Sacyr posts an Ebitda of €348 Million (+10%) boosted by the strength of its concession model in a global environment made challenging by Covid-1930/07/2020
The company's divisions—Concessions, Engineering and Infrastructure and Services—achieved profits of €108 million, compared to €47 million during the same period of 2019. This increase is in addition to a 100-basis-point rise in profitability to 16.7%.
The company has begun operations in the new normal without any significant impact. This showcases the success of the business model of the multinational, which generates around 80% of its EBITDA through concession-related assets with low demand risk.
The company's backlog of future revenue comes to €39.445 billion.
Sacyr promotes sustainability as one of its key pillars and strategic objectives. To that end, its corporate governance is fortified with a Sustainability and Corporate Governance Committee, attached to the Board of Directors, and a Sustainability Committee.
Sacyr increased its EBITDA by 10.4% to €348 million in the first half of 2020, a period marked by the global impact of the COVID-19 pandemic, thanks to the robustness of its business model, which is becoming increasingly oriented toward concessions. In fact, 77% of its EBITDA came from the concession activity of its three major business areas: Concessions, Engineering and Infrastructure and Services.
Sacyr actively managed the situation in order, first and foremost, to protect its more than 40,000 employees worldwide. In addition, it ensured the continuity of its operations, some of which are considered essential or of public interest.
During the period, the multinational embarked upon the new normal in almost all of its operations without having recorded major impacts. Nevertheless, in March the Group made a precautionary provision of €30 million in the face of the uncertainty surrounding the evolution of the pandemic.
Revenues grew 3.5% between January and June, reaching €2.079 billion. This increase amounts to 8% relative to the size of the company, given the divestment of various assets during the last few months: Guadalcesa, generation and cogeneration plants, and various water-related assets in Portugal. The EBITDA posted (+10.4%) would increase by 19% if these asset disposals were discounted.
The net profit generated by the businesses reflects the positive performance of the three divisions of Sacyr despite COVID-19. It stood at €108 million, compared to €47 million in the first half of 2019.
The group's attributable net profit was €70 million, less than the €80 million achieved in the same period last year. Net profit was impacted by the profits and stock-market performance of Repsol, in which Sacyr owns a stake. The oil company's contribution to Sacyr's profits was -€18 million. The book value of Repsol was €8.66/share as at June 30th, 2020.
Sacyr improved the profitability of its businesses in the first half of the year, thus delivering on one of the company's priority objectives. The EBITDA margin was up 100 basis points reaching 16.7%.