OHL lost 1,529.8 million in 2018, its third year in the red

  • Sales fell 6.9%, to 2,954 million
  • The construction company has already accumulated three years without profit

OHL closed 2018 with some losses of 1,529.8 million euros, compared to the 12.1 million it lost in 2017, weighed down by non-recurring results such as, for example, the sale of the concession business, which subtracted 550.5 million, or failed projects worth 235.3 million.

The sales fell 6.9%, up to 2,954 million euros, mainly due to lower activity under construction, according to the accounts sent to the National Securities Market Commission (CNMV) by the company, which in 2018 OHL Concesiones sold to IFM for 2,158 million (funds used to reduce debt) and a capital gain of 48 million.

The gross operating profit (Ebitda) showed a negative balance of 448.5 million euros, compared to the gross operating losses of 66.5 million registered in 2017, very negatively affected by the review of the projects that have penalized the Construction and Industrial margins.

Looking ahead to 2019, OHL explains that it will be a transition exercise “with greater visibility of recovery and with clear cash generation targets “in which sales will be, according to their forecasts, between 2,500-3,000 million, ebitda will exceed 45 million and the order book will move at levels between 5,500 and 6,500 million .

“The company will maintain its focus on having a profitable portfolio with positive Ebitda and cash generation, following the path started in the fourth quarter of 2018”, highlighted OHL, whose liquidity as of December 31 was 1,033.3 million and a negative net debt of 346.8 million, which is equivalent to a positive cash position.

The group adds that on the horizon 2019-2021, with the generation of cash from your construction business, the current liquidity available and the continuity of its non-strategic asset divestment policy, “it faces the future with confidence, which it hopes will result in a better perception of the company by the market.”

Back to the 2018 accounts, the construction business billed 6.2% less, 2,496.2 million, and yielded a negative EBITDA of 282.1 million, compared to the positive 70.5 million a year earlier.

The industrial area entered 29.6% less, up to 189.9 million, and its operating losses went from 36.5 to 63 million, after the decision of leave the oil and gas segment. In services, sales rose 11.1% (264.1 million) and ebitda fell 64.8%, to 1.3 million.