Conconcreto 2Q 2020 Profits Fall 61% Year-on-Year on Covid Slowdown
Medellin-based highway, dam and buildings construction giant Constructora Conconcreto announced August 6 that its second quarter (2Q) 2020 net income fell 61% year-on-year, to COP$22 billion (US$5.87 million), from COP$57 billion (US$15 million) in 2Q 2019.
Ordinary income likewise fell 37% year-on-year, to COP$264 billion (US$70.5 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) dropped 43%, to COP$59.7 billion (US$15.9 million).
“Despite the Covid-19 contingency the world is going through, the company maintained positive profits and margins,” according to Conconcreto.
“Compared against 2019, there is a decrease at the level of income and gross profit due to the affectation of the volume of work and the behavior of investments due to the affectations of the Covid-19. This decrease was partially offset by lower expense and lower financial cost.”
At end of 2Q 2020, the company’s construction backlog totaled COP$2 trillion (US$534 million), “which corresponds to around 2.6 years of operation,” according to Conconcreto. Of that total, 81.7% corresponds to infrastructure projects and 18.3% corresponds to buildings, including housing projects.
The company’s engineering and design division meanwhile has a backlog totaling COP$14.87 billion (US$3.97 million) “focused on projects such as Rubicon Plaza, Vivienda Contree, Contree Castropol, Transmilenio Soacha and Transmilenio Troncal 68 Section 5 and 8,” according to Conconcreto
Government Dismisses ‘Collusion’ Charges in Bogota Project
On a positive front, Colombia’s Superintendent of Industry and Commerce dismissed charges over alleged collusion in the bidding process for construction of a third lane in the Bogotá-Girardot project.
“The decision confirms the fair, transparent and competitive behavior of Conconcreto and especially its commitment to the development of infrastructure in our country,” according to the company.
On another positive front, the Superintendent of Industry and Commerce granted Conconcreto a patent on a novel construction and connection system from precast beams and columns. “This system allows to improve the yields and productivity in the construction process of buildings, guaranteeing a structural behavior,” according to the company.
Meanwhile, Conconcreto’s participation in EPM’s 2.4-gigawatt “Hidroituango” hydroelectric plant in Antioquia will continue through at least December 31, 2020, under a recently modified contract agreement.