EUR 100.00 For Business Accounts Only

OHL: 3Q'19 RESULTS AND T.P. INCREASE (ANÁLISIS BANCO SABADELL)

3Q'19 vs. 3Q'18 Results
Sales: € 758.6 M (+25.7% vs. +16.2% expected);
EBITDA: € 17.4 M (vs. € 14.6 M expected);
Net Profit: € 4.9 M (vs. € -4.6 M expected);
9M'19 vs. 9M'18 Results
Sales: € 2.12 Bn (+3.5% vs. +0.7% expected);
EBITDA: € 40.1 M (vs. € 37.3 M expected);
Net Profit: € -10.4 M (vs. € -19.9 M expected);

Better 3Q’19 results on the operating level but not reflected in cash, which came in below expectations. EBITDA on the quarter reached € 17.4 M (slightly above our estimate of €~14.6 M) thanks to the better performance in sales (+25.7% vs. +16.2% BS(e)) and slightly higher EBITDA margins (2.3% vs. 2.1% BS(e)). Net Profit also beat expectations (€ 4.9 M vs. € -4.6 M BS(e)) due to the unexpected positive impact in financial items of €~6 M (differences in FX and derivatives), which are one-offs, and without which our estimate would have been more in line (€ -3.5 M below).
However, cash consumption came in below expectations (€ 78 M on the quarter vs. € 20 M BS(e) and €~300 M as of 9M’19 vs. our estimate of € 202 M annually) due to working capital expansion (€-85 M vs. €-45 M BS(e)) and a new delay in cashing in the payment for the sale of Mayakobá.
Although OHL maintained its 2019 guidance of €