22 Aug Spain: international portfolio of large Spanish construction companies exceeds 200,000 million Euros
22/08/2016 source “Expansión”
The six large Spanish groups of infrastructure construction and services, listed on the stock, market closed the first six months of 2016 with a portfolio of outstanding works of almost 267,340 million Euros. This amount represents an increase of 16% regarding December 2015, amounting nearly 40,000 million Euros, and come largely from international projects achieved in the first half of the year by ACS, Acciona, FCC, Ferrovial, OHL and Sacyr.
Due to stagnation in the public works sector in Spain in recent years, companies have been pushed to redouble their efforts in awarding international contracts and projects to offset the fall in the domestic market.
Thus, and according to data provided by the companies, the portfolio of outside awards of the six construction companies amounted at the end of last June to 203,264 million Euros. This amount represents 76% of its total portfolio of works and services, almost 1.5% more than in December and 4% more than in June 2015.
Of the six companies, OHL and ACS have a higher volume of international contracts. The group chaired by Juan Villar-Mir has a portfolio of works in the short and long-term of 85,333 million Euros, of which 94.8% come from abroad. The company gets 80% of its profits from the foreign market, having been awarded contracts in Chile, Peru and the United States, among others.
For its part, the ACS group had until last June 84% of the portfolio of outstanding works in international markets, a percentage that rises to 94.1% in the construction sector, with North America and Asia-Pacific (mainly Australia and New Zealand) as the main areas of activity. Among the most important awards are the Harbor Bridge refurbishment of the Corpus Christi channel on the highway US181 in Texas, the Echowater project to expand the water treatment plant in Sacramento (California), in the United States, and the construction of the second phase of the Gold Coast light train between Southport and Helensvale (Queensland), Australia.
Ferrovial has exceeded 36,000 million Euros of portfolio, which represents 16% more than in December 2015, of which nearly 79% come from abroad, thanks to the contribution of the Australian company Broadspectrum (acquired last May) and awards in some of its major markets. Of them, stand out the construction of a stretch of the High Speed Train in California, in the United States, the ring road of Olstyn city in Poland and the maintenance of 370 kilometres of roads in the UK.
At the end of the first half, Sacyr had increased its total portfolio by almost 10% over the same period of last year, up to 26,381 million Euros. Of this amount, 46% refer to international works (6% more than in 2015). And 48.7% of its portfolio is concentrated in the concessions sector (almost six out of ten Euros are for contracts abroad), driven by awards such as the construction and operation for 43 years of the Rome-Latina toll motorway in Italy, budgeted at 2,800 million Euros.
The portfolio of Acciona rises, in turn, 19% in the first half of 2015, amounting 18,081 million Euros, with 38% of this amount relating to international contracts, 4% more than in June 2015. The most part corresponds to the industrial and construction sectors, which grew 28.6% by international awards. The expansion of the Metro of Dubai by 2,600 million Euros is one of these awards, which increased the volume of foreign portfolio up to 78% of the total business, compared to 68% in 2014. The group has gained ground in the Latin American market, growing 47%, which represents 29% of the total.
Of all, FCC is the only company that reduces its portfolio by 3%, a fall driven mainly by the decline of the construction sector in Spain. However, its international portfolio gains weight and reaches 45.7%, 4% more than in June 2015.