed in Chile, the United States and Poland.

Construction division revenues amounted to €5,193m (+14.3% like-for-like), focused mainly in long-standing core markets, such as the US and Poland. Budimex revenues surged by 14.6% and its backlog remained high because of strong order intake. Webber increased its backlog by 22.9% in like-for-like terms to over €1,500m due to robust order intake. Completion of construction of NTE 35W enabled revenues to reach €739m. International business now accounts for 84% of the division’s total, while international projects represent 89% of its backlog.

Following a strategic review of the Services division, it was classified as available-for-sale. Its revenues amounted to €6,785m, affected by a selective bidding policy in the United Kingdom that was offset by the addition of rail and Ministry of Defense contracts. Revenues in the United Kingdom increased by 4.4%. EBITDA and the gross margin were impacted by the contract with Birmingham City Council, for which a provision of €235m was booked in the first quarter. The backlog in the United Kingdom amounts to €9,251m, up 5.1% in like-for-like terms.  


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