September 25, 2023

Construcciones El Condor 1Q 2020 Earnings Fall on Covid-19 Crisis

Medellin-based highway construction giant Construcciones El Condor revealed in a May 13 filing with Colombia’s Superfinanciera oversight agency that its first quarter (1Q) 2020 net income dropped 76.7% year-on-year, to COP$7.3 billion (US$1.86 million) because of the Coronavirus-crisis shutdowns.

Revenues likewise fell by 19.7% year-on-year, to COP$186 billion (US$47.5 million) — almost entirely caused by the “interruption in the execution of works due to the Covid-19 pandemic as of March 17 of this year,” according to El Condor.

Operating costs were COP$164 billion (US$41.8 million), 88% of revenue from ordinary activities, while administrative expenses accounted for 3.43% of revenue. Operating margin was 9.21% of revenues.

Earnings before interest, taxes, depreciation and amortization (EBITDA) came-in at COP$26 billion (US$6.6 million), while EBITDA margin fell to 14.14%, compared to 21.7% in 1Q 2019.

Total assets for 1Q 2020 finished at COP$2.2 trillion (US$560 million), of which 47% are current assets and 53% are non-current assets.

Cash and cash equivalents closed at COP$56.5 billion (US$14 million), up 80% compared to the end of December 2019. “This allows the company to have sufficient liquidity to face the interruption in the execution of works caused by the Covid-19 pandemic,” according to El Condor.

Liabilities closed at COP$1.16 trillion (US$295 million). 52% of which are current and 48% are non-current. “This demonstrates the company’s strategy to continue maintaining the average duration of debt in the long term,” according to El Condor.

Construction backlog — the balance of works contracted and to-be-executed — totaled COP$931 billion (US$237 million) at the end of 1Q 2020.

“This calculation takes into account COP$186 billion (US$47 million) of the invoicing executed during the [latest] quarter, discounting dividends and income not associated with said services,” according to El Condor.

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