International growth for Ferrovial
By Sandy Guthrie31 October 2014
International activity in Ferrovial’s construction sector is continuing to gain in importance, accounting for 77% of revenues and 74% of its backlog, according to the company.
Overall, the Spanish contractor, infrastructure operator and manager of municipal services, recorded €701 million in EBITDA (earnings before interest, taxes, depreciation and amortization) in the first nine months of 2014 – an 11% increase –on 10% growth in revenues to €6.49 billion. It said this was boosted by good business performance, particularly in services and the international construction area.
International revenues increased by 13% to account for 69% of the total. Net profit amounted to €270 million, compared with €485 million in the same period of 2013, which included extraordinary items such as €137 million in capital gains on the sale of Stansted Airport in the UK, and €22 million on the sale of 40% of its Amey subsidiary.
Ferrovial said its total backlog was at an all-time high – €28.40 billion, of which €20.68 billion related to services and €7.726 billion to construction. It added that the figure did not yet include new contracts worth over €800 million.
In the first nine months of 2014, the company increased its international exposure, with the result that there was a 68% backlog in services and 74% in construction located outside Spain.
Ferrovial recently made a non-binding offer for 100% of Australian construction and asset management company Transfield.
Ferrovial said it ended September 2014 with a net cash position (excluding infrastructure project debt) of €1.53 billion.
In construction, with international activity becoming more important, the company said that Ferrovial Agroman, its construction arm, had landed major projects in Australia, Saudi Arabia and Brazil, as well as several road contracts in Poland.
It said total construction revenues were in line with last year, amounting to €2.94 billion, mainly as a result of completion of projects in the UK, and EBITDA increased by 16%.