Esther Alcocer Koplowitz, chairwoman of FCC Group, and Carlos M. Jarque, CEO of FCC Group,
at the company’s 2017 AGM.
Madrid-
In the first half of 2017, net income amounted to €56.5 million, a 3.1 percent increase year-on-year despite the sizeable items booked in the first half of 2016, the company says. This figure was obtained by incorporating income tax, income from discontinued operations and minority interests into income before taxes from continuing operations, FCC explains.
Group revenues declined by 3.4 percent in the first half to €2,789.6 million. FCC says this decline was due entirely to the deconsolidation of Summerville, South Carolina-based Giant Cement Co. from November 2016 and to the euro’s strength against most of the currencies in which the group operates. Adjusting for both effects, FCC Group says its revenues have increased by 2.1 percent year on year in the first half of 2017.
FCC Group earnings before interest, taxes,
The company’s Environment area reported €194.6 million in the first half, a 7.3 percent decline year on year, mainly because of the depreciation of sterling. The Water area reported €110.1 million, 4.4 percent more than in the same period of 2016. Construction obtained €33.6 million, 4.4 percent more than in 2016. The Cement area’s EBITDA declined by 35.7 percent to €29.6 million, as a result mainly of
EBIT amounted to €187 million in the first half of 2016, a 54 percent increase with respect to the €121.4 million reported in the same period of 2016.
After the recent debt restructuring, the parent company’s gross debt has been cut by €1,624 million in the last 12 months, from €3,671 million at the end of June 2016 to €2,046 million at the end of June 2017, a 44 percent decrease. At the same time, the debt maturity has been extended and interest rates have been cut.
Group net debt amounted to €3,913.3 on June 30, 2017. At the end of the period, the backlog stood at €30,135.2 million, i.e., more than five times revenues in the last year, FCC says.
FCC Group says it booked positive underlying net income in recent months, accumulating practically 15 consecutive months of profit and consolidating the cycle change at FCC.
FCC points to the following highlights in Q2:
FCC Construction is a member of the consortium awarded contracts totaling €1,634 million to upgrade three sections of railway in Romania.
In April 2017, CNFR, Romania’s national railway company, adjudicated the contract to upgrade three sections of railway in the Transylvania region to a consortium of which FCC Construction is a member. The contract is worth €1,634 million and will be delivered over 36 months. That amount is not yet reflected in the backlog.
This project establishes Romania as one of FCC Group’s main markets for construction. The company says it is involved in contracts there worth a combined total of €2,106 million, and FCC Construction is now one of the leading companies involved in developing Romania’s transport infrastructure.
FCC Construction is a member of the consortium that was awarded the €3,900 million Mexico City Airport contract.
Jan. 6, 2017, Mexico City’s public airport authority awarded a contract to build the terminal building for the New International Airport for Mexico City to a consortium of companies headed by Grupo Carso, in which FCC Construction and other companies in the industry are also members, since its bid was rated the best in economic and technical terms. The €3,900 million contract is to be completed in 44 months. The project will give Mexico City one of the world’s most modern airport, with a capacity
FCC Environment landed another waste management contract in Texas, its eighth in the U.S.
In June, FCC was awarded a $32.5 million contract to collect and treat recyclables and waste from the city of Rowlett, Texas, for seven years, with the possibility of a three-year extension. The contract includes managing the city’s residential and commercial waste and recyclables and will provide about 5,000 tons of material per year for the group’s material recovery facility (MRF) in Dallas, which was inaugurated this year. Including the contracts obtained in the Texas cities of Garland and Mesquite in the first quarter, the Environment division says it added more than $300 million to its backlog in the U.S. in the first half of 2017.
FCC Environment commissions its ninth energy-from-waste plant.
In the first half of the year, the Environmental Services division started up its ninth energy-from-waste plant to serve Worcestershire and Herefordshire in the United Kingdom. The complex was designed, developed and built by Mercia Waste Management, a company 50 percent owned by FCC. The plant will be able to process up to 200,000 tons of waste per year and has 15 megawatts-installed capacity to generate electricity, which will be fed to the grid.
The Environment division now has nine plants for reusing and obtaining energy from municipal solid waste, making it a world leader in the end-to-end treatment of municipal waste.
Cementos Portland Valderrivas Group (CPV, S.A.) completes a capital increase, resulting in FCC owning 98.5 percent of this subsidiary.
After the period for the equity issue by CPV, S.A. concluded on July 23, FCC had attained 98.5 percent of this company, which is the head of the Cement division. The deal was a conversion of subordinated loans granted to the subsidiary in preceding years and was in compliance with the terms of the delisting takeover bid for CPV’s shares in February. CPV, S.A. is an FCC subsidiary and multinational leader in the production of cement, concrete,