September 23, 2023

Construcciones El Condor 2Q 2020 Profits Soar Year-on-Year Despite Covid-19 Slowdowns

Medellin-based highway- and tunnel-construction giant Construcciones El Condor on August 12 reported a 221% year-on-year jump in second quarter (2Q) 2020 net income, to COP$15.8 billion (US$4.2 million).

The big jump in profits is explained by the COP$13 billion (US$3.4 million) net loss recorded in 2Q 2019 “due to the incorporation by the equity method of the losses originated in the ‘Vías de las Américas’ concession” last year, according to El Condor.

Other favorable financial events during 2Q 2020 included a COP$62 billion (US$16 million) arbitration award to El Condor from Colombia’s Agencia Nacional de Infraestructura (ANI) for the Cesar-Guajira Concession.

Also during the latest quarter, El Cóndor “entered into a contract for the assignment of economic rights linked to the second payment of the contract for the sale of the shares of the Tunnel Aburrá Oriente Concession for COP$39.8 billion (US$10.5 million),” according to the company. That new highway tunnel now links Medellin eastward to the Jose Maria Cordova international airport at Rionegro.

While 2Q 2020 profits jumped, income from ordinary activities in 2Q 2020 fell 18% year-on-year, to COP$337.6 billion (US$89.6 million), “explained by the paralysis in the execution of the works due to the Covid-19 pandemic, which gradually resumed depending on the particularities of the areas where the projects are being carried out,” according to the company.

Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 22% year-on-year, to COP$50 billion (US$13 million), compared to COP$64 billion (US$17 million) in 2Q 2019. EBITDA margin came-in at 14.9% in 2Q 2020 versus 15.5% in 2Q 2019.

Total assets as of June 2020 were COP$2.15 trillion (US$570 million), of which 40% are current and 60% non-current assets, according to the company.

Total liabilities closed the latest quarter at COP$1.08 trillion (US$267 million), 48% of which are current and 52% are non-current liabilities. Total assets at June 2020 were COP$1.07 trillion (US$284 million).

Construction backlog at the end of 2Q 2020 — including the balance of works contracted and to be executed — stood at COP$779.9 billion (US$207 million). “This calculation takes into account COP$151 billion (US$40 million) of the invoicing executed during the latest quarter,” according to El Condor.

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