October 2, 2023

Construcciones El Condor Posts COP$9.4 Billion Net Loss for 1Q 2022

Medellin-based construction giant Construcciones El Condor on May 13 posted a COP$9.4 billion (US$2.28 million) net loss for first quarter (1Q) 2022, an improvement over the COP$51 billion (US$12.4 million) net loss in 1Q 2021.

Gross revenues were nearly flat year-on-year, at COP$164 billion (US$40 million) in 1Q 2022 versus COP$165 billion (US$40.1 million) in 1Q 2021, according to the company.

“Revenues for this period are mainly driven by the EPC [engineering, procurement and construction] contracts with the Concesiones Autopista Rio Magdalena, Ruta al Mar y Pacífico Tres, and the construction contracts with the Ruta al Sur Concession and Invias (El Toyo),” according to El Condor.

“Operating costs as of March 2022 were COP$133 billion [US$32 million], decreasing 9% compared to the same period in 2021. Gross profit was COP$28 billion [US$6.8 million], equivalent to a gross margin of 17.36%.

“Operating profit amounted to COP$22.4 billion [US$5.4 million], equivalent to 5.45% of revenues.

“Earnings before interest, taxes, depreciation and amortization (EBITDA) reached COP$33.4 billion [US$8.1 million], with an EBITDA margin of 20.76%,” up from 12.91% margin in 1Q 2021, the company added.

“This result is due to the ascending pace of execution that all work fronts have and is in line with the EBITDA margins generated by the company in the years prior to the pandemic and the transition of the renewal of the backlog that it faced in 2021,” the company added

Meanwhile, in March 2022, Construcciones El Cóndor won contracts to continue works on the Magdalena River Highway Project 2. “The absolute maximum price of the new intervention amounts to COP$756 billion [US$184 million], of which the company will receive an advance payment of COP$70 billion [US$17 million],” according to the company.

Commenting on the Colombian economy and its infrastructure sector, El Condor added: “Market analysts project that the variation in the Gross Domestic Product for the first quarter of 2022 compared to the same period in 2021 would be 7.8%. This growth would be mainly driven by the agriculture and real estate services sectors. The construction sector is projected to have a stable behavior for this quarter.”

At the end of 1Q 2022, El Condor reported a construction backlog for contracts worth COP$3.47 trillion (US$844 million).

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