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SACYR: FY2019 RESULTS (ANÁLISIS BANCO SABADELL)

4Q'19 vs. 4Q'18 Results:
Sales: € 1.137 Bn (+3.5% vs. -0.4% BS(e) and +0.1% consensus);
EBITDA: € 188.0 M (+11.1% vs. -2.5% BS(e) and -1.9% consensus);
Net Profit: € -419.73 M (€ 41.22 M in FY2018);
FY2019 vs. FY2018:
Sales: € 4.169 Bn (+9.8% vs. +8.7% BS(e) and +8.9% consensus);
EBITDA: € 680.0 M (+25.2% vs. +21.0% BS(e) and +21.2% consensus);
Net Profit: € -297.73 M (€ 150.0 M in FY2018);
The results are good, exceeding our forecasts and those of the consensus in the operating business, although they show strong losses in Net Profit, as expected, due to the impact from the company’s stake in Repsol (€ -272 M due to the fact that in turn Repsol recorded negative numbers in 2019 as a result of asset impairments and other provisions).
EBITDA growth in 4Q’19 on a standalone basis was +11% (-2% BS(e)) due to the solid performance in general and the inclusion in the scope of consolidation of new assets in the Concessions division (46% of EBITDA, growing +22%). Engineering & Infrastructures (33% of EBITDA) grew +50%, while Valoriza (17% of EBITDA) grew +15%. As expected, the Industrial division (4% of EBITDA) is the only one with a lower contribution to EBITDA in 2019 (-36%, due to the finalisation of large projects in the Oil&Gas business). These trends have been seen in all the quarters of 2019, but as the comparison was more challenging in Q4, we expected a lower growth rate.
The consolidated EBITDA margin improved +200bps to 16.3%. We highlight the +240bps rise in the Engineering & Infrastructures division, where the contribution from the Superestrada Pedemontana Veneto was noticeable (for legal/accounting reasons the asset is included in this division until the construction phase is completed). BUY. T.P. € 3.55/sh. (upside +51.71%).