The net profit attributable to ACS Group in the first nine months of 2022 amounts to €480 milliondoubling the pro-forma results obtained in September 2021, once the contribution of the activity of Industrial services Sold to Vinci last December.
All activities have had good operating behaviorreaching a net profit of 421 million euros, 25.5% more. Specifically: The net profit of the Construction area has grown by 22.1%standing in the €255 million. Meanwhile, the Concessions activity, which includes Abertis (contribution from €113 million) and iridiumgot un Net Profit of 145 million euros, increasing by 36.1%. For its part, the area of Services developed by Clece obtained a net profit of 22 million eurosincreasing a 5.5%
The Corporation result includes in 2022, among others, the results for the sale of renewable energy assetsmainly the 25% of the photovoltaic plants in Spain sold to Galp, as well as the positive impact (25 million euros) of the variation in the fair value of financial instruments related to the ACS action, which in 2021 had a negative impact of 73 million euros.
The gross operating profit (EBITDA) has reached 1,263 million euros, a 8.4% more than the previous yeardriven by the contribution of Abertis which amounts to €133 million (23% more than in the previous year). The net operating profit (EBIT) stands at €839 milliona 8.2% more than the previous year, with a decrease in margin on sales of 39 basis points due to the greater weight of non-residential building activities in the US (Turner), which have a lower operating margin due to their low risk profile.
international diversification
The ACS Group’s sales in the first nine months of 2022 have reached 24,526 million eurosgrowing a 20.4% compared to the previous year, with all activities showing a solid behavior; Adjusted for the exchange rate, sales grow by 10.6%. The geographical distribution of the Group’s sales in the period is as follows: 62% in North America; Asia and Pacific 22%; Spain 9%; the rest of Europe 6% and South America 1%.
The portfolio as of September 2022 stands at 70,417 million eurosgrowing a 13.6% (+2.2% adjusted for exchange rate). Regarding the geographical distribution of the portfolio by region, North America continues to decline 54%; Asia and the Pacific 28%; Spain 8%; the rest of Europe 9% and South America 1%.
Results by branches of activity
Construction sales reached 22.94 billion euros, with a growth of 21.2% compared to the previous year thanks to the recovery of activity both in Dredges like in Hochtief, as well as the revaluation of the US dollar. Adjusted for the exchange rate, sales grew by 10.8%.
Activity in North America shows a solid recovery after the impact of the pandemic in 2021, with sales reaching 15,135 million of euros, a 25.8% more (11.6% adjusted for the exchange rate) and that represent a 66% of sales. Meanwhile, sales in Asia Pacific amount to €5.3 billionthanks to the dynamism of the Australian market with a growth of 18.5%. also Europe grows 6.2%, based mainly on the markets of Spain, Poland Y United Kingdom.
International sales add up €21,895 milliona number that represents the 95% of the total turnover of the activity Construction, with North America and Australia being the most important markets. Sales in Spain represent a 4.6% of the total.
The works portfolio as of September 2022 amounts to 67,775 million eurosa 95% internationalwith a growth of 14.1% (2.2% adjusted for exchange rate).
The gross operating profit (EBITDA) from Construction reached €1,010 millionplacing the margin on sales at a 4.4%. The Construction activity obtained a net profit of €255 million22.1% more than the previous year.
concessions
Concessions had a net profit of €145 millioncompared to the result of €107 million from the previous year, improving both Abertis What iridium.
Abertis confirms the recovery path after the lifting of sanitary restrictions with a average traffic growth of 11.9% vs. 2021, exceeding pre-pandemic levels (+4.1% vs. 2019). This recovery in average daily traffic, as well as the contribution of the new concessions acquired, place sales at €3.8 billion and EBITDA up to 2,615 million euros (+3.3%), offsetting the loss of income due to the termination of concessions in 2021 (Acesa, Invicat and Sol).
The Abertis Net Profit before the amortization of the PPA (“Price Purchase Allocation”) and the financial costs of the hybrid bonds amounts to 506 million of euros, 10 million euros less than the previous year. In the first nine months of 2022, it has had a contribution to the net profit of ACS of €113 million, 26 million more than the previous period.
For your part iridiumthe Group’s concessions development company, has obtained a net profit of €33 millionwith a greater contribution from concession projects recently put into operation.
Iridium currently has a portfolio of 48 assetsincluding concessions of highways, railways and other facilities of a social nature, with an invested capital of €567 million by ACS.
Among these assets is the SH-288 highwaylocated within the county of Harris in Houston (Texas), with four new managed toll lanes extending 17km along its median. Among these assets is the SH-288 highway, located within Harris County in Houston (Texas), with four new managed toll lanes (“managed lanes”) that extend 17 km along its median.
Last August, Iridium reached an agreement for the acquisition of the 44.65% of American society Blueridge Transportation Group (BTG), which is the concession company for the SH-288 highway. Subsequently, in October, it has agreed to purchase a 12.1% additional to one of the two partners that remained in the shareholding of the concessionaire. After these acquisitions, the participation of the ACS Group in said concession company will increase from 21.65% which he had from the beginning, 78%. Once the pertinent administrative permits are approved shortly, the closing of both operations is expected for an approximate amount of 1,140 million euros.
The Citizen Services area obtained sales of 1,358 million eurosincreasing a 11.4% compared to the same period of the previous year, maintaining operating margins compared to the previous year. Net profit stood at €22 millionsurpassing in 5.5% the benefit of 2021.
The current portfolio of services reaches 2,642 million eurosequivalent to 18 months of activitya 1.1% more than the previous period. Highlight the weight that is gaining in the United Kingdom, where in the third quarter has grown by 8.7% until the €230 millionthanks to the integration of new subsidiaries.
Financial situation
The ACS Group presents at the end of September 2022 a net debt position of €288 millioncompared to the net debt of 3,573 million euros twelve months ago. The ACS Group presents at the end of September 2022 a net debt position of €288 millioncompared to the net debt of 3,573 million euros twelve months ago.
The total remuneration to the shareholders of the Group during 2022 amounts to a total of €919 millionincluding the purchase of treasury shares and the distribution of dividends both in ACS and to minority shareholders. Hochtief Y Cimic.
Investments and divestments
During the first nine months of 2022, the ACS Group allocated to strategic investments €1,502 million corresponding to the acquisition of 22% of Cimic through a takeover bid for a total amount of €985 millionpartially financed with a capital increase of €61 million corresponding to minority interests in Hochtief, resulting in a net value of 924 million and, the acquisition of 14.46% of Atlantia’s stake in Hochtief for €578 millionAt a price of €51.43 per share.
Additionally, the Group has invested 168 million euros in equipment and machinery for business development Construction and Servicesand destined €149 million to the payment of operating leases. The turnover of concession assets and projects has led to a net disinvestment of €204 million which are broken down into: €76 million which correspond to the Construction area, mainly to investment in the development of joint projects in America; Iridium has divested €85 million in concession assets, among which the sale of the 75% share of Windsor Essex in Ontario, Canada and Clece has invested €28 million in the acquisition of citizen services businesses in the United Kingdom.
Especially relevant is the case of energy assets that have generated €353 million from the sale of renewable assets, mainly from the 25% of photovoltaic plants in Spain, whose 75% and the associated pipeline was sold to Galp in 2020; Additionally, they have been made for a value of €129 million investments in energy projects.
