September 24, 2023
Business Companies

Construcciones El Condor 2Q 2023 Net Losses Soar 350% Year-on-Year

Medellin-based highway construction giant Construcciones El Condor announced August 11 that its second quarter (2Q) 2023 net losses soared 350% year-on-year, hitting a negative COP$79.6 billion (US$20 million), versus a net loss of COP$17.5 billion (US$4.4 million) in 2Q 2022.

Soaring finance costs and now-final exits from prior, unprofitable projects mainly explain the negative 2Q 2023 results, according to the company.

While 2Q 2023 revenues actually rose 23% year-on-year, to COP$433 billion (US$109 million), earnings before interest, taxes, depreciation and amortization (EBITDA) plummeted 87% year-on-year, to COP$8.7 billion (US$2.2 million), according to El Condor.

The 2Q 2023 hike in revenues “reflects the upward curve in the execution of the following works: EPC [engineering, procurement and construction] with the Rio Magdalena highway concessions, along with the El Toyo and Putumayo [highway-and-tunnel] public works projects with Invias [Colombia’s national highway agency],” according to the company.

“The negative results in the year 2023 are mainly represented by the losses contributed in the closing of the execution of the works of the following fourth generation (4G) highway projects: Farallones Consortium, Pacifico 3, Ruta al Mar and Aburra Norte consortium.

“The company expects to reverse this trend with the start of the execution of San Agustín Zona Norte and Zona Sur highway projects, and the start of massive asphalt-mix for construction in the Magdalena 2 project,” the company added.

Interest expenses increased 121% year-on-year, of which 103.6% “corresponds to the increase in interest rates, this being the main variable generating the net loss. The company expects the evolution of inflation to allow interest rates to decline over the medium term,” according to El Condor.

Total assets at the end of 2Q 2023 totaled COP$2.45 trillion (US$617 million), while liabilities closed at COP$1.54 trillion (US$388 million). Current liabilities account for 84% of the total.

Construction backlog — defined as the balance of works contracted and to be executed – stood at COP$2.57 trillion (US$647 million), the company added.

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