- The construction company considers that the Panama Canal awards will not be resolved until 2020
- President Manuel Manrique has once again defended the composition of the council
The executive president of Sacyr, Manuel Manrique, has advanced that the group will raise the dividend for 2019 to a profitability of more than 5% and that enter the renewable energy businesss.
“The aim of the board is to be able to increase shareholder remuneration (…). If last year we promised that the return per share was between 4% and 5% (in the end it was 4.2%), this year we want it to rise above 5% ”, Manrique pointed out during his speech before Sacyr’s shareholders’ meeting.
Although the deadline given for complete the strategic stabilization cycle of the company (2020) after the crisis “I can assure without fear of being wrong that all the objectives have been met”, he highlighted.
For this reason, the company has begun to design “a new stage” from a fully balanced financial position, businesses that generate positive cash and a growing reputation in all markets.
“This situation of security and absolute solvency allows us to choose the partners we want to have, select the best projects to opt for, access the more favorable financing and appropriate to each case and, ultimately, to be masters of our future ”.
Sacyr, he added, is a global, solid and profitable company, with a clear and prudent strategy, governed with transparency, ethics and responsibility, and managed by professional and committed people.
Regarding the markets in which it operates, he highlighted that Spain and Portugal have experienced a boost in activity in the “last” months that has led to an increase in the portfolio, which had declined during the crisis years. “This circumstance gives us more stability and we think that a positive stage is beginning in these markets.”
In addition, the intention to increase the portfolio in Italy, Mexico, Colombia, Peru and Chile, as well as consolidating the entry into Australia, the United States and Canada “to also turn them into main and recurring markets.”
For business, you will be able to focus on concessions, an activity that in 2019 will generate 80% of the group’s gross operating profit (ebitda), which for this year has also set the goal of lowering its debt “very significantly”.
From 2021, Sacyr Concesiones will be “completely financially self-sufficient,” which will make it possible to raise the dividend, reduce the corporate debt with recourse of the group and face new projects.
“We do not rule out operations of any kind, in any field of activity, to advance in this debt reduction target decisively and firmly corporate ”, he pointed out.
ARBITRATIONS THROUGH THE PANAMA CANAL
Regarding the conflict over cost overruns in Panama Canal expansion works, Manrique has affirmed that they “only” contemplate the “positive scenario of recovering, through cash register, of a part, hopefully relevant, of the claims that we have in the Miami Court of Arbitration”.
Regarding the 8% stake that Sacyr maintains in Repsol, the executive has pointed out that they will continue to be “vigilant, to take advantage of any opportunity that the market offers us to get the most out of such participation“.
On the other hand, he has advocated for “business ethics, zero tolerance for corruption and harassment of any kind” and has defended the composition of the board of directors of the company, put into question last year by José Moreno Carretero (8.18%), who was expelled from the highest decision-making body of Sacyr.