Sacyr comes out of losses thanks to the impulse of the concessions

Sacyr obtained a profit of 111 million euros in 2022, compared to losses of 189 million in the previous year, thanks to the commissioning of concession assets, which have become the most profitable part of the business.

Thomas Osborne
Thomas Osborne
24 February 2023 Friday 15:46
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Sacyr comes out of losses thanks to the impulse of the concessions

Sacyr obtained a profit of 111 million euros in 2022, compared to losses of 189 million in the previous year, thanks to the commissioning of concession assets, which have become the most profitable part of the business. The company is still looking for a buyer for the services business, as well as a partner for the water and Valoriza business.

Revenues for the year increased by 25%, up to 5,852 million, thanks mainly to concessions, which contributed 2,071 million, 40% more. The gross operating profit (ebitda) was 1,502 million, 63% more, and of that figure, more than half already comes from the concessions, 878 million, 74% more.

The key to the year has been precisely the commissioning of both highway sections and other types of concession assets, which are capable of transferring the increase in inflation to revenues, which protects the company from tensions over the costs, especially pronounced after the invasion of Ukraine.

Last year, Sacyr put highways into service in Chile, Colombia and Italy. It was also awarded three new concession projects with which it will obtain recurring income for decades. They are the Hospital de Velindre (United Kingdom), the Buenaventura-Buga highway (Colombia) and the Canal del Dique, in the same country.

The strategic plan is already being fulfilled two years ahead of schedule in terms of turnover, ebitda, profitability and percentage of ebitda from the concessions, so the key now lies in minimizing the net debt with recourse, which is the one associated with the corporation, through disinvestments.

The group's debt now stands at 546 million, after being reduced by 135 million last year. To continue cutting this liability, Sacyr is looking for an investment partner for 49% of Sacyr Agua and a buyer for up to 100% of Sacyr Facilities, which is in charge of services and maintenance. It will also sell at least 49% of Valoriza Servicios Medioambientales, the company that was awarded the garbage and garden services in various areas of Barcelona.

As part of this trend, the group left Repsol's capital last year, which gave it a positive cash result of 58 million euros and allowed it to reduce the debt associated with that investment by 650 million.

The group's portfolio, like that of other Spanish construction companies, continues at record levels, encouraged among other things by infrastructure programs in the United States. It added 54,755 million euros, 19% more. In North America, Sacyr was awarded the US 62 highway and the Vanderbilt Beach highway, as well as a pediatric center in Ontario.