EUR 100.00 For Business Accounts Only

SACYR: 1H’20 RESULTS (ANÁLISIS BANCO SABADELL)

2Q'20 vs. 2Q'19 Results
Sales: € 1.094 Bn (+5.5% vs. -3.1% expected);
EBITDA: € 182.34 M (+6.0% vs. -1.0% expected);
Net Profit: € 37.83 M (-9.9% vs. -26.6% expected);
1H'20 vs 1H'19 Results
Sales: € 2.079 Bn (+3.5% vs. -0.9% expected);
EBITDA: € 348.0 M (+10.5% vs. +6.7% expected);
Net Profit: € 70.0 M (-12.5% vs. -21.3% expected);
Better- than-expected results in revenues and margins. In the 1H’20 we have seen a slight slowdown in revenues and EBITDA from very high levels, in any case, above 2019 levels. By divisions, Concessions (47% EBITDA) grew by +5% in EBITDA, Engineering & Infras (38% EBITA, now including the EPC business) grew +21% while Valoriza (15% EBITDA) decreased by -8%. 77% of EBITDA stem from concession assets (those included in the concessions and Services & Infras divisions), mostly with limited risk (without risk of demand).
The EBITDA margin rose by +100bps with a significant improvement in the Engineering & Infras division (+1.7pp thanks to the accounting of the concessional arm of the Pedemontana-Veneto toll road, with higher margins). Net Profit was marked by the stake in Repsol (without impact on cash) and by a € 30 M provision. Both effects had been already accounted in the 1Q. BUY. Target Price: € 2.61/sh (upside 37.01%)