ACS Group obtained a net profit of 136 million euros during 2022 first quarter
- Sales reached € 6,926 million, growing by 8.4% compared to the previous year
- EBITDA stood at € 399 million, up 21.6%, supported by Abertis’ traffic recovery to pre-pandemic levels
- Backlog grew by 4.6% to € 65,870 million
- Strong financial position with net cash of € 665 million
1. Consolidated Results
ACS Group’s net attributable profit in Q1 2022 amounted to € 136 million, € 51 million higher than the previous year (excluding Industrial Services), equivalent to an annual growth of 59.7% in comparable terms.
All activities showed a good operating performance, highlighting the traffic recovery on Abertis’ highways over pre-pandemic levels. Specifically, Abertis’ contribution to the Group’s EBITDA and Net Profit improved by € 20 million and € 16 million, respectively.
Concessions’ activity, which included Abertis’ contribution (€ 9 million) and Iridium’s Net Profit obtained a Net Profit of € 16 million.
On its side, Construction’s Net Profit grew by 11.7% to € 81 million.
The Services area, developed by Clece, obtained a Net Profit of € 8 million.
The retained energy assets, included in Corporation, contributed with € 15 million to the Group’s Net Profit.
2. Operating Results
EBITDA reached € 399 million, 21.6% higher than the previous year, supported by Abertis’ positive contribution in the period and Clece’s profitability recovery to pre-pandemic levels.
Likewise, EBIT stood at € 283 million, 38.3% higher than the previous year.
3. International Diversification
ACS Group’s sales in the first three months of 2022 amounted to € 6,926 million, up 8.4% compared to the same period of last year, with all activities showing a solid performance.
Backlog as of March 2022 stood at € 65,870 million, growing by 4.6%.
4. Results per Areas of Activity
Sales in construction amounted to € 6,406 million, an increase of 7.9% compared to the same period of the previous year, thanks to the recovery of activity in both Dragados and Hochtief.
North America’s sales, which represented 64% of total Construction sales, reached € 4,109 million showing a solid recovery after the impact of the pandemic in 2021, up 7.8% against the prior period. Meanwhile, sales in Asia Pacific amounted to € 1,516 million, continuing the recovery trend shown in previous quarters growing by 8.4%. Europe also grew by 11.3% thanks to the positive performance of the main countries in the region; Spain, Germany and the UK.
International sales reached € 6,081 million, representing 95% of the Construction activity’s total turnover, with North America and Australia being the most important markets. Sales in Spain represented 5.1% of the total.
Backlog as of March 2022 amounted to € 63,101 million, 95% international, with a 4.6% growth.
Construction’s Gross operating profit (EBITDA) accounted for € 326 million, with a 5.1% margin on sales.
The Construction business obtained a Net Profit of € 81 million, 11.7% more than the previous year.
Concessions Net Profit stood at € 16 million compared to negative € 4 million in the previous year, improving both Abertis’ and Iridium’s performance.
Abertis confirmed the recovery path with an average daily traffic growth of 15.8% compared to the same period of 2021 reaching pre-pandemic levels and, in some countries, even higher. This recovery in average daily traffic, as well as the contribution of the new concessions acquired, rose revenues to € 1,126 million (+5.3%) and EBITDA to € 762 million (+7.6%), largely offsetting the expiry of concessions in 2021 (Acesa, Invicat and Sol). Abertis’ Net Profit before PPA (“Price Purchase Allocation”) amortization and the financial costs of the hybrid bonds amounted to € 98 million, 16.8% more than the comparable period.
In Q1 2022 Abertis’ contribution to ACS’ Net Profit reached € 9 million, compared to negative € 6 million in the previous year.
On its side, Iridium, the Group´s concession development company, obtained a Net Profit of € 6 million, with an increased contribution from recently initiated concession projects.
4.3. Services (CLECE)
Services to citizens division’s sales amounted to € 437 million, consolidating its recovery increasing by 8.7% compared to the same period of the previous year and reaching pre-pandemic operating margins.
Net profit amounted to € 8 million, 18.4% higher than in the previous year.
Services’ current backlog reached € 2,769 million, equivalent to 20 months of activity, 5.6% more than in the previous period. Moreover, it is worth highlighting the weight it is gaining in the UK, where the backlog in Q1 grew by 61.2% to € 241 million.
5. Financial Situation
At the end of March 2022, the ACS Group held a Net Cash position of € 665 million, compared to Net Debt of € 3,691 million 12 months ago.
The significant improvement in the financial position was supported by the sale of the Industrial Services activity closed last year for € 4,902 million.
In the first quarter of 2022 the takeover bid for 21.4% of CIMIC was launched. As of March 31st, HOCHTIEF had acquired an 8.1% stake with a € 350 million investment, reaching a total stake of 86.7%. At the beginning of May, this stake rose to 96%, thus initiating minority squeeze-out procedure. On May 6th, CIMIC’s shares were delisted from the Sydney Stock Exchange.
Total remuneration to the Group’s shareholders in the last twelve months amounted to € 989 million, included in the acquisition of treasury stock and the distribution of dividend both in ACS and to the minority shareholders of Hochtief and Cimic.
ANNEX: MAIN PROJECTS AWARDED IN Q1 2022
- Orinda Water Treatment Plant Disinfection and Chemical Systems Safety Improvements Project in Orinda, California
- Construction of a 12.2 mile tolled facility in Hidalgo County, Texas
- DCAMM JP Campus Tower Building Renovation State Labs, United States
- Widening the riverbed of the Svrakta River to prevent flooding in Brno, Czech Republic
- Construction of the extension and remodeling at Chamartín Station, Madrid
- Newly constructed building for office use and parking located on Bilbao Street, Barcelona
- Renovation of 25 km of track and catenary on the line between Silla and Cullera, Valencia
- Adaptation to high speed (250km/h) of existing double track in operation between Alcázar de San Juan and Manzanares, in Iberian gauge, Ciudad Real
- Surface civil and alignment works for the Sydney Metro – Western Sydney Airport rail link between Orchard Hills and the new Western Sydney Airport Station
- Development of the tunneling works for the Western Harbour Tunnel - Southern Tunneling Works of the Rozelle Interchange contract in Sydney
- Design, engineering, procurement and construction contracts in the renewables and utilities sectors in Queensland and South Australia
- Construction of a 660MW power generation plant at the Hunter Power Project in Kurri Kurri, New South Wales
- Development and construction of the Auguste - Port Wakefield Highway duplication to the township of Lochiel, South Australia
- Contract for providing general maintenance services at onshore and offshore facilities in the Gippsland region of Victoria
- Contruction of the Boardwald Underneath Island Eastern Corridor along the Victoria Harbour and for the Electrical Works Package for the Third Runway Concure and Apron at the Hong Kong International Airport
- Civil Works: shafts, galleries and tunnels of two sections of line 7 Metro de Santiago, Chile
- Renewal of the home help service in Murcia, Spain
- Extension of the cleaning and disinfection service for primary care centers in Catalonia, Spain
- Extension of the cleaning and disinfection service for the “Plataforma Logistica Sanitaria de Almería”, Spain
- Renovation of the security and customer service of the Royal Palace in Madrid, Spain
- Extension of the cleaning and disinfection service for the Hospital Logistics Platform in Cadiz, Spain