Further increase of Ferrovial’s record high liquidity levels (c.EUR8bn) and net cash position ex-infrastructure (c.EUR2bn):
Operating performance impacted by COVID-19. Mitigating measures at parent and asset level:
Operational efficiencies: Reducing opex, reviewing capex plans and restructuring.
2020 results have been impacted by COVID-19 pandemic. A global pandemic which has had an unprecedented impact and led to measures taken by governments across the world to reduce social contact and mobility.
Throughout the COVID-19 pandemic, Ferrovial has undertaken, and continues to do so, all necessary measures to safeguard the health and safety of its employees and clients as its main priority.
The Company remains focused on protecting and further strengthening its liquidity and financial position. As of December 2020, liquidity ex-infrastructure level stood at a record c.EUR8bn, including EUR1.3bn available liquidity lines. Net cash ex-infra stood at EUR1,991mn (including discontinued operations). Measures taken in 2020 include:
Ferrovial is strongly committed to supporting the Community to face the current pandemic. Ferrovial created a fund, “Ferrovial together COVID-19”, to provide medical equipment, research projects for vaccines, and providing food to vulnerable groups.
Operationally, the COVID-19 pandemic impacted Ferrovial’s activities since mid-March, especially on air and road traffic given restrictions to mobility and quarantines. The essential activity classification of both Construction and Services has contributed to their stronger performance throughout the year.
The company is adapting to the current pandemic situation through several cost reduction, restructuring and capex revision measures:
Total dividends from projects received by Ferrovial reached EUR458mn in 2020 (vs EUR729mn in 2019):
Ferrovial, via Cintra, completed the refinancing of LBJ’s Private Equity Bonds (PABs) with the issuance of new bonds (USD622mn proceeds). This PABs refinancing agreement has led to a lower cost of debt (new PABs 2.92% “yield to maturity” vs previous 7-7.5% old PABs coupon).
Toll roads: traffic performance was impacted by COVID-19 pandemic across all assets, very correlated to mobility restriction measures in each region. In addition, the impact was higher for light vehicles, with heavy vehicles showing more resilience. Revenues decreased by -19.2% LfL and EBITDA by -22.9% LfL. EBITDA stood at EUR251mn, including the change in Autema method of accounting following the Supreme Court dismissal. 407ETR traffic was highly impacted by measures adopted by the Ontario Province to curb the spread of COVID-19, decreasing by -45.3% in 2020. Managed Lanes traffic showed steady improvement since the reopening of the economy in May, although traffic was impacted by the upswings in COVID-19 cases in June and 4Q.
Airports: Passenger numbers at Heathrow declined by -72.7% in 2020. Revenues fell by -61.7% and adjusted EBITDA by -85.9% at Heathrow SP. AGS traffic decreased by -75.9%, with revenues decreasing by -67.4% and EBITDA by -126.1%.
Construction: High level of production sustained with strong improvement in margins. Revenues were up +11.4% LfL, 87% international. EBIT reached EUR134mn, vs. -EUR365mn in 2019 (which was impacted by the provision recorded in 1Q 2019 for three contracts in US). EBIT margin reached 2.3% in 2020, including COVID-19 impact (–EUR49mn). The order book stood at EUR10,129mn (-5.6% LfL), not including pre-awarded contracts of around EUR370mn.
Services (disc. operations): Net income from discontinued operations stood at -EUR3mn, including a negative result recorded from the Broadspectrum sale (–EUR64mn), mainly due to the reclassification to P&L of reserves corresponding to translation differences net of hedges according to IAS 21. Additionally, a fair value provision was recognized in Amey (- EUR34mn) and International (-EUR25). Services business in Spain has registered a positive result of +EUR121mn in 2020 (without amortization, as per IFRS 5).
EUR1,991mn net cash ex-infrastructure projects (including discontinued operations) vs EUR1,631mn on December 2019. Net debt of infrastructure projects reached EUR4,532mn (EUR4,588mn in December 2019). Net consolidated debt reached EUR2,541mn (EUR2,957mn in December 2019).
|Disposals & impairments||15||460|
|Corporate income tax||28||-47|
|NET PROFIT FROM CONTINUING OPERATIONS||-356||457|
|NET PROFIT FROM DISCONTINUED OPERATIONS||-3||-198|
|CONSOLIDATED NET INCOME||-359||259|
|NET INCOME ATTRIBUTED||-410||268|
(*) Related to the provision registered in 1Q 2019 corresponding to three contracts in the US.
(**) EBIT after impairments and disposals of fixed assets.
NCP: Net cash position. Includes discontinued operations