- Divestment of 5.88% of BAA generated 847 million euro of capital gains. Other divestment capital gains: 195 million euro on Swissport and 27 million euro on M-45 toll road.
- Ferrovial's main financial line items improved: consolidated net debt ended the year at 5.171 billion euro, from 19.789 billion euro at the end of 2010. The net cash position (excluding infrastructure projects) was 907 million euro, up from 31 million euro.
- The main businesses performed well: EBITDA increased by 14.4% in Airports, 4.9% in Services and 4.3% in Construction; BAA's EBITDA increased by 17.8% in local currency terms. Budimex increased by 20.4%, 407 ETR by 10.8% and services in Spain by 6%.
- The backlog amounted to 22.422 billion euro, close to record highs. By divisions, the backlog totaled 12.425 billion euro in Services and 9.997 billion euro in Construction. International contracts accounted for 68% of the backlog in Construction and 51% in Services.
Madrid, 23 February 2012. Ferrovial, a global infrastructure and services company, obtained 1.269 billion euro in net profit in 2011, compared with 2.163 billion euro in 2010. EBITDA amounted to 818 million euro, up 8.9% year-on-year in like-for-like terms. These are the first financial statements to reflect the changes in consolidation scope following the sale of a stake in BAA.
The net profit is the result of capital gains, asset rotation, internationalization, and good trading performance by the business areas. Revenues amounted to 7.446 billion euro, a decline of 0.6% year-on-year in like-for-like terms.
Ferrovial sold 5.88% of FGP Topco for 326 million euro, and obtained 847 million euro in capital gains on the transaction. Based on the transaction price, 100% of BAA is worth 5.527 billion euro. In 2011, Ferrovial also divested Swissport for 695 million euro, obtaining 195 million euro in capital gains, and its stake in the M-45 toll road for 68 million euro, obtaining 27 million euro in capital gains. Those divestments and that of BAA beat market estimates and raised a total of 1.264 billion euro.
The P&L reflects sound performance by Ferrovial's businesses and the resilience of the main assets. In like-for-like terms, EBITDA increased by 14.4% in the Toll Road division, 4.9% in Services and 4.3% in Construction, while BAA registered a 17.8% increase in local currency terms. EBITDA increased by 20.4% at Budimex, 10.8% at 407 ETR and 6% in the Services Spain division.
Heathrow Airport and Canadian toll road 407 ETR performed well, with EBITDA up 18.7% and 10.6%, respectively, in local currency terms. This good performance is due not only to traffic growth but also to higher fees and tolls and cost controls.
Cash flow excluding infrastructure projects continued to improve, reaching 1.447 billion euro, as a result of good business performance (578 million euro) and divestments (1.264 billion euro), offset partly by investments (328 million euro).
Both BAA and 407 ETR issued over 2 billion euro in bonds in 2011, evidencing investors' confidence in those assets' quality. Additionally, approximately 1.700 billion euro have been issued so far in 2012.
Net cash position: 907 million euro
The net cash position excluding infrastructure projects amounted to 907 million euro, up from 31 million euro at 2010 year-end. Ferrovial has available liquidity, which gives it flexibility to undertake investments in the coming years. In April 2011, Ferrovial repaid 491 million euro of parent company debt (which stood at 1.805 billion euro) and refinanced the other 1.314 billion euro. In July, it made an early repayment of another 300 million euro.
Standard & Poor's and Fitch rated Ferrovial for the first time, both rating it as investment grade.
In a year in which Ferrovial fulfilled its goals despite the economic situation, the company improved its main financial line items, reducing net debt to 5.171 billion euro, from 19.789 billion euro at 2010 year-end, through early repayments, divestments and deconsolidations.
Internationalization and new contracts
The geographical and business diversification strategy makes the P&L more resilient to the economic cycle.
In 2011, Ferrovial obtained notable new contracts including: Crossrail, in the UK; construction of Telefónica's new data processing center and a contract to maintain it for 15 years; construction of the Manor Expressway Northeast, in Texas; and a number of projects in Poland and Ireland. The company also landed a 20-year waste collection and processing contract in Murcia, a number of contracts from the UK Ministry of Justice, and contracts to manage several airport control towers in Spain.
Ferrovial's backlog amounts to 22.422 billion euro, close to record highs, with the international component gaining ground (it accounts for 68% of the backlog in Construction and 51% in Services). The backlog guarantees continued activity in the medium and long term.
Services: Strong growth internationally
Ferrovial Services boosted profitability in 2011 based on cost controls and landing new contracts in Spain and the UK. Despite the adverse economic situation, revenues totaled 2.821 billion euro, 9.4% more than the previous year in like-for-like terms. EBITDA amounted to 312 million euro, a 4.9% increase.
The backlog amounted to 12.425 billion euro, up 0.4% year-on-year. In Spain, a new waste processing plant in Catalonia came into operation, along with new sections of the A2 highway; the company also began managing the Madrid ambulance service, renewed a waste collection and processing contract in Murcia, and obtained the contract to manage a number of control towers belonging to Aena, the national airport authority. In the UK, the company obtained significant contracts with the Ministry of Justice, and began maintaining street infrastructure in the city of Birmingham.
Amey's revenues increased by 18.6% in pro-forma terms to 1.284 billion euro, while its EBITDA increased to 113 million euro. It ended the year with a backlog of 6.252 billion euro.
In Spain, Cespa and Ferroser booked 1.537 billion euro in revenues and 198 million euro in EBITDA, while the EBITDA margin remained stable. The backlog at year-end amounted to 6.172 billion euro, a 6.7% increase.
Toll roads: Good performance by 407 ETR
The Toll Roads division obtained 390 million euro in revenues, a 4.6% increase, and EBITDA amounted to 283 million euro, up 14.4% in like-for-like terms. Both figures are due to traffic performance, higher tolls, and compensation for the R4 and Ocaña-La Roda radial roads.
In Canada, Highway 407, Cintra's largest asset, obtained 675 million Canadian dollars in revenues (+8.1%) and 553 million Canadian dollars in EBITDA (+10.8%).
After the sale of 10% of 407 ETR in 2010, the road is now equity accounted on the basis of Ferrovial's remaining stake (43%). In 2011, the road provided Ferrovial with 27 million euro in income under the heading of equity-accounted affiliates.
In Spain, on 27 June 2011, Ausol completed refinancing of its debt (492 million euro) with a syndicate of 21 banks. The debt matures in five years.
Construction: Budimex increased EBITDA by more than 20%
The international business performed positively this year, especially Budimex, offsetting the decline in activity in Spain. The division's 2011 revenues amounted to 4.244 billion euro, a 4.5% reduction in like-for-like terms. EBITDA totaled 248 million euro, up 4.3%. The backlog remained at record highs and amounted to 9.997 billion euro.
Revenues from outside Spain totaled 2.489 billion euro, a 7.9% increase in pro-forma terms. EBITDA from outside Spain totaled 119 million euro (+3.5%), while the international backlog amounted to 6.829 billion euro, twice the Spanish backlog (3.168 billion euro).
In Poland, Budimex obtained revenues of 1.323 billion euro. EBITDA expanded by 20.4%, to 72 million euro, and the backlog grew by 24.2%, to 1.920 billion euro.
In the US, Webber obtained 425 million euro in revenues and 17 million euro in EBITDA. At year-end, the backlog amounted to 1.650 billion euro (+4.7%).
In the domestic market, revenues totaled 1.770 billion euro and EBITDA was 128 million euro.
Airports: More than 69 million passengers passed through Heathrow
BAA revenues in 2011 rose 9.2% in like-for-like terms, to 2.524 billion pounds, and EBITDA expanded by 17.8%,, to 1.287 million pounds.
This is primarily due to Heathrow's positive traffic performance, which improved by 5.5% with respect to 2010, to 69.4 million travelers. Record high traffic since the summer boosted full year figures to all-time highs, including notable growth in long-haul routes to North America and Brazil, and also on European routes (Germany, Switzerland and France, in particular). Overall, BAA reached 108 million passengers.
Scottish airports also performed well, especially Edinburgh, where traffic rose by 9.2% and EBITDA by 14.4%.
Following the sale of 5.88% of BAA, it is now equity-accounted, in line with Ferrovial's stake (49.9%).