Sacyr Vallehermoso group (SyV) obtained a net attributable profit of 188.63 million in the first half of 2005, up 87.2% on the first half of 2004, after restating the financial statements for that period last year in accordance with new accounting standards in order to make them homogeneously comparable.
Operating income from January through June reached 285.97 million, up 29% on the first six months of 2004, while ordinary revenue grew more than two-fold, from 149.78 million in June of last year to 302.56 million in 2005 (+102%).
The group's flow in the period rose to 313.87 million, up 55.4% on the first six months of last year. EBITDA (operating income plus depreciation and provisions) posted a significant 25.5% increase to 403.73 million, driven by the improvement in this section of all areas of business.
Business activities yielding recurrent revenues (concessions, rental property and services) already contribute 57.4% of EBITDA, and this percentage will increase in the future following the latest concession awards and to the extent that the ones inaugurated most recently reach a greater degree of maturity and to which rental property projects in progress are placed in operation.
Turnover rose to 1,763.72 million, up 11.1% on the same period last year. All areas recorded increases in this chapter, except Somague (affected by the downtown in public works activities in Portugal). In this regard, worthy of mention is the important public and private transportation infrastructure investment plan which the Portuguese Government presented recently. By geographic areas, Spain represented 72.8%; Portugal, 20%; Chile, 5.1% and other countries, the remaining 2.1%.
The favorable performance of all magnitudes of the group is also accompanied by an improvement in the profitability ratios. Gross margin (operating income/turnover) rose from 14 to 16.2%, and net margin (net profit/turnover) improved substantially from 6.3 to 10.7%. The EBITDA/turnover ratio reached 22.9% as opposed to 20.3% a
year ago. The total future revenue portfolio amounted to 65,299.1 million at June 30, 12.5% more than a year ago, with latent EBITDA of 41,570.5 million.
With respect to the group's balance sheet, assets at June 30 amounted to 13,358.46 million, up 22.6% due principally to Itinere's investments in the purchase of an additional 30% in ENA and in new highways, the purchase of land for residential development and the acquisitions of Sufi and Nueva Nuinsa in services. Sixty percent of assets pertain to businesses yielding recurrent income and high margins.
Revenues from the construction business were 990.54 million in the first half, up 4.7%. Sacyr, which carries on its business in Spain, Chile and Italy, posted a significant 24% improvement in turnover, while Somague in Portugal decreased its business 21.2%. The division's net profit was 62.99 million, up 109.5% with respect to the same period in 2004. The construction portfolio rose to 4,052.4 million, 29.7% more than a year ago.
In the first half, new construction projects for 1,610.6 million were obtained, increasing 62.5%.
The most significant contract awards were:
- construction of two hospitals in Parla and Coslada for the Community of Madrid for 152 million;
- burying of the M-30 highway between Avenida Portugal and Paseo
- Extremadura in Madrid for 143 million;
- construction of a highway in Valencia for the Valencia Regional Government for 120 million;
- construction of a highway in Bulgaria for 104 million;
- Central University Hospital in Asturias for 75 million;
- High-speed rail stretch La Torrasa-Sants in Barcelona for 67 million;
- tunnel in Tetuán district, Madrid, for 60 million;
- urban development PAU 4 Móstoles Sur for 47 million;
- pavilions 12 and 14 for Ifema for 56 million;
- Port of Valencia east docks for 38 million;
- housing units for Vallehermoso for 134 million.
Infrastructure Concessions (Itinere)
Traffic on highways ope