Conconcreto Full-Year 2019 Profits Dip 11% Year-on-Year
Medellin-based highway, tunnel and buildings-construction giant Constructora Conconcreto on March 2 reported an 11% decline year-on-in full-year 2019 profits, to COP$64.8 billion (US$18 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) also dipped 13%, to COP$170 billion (US$48 million), while gross revenues fell 12%, to COP$945 billion (US$268 million), according to the company.
Conconcreto blamed the dip in profits in part on lower revenues, as well as delays in approvals for housing and commercial construction projects, plus a COP$21 billion (US$5.9 million) fine imposed by Colombia’s Superintendencia de Industria y Comercio (SIC) for alleged anti-competitive practices relating to bids on a Bogotá-Girardot highway construction project.
On the positive side, Conconcreto cited its completion of concrete lining of the giant “Tunel de la Linea” project in 2019, which soon will ease crucial freight movements between Bogota and the Pacific port of Buenaventura.
Project backlogs registered in 2020 eventually would generate revenues worth some $2.8 trillion (US$795 million), up from COP$1.5 trillion (US$426 million) registered in 2019.
Another proposed project that could deliver more income for Conconcreto is the proposed “double calzada oriente” (DCO) project east of Medellin between the Las Palmas highway and the Tablazo sector near the Jose Maria Cordoba (JMC) international airport, according to the company.
The DCO project is up for bidding with a March 25, 2020 deadline, according to the company.
