Sacyr reports attributable net profit of 92.4 million euros for the first nine months of 2023, marking a 36% rise from the prior year. The company also notes a 12% increase in gross operating income (EBITDA), reaching 980 million euros for the period.
Within these figures, the performance of the service subsidiaries has been adjusted to reflect the sale of Valoriza and the imminent completion of Sacyr Facilities transactions. Valoriza was already sold to Morgan Stanley, while the Sacyr Facilities deal is expected to close with Serveo before year-end.
Excluding the contributions from these two subsidiaries, Sacyr’s revenue stood at 3,244 million euros, down 6.1% from the previous year in markets that are largely linked to construction and infrastructure activities.
Geographically, international operations now represent 76% of total revenue. Latin America remains the dominant region, accounting for 49% of sales, followed by the United States and Canada with 6%. Europe contributes 42%, while other markets make up the remaining 3%.
In concessions, overall revenue declined by 6% but operating income rose by 18%, supported by solid asset performance, the opening of additional motorway sections, higher Spanish traffic, and transport tariffs linked to inflation.
Concession-related construction revenue fell 44%. The Central Railway project in Uruguay, expected to commence operations by year-end, along with the Pamplona-Cúcuta project in Colombia and the Rutas del Este project in Paraguay, had limited execution in the completion phase and were brought online in July 2023.
Regarding Sacyr Engineering and Infrastructure, revenue dropped 11% as the unit prioritized profitable work and volume efficiency, concentrating on projects tied to its franchises. This shift influenced the group’s overall billing despite aiming at higher returns.
Nonetheless, the activity generated total revenues of 1,986 million euros, while the Concessions segment contributed 1,356 million euros. By the end of the first nine months of 2023, 90% of EBITDA stemmed from priority assets, and the portfolio comprised 69 priority assets with an average remaining life of 24 years.
In line with valuations, the company estimates that the value of its concession assets will reach 3,254 million euros by December 2023, representing an increase of 443 million euros, or 16%, from the last valuation in October 2021.
Record profitability
The EBITDA margin achieved a record 30.2% in September, up 4.9 percentage points from the same period in 2022. This rise reflects Sacyr’s strategic shift toward higher-margin assets and a stronger business mix.
The group closed the third quarter of 2023 with net recourse debt of 661 million euros. Management expects to reduce this figure significantly in the coming months using proceeds from the Valoriza and Sacyr Facilities divestitures. Net debt rose 6.4% to 7,307 million euros.
From a financial management perspective, Sacyr completed an early exchange of options on Repsol shares, generating a cash inflow of 31 million euros and contributing to the company’s liquidity position.