Construcciones El Condor Posts Net Loss for 1H 2021
Medellin-based highway construction giant Construcciones El Condor on August 13 reported a first half (1H) 2021 net loss of COP$7.67 billion (US$2 million) — mainly a temporary accounting impact from presumed losses arising from its partial stake in the “Vías de las Américas” highway concession project, which is in bankruptcy.
“This is a non-recurring effect recognized at the end of March 2021, only as an accounting phenomenon, and does not generate an impact on cash and therefore it does not affect the financial situation of the company,” according to El Condor.
“Excluding this accounting effect, net profit [for 1H 2021] would be COP$4.69 billion [US$1.2 million],” according to the company.
As of June 2021, income from ordinary activities totaled COP$258 billion (US$67 million), down 25.6% compared to the same period in 2020.
“This result is associated with the completion period of the projects that were executed during previous years with significant billings [and] the suspension of some projects pending environmental and property decisions, as well as the Magdalena 2 project, which is in the beginning stage,” according to El Condor.
“Additionally, the National Strike that began at the end of April also affected the pace of the works for reasons of physical security of our collaborators in some areas and shortage of the main supplies in the projects,” the company added.
“During 2021, the company is finalizing the profitable execution of fourth-generation ‘4G’ superhighway contracts, and begins the execution of new contracts, among which the EPC [engineering, procurement and construction] contract of the Magdalena 2 Consortium and public works contracts awarded by [Colombia’s highway agency] Invias in March 2021.”
Operating margin through June 2021 was 2%, while earnings before interest, taxes, depreciation and amortization (EBITDA) hit COP$22.5 billion (US$5.8 million), equivalent to an EBITDA margin of 8.72%, down from 14.9% in 2020, according to El Condor.
As of June 2021, the company’s construction backlog — defined as the balance of works contracted and to be executed — stood at COP$1.869 trillion (US$486 million).
An additional COP$1.05 trillion (US$273 million) in “projected backlog” is expected from the upcoming Santana-Mocoa-Neiva highway construction project. As a result, total backlog would rise to COP$2.9 trillion (US$755 million), according to the company.