At the close of 2020, the group’s net debt totaled 5.212 billion euros, compared to 4.315 billion in 2019. This increase is attributable to the company’s investment activity in new P3s. Recourse net debt remained relatively unchanged (836 million vs. 848 million in 2019), while debt associated with projects grew to 4.367 billion euros.
Sacyr continues its strategy of rotating mature assets: divesting 95% of its interest in the Guadalmedina highway, and selling nine power plants in Spain and several water assets in Portugal.
At its most recent meeting, Sacyr’s Board of Directors approved a scrip dividend disbursement of one new share for every 54 held, in addition to the February payout of one new share for every 46 held. The company’s dividend yield exceeds 4%.
The group’s cash outlook for 2020 shows available liquidity devoid of tension, given that a large portion of financing has long-term maturities. In conjunction with the group’s cash, Sacyr has 300 million euros in available credit facilities.
In July, the company signed a derivatives agreement on 10 million Sacyr treasury shares, five million with an initial strike price of EUR 1.80/share and average maturity of one year, and another five million with an initial strike price of EUR 1.80/share and average maturity of two years. This operation demonstrates the company’s unmitigated confidence in the security and its future evolution.
Evolution by business area
Concessions.- Sacyr Concessions obtained turnover of 1.381 billion euros (+23%). Most assets are free of demand risk and their remuneration is based largely on availability criteria.
Of total turnover, 675 million euros correspond to concession revenue, which climbed 8%, while construction revenue rose 42% to 706 million.
EBITDA reached 365 million euros, up 5%. Over the course of the year, the company invested 1.161 billion euros of equity in infrastructure and water concessions.
The future revenue backlog, which stands at 30.895 billion euros, does not yet include the contract for the A3 Naples-Salerno highway (Italy), the Buin Paine Hospital in Chile and the RSC-287 highway concession in Brazil.
In 2020, Sacyr Concessions was awarded its first asset in the US, the management of utility services at the University of Idaho. The company has 45 assets in operation and 13 under construction.
In the past year, Sacyr has commissioned the Pirámides-Tulancingo-Pachuca highway and the Tláhuac Hospital, both in Mexico. The company has also made considerable progress on the development of its other assets, including the Pedemontana-Veneta highway in Italy (86%), the Autopista al Mar 1 in Colombia (83%), the Américo Vespucio Oriente highway in Chile (61%), and the Puerta de Hierro-Cruz del Viso highway in Colombia (100%).
Engineering and Infrastructure.- In this division, turnover reached 2.612 billion euros, a 12% increase on 2019.
EBITDA also grew 12%, to 291 million euros, and EBITDA margin remained stable at 11.1%.
These results reflect Sacyr Engineering and Infrastructure’s incorporation of Sacyr Industrial in 2020. This simplified structure has yielded greater synergies.
This division’s backlog reached 5.622 billion euros, representing 29 months of activity, roughly 50% of which corresponds to the work of Sacyr Concessions.
In 2020, the company closed the sale of construction activity in Africa, thereby reducing construction risk in non-strategic countries in order to focus its efforts on home-market countries and concessions.
Services.- Turnover for this division declined 3%, to 992 million euros. EBITDA reached 89 million euros (-3%), while EBITDA margin remained at 8.9%, consistent with 2020 figures.
The Services backlog totals 2.668 billion euros, with the incorporation of new contracts.
