September 27, 2023

Conconcreto Full-Year 2021 Profits Soar, but Construcciones El Condor Profits Fall

Medellin-based construction giant Conconcreto announced this morning (March 1) that its full-year 2021 net income rose 108.8% year-on-year, to COP$48 billion (US$12 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) also rose 35.6% year-on-year, to COP$139 billion (US$35.4 million), according to the company.

Revenues also rose 31% year-on-year, to COP$754 billion (US$192 million), the company added.

“Higher revenues came as a result of the start of construction of our main backlog contracts, as well as a greater contribution from investments, especially [real-estate venture] Pactia Industrial Conconcreto,” according to the company.

On other positive fronts, Conconcreto once again confirmed that it is moving to terminate an earlier-announced bankruptcy move triggered by a since-cancelled Controller-General finding that otherwise could have imposed hundreds of millions of dollars in fines on several companies (including Conconcreto) for the 2018 collapse of a diversion tunnel at the Hidroituango hydroelectric project.

Meanwhile, Conconcreto cited another positive developments as its construction-contract backlog in the U.S. stood at a healthy US$203 million at year-end 2021, while projects currently in execution there totaled US$290 million.

In Colombia, the company’s end-2021 backlog closed at COP$3.1 trillion (US$790 million), with COP$1.9 trillion (US$484 million) “concentrated mainly in the ‘Doble Calzada Oriente’ [east-of-Medellin highway project] and Hidroituango projects,” according to the company.

Construcciones El Condor Results

Meanwhile, Medellin-based highway construction giant Construcciones El Condor announced February 28 that its full-year 2021 net income fell 72% year-on-year, to COP$8.8 billion (US$2.2 million).

Revenues also fell 32% year-on-year, to COP $566 billion (US$144 million).

The drop in profits and revenues were the result of “completion of projects that were executed during previous years with important billings; with the suspension of some projects that were awaiting environmental and property decisions (Ruta al Mar and Pacífico 3); and the postponement of Invias public-works contracts until the beginning of 2022, including the Toyo tunnel and Putumayo highway,” according to El Condor.

“Additionally, the effects of the La Niña [exceptional rainy weather] phenomenon and the National Strike that began at the end of April also affected the pace of the works,” according to the company.

For full year 2021, EBITDA margin dipped to 12.5%, from 16.6% in 2020.

Meanwhile, El Condor’s year-end 2021 total assets came-in at COP$2.34 trillion (US$596 million), “of which our investment portfolio at book value is COP$1.05 trillion [US$267 million],” according to the company.

“Liabilities closed at COP$1.28 trillion [US$326 million], with 55% of liabilities current and 45% non-current. With the structured loan granted by Bancolombia and Davivienda with a 24-month term, the structure of current liabilities is maintained at levels close to 50%.

“The company’s indebtedness increased by 11% compared to the end of December 2020, due to the working capital needs of the new projects,” El Condor added.

As of December 2021, El Condor’s construction backlog — the balance of works contracted and still to be executed — stood at COP$2.67 trillion (US$681 million), the company added.

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