Sacyr posts 6% profit rise as it focuses on motorway concessions
Adds comments from Sacyr CEO
MADRID, April 29 (Reuters) -Spanish motorway builder and operator Sacyr SCYR.MC lifted first-quarter net profit by 6% to 25 million euros ($27 million), helped by record profitability as revenue slipped.
Analysts had expected a 22% rise in profit from a year ago, LSEG data showed.
Revenue fell 5.3% to 994 million euros.
Still, Sacyr beat expectations for core earnings before interest, taxes, depreciation and amortisation (EBITDA) with a 15% rise to 339 million euros, some 90% of it coming from its concessions businesses.
Analysts had predicted a 12% rise in EBITDA.
"Revenues fell slightly due to our tendency to reduce risk in construction projects, but profitability rose strongly," Sacyr CEO Manuel Manrique told a call with analysts. "We expect to recover (revenues) in the second half of the year," he added.
Its EBITDA margin, a key measure of profitability, hit a record 34.1%, up by 590 basis points from a year ago.
Investors reacted positively, with Sacyr shares up 0.6% in afternoon trading, outperforming the broader market in Madrid, down by 0.7%.
The CEO said the commitment for the full year was a dividend yield of 5%.
The company, which builds and operates motorways, has transformed into a concessions business after divesting its cleaning services.
Sacyr followed larger Spanish construction companies in selling the cleaning businesses to focus on the construction and operation of infrastructure, which analysts say carries lower risk and is more profitable.
The company highlighted a new motorway contract won in Italy during the quarter and another road project in Peru.
The company has also created a new division, Sacyr Water, which aims to become one of the largest producers of desalinated water, with strong growth potential in Spain due to the need to invest in drought mitigation.
Sacyr will present its new business plan through 2027 on May 9.
($1=0.9334 euros)
Reporting by Corina Pons; editing by Pietro Lombardi, Clarence Fernandez, Jason Neely and David Evans
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
