Between January and September 2023, Sacyr obtained an EBITDA of €980 million, 12% more than the same period in 2022. Operating cash flow increased 29% to €487 million, and net profit reached €92 million, up 36%.

These figures take into account the restatement of the 2022 accounts, reporting Valoriza Servicios Medioambientales’ and Sacyr Facilities’ activities as discontinued. The sale of Valoriza to Morgan Stanley Infrastructure Partners was closed on October 31st and the Sacyr Facilities sale will conclude before year-end. 

Sacyr’s growth in 2023 is the result of its transformation into a profitable P3 infrastructure company that continually creates value. 

In fact, Sacyr estimates that in December 2023 the value of its P3 assets will reach €3.25 billion, an increase of €443 million compared to the last valuation performed on Investor Day in October 2021.

Sacyr has consolidated its position as the third largest developer of transport assets, according to PWF magazine, and one of the largest infrastructure P3 companies in the world. 90% of the company’s EBITDA—€880 million—comes from P3 assets, which provide a predictable and stable business model.

Record profitability

In September, the company’s profitability (EBITDA margin) stood at a record 30.2%, 4.9 percentage points higher than in the same period of 2022. This rise in profitability goes hand-in-hand with Sacyr’s transformation into a P3 firm. 

Revenue, meanwhile, closed the quarter at €3.2 billion.

Recourse net debt reduction

Sacyr closed Q3 2023 with recourse net debt of €661 million. The sale of both Valoriza and Sacyr Facilities will contribute to drastically reducing this debt: after the Q3 close, Sacyr collected €420 million from the divestment of Valoriza and expects to complete the sale of Facilities before the end of the year.

As part of the company’s financial management, Sacyr succeeded in the early unwind of the options held on Repsol shares, resulting in an inflow of €31 million in cash and tying up its financial position in the Spanish energy company. 

Increased shareholder remuneration

Shareholder remuneration is one of the core aspects of the 2021-2025 Strategic Plan. In 2023, the company raised shareholder remuneration to €0.136 per share, paid out in two scrip dividends in January and July.  

Evolution by business unit

Concessions.- Sacyr Concesiones obtained an EBITDA of €633 million (+17%), thanks to the good operating performance of its assets, the contribution of the Ruta 78 and Los Vilos highways in Chile, and the fact that all revenue from P3 assets is linked to inflation. 

Sacyr continues demonstrating its capacity to commission new P3 assets. In 2023, Rutas del Este (Paraguay) entered operation and another three assets will begin operating soon: Pedemontana-Veneta (Italy), Ferrocarril Central (Uruguay), and Pamplona-Cúcuta (Colombia).

In addition, as part of the active management of the asset portfolio, the company sold its 49% stake in the Autovía del Eresma (Spain) and the N6 in Ireland. 

Engineering and Infrastructure.-  Revenue reached €2 billion and EBITDA grew 6% to €322 million. 

This division is firmly committed to profitability over volume, resulting in an uptick in EBITDA margin to 16%, relative to 14% in the same period of 2022. Excluding the effect of Italy’s Pedemontana-Veneta and A3 highways, profitability stands at 4.6%, as opposed to 3.7% in 2022. 

The division’s backlog closed at €7.5 billion, up 2% from December 2022. More than 52% of that figure corresponds to Sacyr Concesiones projects and represents 34 months of activity.

• Sacyr, which has received €420 million for the shares of its services unit, focuses its strategy on the development of P3 projects. 

Sacyr has completed the sale of 100% of its services unit, Valoriza Servicios Medioambientales (VSM), to Morgan Stanley Infrastructure Partners. 

This divestment, announced in June, corresponds to Sacyr’s strategic objective to drastically reduce its recourse debt and focus its activity on P3 infrastructure projects. 

The shares sold totaled €420 million for Sacyr and the enterprise value of VSM (including debt and equity) amounts to approximately €734 million. 

Valoriza Servicios Medioambientales reached an EBITDA of €80 million in 2022.

The company is in the process of selling its Sacyr Facilities unit to Serveo, with whom it reached a sales agreement in July. The transaction assigns Sacyr Facilities an enterprise value of €87 million and an equity value of €76 million. In addition, Sacyr may receive up to €15 million depending on the success of the various claims currently in progress. 

Morgan Stanley Infrastructure Partners (“MSIP”) is a leading global private infrastructure investment platform with over $16 billion in assets under management[1]. Founded in 2006, MSIP invests in a diverse portfolio with 30+ investments in transport, digital infrastructure, energy transition and utilities. MSIP targets assets that provide essential public goods and services with the potential for value creation through active asset management. For further information about Morgan Stanley Infrastructure Partners, please visit www.morganstanley.com/im/infrastructurepartners.

[1] AUM reflects assets managed by MSIP platform since inception.

In the first half of 2023, Sacyr progressed with its transformation strategy into an infrastructure P3 company, that is profitable and continually creating value.

As part of this P3 strategy, Sacyr announced the sale of Valoriza Servicios Medioambientales (VSM) to Morgan Stanley Infrastructure Partners back in June and reached an agreement on the divestment of Sacyr Facilities in July. Given these operations, the company restated the 1H 2022 financial statements to report Valoriza’s and Facilities’ activities as discontinued. 

In the first half of 2023, the company’s EBITDA reached €645 million, a 28% increase compared to the same period in 2022 after the aforementioned restatement.

Operating cash flow increased by nearly 40% to €360 million.

These steep growth results are due to the commissioning of new highway sections and a good P3 asset performance, which already comprise 90% of Sacyr’s EBITDA, providing a predictable and stable business model.

This continual value creation translates into an asset portfolio valuation of over €3 billion.

Record profitability

The company’s profitability (EBITDA margin) stood at a record 29.8% in June, 6.6 points higher than in 1H 2022.

In turn, revenues in June were €2,164 million. 78% of the revenue stream comes from international projects.

Net profit for the semester reached €64 million (+52%)

Major infrastructure project in the U.S.

2023 milestones include the selection for negotiations to execute the design, construction and operation and management for 50 years from its entry into operation of a stretch of the I-10 in Louisiana (USA). 

The project, with an investment of US$2.1 billion (around €1.9 billion), includes  the construction of a new eight-lane bridge (four lanes in each direction) over the Calcasieu River.

This contract, one of the largest in the group’s portfolio, gives a boost to the strategic goal of increasing the proportion of company activities in English-speaking markets.

Not accounting this project, Sacyr’s backlog grew by 8% in 1H2023, up to €55.86 billion. 90% of the backlog is from international projects, and 86% from the P3 business unit activity. 

Other noteworthy contracts this semester include the regeneration of the degraded Canal del Dique ecosystems (Colombia) for €560 million, the construction of a section of FGC Line 8 in Barcelona for €300 million, several real estate promotions in Spain valued at over €225 million, and the owner engineering aspects of a new LNG terminal in Germany for €29 million, among others.

Divestments and net recourse debt reduction 

Sale operations of Valoriza and Facilities, attributing both companies a €734 and €87 million enterprise value each, will strengthen Sacyr’s marked focus on P3, and will contribute to the drastic reduction of net recourse debt in 2023. 
At 1H2023 close, debt reached €627 million, compared to €644 million in March 2023.

Increased shareholder remuneration

Shareholder remuneration is one of the core aspects of the 2021-2025 Strategic Plan. In 2023, the company raised shareholder remuneration to € 0.136 per share, paid out in two scrip dividends in January and July.

Evolution by business unit

Concesiones.- Sacyr Concesiones obtained €911 million (+5%) in revenues and a €425 million (+45%) EBITDA, thanks to the good operating performance of its assets, the contribution of the Ruta 78 and Los Vilos highways in Chile, and increased traffic volume in Spain.

Sacyr continues demonstrating its capacity to commission new P3 assets, and another four will enter operation in 2023: Pedemontana-Veneta (Italy), Ferrocarril Central (Uruguay), Rutas del Este (Paraguay) and Pamplona-Cúcuta (Colombia).

Moreover, as part of its rotation strategy of mature, non-strategic assets, Sacyr sold 49% of Autovía del Eresma (Spain). 

Sacyr Concesiones is the world’s fourth largest infrastructure P3 developer and has 69 assets worldwide, 58 of which are operational.

Engineering and Infrastructure.- Revenues for this business unit were €1,327 million, below June 2022 figures due to its strategy to prioritize profitability before volume.

In turn, the EBITDA grew by 2%, up to €198 million, and the EBITDA margin reached 15%, as opposed to 13% in the same period in 2022. Excluding the effect of the Italian Pedemontana-Veneta and A3 highways, profitability was 4.3%, as opposed to 3.7% in 2022. 

The division’s backlog ended at €7.342 million, similar to that in December 2022. 55% of this figure corresponds to Sacyr Concesiones projects and represents 33 months of activity.
 

Sacyr reinforces its focus on the P3 asset development business. Proceeds from the operation will be earmarked  to reduce its net recourse debt

Sacyr has accepted an €87 million offer from Serveo for 100% of Sacyr Facilities, one of the businesses in its Services unit. This divestment is framed in the company’s strategic objective to reduce its net recourse debt and focus its activity on the concession business as its core activity.

The amount of the divestment totals €87 million enterprise value and an equity value of €76 million. In addition, the sale and purchase agreement contemplates that Sacyr will receive earn-outs valued at approximately €15 million, depending on the success of several claims currently in process.

The perimeter of Sacyr Facilities, the company in question subject to sale, reached a €13.7 million EBITDA in 2022. 

The transaction is expected to generate pre-tax capital gains of approximately €40  million for Sacyr.

The completion of the transaction is subject to the compliance with the customary conditions precedent set out for this type of transaction and closure is expected to take place in 4Q 2023.

The certification, based on the ISO 30415:2021 standard, responds to the company’s efforts to boost diversity and inclusion and the need to implement defined processes

Sacyr and its subsidiary company Sacyr Construction have received the Diversity and Equality in Business certification from AENOR. Patricia Martínez, Chief People Officer at Sacyr, and Juan Antonio Fernández Cerrato, People director at Sacyr Construction, were presented the certification by Mónica Barroso, Area Manager – Center with AENOR.

This certification is based on the ISO 30415:2021 standard and uses a methodology allowing its compatibility with other organization management systems to address their actions regarding Diversity and Inclusion with a continual improvement approach.

Sacyr is the first company in Spain that has implemented this diversity and inclusion system based on the aforementioned ISO standard. This certification would allow Sacyr to have defined processes in place within a continual improvement framework model.

Over the past years, Sacyr has promoted diversity and inclusion related projects and initiatives that have garnered the obtention of the efr (“empresa familiarmente responsable”, family responsible company in English) certification in Spain, Colombia and Peru.

Moreover, Sacyr has also obtained the Equality distinction by the Ministry for Equality, joined the Bloomberg Gender Equality Index, and won awards for programs like Senior Talent, Sacyr Generation Senior and innovative programs for the inclusion of people with disabilities or the Flex Working and digital disconnection policies.

We collaborate with this project through the Sacyr Foudation to develop a new training and integration center for youths at risk of psychological and social vulnerability.

We have signed an agreement by which the Sacyr Foundation will collaborate with a donation of part of the funds to build a new cooking school and a catering and ready-to-eat food preparation center for Fundación Juan XXIII.

Fundación Juan XXIII is currently developing a large-scale training and employment center. The Sacyr Foundation will collaborate with a donation of part of the funds to build the kitchens.

The Sacyr Foundation and Fundación Juan XXIII have a long-standing partnership, and back in 2019 it already participated with the expansion and adaptation of the kitchens in its professional training center, responsible for elaborating catering products.

Manuel Manrique, Chairman of the Sacyr Foundation, said, “this agreement builds into the continued support the Sacyr Foundation has given to multiple Juan XXIII initiatives over the past years”. “We share the view that opportunities and spaces for social and employment integration must be created for people in situations of psychological and social vulnerability”, Manrique added.

Cafestore won the "Academy" award of sorts in Restaurant companies in Spain: the Hot Concept Award 2023 by Restauración News magazine to restaurant companies.

David Ortiz, Director of Cafestore was presented with this award that, in his words, represents "a recognition to the many significant milestones the company is achieving and to the consistent daily efforts of the +800 professionals in the Cafestore family".

The 20th edition of these well-known awards was held in a gala event that gathered many key people and brands in the restaurant sector.

Cafestore currently manages 39 rest stop restaurant locations in 11 communities, including rest stop, airport and high-rail locations.

The Annual General Meeting approved the 2022 accounts and the remaining items proposed by the Board of directors by majority, which included the appointment of two new independent directors, thus raising the proportion of independent directors in the company’s topmost decision-making body. 

Shareholders approved two capital increases in the form of scrip dividends, with the aim of keeping profitability rates around 5%. 

Sacyr’ Chairman emphasized that the company offers its shareholders solid growth and gave a €3 billion valuation of the current P3 asset portfolio.

Manuel Manrique added that the sale of Valoriza Servicios Medioambientales (VSM) will help drastically reduce Sacyr’s debt and stressed that “it’s an outstanding operation, for both its financial outcome and the future of VSM and its employees”. 

Sacyr’s shareholders approved all the items in its Annual General Meeting (AGM) agenda, giving a strong boost to the company’s corporate business model.

The shareholders green-lighted the appointment of two new independent directors: Elena Monreal Alfageme and Adriana Hoyos Vega. With their appointments, the proportion of independent directors in the board is raised to 50%. Moreover, this increases the number of women directors in the board to four. 

The AGM approved other proposals that improve on current corporate governance practices as well, in line with international best practices: limiting the Chairman’s casting vote, reducing the maximum size of the Board of directors to 15 members, as well as strengthening the role of the Lead independent director.

The shareholders also ratified the reelections of Manuel Manrique Cecilia as Chief Executive Officer for a four-year period and of Elena Jiménez de Andrade Astorqui as an Independent director, and the appointment of José Manuel Loureda Mantiñán as Proprietary director.

Manuel Manrique, Sacyr CEO, insisted in his address to the AGM attendees that the Board of directors is “committed to splitting the company’s executive roles by 2025 as part of its governance plan”.

• The amount of the divestment totals €734 million enterprise value, approximately €425 million of which correspond to VSM’s equity.
• Sacyr, currently focused on developing P3 assets, will earmark the sale proceeds towards a drastic reduction of its net recourse debt. 

Sacyr has accepted a formal bid offer from an investment fund managed by Morgan Stanley Infrastructure Partners for 100% of its services unit, Valoriza Servicios Medioambientales (VSM). This divestment process is framed in Sacyr’s strategy to drastically reduce its net recourse debt and focus on infrastructure P3 projects as its core business. 

The amount of the divestment assigns VSM a €734 million enterprise value (including debt and equity). The equity value of the transaction amounts to approximately €425 million, excluding the stake held by external minority shareholders. VSM reached an EBITDA of €80 million in 2022.

The final price payable at the closing of the transaction will be adjusted by reference to a balance sheet prepared at the same closing date. 

This transaction is expected to generate pre-tax capital gains of approximately €270 million for Sacyr.

The completion of the transaction is subject to the compliance with the customary conditions precedent set out for this type of transaction and is expected for 4Q 2023. 

About Sacyr. Sacyr, with a P3 asset portfolio valued at more than €3 billion euros, focuses on the development and management of transport (roads, airports, railways, metro), social (hospitals, universities, public buildings) and water (integrated water cycle, desalination, purification, and reuse) infrastructure projects under public-private partnership agreements. 

Divestment processes will aid in the company’s efforts to reducing its recourse net debt, one of the major objectives in its 2021-2025 Strategic Plan.

About Morgan Stanley Infrastructure Partners. Morgan Stanley Infrastructure Partners (“MSIP”) is a leading global private infrastructure investment platform with over $16 billion in assets under management[1]. Founded in 2006, MSIP has invested in a diverse portfolio of over 30 investments across transport, digital infrastructure, energy transition and utilities. MSIP targets assets that provide essential public goods and services with the potential for value creation through active asset management. For further information about Morgan Stanley Infrastructure Partners, please visit www.morganstanley.com/im/infrastructurepartners

[1] AUM reflects assets managed by MSIP platform since inception.

Morgan Stanley Communications
mordovas@eurocofin.com

• The company maintains robust growth results in the first quarter, driven by its P3-focused strategy.
• Profit rates stood at 24.8%, 4.5 points higher than in the first quarter of 2022. 
• In 2023, Sacyr will commission four major P3 assets, increasing the value of its portfolio.
• Sacyr expects to reduce its recourse net debt throughout 2023. Divestment processes for Sacyr Facilities and Valoriza Medioambiente are currently in the confirmatory due diligence phase and binding offers are scheduled for later in May.
• Backlog grows by 8% and exceeds €58.8 billion.

Sacyr achieved solid growth in the first quarter of 2023, thanks to its business model, focused on P3 development.

The company’s EBITDA reached €320 million, which entails a 32% increase compared to 2022. All three Sacyr business units (Sacyr Concesiones, Sacyr Engineering and Infrastructure and Sacyr Services) contributed to EBITDA growth, driven by the commissioning of new highway sections and good asset performance.

Profitability (EBITDA margin) was 24.8%, 4.5 p.p. higher than in 1Q 2022. 

Revenues ended March 2023 at €1,293 million, with an 8% increase, and net profit was €31 million, 51% higher.

P3 assets make up 85% of the EBITDA, which yields a predictable and stable business model. The international backlog is 85% of the total.

Today, Manuel Manrique, Chairman of Sacyr, received the National Innovation and Design Award in the Large company category, from their Majesties, King Felipe and Queen Letizia of Spain.

Diana Morant, Minister for Science and Innovation, and Adrian Barbón, President of the Principality of Asturias, attended the award-giving ceremony held in Avilés, among other authorities. 

These awards, given by the Spanish Ministry for Science and Innovation, recognize Sacyr’s business model, that “uses innovation as a foundational and strategic value”.

“To us, innovation is a driver and generator of competitive advantages. It’s a tool that helps us prepare for the future through new ways of designing, building and managing our infrastructures and services”, Manrique explained.

With this award, the Government of Spain acknowledges how Sacyr faces the digitization and ecological transition challenges to find new business opportunities based on open innovation and public-private collaboration

45 innovation projects

In 2022 we developed 45 innovation projects with a budget of over €13 million. Nearly 350 Sacyr professionals are involved in innovation-related initiatives.
 

"We continue to see an increase in both interest and membership globally, reflecting a shared goal of transparency in gender-related metrics”, he added.

To construct the GEI, Bloomberg assesses gender equality practices in companies across five pillars: leadership & talent pipeline, equal pay & gender pay parity, inclusive culture, anti-sexual harassment policies, and external brand.

Barrier breakers
Some of the greatest challenges in traditionally male-dominated fields are opening the doors to female talent and ending the glass ceiling. Sacyr is above the industry average in indicators such as new hires, percentage of women in the workforce, and women in executive and middle management roles.

The company, that obtained the highest possible score in disclosure, positioned itself as the highest-scored in the transport infrastructure industry and got remarkable results in the ‘Equal pay & gender pay parity’ chapter.

“For Sacyr, this new milestone represents the recognition of our commitment to equality and talent, both cornerstones of the 2021-2025 Strategic Plan”, highlighted Patricia Martínez, Chief People Officer at Sacyr.

Committed to gender equality
As part of its commitment to equality, Sacyr has a Diversity, Equality and Inclusion Policy and a Protocol for the prevention and action in cases of harassment and discrimination, as well as an action plan to increase women in leadership.

Additionally, Sacyr also sponsors STEM education programs for women and girls and is signatory of the UN Women's Empowerment Principles and participates in the Target Gender Equality program, both Global Compact initiatives.