Sacyr and its subsidiary Sacyr Concesiones have jointly sold their entire holding in Itínere Infraestructuras to Itinere Investco, B.V. The transaction amounts to a total of €202 million.
The funds obtained will go toward partially reducing the corporate debt. This transaction will have no significant impact on accounting.
Sacyr has completed the sale of 100% of its services unit, Valoriza Servicios Medioambientales (VSM), to Morgan Stanley Infrastructure Partners.
This divestment, announced in June, corresponds to Sacyr’s strategic objective to drastically reduce its recourse debt and focus its activity on P3 infrastructure projects.
The shares sold totaled €420 million for Sacyr and the enterprise value of VSM (including debt and equity) amounts to approximately €734 million.
Valoriza Servicios Medioambientales reached an EBITDA of €80 million in 2022.
The company is in the process of selling its Sacyr Facilities unit to Serveo, with whom it reached a sales agreement in July.The transaction assigns Sacyr Facilities an enterprise value of €87 million and an equity value of €76 million. In addition, Sacyr may receive up to €15 million depending on the success of the various claims currently in progress.
The SIS consortium, comprised of Fininc (51%) and Sacyr (49%), has been awarded the construction of S.S. 340 Regina – Tremezzina bypass, a 9.5-km stretch of highway in the Como province of northern Italy. The contract amounts to 388 million euros with a completion deadline of five years.
The project, awarded by the public firm ANAS, entails an alternative route intended to circumvent traffic in the towns of Sala Comacina and Tremezzina. The total stretch of road is 9.55 km in length, divided into three tunnel sections built mainly of rock:
The section corresponds to a conventional suburban bypass with one lane in each direction. The tunnel sections will include the construction of two parallel tunnels: one principle tunnel with a diameter of 11.6 meters, and a parallel emergency route 5.6 meters wide.
Tremezzina bypass
Sacyr Engineering and Infrastructures has won the expansion for an 8.7-km-long section of SR417 highway in Orlando (FL, U.S.) valued at 75.5 million euros
Sacyr will execute these 8.7-km-long expansion works on SR417 highway from the crossroads with Narcoossee Rd to the junction to SR528 highway.
The project includes adding a two-way lane, going from two to three two-way lanes. For that purpose, we will extend ten bridges of the road's main axis that cross over several local roads and a railway line. Furthermore, we will also build new anti-noise screens, retaining walls, ITS systems, and a new free-flow gate in one of the access ramps to the highway.
Sacyr, through its subsidiary “Valoriza Medioambiente”, has closed a green funding deal of up to 160 million euros with Santander and Deutsche Bank.
These funds will contribute to reducing Sacyr’s recourse net debt. The company has committed to significantly cutting down this debt between 2021 and 2022, and this operation underpins achieving this goal.
This operation is structured in two stages, both for a 5-year term. The first stage, already paid in full, consists of a 120 million euro loan, based on “Valoriza Medioambiente” projects currently in development. The remaining 40 million euros will be paid after the entry into operation of awarded contracts.
This funding helps to accomplish two very significant milestones from Sacyr’s 2021-2025 Strategic Plan: situate sustainability as the cornerstone of the company’s actions, and reinforce the commitment to reduce recourse net debt.
The financing price considers compliance with a series of environmental indicators, which will be audited by an independent third party. More specifically, this third party will analyze the reduction of carbon emissions; sustainable transition by incorporating electric vehicles to the company’s fleet; continue reinforcing training on safety matters and the execution of internal Safety and Health audits, based on the ISO 45001 norm.
“Valoriza Medioambiente”, a Sacyr Services company, manages more than 200 circular economy contracts in Spain and Colombia, which include mobility
Last April, Sacyr issued, with great success of demand, the first social bond issue in Latin America tied to an infrastructure project: the Puerta de Hierro-Cruz del Viso highway (Colombia). This bond issuance, valued at 209 million dollars (174 million euros), is backed by U.S. agency, International Development Finance Corporation (DFC) and has a 24-year term expiration date, that is, May 2045.
The classification of a social bond for its issuance comes after an evaluation and analysis process by an independent third party (V.E.) which confirms the bonds alignment with a series of criteria defined by the ICMA (International Capital Markets Association) “Social Bond Principles 2020”. Among other factors, they assess the positive impact that the project will bring to the nearby communities to the project’s influence area by means of the funds obtained through the issuance.
Sacyr is the most sustainable company in the infrastructure and construction sector in Spain, according to the assessment by Sustainalytics’ ESG Risk Rating.
This rating, elaborated by Morningstar subsidiary Sustainalytics, assesses the sustainability performance of more than 20,000 companies in the world. ESG criteria analyzed consider environmental, social, and corporate governance aspects of companies.
Sacyr places fifth out of the 282 infrastructure companies analyzed worldwide by this agency and first among international companies with a market capitalization within the 1,700 million dollars range.
This evaluation by Sustainalytics, an example in sustainability, backs the roadmap set by the 2021-2025 Strategic Plan. This plan positions Sacyr as a sector leader with a sustainable and innovative value proposition that supports the development of the societies where we operate and contributes to the United Nations’ 2030 Agenda.
Sustainalytics’ report considers more than 450 aspects that help assess 70 variables. Its qualifications measure the company’s exposition to industry-specific ESG risks and evaluate the company’s management.
Sustainalytics is an independent firm, a leader in research, qualification, and analysis of corporate governance and ESG that supports investors in the development and implementation of responsible investment strategies internationally.
The firm, an international reference for international investors for more than 25 years, provides information about a total of companies that represent more than 80% of total market capitalization.
Sacyr Agua and its subsidiary Aguas del Valle del Guadiaro (AVG) are implementing several initiatives for more efficient and sustainable management of the full water cycle in the Sotogrande residential area (San Roque, Cádiz).
Among the initiatives set in motion, one highlight is the pilot project consisting of implementing remotely read meters connected to the communications network.
This remotely reading system will offer relevant information such as the consumption register among the selected sectors, real-time event alarms (abnormal consumption rates or changes in flow directions, among others), and detecting issues, such as leaks and breaches.
Thanks to this system, Sacyr Agua will have the necessary information to bill and manage the service more efficiently and give the users access to their consumption levels, managing their alarms and notifications through the Virtual Office in a simple and agile way
Furthermore, Sacyr Agua has incorporated new supply network sectorizing and monitoring systems that will improve Aguas del Valle del Guadiaro's network performance and reduce the volume of pumped water by 8%.
Sacyr Agua is also making new investments to reduce energy consumption. Some highlights among them are the addition of variable-frequency drives and loop control systems in the different pumping stations.
These initiatives are part of Sacyr’s digital transformation and the group’s sustainability strategy, which has among its goals to lead transformative solutions for society, and that improve people’s lives in a sustainable way, in alignment with the United Nations’s (UN) 17 Sustainable Development Goals (SDG).
Today, Sacyr announced the launch of the fourth edition of Sacyr iChallenges, Sacyr's open innovation and co-creation program targeted at the innovation community to overcome four business challenges set by the company.
This call, with a clear international character, is directed at any innovation agents able to provide solutions to the different challenges issued by Sacyr. Likewise, participation is open to tech companies, universities, research centers, and startups, among others. Prospective applicants must submit their proposal through the website www.sacyrichallenges.com by July 12, 2021.
Sacyr iChallenges is one of the pillars of Sacyr's digital transformation and innovation strategy, based on a commitment to teamwork and co-creation with the innovating ecosystem on a global scale. With this open innovation program, Sacyr is looking for partners to promote sustainable solutions that help improve citizens' quality of life through better infrastructure and services.
In this fourth edition of the program, the company focuses on promoting sustainability, a key cornerstone of its 2021-2025Sustainable Action Plan. With this plan, Sacyr commits to fighting against climate change and dedicates a considerable investment increase to innovation for environmental protection.
"At Sacyr, we believe that innovation is an essential tool for our commitment to the environment. As a committed and innovative company, we focus on promoting more sustainable development by pursuing disruptive solutions that provide us with economic, social, and environmental balance. To that end, we need to identify the best talent in the innovation ecosystem to set in motion innovative projects that help us build a better, more sustainable world”, says Marta Gil, Director of Strategy and Innovation at Sacyr.
To the innovation community, Sacyr iChallenges represent a unique opportunity to collaborate in overcoming global challenges and work with industry experts and with Sacyr’s suppliers and its client network. Furthermore, participating in the program entails having access to funding, scalability, and notoriety.
This fourth edition of Sacyr iChallenges brings four challenges centered around sustainability. These challenges answer several needs of different business areas of the company:
Innovators interested in participating in Sacyr iChallenges 2020 can submit their proposals until July 12 at www.sacyrichallenges.com. Once the submission period is through, a committee of experts made up of managers from Sacyr's different business areas will evaluate all received proposals.
Next, the proposal that offers the most innovative, efficient, and scalable solutions, technologies, or new business models to solve the issued challenges will be selected. The best proposals for each challenge will be announced at the end of September 2021.
The selected proposals will work with mixed teams made up of external agents and Sacyr business experts to continue developing their solutions and project proposals. The goal is to continue developing their projects to materialize them in a pilot and later integrate them. Likewise, the sponsors of these challenges, managers from Sacyr's different business areas, will act as mentors to these projects to help the development of each pilot.
At Sacyr Innovation Summit, an event that will take place at Sacyr’s corporate headquarters in Madrid, the selected innovation agents will publicly present their solution initiatives to the challenges issued by the company.
Furthermore, the Sacyr Foundation will recognize, as part of the 11th edition of the Sacyr Innovation Awards, some of the initiatives submitted by the innovating community as part of the Sacyr iChallenges program.
Innovation is in Sacyr’s DNA, and for that reason the company has been working regularly with the innovation community for over ten years, identifying and developing solutions with the potential to be applied in its various business areas.
Over the previous three Sacyr iChallenges editions, the company has received more than 550 proposals from all over the world to solve the different challenges issued at each edition. Every edition has successfully promoted pilots, among which the following stand out:
For further information: Adriana Ribas - ARTV PR & Comms Studio E: adriana@artv.es - M: 650 01 29 22
Today, the SIS consortium, consisting of Fininc (51%) and Sacyr (49%), has put the fourth section of the Pedemontana-Veneta highway into service, by opening the 35-kilometer Bassano Ovest-Montebeluna toll section.
With the opening of this new section, a total of 60 km of the main axis are now operational along with 68 km of secondary roads. This new section provides continuity to the other sections already in service, and includes 12 artificial galleries with a total length of 3,400 meters: Trevignano (750 m), Ca’ Dolfin, Cassola (730m), Loria Mussolente (330 m), Torrente Viazza, Altivole (490 m), Noaje, San Pietro, Zilio, Brentella, Caravaggio y Via Feltrina.
The concession company, Superstrada Pedemontana Veneta, is responsible for designing, building, financing, operating, and maintaining the toll road for a 39-year term from the completion of construction. Taking total scheduled investment into account, the project is 94% complete.
The Pedemontana-Veneta highway is one of the most important infrastructures under construction in Italy and one of the main projects in Sacyr’s portfolio, with scheduled investment of 2.6 billion euros and revenue portfolio of 12 billion euros, approximately.
The project calls for 162 km of construction: 94 km correspond to the main highway, which connects 34 municipalities and the industrial area of Vicenza and Treviso, and 68 km correspond to secondary access. The roadway will include two tunnels, Malo (6 km) and S. Urbano (1.5 km), in addition to eight viaducts.
The highway is part of the European TEN-T and is considered a strategic asset of national importance, as it is located between the existing A4 and A27 highways, traversing the Veneto region and passing through the provinces of Vicenza and Treviso.
The initial estimate of daily traffic for the entire highway is 27,000 vehicles, 20% of which is expected to be heavy traffic.
Sacyr Engineering and Infrastructures has secured two new contracts in the State of Florida, USA, for a total of 110 million euros: the construction of a 5.9 km section of the SR417 highway in Orlando (65 million euros) and the reconfiguration of the I-75 junction with the SR-72 in Sarasota County (45 million euros).
Sacyr will expand the SR 417 toll highway for the Central Florida Expressway Authority (CFX). The construction company will add a two-way lane, increasing from the current three to four lanes. Besides the expansion works to the median strip, it will also execute the milling and full-width repaving of the principal axis from Landstar Boulevard to Boggy Creek Road.
The project involves the extension of eight bridges on the highway’s principal axis that cross over three local roads (Rhode Island Woods Boulevard, Wyndham Lakes Boulevard y Boggy Creek Rd) and Boggy Creek river.
On the other hand, the Florida Department of Transportation (FDOT) – District 1 has granted Sacyr the reconfiguration agreements for the junction of the I-75 with the SR-72 (Clark Road) in Sarasota County. A diverging diamond interchange with four two-way lanes will replace the current diamond interchange. To that end, Sacyr will extend a 1.5 km stretch of the SR-72 road by adding a two-way lane to the existing three and a bike lane on each roadway. The contract includes the construction of a lane specifically to connect ramps between both roadways.
The project also comprises the milling and paving of a 4.4 km section of the I-75 and constructing an auxiliary two-way lane from the junction with the SR-72 that leads north to the crossing under Proctor Rd. Sacyr will also execute dredging and signaling works, mark with beacons, and build anti-noise screens.
Sacyr has finished the expansion works for the Turia Highway (Autovía del Turia), which are part of the second phase of the concession agreement of highways CV-35 and CV-50, in which the concession society has invested 35 million euros.
The expansion of CV-35 has consisted of two actions: the construction of a 6.5 km third two-way lane between Pobla de Vallbona and Llíria (standing at kilometers 19.7 and 25 respectively) and the duplication of a 15.4 km stretch of the road that connects Casinos and Losa del Obispo (standing at kilometers 36.8 and 52 respectively).
These works improve the connectivity in Valencia and its metropolitan area with the inner regions of Rincón de Ademuz and Los Serranos, with a highway with great road capacity that reduces commute times and improves road safety.
In the framework of this project, other extension works have been done on several underpasses as well as dredging works to adapt them to the new platform.
The CV-35 expansion joins the other investments and improvement works that the concession society executes throughout the project’s lifecycle to increase environmental sustainability and infrastructure safety. Among other actions, we have renovated the lighting system using LED technology, as well as signaling and improvements in the highway’s permeability and road traffic noise reduction protections.
Sacyr provides the best technical solutions available, such as the layered application of novel asphalt paving mixtures that use dust from recycled rubber tires and reduce external rolling noise, in addition to the state-of-the-art machinery used to manufacture and spread this compound out, that is more efficient and less polluting than other industry counterparts, to name but a few.
All of it with the intended goal to offer safe and efficient infrastructures to users in the most environmentally sustainable way possible. Furthermore, the good condition of infrastructures translates in lower fuel consumption, lower commute times and higher road safety.
Turia Highway-CV-35
Sacyr Concesiones, the managing entity of the ‘Intercambiador de Transportes de Moncloa’ (Moncloa Transport Hub), in collaboration with the ‘Consorcio Regional de Transportes de Madrid’ and the startup Ciclogreen, launched the 'Deja tu huella' challenge, on the occasion of the European Mobility Week, celebrated in September 2020. This project was focused on promoting sustainable mobility in the city of Madrid.
This initiative, executed through an app, had a great reception, and from its launch on September 17, 2020, until March 31, 2021, 2,035 users signed up on it. Throughout this period, 38,6 tonnes of CO2 have been prevented from reaching the atmosphere. Furthermore, the users have traveled 160,647 km and saved 32,287 euros, when comparing the cost of public transportation with that of internal combustion engine (ICE) vehicles.
‘Deja tu huella’ challenge’s goal was to reduce the carbon footprint of commutes in the capital and raise awareness about climate change among the population.
‘We wanted to encourage citizens to shift their transportation habits towards sustainable mobility and improve the transport hub users’ experience by rewarding their commitment to the environment', explains María Gayo, Manager of the ‘Intercambiador de Transportes de Moncloa’.
Sacyr has carried out with great success of demand the first issuance of social bonds in Latin America linked to an infrastructure project, the Puerta de Hierro-Cruz del Viso roadway (Colombia).
This bond issuance, valued at 209 million dollars (174 million euros), is aligned with Sacyr’s 2021-2025 Strategic Plan, which anchors sustainability as the cornerstone for the company's actions. The issuance is backed by the U.S. International Development Finance Corporation (DFC) and expires in 24 years, that is May 2045.
Santander and BTG Pactual act on this issuance as bookrunners for the placement. Santander has also served as the structuring bank for the process of obtaining the social bond classification for the issuance.
Rafael Gómez del Río, CEO of Sacyr Concessions, underlined that 'the issuance of the first social bonds for an infrastructure project in Latin America poses a notable milestone in Sacyr Concessions’ 2021-2025 Strategic Plan, and by extension, Sacyr Group’s'.
Rafael Noya, Global Head of Global Debt Financing of Santander Corporate & Investment Banking states: “We are very proud of having helped Sacyr to issue the first social bond for an infrastructure project in Latin America. Santander is committed to walk with our clients in their transition towards a more sustainable business model, and investors are responding with strong interest to this type of products.”
DFC’s Acting CEO Dev Jagadesan said: “DFC is pleased to provide a guaranty in support of Sacyr’s social bond issuance for a key infrastructure project that will promote linkages between poorer regions in northern Colombia and economic centers, while encouraging local financial participation and investment. The bond issuance is an exciting step toward advancing development and economic growth through this critical roadway project”.
The classification as social bond for the issuance, is preceded by an evaluation and analysis process by an independent third party (V.E.) that confirms the bonds alignment with a series of criteria defined by the ICMA (International Capital Markets Association) under the “Social Bond Principles 2020”. Among other factors, they assess the positive impact that the project will bring to the nearby communities to the project’s influence area by means of the funds obtained through the issuance.
The investor’s interest on assets classified according to ESG criteria has skyrocketed in the past years. Only in 2020, 528,000 million dollars were issued in this marked as opposed to 209,000 million in 2019, which is a 153% increase according to data compiled by Dealogic y Bloomberg.
Sacyr Concessions, through the Montes de María Road Concessionaire, develops the 4th Generation (4G) Puerta de Hierro-Palmar de Varela y Carreto-Cruz del Viso Project in the Sucre, Bolívar and Atlántico Caribbean departments. The 198-kilometer road corridor connects the main seaports and cities of the Colombian Caribbean.
Between the Bolívar and Sucre departments, stands the Montes de María subregion, an area historically devastated by illegal armed violence and displacement.
The project's execution has had a great positive impact on the area of influence of these three departments and has created more than 2,500 direct and indirect jobs at the height of its execution stage. Close to 70% of the workers were locals. Therefore, the improvement operations on the corridor contribute to local socio-economic development and ease the transportation of merchandise and people.
Besides the project’s construction, the Concessionaire has boosted the region’s socio-economic development by supporting women. According to their culture, the women of this region are experts in weaving backpacks and hammocks, as well as agricultural production.
During the construction period, the Concessionaire has carried out nearly 500 activities with the communities that have benefitted more than 6,000 people.
Among these activities, those related to environmental conservation, training courses, and female empowerment are especially noteworthy.
Sacyr Fluor, a subsidiary of Sacyr Engineering and Infrastructures, has started the execution of new contracts for Elengy in France and for Fluxys in Belgium.
New project in France
Elengy, Engie’s subsidiary operating three LNG Regasification Terminals in France, has recently awarded Sacyr Fluor the detailed engineering, procurement management and construction management of the priority works to adapt the jetty of the Fos-Tonkin LNG Terminal for bunkering activities. This project will be executed jointly with the detailed engineering, procurement management and construction management contract already in execution to renovate the terminal and extend its activity for an additional 10 years. Both contracts result from the successful execution of the basic engineering last year and are expected to finalize by June 2022.
New project in Belgium
Furthermore, Sacyr Fluor has recently be awarded by Fluxys with a new project in Belgium to expand the regasification capacity of the Zeebrugge LNG Plant and reduce CO2 emissions, as well as increase and automate the number of LNG truck stalls.
Both contracts confirm the role of utmost importance that the Liquefied Natural Gas industry has been playing in Europe, together with the introduction of renewables sources, so as to achieve the objectives of denuclearization and decarbonization of the current energy sector.
Sacyr Fluor has been positioning itself over the past decades as one of the world leaders in design and construction of LNG regasification plants, whether small scale or large scale, and is proud to leverage its long trajectory and longstanding experience in order to support our client’s investment needs.
Sacyr Somague and Sacyr Neopul have been awarded the contract to modernize the 37.4-km railway connection between Sines and the Southern Line (Portugal), for 28.5 million euros.
With an execution period of 720 days, the contract includes modernizing the existing superstructure of the Sines Line, focusing mainly on the application of multi-purpose concrete railroad ties to facilitate the future transition from Iberian track width to European track width, in addition to the upgrade and stabilization of the platform to ensure maximum load capacity on the Sines Line and improve the future availability of the infrastructure.
“This contract is one more example of the capacity of Sacyr Somague and Sacyr Neopul within the railway sector and their unique experience in Portugal. As we have stated before, we are prepared to help modernize and develop the national railway plan,” says Eduardo Campos, CEO of the Sacyr Somague Group.
The recently awarded project joins others already underway, such as the construction of the Alandroal-Western Line subsection of the Évora Line, repair and upkeep of the 25 de Abril bridge, electrification of the Minho Line between Viana do Castelo and Valença-Frontera, maintenance of the railway and catenary installations of the Southern Maintenance Operating Center (Centro Operativo de Mantenimiento Sur) spanning nearly 880 km, and modernization of the Santa Comba Dão-Mangualde section of the Beira Alta Line, recently awarded.
The project to modernize the railway connection between Puerto de Sines and the Southern Line aims to eliminate capacity restrictions and enhance operating conditions, while improving the safety and viability of the railway system.
Sacyr has successfully completed the follow-up audit of the certification based on the SGE21 standard for ethical and socially responsible management, carried out by the independent certification body Bureau Veritas.
Sacyr has also expanded the scope of the certification to include its Engineering and Infrastructure division, a milestone in the construction sector, both nationally and internationally.
The SGE 21 certification is the first European standard to entail the implementation, audit, and certification of an ethical and socially responsible management system for organizations and is only granted to companies with management systems audited by accredited independent experts.
Sustainability
In this way, Sacyr reinforces its commitment to the continuous improvement of its sustainability-based management system. Moreover, in late 2019, the company strengthened its corporate governance bodies with the creation of the Sustainability and Corporate Governance Committee, delegated by the Board of Directors and the Sustainability Committee.
Recently, the Board of Directors approved a new 2021-2025 strategic framework, one of the main pillars of which is sustainability. At the same time, the company will develop its 2025 Sustainable Sacyr Plan.
The momentum generated by underpinning its governance at the highest level resulted in the update and approval of nearly 20 policies on ethics and sustainability in 2020 alone, shaping the commitments that the company assumes in order to address these challenges.
Thus Sacyr continues to promote its work in the field of sustainability and collaboration with all its stakeholders in the fight against climate change, to champion diversity and a work/life balance, to ensure health and safety, and to guarantee the positive social impact of its activities.
Today, Sacyr announced the governing principles of its 2021-2025 Strategic Program, which underscores its focus on the concession business and promotes sustainability as key drivers of growth over the next five years.
With this new strategic cycle, Sacyr completes the redefinition of the company’s profile, undertaken as part of the successful 2015-2020 Plan.
The multinational prioritizes the concession business model present throughout the entire infrastructure value chain: from bidding, design and finance, to construction, operation and maintenance of the asset. Two robust divisions contribute to this strategy: Construction and Services.
Through this approach, Sacyr reinforces its strength and stability with the development of long-term projects in countries where it has an established track record. These are projects with low demand risk that generate recurring revenue streams to finance the associated debt.
Company growth
According to the expectations of the 2021-2025 Strategic Plan, revenue growth will improve reaching 5.5 billion euros annually by 2025. EBITDA will climb to 1.2 billion euros, and net profit will R 200 million by the conclusion of the Plan.
During this period, the company will invest nearly 5 billion euros, of which 1 billion will be equity. Roughly 90% of which will correspond to investments in concession projects, with the remainder corresponding to services.
With regard to priority markets in this new strategic cycle, the multinational will strengthen its presence in the so-called home markets: Spain and Italy, in Europe; Colombia and Chile, in Latin America; and in US, Canada, Australia and UK. The company has also identified other markets of interest, including Peru, Mexico, Brazil and Scandinavia.
By division, Sacyr Concessions will base its growth on the development of transport infrastructures with low demand risk, hospitals, and green business: water, renewables and waste management.
The concessions subsidiary, which expects to be awarded between two and three projects each year, will promote the green business line.
In the next five years, Concessions will promote activity in English spoken markets and consolidate activity in Europe.
Sacyr Concessions estimates a dividend distribution of nearly 200 million euros per year, 1 billion over five years.
Sacyr Engineering and Infrastructure, the multinational’s construction subsidiary, will concentrate on a mixed portfolio of contracts with Concessions and other clients. The focus will be on civil works, building, and industrial projects for renewable energy and oil & gas. To that end, the company, which incorporated the activities of Sacyr Industrial in 2020, will maximize synergies between both divisions.
The division’s goal is to achieve a stable margin between 5-6% in key markets: Europe; US, Canada, Australia and UK; and Latin America.
Lastly, Sacyr Services will prioritize profitability over volume to secure a stable margin between 8-9%.
The division’s primary activities involve environmental services, facilities, dependency services, and infrastructure upkeep. Though Spain is the company’s main market, Sacyr Concessions will ensure its further growth in Latin America
Value proposition
The new Strategic Plan positions Sacyr as an industry leader with an innovative and sustainable value proposition. In 2020, the company reinforced its corporate governance bodies with regard to sustainability and launched the 2021-2025 Sacyr Sustainable Action Plan.
During this five-year period, the multinational will remain committed to combatting climate change, aiming to achieve carbon neutrality by 2050. Sacyr will increase investment in environmental protection by 50% and double investment in innovation; 70% of funds allocated to innovation will have a sustainable scope
Under the 2021-2025 Plan, Sacyr will promote internal talent and make advances toward equality, with the goal of doubling the number of women executives. The company will also support the development of societies in which it operates, thereby contributing to the fulfillment of the UN’s 2030 Agenda. In five years, Sacyr will double its investment in CSR projects.
The multinational’s management of the COVID-19 crisis has allowed it to operate normally and avoid any significant impact on the business.
In the complicated global scenario of 2020, Sacyr improved its turnover, EBITDA, and operating cash flow, underscoring the strength of the multinational’s strategy, which focuses on concession assets.
Sacyr increased its EBITDA by 6.5%, to 724 million euros, in an extremely challenging environment complicated by the global COVID-19 crisis.
Turnover grew 9.1%, to 4.548 billion euros, and profitability (margin-to-EBITDA) stood at 15.9%, slightly below 2019 levels (-0.4 pp).
This growth represents the strength of the multinational’s business model, which focuses on concession activity with low demand risk. In fact, 78% of the EBITDA generated in 2020 originated from the concession activity. Thanks to this approach, the company has managed to successfully weather the effects of the pandemic.
The group’s attributable net profit reached 36 million euros, compared to losses in 2019 due to the to the accounting impact caused by the holding in Repsol.
The multinational has anti-COVID protocols in place at all of its work centers and has helped alleviate the effects of the pandemic among vulnerable populations.
With regard to business evolution, net profit reached 181 million euros, relative to 120 million in 2019.
Today Sacyr and its subsidiary, Sacyr Concessions, launch their new websites, accessible at www.sacyr.com and www.sacyrconcesiones.com.
Sacyr has updated the content and appearance of both sites to better reflect the positioning, mission, and values of the group.
Over the course of the 2015-2020 Strategic Plan, Sacyr has dramatically transformed its business profile, becoming a company focused on the sustainable management of concession assets, with two large construction and services divisions.
Sacyr.com and Sacyrconcesiones.com spare no effort in the communication of multimedia content and the search for human stories in the various regions where the company operates. Through these examples, Sacyr aims to demonstrate the positive impact of the company’s projects on its many stakeholders: employees, society, collaborators, suppliers, shareholders and investors, etc.
