The coronavirus and the delicate financial situation that it already dragged before are taking their toll on OHL, which multiplied its losses by 10 between January and September 2020. In that period, the construction company recorded losses of 114.2 million euros, compared to 10.4 million of the same period of 2019.
According to data published by the company this Friday, the results “have been mainly impacted by the Covid-19 pandemic, which has affected so much
the Construction business (estimated at approximately 30 million euros at the operating level in OHL Construccion e Industrial), as well as the Developments business (26.3 million euros in the stakes of Centro Canalejas and Ciudad Mayakoba), and the impairment of value in financial assets with related companies (Grupo Villar Mir) “.
Grupo Villar Mir maintains a debt of 133.8 million with OHL for two credits, one with Grupo Villar Mir for an amount of 93.2 million and another with Pacadar for an amount of 40.6 million. Regardless of the fact that OHL “expects to reach an agreement that will allow it to recover the majority of said debt,” the construction company has provisioned 35.8 million to face the deterioration of financial instruments.
In the first nine months of the year, OHL also recorded an impairment of 15.6 million associated with Canalejas. The coronavirus has produced a “significant” delay in the opening of the hotel and in all aspects related to the commercial gallery, as well as a greater investment in the complex due to costs associated with said delay.
The turnover amounted to 2,070.4 million, 2.3% lower than that registered in the same period of fiscal year 2019, due to the impact of the coronavirus. Although on a positive note, the company highlights the 33.4% growth in ebitda (gross operating profit), up to 53.5 million euros.
Debt continues to be one of the company’s main burdens. The total net debt it stood at 205.6 million until September, 261 million more than at the end of 2019.
As of September 30, the company had a liquidity position of 511 million euros, after proceeding last March to the amortization of the 73.3 million outstanding balance of the bond issued in 2012.
Results by areas
By business area, construction sales reached 1,703.7 million, 3.3% less. Construction in Spain and Latin America were the most affected by the drop in activity and hiring due to Covid. Sales of the industrial business stood at 135.8 million, 6.3% less.
The services area registered sales of 219 million, with a growth of 7.4% compared to the previous year, driven by cleaning, urban services and maintenance activities.
76.3% of the total turnover was made abroad, compared to 70.1% in the same period of the previous year.
In the distribution of sales by geographical areas, the United States and Canada represented 42.3% of the total, Europe 37% and Latin America and others 20.7%.
The total portfolio of the company, as of September 30, 2020, amounted to 5,020 million euros, 8% less compared to the end of 2019; Europe represents 43.2%, the United States 39%, and Latin America 16.1%.
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