Construcciones El Condor Full-Year 2019 Profits Dip 37% Year-on-Year

Medellin-based highway construction giant Construcciones El Condor on February 27 reported a 37% decline in full-year 2019 profits, to COP$73 billion (US$20.6 million) – principally due to a COP$74 billion (US$20.8 million) temporary write-down of its participation in the “Vías de las Américas” highway project.

Full-year 2019 revenues from ordinary activities totaled COP$875 billion (US$247 million), including operating revenues of COP$720 billion (US$203 million), or 82.33% of revenues from ordinary activities. Administrative expenses reached 3.75%, according to El Condor.

Operating margin at the end of 2019 was 25% of revenues, including a non-recurring event — the October 2019 sale of its partial stake in the “Concesión Túnel Aburrá Oriente,” the new highway tunnel that connects Medellin to the JMC International airport at Rionegro.

Earnings before interest, taxes, depreciation and amortization (EBITDA) hit COP$202 billion (US$57 million) with an EBITDA margin of 23% — including its sale of the stake in the Túnel Aburrá Oriente. Excluding that sale, EBITDA was COP$162 billion (US$45.8 million) equivalent to an EBITDA margin of 18.5%, according to the company.

Total assets at year-end 2019 were COP$2.24 trillion (US$633 million), of which 47% are current assets and 53% non-current assets, according to the company.

Liabilities decreased 10% compared to 2018 and closed at COP$1.16 trillion (US$328 million). Of that total, 54% of liabilities are current — down 79% year-on-year.

“Financial debt ended 2019 at COP$713 billion (US$201 million) represented by COP$539 billion (US$152 million) of bank loans and bonds, and COP$173 billion (US$49 million) of leasing,” according to the company

As for fourth quarter (4Q) 2019 results, revenues rose 3.5% year-on-year, to COP$237 billion (US$67 million), while operating costs were COP$180 billion (US$51 million), or 75.9% of revenues, “contributing greatly to the improvement of the accumulated results,” according to El Condor.

Operating profit for 4Q 2019 was COP$89 billion (US$25 million), including the sale of the Tunel del Oriente. Excluding that sale, operating profit was COP$48 billion (US$13.5 million), up 100% over 4Q 2018 operating profit.

Net income for 4Q 2019 was COP$78 billion (US$22 million), according to the company.

Consolidated net worth as of December 2019 was COP$1.08 trillion (US$305 million), while the working capital indicator — calculated by subtracting current liabilities from current assets — was COP$462 billion (US$130.6 million).

Meanwhile, the company’s construction backlog — the balance between works-contracted and works to-be-executed — was COP$1.03 trillion (US$291 million).

“This calculation takes into account COP$237 billion (US$67 million) of the turnover executed during the [latest] quarter for construction services, discounting dividends and income not associated with said services,” according to El Condor.