OHLA Group: Return to Profits and Future Prospects
The OHLA Group, controlled by the Mexican Amodio brothers, has returned to profit in the first half of the year, making a profit of 0.6 million euros. This figure represents a notable contrast with the same period of the previous year, when it reported a loss of 60.7 million euros. This return to profit was made possible by the positive business performance and a solid increase in sales.
During the first six months of the year, gross operating profit (EBITDA) grew by 48.5 % to 50.8 million euros, according to the accounts submitted to the Spanish Securities and Exchange Commission (CNMV). Group sales also showed a significant increase of 11.8 %, reaching 1,412.4 million euros.
It is interesting to note that most of the group’s turnover, 76.1 %, came from operations abroad. Europe stood out as the company’s main market by turnover, representing 45.8 % of the group’s total sales. Spain, within the European market, was responsible for 23.9% of sales. North America and Latin America also played an important role, contributing 36.8% and 16.6% of turnover, respectively.
In terms of project backlog, the group showed solid growth of 11 % to reach EUR 7,117 million in the first half of the year, which represents a promising outlook for the future. In addition, the short-term backlog stood at EUR 6,037.8 million, which is equivalent to approximately 24 months of sales.
Breakdown of Business Areas
When analysing the breakdown of the OHLA Group’s business areas, the Construction division played an outstanding role, contributing 92.7% of the group’s total sales and achieving sales of 1,309.2 million, 8.4% higher than the previous year. In terms of EBITDA, the Construction division grew by 23.3% to 61.4 million euros. Likewise, the order book in this area stood at 5,773.7 million euros.
On the other hand, the OHLA Group’s Industrial division recorded a significant increase in revenues, reaching 90.4 million euros, double that of the previous year. This growth is mainly attributable to the contracting of new projects in the renewable energy sector. The Industrial division’s ebitda amounted to 3.3 million euros.
Both divisions, Construction and Industrial, managed to improve their margins to 4.7% and 3.7%, respectively.
Future Prospects and Objectives of the Company
Following the return to profit in the first half of the year, the OHLA Group is confident of achieving more significant earnings next year and beyond. However, it is cautious about the dividend payment, considering it still a long way off on the horizon.
The company has set ambitious targets for the current year. It is aiming for revenues of close to 3.5 billion euros, ebitda of more than 125 million euros and order intake of more than 3.6 billion euros. However, it is important to bear in mind that these figures may be affected by the divestment of the Services business, which is presented in the accounts as a discontinued operation held for sale.
The OHLA Group plans to close in the second half of the year the sale of the Services business (Ingesan) and its 25% of the concession of a hospital in Montreal (Canada). In addition, for next year, the company aims to dispose of its 50% stake in the Canalejas complex in Madrid.
Overall, these solid results consolidate the good business performance of the OHLA Group and serve as a basis for completing the transformation process. The company will focus on improving the operating margins of the projects with the aim of boosting the group’s profitability and achieving a promising future in the market.
