Ferrovial slashes first-half losses to €6m despite €345m hit on US contracts

Spanish transport infrastructure specialist Ferrovial has cut its losses for the first half of 2019 from €72m to €6m on a turnover of €2bn, 82% of which was obtained outside Spain. It attributed the loss to a €345m provision for "certain construction contracts in the US".

Construction revenues totalled €2.3bn, 8.6% less than in the same period of 2018, 83% of which was from international contracts, particularly in the United States and Poland. Budimex, its Polish subsidiary, contributed 33% of revenues and the US contributed 28%.

The company said its principal assets performed well, with revenue from its Texan road tolls up 45% and Heathrow Airport up 7% after a 39-million increase in passengers.

Ferrovial collected €244m in dividends from its equity investments, including £200m from Heathrow. Dividends from toll roads increased 10%.

Net cash, excluding infrastructure projects, amounted to €482m at the end of the period. Consolidated net debt amounted to €3.9bn and its construction backlog stood at €11.4bn, a new record.

Image: Ferrovial’s "managed lanes" in Texas was a star performer (Ferrovial) (CC BY-SA 3.0)

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