Conconcreto 2Q 2022 Net Income Rises 14% Year-on-Year
Medellin-based multinational construction giant Conconcreto announced August 17 that its second quarter (2Q) 2022 net income rose 14% year-on-year, to COP$47 billion (US$10.7 million).
Revenues jumped 67% year-on-year, to COP$528 billion (US$120 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 21%, to COP$79.5 billion (US$18 million).
The boost in revenues is explained “primarily by a greater execution of works, a greater contribution from investments, as well as for the positive impact of the UVR [Colombia mortgage interest rate] on the Pactia Capital Fund and the active debt position subject to [highway project] concessions,” according to the company
“Results were partially limited by an increase in expenses as a consequence of the [post-Covid] reactivation of the company, impacts of the Decree-560 [Colombia bankruptcy exit] process [which Conconcreto successfully exited on May 25, 2022], as well as higher financial cost,” the company added.
Conconcreto’s exit from bankruptcy came as a result of Colombia’s Comptroller-General finally absolving the company from any responsibility for a costly diversion-tunnel collapse at the US$5 billion “Hidroituango” hydroelectric project in Antioquia.
Meanwhile, Conconcreto and two project partners in the “Double Calzada Oriente” (DCO) highway project (linking Medellin to Rionegro) inked a deal this year with international financiers BlackRock and AC Capitales.
That financing deal “provides greater solidity to the project, as BlackRock “is one of the world’s largest asset managers and a leading provider of investment management, risk management and advisory services to institutional clients globally,” Conconcreto noted.
“For its part, AC Capitales is one of the most recognized and experienced asset investment firms in Peru,” the company added.
The DCO project carries an estimated capital cost of COP$960 billion (US$218 million), of which Conconcreto has a 25% interest
As for Conconcreto projects in the United States, the company reports a construction backlog totaling US$225.7 million, mainly for projects in the metro Miami, Florida area.
In Colombia, infrastructure backlog stands at COP$1.67 billion (US$379 million) “concentrated mainly in the Ruta 40 and DCO projects and the TransMilenio trunk lines on Avenida 68 and Soacha,” according to the company.
