Amey’s Birmingham PPP troubles send Ferrovial into half-year loss

Spanish infrastructure and concessions giant Ferrovial has posted a half-year net loss of €72m because of €237m (£210m) allocated for losses on subsidiary Amey’s roads PPP contract with Birmingham City Council.

Ferrovial saw earnings before interest, taxes, depreciation and amortisation ("EBITDA") of €122m in the first half of 2018 after the €237m charge booked for Amey’s possible losses in Birmingham.

Amey has been in a long-running dispute with the council over contractual obligations.

Ferrovial’s EBITDA would otherwise have amounted to €359m, the company said.

The company’s main infrastructure assets – the 407 toll highway in Toronto, Heathrow airport and tolled lanes in Texas – were described as performing very well, providing €550m in EBITDA.

Revenues amounted to €5.935bn, supported by growth in construction and services work in Spain and toll roads, which increased by 2.4%.

Ferrovial collected €307m in dividends from the assets in which it holds a stake. Divestments amounted to €48m in the first half of 2018, compared with €167m in the same period of 2017, which included 3.9% of Budimex and 51% of Norte Litoral in Portugal.

The company’s backlog totals €30.174bn, of which the Services business accounts for €19.084bn and Construction for €11.090bn; 80% of the backlog is located outside Spain (74% in the case of Services and 90% in the case of Construction).

The backlog does not yet include over €700m in international construction contracts that are pending financial close.

Image: Ferrovial’s managed lanes in Texas (Ferrovial)

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