Ferrovial, a global infrastructure and services company, obtained net income of 265 million euro in the first half of 2012. EBITDA increased notably, to 440 million euro, 15.2% more than the same period last year. Revenues amounted to 3.66 billion euro, a 3.3% increase.
In the first half of 2012, Ferrovial's main businesses improved in operating and financial terms, particularly revenues at Amey (UK), heavy vehicle traffic in the US, and international construction (mainly in Poland and Texas).
At the end of June 2012, Ferrovial's backlog amounted to close to 22 billion euro, with international projects maintaining a large share of the total: 68% in Construction and 49% in Services. The Construction division landed the Highway 407 East Extension contract in Canada, among others. These results do not yet reflect the services contract in Sheffield (UK), worth around 1.4 billion pounds, whose financial closure is expected during 2012.
EBITDA increased notably at the company's two main assets: by 10.9% at 407-ETR, in Canada, and by 9.6% at Heathrow airport, in London (in local currency terms in both cases), supported by higher tolls and fees and cost control measures.
The sale of Edinburgh airport by BAA provided net capital gains of 100 million euro for Ferrovial.
Sound financial position
At the end of June 2012, Ferrovial's net cash position (excluding infrastructure project debt) was 846 million euro. Consolidated net debt (including infrastructure projects) totalled 5.5 billion euro.
Ferrovial received dividends amounting to 127 million euro from 407-ETR and BAA as well as more than 650 million euro under the Instituto de Crédito Oficial (ICO) initiative.
As part of its long-term capital markets strategy, BAA issued more than 3 billion pounds in bonds, enhancing currency diversification with new issues in Swiss francs, sterling, US and Canadian dollars and euros.
407-ETR issued bonds worth 400 million Canadian dollars in April, enabling it to extend debt maturities from 2014 to 2042.
As a result, the company does not have to address any major maturities in the coming years.
Services: 25% revenue growth in the UK
The Services division attained 1.5 billion euro in revenues in the first half of 2012, and EBITDA amounted to 144 million euro (142 million euro in 1H11). The backlog amounted to 12.3 billion euro.
Revenues expanded by 8% in absolute terms compared with the same period of 2011, primarily due to 25% growth in revenues at UK subsidiary Amey to 731 million euro. This performance is attributable to the commencement of new contracts, such as the one awarded by the UK Ministry of Justice.
Amey's backlog totals 6.1 billion euro. That figure does not yet reflect the contract with Sheffield City Council, worth approximately 1.4 billion pounds in nominal terms, which will be included during 2012 after financial closure.
These good results in the UK offset the decline in revenues in Spain due to slower economic growth. Nevertheless, Cespa's waste collection and treatment business performed positively as a result of new contracts, including two waste treatment plants in the Canary Islands and the renewal of several municipal waste collection contracts. Ferroser also expanded as a result of new projects, such as the public service hotline for the Madrid city government and a maintenance contract for several highways in Spain.
Toll roads: Recovery in the US and Canada
Revenues in the toll road division amounted to 186 million euro, and EBITDA expanded by 6%, to 151 million euro.
Canadian highway 407 continues to perform very soundly in terms of both traffic and kilometers travelled. Revenues increased by 10.2% and EBITDA by 10.9% in local currency terms. In the first half of the year, Cintra was awarded a 1.1 billion Canadian dollar contract to design, build, finance and maintain the first phase of the Highway 407 East Extension, in Ontario.
The US and Canada showed signs of recovery, with growth in the second quarter exceeding the 12-month average, especially in heavy vehicle traffic, on both Indiana Toll Road and Chicago Skyway. The increase in tolls in Europe partially offset the decline in traffic.
Construction: 68% of the backlog is outside Spain
The Construction division obtained 2 billion euro in revenues in the first half of 2012, an improvement of 2% year-on-year. EBITDA increased by 56%, to 161 million euro.
This division maintained the trend of previous quarters: international growth mitigated the decline in activity in Spain. International revenues in this division expanded by 27% in the period. Of the total Construction backlog, which amounts to 9.5 billion euro, 68% (6.6 billion euro) are international projects, and the remaining 32% (2.9 billion euro) are in Spain.
Project execution proceeded apace at Budimex and Webber, with double-digit growth in revenues. Budimex increase revenues in Poland by 25%, to 687 million euro, and Webber's revenues in the US rose by 43%, to 276 million euro.
Airports: Heathrow attains a new record in passenger numbers
BAA attained 1.3 billion pounds in revenues, a 7% increase, while EBITDA amounted to 604 million pounds, a 9% increase year-on-year.
Traffic continued to perform positively in the first half of 2012, growing by 1.4%. This growth was driven mainly by Heathrow, which expanded by 2.2%, handling a record 33.6 million passengers.
Long Haul continued to show strong growth in traffic, with North Atlantic and Middle Eastern destinations as the top performers. This performance was driven by high occupancy, higher fees and growing retail revenues.
: Ernesto López Mozo, Chief Financial Officer of Ferrovial, explains the 2012 1H Results. (See video