September 23, 2023

Conconcreto 3Q 2019 Profits Rise, but Construcciones El Condor 3Q Net Declines

Medellin-based construction giants Construcciones El Condor and Constructora Conconcreto this month reported variable financial results for third quarter (3Q) 2019.

For Conconcreto, 3Q 2019 net income rose 45% year-on-year, to COP$72.8 billion (US$21.8 million).

Conconcreto attributed the boost in profits to “good results in construction projects and also execution of its plan for disinvestments.”

Total consolidated assets for Conconcreto hit COP$1.55 trillion (US$464 million) in the latest quarter, the highest in the history of the company.

El Condor Dips

Meanwhile, Construcciones El Condor saw its 3Q 2019 net income drop sharply to COP$8 billion (US$2.4 million ) versus COP$53 billion (US$16 million) in 3Q 2018.

Revenue from ordinary activities during 3Q 2019 was COP$224 billion (US$67 million), down 17% compared to 3Q 2018.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were COP$47 billion (US$14 million), with EBITDA margin at 21%, “within the company’s historical average.”

Operating profit fell 55% year-on-year, to COP$28.7 billion (US$8.6 million), explained by a non-recurring COP$31 billion (US$9 million) gain in 3Q 2018 from liquidation of an engineering contract for the Cesar-Guajira road concession, according to the company.

As for nine-months (January through September) 2019, El Condor saw revenues dip 5.7% year-on-year, to COP$637 billion (US$191 million). Nearly all of these revenues came from payments for construction services on the “Ruta al Mar” and “Pacifico 2” highway projects in Antioquia as well as the “Pacifico 3” project (partly in Antioquia).

Cumulative operating income for the nine months of January through September was COP$74 billion (US$22 million), resulting in an after-tax net loss of COP$5 billion (US$1.5 million).

However, this situation is seen improving as 2019 progresses, as payments for past construction services are starting to increase, according to El Condor.

“Total financial indebtedness composed of banks plus financial leasing, calculated on total assets, closed at 36%,” according to the company.

“The company continues making efforts aimed at reducing financial liabilities, managing the release of [financial] resources trapped in different projects. Specifically, in this quarter, COP$5.8 billion (US$1.7 million) of [payments for] the Ruta al Mar project was received and we are assured of approximately COP$44 billion [US$13 million] release [of payments to the company] for the next quarter.”

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