In This Article:
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Operating Cash Flow: Increased by 65% to EUR805 million from EUR487 million.
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Operating Cash Flow to EBITDA Ratio: 85%, a 50% increase from the previous year.
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EBITDA Contribution: Over 90% from demand risk-free concessions or those with demand risk mitigation mechanisms.
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Concession Backlog: Increased by 66% to EUR6.73 billion from EUR4 billion.
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New Concessions Awarded in 2024: Four projects including Turin hospital, Anillo Vial Periferico, Northern Chile airport network, and Itata roads in Chile.
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Net Debt Increase: EUR191 million, with EUR170 million for project financing and EUR19 million for recourse net debt.
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Revenue from Concessions: Increased by 5%, with operating income from concessions up by 10%.
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Engineering and Infrastructure Revenue: Decreased by 1%, with EBITDA down by 11%.
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Water Division Revenue and EBITDA: Increased by 5%.
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EBITDA Margin: Over 29%.
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Backlog: Reached almost EUR10 billion, with 74% from concessions.
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Dividend Payout: Two scrip dividends resulting in a profit close to 5% for shareholders.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sacyr SA (FRA:VHM) reported a 65% growth in operating cash flow, reaching EUR805 million, driven by new concession projects.
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The company's EBITDA to cash conversion ratio improved significantly, reaching 85%, indicating strong financial robustness.
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Sacyr SA has a substantial concession backlog, which increased by 66% to EUR6.73 billion, supporting future growth.
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The company was awarded four new concessions in 2024, contributing to a record high backlog of EUR10 billion.
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Sacyr SA is making progress with Voreantis, aiming to go public in early 2025, which could attract new investors and enhance growth.
Negative Points
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Net debt increased by EUR191 million, primarily due to project financing, which could impact financial flexibility.
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The construction division saw a slight decline in revenue and EBITDA, reflecting a strategic shift towards concessions.
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There is uncertainty regarding the financial rebalancing of the Pedemontana project, which could affect future cash flows.
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Traffic volumes in Latin America have decreased, although the company claims this will not impact revenue due to contract structures.
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The company's share price does not reflect its true value, prompting considerations for a share buyback program.
Q & A Highlights
Q: Could you provide details on the potential share buyback program and its scope? A: The buyback program will be similar to past initiatives in terms of type and amount and is expected to occur in the short term.