- EBITDA from airports (BAA) grew 29% in local currency terms due to higher fees and a reduction in operating costs. The decline in traffic at Heathrow (-3.8%) was less pronounced than at other European hubs.
- International Construction maintained growth in revenues (+8.3%) and now accounts for 41% of the division’s total backlog.
- Between January and June, Cintra obtained three new concessions (the A1 toll road in Poland, and the NTE and IH 635 in Texas) and refinanced all of its debt maturing in 2009. It also completed the sale of its stake in Cintra Aparcamientos for 451 million euro.
- Amey expanded revenue by 8.2% in local currency terms. The Services division backlog grew 10.3%.
- Net income (-287 million euro) was affected by fair value adjustments (647 million euro, accounting effect with no cash impact) and by the absence of capital gains (contrasting with 317 million euro in 1H08). Excluding fair value adjustments, net income would have totaled 38 million euro.
Madrid, 30 July 2009.- Ferrovial obtained revenue of 5,901.4 million euro in the first half of 2009. In like-for-like terms, net revenue remained stable (+0.5%) compared with the same period last year. EBITDA totaled 1,183 million euro, down 1.3% (+8.6% in like-for-like terms).
Earnings reflect 647 million euro in fair value adjustments (with no cash impact), primarily due to marking hedges to market, the impairment of certain BAA assets in view of the potential sale of Gatwick, and updating business plans for the other airports. Moreover, the company did not record any extraordinary gains in the first half of 2009, contrasting with 317 million euro in 2008. Excluding the above-mentioned factors, net income would have amounted to 38 million euro, contrasting with the reported loss of 287 million euro.
Growth in EBITDA was especially noteworthy at BAA (+29% in local currency terms) and International Construction (+26.7%). Amey also improved its EBITDA by 6.2% in local currency terms.
Another highlight was the cash generated by the Construction and Services divisions, which closed the six months with an improvement in their cash position vs. December 2008. The combined operating cash flow generation reached 200 million euro.
Ferrovial’s geographic and business diversification strategy has been maintained in recent years and is reflected in its income statement. International revenues and EBITDA account for 63% and 82% of the total, respectively.
Broken down by division, Airports contributed 50% of EBITDA, Toll Roads 25.7%, Services 14% and Construction 10%.
Consolidated net debt amounted to 23,301 million euro, compared with 21,177 million euro at 2008 year-end. Excluding infrastructure projects, net debt amounted to 1,809 million euro. As part of the company’s strategy to simplify its financial structure, on 30 June Ferrovial arranged a 3-year 3,300 million euro syndicated loan with 35 banks; the deal will be completed when the Cintra merger is concluded.
Airports: good performance by Heathrow
BAA revenues amounted to 1,460.9 million euro, a decline of 5.1%. Excluding the currency effect, revenues grew by 12.5% (1,295.3 million pounds). This improvement is attributable to the good performance of Heathrow (which registered a smaller decline in passenger traffic than other large airports), the increase in fees in 2008, improved retail revenue per passenger and a reduction in operating expenses. EBITDA totaled 603.6 million euro, a 7.3% increase (+29% in local currency terms).
A total of 67.5 million passengers used BAA’s airports in the first half of 2009. The decline in domestic traffic was more pronounced than in long-haul traffic. Heathrow, BAA’s principal airport, served 31.2 million passengers, i.e. a decline of 3.8%. Revenue at Heathrow amounted to 785.2 million pounds and EBITDA totaled 345.4 million pounds. Retail sales per passenger at the airport grew by 11%. In March 2009, the UK Competition Commission published its final report. It ordered Ferrovial to sell Gatwick and Stansted airports as well as either Glasgow or Edinburgh airport; the company has two years to complete the divestments. BAA appealed the decision in May; the appeal does not affect the sale of Gatwick, which is already under way.
Toll roads: sale of Car Parks division (Cintra Aparcamientos) completed
In like-for-like terms, revenues remained on par with 2008 figures and amounted to 478.4 million euro. Traffic performance was impacted by the global economic situation. Nevertheless, the decline slowed in the second quarter, and the Chicago Skyway actually experienced 11.2% growth in traffic. The division has refinanced all its 2009 debt maturities, which reflects the quality of its assets. In early 2009, Cintra clinched three new contracts valued at close to 6,000 million euro: the A1 toll road in Poland, as well as the North Tarrant Express and the IH 635, both in Texas. As part of its plan to rotate mature assets, on 27 July the company completed the sale of its Car Parks division for 451 million euro (including 51 million euro in bank debt).
Services: the backlog grew 10.3%
Revenues in the Services division totaled 1,804.4 million euro in 1H09, of which almost 60% came from outside Spain. The backlog totaled 10,067 million euro, up 10.3% compared with December 2008. UK subsidiary Amey obtained 8.2% growth in revenue (in local currency terms), to 449.5 million pounds. EBITDA expanded 6.2% to 37 million pounds. In Spain, Services revenues remained stable with respect to the first half of 2008, and the backlog grew 12.8% in 2009 to 5,023 million euro.
Construction: revenues totaled 2,162 million euro
Construction revenues in the first half of 2009 amounted to 2,162 million euro. EBITDA was 117.7 million euro, and the backlog amounted to 7,775 million euro. Revenues from international activity registered significant growth, up 8.3% (excluding the currency effect), while EBITDA improved 26.7% in like-for-like terms. Projects in countries outside Spain accounted for 40% of the division’s revenues and 41% of its backlog.
In Poland, Budimex recorded revenues of 318.9 million euro. Its backlog stands at 714.3 million euro. In the US, Webber increased revenues by 31.3% to 207.9 million euro and ended 1H09 with a backlog of 609 million euro.
The construction division in Spain obtained revenues of 1,314.9 million euro and its backlog amounted to 4,579.2 million euro (9% lower due to the decline in residential and non-residential building). Residential projects account for 6% of the total backlog.
