Ferrovial, the global leader in infrastructure and services, obtained 482 million euro in net profit in the first nine months of 2011, an improvement of 53% year-on-year (315 million euro in 9M10). Performance by the company's main businesses improved in 9M11 and it benefited from the positive impact of its policy of rotating and monetizing assets.
EBITDA also reflected the improved trading performance, increasing by 13.1% like-for-like in the first nine months of 2011 to 1.691 billion euro. In particular, EBITDA expanded by 16.2% in Airports and by 17.2% in Toll Roads. Revenues amounted to 7.640 billion euro, a 1.9% increase in like-for-like terms.
EBITDA increased notably at the company's two main assets: by 19% at Heathrow airport and by 8.4% at Canadian toll road 407 ETR (in local currency terms in both cases), supported by higher tolls and fees and cost control measures. Budimex performed well, with improvements of more than 30% in its main operating line items, and EBITDA in International Construction rose 4.5%. EBITDA at Amey increased by 14.8%, in line with the company's usual good performance.
Ferrovial ended the first nine months of 2011 with a Construction and Services backlog of 22.441 billion euro, ensuring the company's activity in the medium and long term. International contracts accounted for 58% of the total backlog (50% in Services and 68% in Construction). The international Construction backlog expanded by 5%, at constant exchange rates, with Budimex contributing 12.7% and Webber 10.9% of the total.
The Airports division contributed 64% of EBITDA, Services 13%, Toll Roads 13% and Construction 10%.
In view of the Swissport and Tube Lines divestments, those companies are not included in these results, and the 407 ETR and Chilean toll roads are now accounted for using the equity method. On 10 October, Ferrovial disclosed an agreement with two investment vehicles managed by Alinda Capital Partners to sell 5.88% of FGP Topco Ltd., BAA's parent company, for 280 million pounds (325 million euro), assigning BAA a market value of 5.524 billion euro. In the first quarter of 2011, Ferrovial completed the divestment of Swissport for 695 million euro and of the stake in M-45 for 68 million euro.
At the end of 9M11, the net cash position (ex infrastructure project debt) amounted to 280 million euro, compared with 31 million euro at the end of 2010. Including infrastructure projects, consolidated net debt totaled 20.410 billion euro.
The company refinanced all of its debt through the early repayment of 491 million euro and the refinancing of 1.314 billion euro. In July, Ferrovial repaid another 300 million euro in advance; as a result, the company has no major maturities until 2015.
The company has 2 billion euro in liquidity, which, together with net and operating profit, ensure a solid financial position.
The Company's Board of Directors declared an interim 2011 dividend of 0.20 euro gross per share. The dividend would be paid on 17 November 2011. The total dividend, i.e. the sum of this interim dividend and the supplementary dividend that the Board of Directors will propose to the Shareholders Meeting in 2012, will foreseeably be in line with the sum of the interim dividend paid in 2010 and the supplementary dividend paid in 2011.
Services: Sales increase by 8.5%
The Services division attained 2.068 billion euro in revenues in the first nine months of 2011, i.e. 8.5% growth in like-for-like terms, while EBITDA amounted to 208 million euro, an increase of 8.7%. The backlog amounted to 12.520 billion euro. This performance is attributable to organic growth through new contracts and control of operating costs. Amey increased revenues by 15.3% in like-for-like terms to 924 million euro due to starting up contracts such as Birmingham and to the recently-awarded contract with the UK Ministry of Justice, worth 354 million euro. The backlog amounted to 6.210 billion euro.
Cespa's waste collection and treatment and Ferroser's facility maintenance businesses in Spain performed positively, with revenues totaling 1.144 billion euro (+3.6%) and EBITDA of 138 million euro. The backlog amounted to 6.309 billion euro, 9.1% more than at 2010 year-end. In Spain, Murcias waste collection and treatment contract in was renewed at 951 million euro.
Toll roads: EBITDA at 407 ETR increased 8.4%
In like-for-like terms, toll road revenues rose 11.3% with respect to last year, to 300 million euro. EBITDA increased by 17.2% in like-for-like terms to 223 million euro.
Canada's 407 ETR stood out in particular, with revenues increasing by 7.8% and EBITDA by 8.4%, both in local currency terms, reflecting higher tolls and traffic performance. On 30 June, the toll road set a new daily traffic record, with 460,293 trips. Also of note is the entry into service of the M3 in Ireland.
Construction: 68% of the backlog is outside Spain
The Construction division obtained 3.144 billion euro in revenues and 171 million euro in EBITDA in the first nine months of 2011. The international business is performing very positively this year, especially Budimex. The backlog remained stable at 9.921 billion euro, of which 68% comes from outside Spain; the Crossrail contract in the UK is particularly noteworthy.
The international business contributed 1.790 billion euro in revenues, 4.8% more than in the same period of 2010 in like-for-like terms, and 85 million euro in EBITDA (a 4.5% increase). The international backlog amounted to 6.728 billion euro.
Budimex expanded its main line-items by more than 30% in the period. The Polish subsidiary increased revenues by 34.8% to 935 million euro and EBITDA by 30.5% to 53 million, and also obtained contracts to build the Lublin and Augustow bypasses, the A1 and A4, and the Wroclaw railway station.
Webber's backlog increased by 10.9% to 1.693 billion euro due to new highway contracts in Texas (H-290, SH-99, US-75 and IH-35). Revenues in the Spain amounted to 1.364 billion euro and the backlog totaled 3.194 billion.
Airports: Heathrow traffic up 6.1%
Revenues at Ferrovial Aeropuertos totaled 2.161 billion euro, while EBITDA amounted to 1.084 billion euro. In like-for-like terms, BAA reported growth of 9.7% in revenues (2.158 billion euro) and 16.2% in EBITDA (1.093 billion euro). These figures are attributable to aeronautical, non-aeronautical and retail revenues as well as cost containment.
Heathrow's traffic totaled 52.6 million passengers, 6.1% more than in the same period of 2010. Sales at the airport totaled 1.442 billion pounds, up 11.2%. Traffic reached historic levels for summer, with notable increases in long-haul traffic to North America and Brazil, and also to Europe (Germany, Switzerland and France, in particular). A total of 83 million passengers used BAA's airports in the first nine months of 2011.
Scottish airports performed very well, expanding traffic (+8.4%) and EBITDA (+11%), especially Edinburgh Airport (traffic +9.5% and EBITDA +11.6%).