Quarterly Report • May 16, 2009
Quarterly Report
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MANAGEMENT REPORT & CONSOLIDATED FINANCIAL INFORMATION AS OF THE 1ST QUARTER OF 2009
CAPITAL SOCIAL: 204 635 695 EUROS 4300-454 PORTO WWW.MOTA-ENGIL.PT MATRICULADA NA CONSERVATÓRIA DO REGISTO COMERCIAL DO PORTO COM O Nº 502 399 694 RUA MÁRIO DIONÍSIO, Nº 2 TEL: 351 21 4158200 NIPC: 502 399 694 2796-957 LINDA-A-VELHA FAX: 351 21 4158688
MOTA-ENGIL, SGPS, S.A. EDIFÍCIO MOTA TEL: 351 22 5190300 SOCIEDADE ABERTA RUA DO REGO LAMEIRO, Nº 38 FAX: 351 22 5190303
| thousand euros | |||||
|---|---|---|---|---|---|
| 1Q09 | % T | Δ | 1Q08 | % T | |
| Turnover EBITDA EBIT |
429,996 65,105 33,502 |
15.1% 7.8% |
12.1% 9.6% (2.1%) |
383,632 59,393 34,214 |
15.5% 8.9% |
| Net financial income Net income from equity method |
(29,929) 2,964 |
(7.0%) 0.7% |
(3.2%) 159.8% |
(28,990) 1,141 |
(7.6%) 0.3% |
| Income before taxes | 6,537 | 1.5% | 2.7% | 6,365 | 1.7% |
| Net income Attributable to: |
4,271 | 1.0% | (5.8%) | 4,535 | 1.2% |
| minority interests Group |
1,857 2,414 |
0.4% 0.6% |
(21.0%) 10.4% |
2,349 2,186 |
0.6% 0.6% |
Non audited figures.
| Highlights | 2 |
|---|---|
| Major Events | 4 |
| Management Report | 5 |
| Financial Analysis | 6 |
| Business Areas' Analysis | 10 |
| Stock Price Behaviour and Dividends | 14 |
| Interim Consolidated Financial Information | 15 |
| Separate Consolidated Income Statement | 16 |
| Statement of Consolidated Comprehensive Income | 17 |
| Consolidated Statement of Financial Position | 18 |
| Statement of changes in equity | 19 |
MANAGEMENT REPORT & CONSOLIDATED FINANCIAL
INFORMATION AS OF THE 1ST QUARTER OF 2009
MAY 15TH, 2009
Management Report
MOTA-ENGIL reached net income of 4.3 million €, of which 2.4 million € attributable to the GROUP in the first quarter of 2009, slightly higher than the figure announced for the first quarter of the previous year (2008: 2.2 million €).
Revenues for the first quarter of 2009 increased 12% to 430 million € (2008: 384 million €). This positive evolution was achieved on the back of the good performance of Construction (12%) and Environment & Services (21%) divisions. The Transport Concessions division reported slightly lower revenues year on year (-2%). It is worth mentioning that revenues from the Environment & Services division were positively affected by the change in the consolidation method of INDAQUA (previously proportionally consolidated and, following the acquisition of an additional 7.2% stake in INDAQUA - INDÚSTRIA E GESTÃO DE ÁGUAS, S.A. by the end of 2008 that allowed for the control of the aforementioned company, fully consolidated). Were not for this change in the consolidation method, revenues from the Environment & Services division would have grown 12%.
The EBITDA margin improvement reported for the Construction division in the first quarter of 2009 (6% in 2008, as compared to 9% in 2009), together with the increase in revenues were the main factors behind the good operating performance at the GROUP level (65 million € in 2009, as compared to 59 million € in 2008), despite the fact that the performance of the remaining divisions were negatively affected by the macroeconomic environment.
Consolidated net capital expenditure was of 171 million € in the first three months of 2009 (2008: 88 million €) of which it is worth highlighting the acquisition of the stake in LUSOPONTE (85 million €).
As for the remaining capital expenditure, 28% was allocated to the Construction division, or 24 million € (of which, 10.9 million € was replacement capex, the remaining being growth capex).
As for the Transport Concessions division, the GROUP has invested in the concessions of LusoLisboa, in Portugal and Perote-Xalapa, in Mexico. In the case of the former concession, construction works, operation and maintenance are progressing while in the case of the latter concession, construction works are also progressing with the local subsidiary taking part of the process.
The capital expenditure of the Environment & Services division was mainly allocated to the execution of the investment plan of Takargo (5 million €) and to the water sewage & distribution concessions, mainly in the concessions of Matosinhos and Vila do Conde (12 million €).
Total net debt reached 2,086 million €, 980 million € of which being non-recourse. Out of the non-recourse debt, 909 million € came from the Transport Concessions division and 71 million € from the Environment & Services division. The increase in recourse debt as compared to the same period of last year (2008: total debt of 886 million €), came as a result of the higher capital expenditure as well as the negative evolution of working capital that was affected by the very adverse business environment.
In the first three months of 2009, net financial expenses were of 30 million € (2008: 29 million €), up 3% year on year. Despite the higher debt stock, interest rates decreased therefore preventing from a significant increase in financial expenses.
As a result of this operating and financial performances, net attributable income to the GROUP reached 2.4 million € in the first quarter of 2009, as compared to 2.2 million € in the same period of the previous year.
The backlog reached 2.7 billion € as of the end of March of 2009, 30 million € above the figure reported as of the end of December of 2008.
The increase reported in Construction both in Portugal and Angola offset the slight reduction in other markets and in the Environment & Services division.
The backlog of the Environment & Services division only includes contracts in waste management and multi-services, therefore excluding expected revenues from concession contracts in water sewage & distribution (now with a higher weight in consolidated revenues), ports or roads.
The backlog evolution should remain positive therefore sustaining future revenues growth. The internationalization strategy pursued, the State sponsored investment aiming at fuelling economic growth in several countries where the Group has activities together with further diversification and cross selling in some of these countries will be the main factors that should allow the backlog to sustain both the growth prospects announced for 2009 and the medium term forecasts also previously disclosed.
MANAGEMENT REPORT & CONSOLIDATED FINANCIAL
INFORMATION AS OF THE 1ST QUARTER OF 2009
MAY 15TH, 2009
The GROUP's revenues had the following breakdown: Construction 330.1 million € (2008: 295.2 million €), Environment & Services 75.0 million € (2008: 62.1 million €) and Transport Concessions 25.9 million € (2008: 26.4 million €).
Because the Construction division has been less affected by the economic and financial environment, the revenues mix has changed towards a lower share of the remaining divisions in total revenues. However, when compared to the same quarter of 2008, the contribution of the Construction division (77%) remained stable; Environment & Services (17%) had a slightly higher contribution as opposed to Transport Concessions whose contribution was lower (6%).
As far as the EBITDA mix is concerned, the performance of the Construction division led to a strong increase in its relative weight, now representing 45% of EBITDA (2008: 27%). The Environment & Services division contributed with 21% to EBITDA (2008: 31%) and the Transport Concessions division with 34%, significantly less than in 2008 (41%).
In the following chapters, a detailed analysis of the activity and results for each business area for the first three months of 2009 is provided.
Revenues from the Construction division reached 330 million € (2008: 295 million €) in the first quarter of the current year, up 12% year on year.
This was mainly due to the good performance of Portugal (up 18%) and Angola (an increase of 73%) as compared to the same period of the previous year. The GROUP recorded another strong quarter in its activity in Angola.
On the other hand, in Central Europe, the adverse economic situation, coupled with the currency crisis felt at the end of 2008 persisted through the first quarter of this year and led revenues in the area to fall 41% to 42.4 million € (2008: 72.3 million €).
In terms of the operating profitability, the EBITDA margin evolved positively when compared to 2008.
Revenues from the Environment & Services division rose approximately 21% to 75 million € in the first quarter of 2009 (2008: 62 million €).
The water sewage & distribution segment contributed positively for the aforementioned performance (11.2 million € in 2009 as compared 1.8 million € in 2008), mainly because of the start up of the Matosinhos concession and the change in the consolidation method of Indaqua, from proportional to full consolidation following the acquisition of a stake in the company that allowed for the control of the already mentioned company.
The logistics segment, though still the prominent segment within the division, reported a contraction in its activity (revenues of 31.6 million € in 2009, as compared to 33.7 million € in 2008). This behaviour is in line with the expectations for the full year in terms of the ports activity, due to the current environment that lead inevitably to a contraction of international trade flows, private consumption and corporate activity.
In waste management, revenues increased 7% as compared to the first quarter of 2008 (22.9 million € in 2009 and 21.4 million € in 2008) namely because of the inclusion of TRIU and organic growth.
15% 22% Concessão Norte Costa de Prata Beiras Litoral e Alta Grande Porto
Revenues from Transport Concessions were of 26 million € in the first three months of 2009 while EBITDA reached approximately 22 million €, corresponding to an 87% EBITDA margin.
In this period, with the exception of BEIRAS LITORAL E ALTA and CONCESSÃO NORTE, all concessions had a positive traffic and revenues evolution as compared to the same period of last year.
BEIRAS LITORAL E ALTA concession, though still the largest in terms of revenues with 29 million € in the first quarter of the year, came short of last year's revenues (2008: 35 million €).
Traffic in COSTA DE PRATA concession rose 5% year on year with a similar behaviour in terms of revenues, up 24% (15 million € in 2009, as compared to 12 million € in the previous year). The opening to traffic of the last stretch of the A17 motorway during the second quarter of 2008 allowed for a direct connection, in the coastal area, between Lisbon and Aveiro as an alternative to the A1 motorway, therefore inducing traffic to COSTA DE PRATA concession. The completion of the network of the latter concession (the Estarreja-Angeja stretch is still pending), should further fuel its traffic growth.
As far as CONCESSÃO DO NORTE is concerned, revenues remained roughly flat in the first quarter of 2009 as compared to 2008 despite the 2% drop in traffic (11 million € on both years).
Revenues of GRANDE PORTO, concession increased 3% to 16 million €, year on year, traffic having posted a 6% increase.
MANAGEMENT REPORT & CONSOLIDATED FINANCIAL
INFORMATION AS OF THE 1ST QUARTER OF 2009
MAY 15TH, 2009
The negative evolution of stock markets during the first quarter of 2009 did not affect significantly MOTA-ENGIL's stock price on the contrary, it bet the main stock indices. The turnover in the first quarter of 2009 slightly exceeded that of the fourth quarter of the previous year but was lower than that of the first quarter of 2008.
The General Shareholders Meeting as of April 15th, 2009 decided, according to the Board of Directors proposal, to pay 11 € cents per share as dividend, payable from May 15th.
Porto, May 15th, 2009
Jorge Paulo Sacadura Almeida de Coelho Chief Executive Officer
Eduardo Jorge de Almeida Rocha Chief Financial Officer
Interim Consolidated Financial Information
| 2009 | 2008 | |
|---|---|---|
| Euro | Euro | |
| (non audited) | (non audited) | |
| Sales and services rendered | 429,996,270 | 383,631,798 |
| Other income | 31,162,678 | 23,744,595 |
| Cost of merchandise and of subcontracts | (237,314,259) | (210,103,055) |
| Gross profit | 223,844,689 | 197,273,338 |
| Third-party supplies & services | (73,139,152) | (67,380,333) |
| Staff costs | (77,525,711) | (70,125,869) |
| Other operating income /(costs) | (8,075,183) | (374,199) |
| 65,104,643 | 59,392,937 | |
| Depreciation | (30,149,633) | (23,797,074) |
| Provisions and impairment losses | (1,453,384) | (1,382,288) |
| Operating profit | 33,501,626 | 34,213,575 |
| Financial profit/(loss) | (29,929,121) | (28,990,191) |
| Gains / (losses) on associate companies | 2,964,247 | 1,141,450 |
| Income tax | (2,265,765) | (1,829,507) |
| Consolidated net profit for the period | 4,270,987 | 4,535,327 |
| Attributable: | ||
| to minority interests | 1,856,635 | 2,349,027 |
| to the Group | 2,414,352 | 2,186,300 |
| Earnings per share: | 0.0111 | 0.0112 |
| 2009 | 2008 | ||
|---|---|---|---|
| Euro | Euro | ||
| (non audited) | (non audited) | ||
| Consolidated net profit for the period | 4,270,987 | 4,535,327 | |
| Other comprehensive income | |||
| Exchange differences stemming from transposition of financial statements |
|||
| expressed in foreign currencies | 2,144,126 | (4,941,211) | |
| Variation, net of tax, of the fair value of financial derivatives |
(3,499,207) | (1,302,959) | |
| Other corrections to the own funds of associates |
(236,527) | (4,293,769) | |
| Total comprehensive income for the period | 2,679,379 | (6,002,612) | |
| Attributable: | |||
| to minority interests | 1,908,808 | 2,600,695 | |
| to the Group | 770,571 | (8,603,307) |
| (non audited) (audited) Assets Non current Goodwill 197,523,701 160,075,797 Intangible fixed assets 101,993,846 46,100,726 Concessions fixed assets 1,245,568,838 1,163,128,870 Tangible fixed assets 495,267,551 476,272,287 Financial investments under the equity method 234,268,473 173,854,668 Available for sale financial assets 23,866,923 75,148,566 Investment properties 40,533,349 41,344,627 Customers & other debtors 77,218,038 83,800,030 Deferred tax assets 34,841,928 33,375,415 2,451,082,647 2,253,100,986 Non-current Assets Held for Sale 29,043,672 29,043,672 Current Stocks 231,101,467 232,024,181 Customers 582,795,765 533,445,853 Other debtors 232,107,628 220,605,155 Other current assets 320,082,901 261,961,864 Cash & cash equivalents non recourse 139,467,303 105,814,414 Cash & cash equivalents with recourse 60,772,708 73,655,129 1,566,327,772 1,427,506,596 Total Assets 4,046,454,091 3,709,651,254 Liabilities Non current Non recourse debt 984,671,252 922,411,285 Recourse debt 802,123,195 667,688,793 Sundry Creditors 256,169,610 229,011,122 Provisions 30,505,741 30,557,261 Other non-current liabilities 57,393,422 57,978,831 Deferred tax liabilities 41,348,482 26,731,742 2,172,211,702 1,934,379,034 Current Non recourse debt 134,891,513 132,773,431 Recourse debt 364,901,962 308,572,226 Suppliers 381,419,665 428,735,817 Derivatives 10,100,028 15,291,042 Sundry Creditors 317,884,158 305,136,084 Other current liabilities 323,329,476 243,446,537 1,532,526,802 1,433,955,137 Total liabilities 3,704,738,504 3,368,334,171 Equity Share capital 204,635,695 204,635,695 Reserves 81,882,729 53,820,780 Consolidated net profit for the period 2,414,352 30,565,438 Equity attributable to the Group 288,932,776 289,021,913 Minority interests 52,782,811 52,295,170 Total equity 341,715,587 341,317,083 4,046,454,091 3,709,651,254 |
2009 | 2008 | ||
|---|---|---|---|---|
| Euro | Euro | |||
19
| Fair value reserves | translation | reserves and | attributable to | attributable to | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Equity capital | Own Shares | premiums | Goodwill | sale | derivatives | reserve | results | shareholders | minority | |
| Balance as at January 1, 2008 | 204,635,695 | (16, 679, 167) | 87,256,034 | (128,661,862) | 57,165,578 | 2,216,804 | (22, 818, 336) | 157,431,318 | 340,546,064 | 46,380,143 |
| Impact of the investigation in Hungary | (25, 198, 695) | (25, 198, 695) | ||||||||
| Balance as at January 1, 2008 (as restated) | 204,635,695 | (16, 679, 167) | 87,256,034 | (128,661,862) | 57,165,578 | 2,216,804 | (22,818,336) | 132,232,623 | 315,347,369 | 46,380,143 |
| Currency translation differences stemming from transposition of financial statements expressed in foreign currencies |
(4,890,020) | (4,890,020) | (51, 191) | |||||||
| Dividend distribution | (22, 509, 926) | (22, 509, 926) | ||||||||
| Other distributions of results | (2, 150, 000) | (700, 000) | (2,850,000) | |||||||
| Other corrections to the own funds of associates |
(4,596,628) | (4, 596, 628) | 302,859 | |||||||
| Variation, net of tax, of the fair value of financial derivatives |
(1,302,959) | (1, 302, 959) | ||||||||
| Acquisition of own shares | (2,892,653) | (2,892,653) | ||||||||
| Alterations to the consolidation perimeter | 60,000 | |||||||||
| Net profit for the year | 2,186,300 | 2,186,300 | 2,349,027 | |||||||
| Balance as at March 31, 2008 | 204,635,695 | (19, 571, 820) | 87,256,034 | (135, 408, 490) | 57,165,578 | 913,845 | (27, 708, 356) | 111,208,997 | 278,491,483 | 49,040,838 |
| Balance as at January 1, 2009 | 204,635,695 | (21, 699, 082) | 87,256,034 | (135, 873, 453) | 45,586,328 | (6,600,821) | (23, 169, 923) | 138,887,135 | 289,021,913 | 52,295,170 |
| Currency translation differences stemming from transposition of financial statements expressed in foreign currencies |
2,091,953 | 2,091,953 | 52,173 | |||||||
| Dividend distribution | (2, 458, 650) | |||||||||
| Variation, net of tax, of the fair value of financial derivatives |
(3,499,207) | (3,499,207) | ||||||||
| Acquisition of own shares | (859, 709) | (859, 709) | ||||||||
| Alterations to the consolidation perimeter | 1,037,483 | |||||||||
| Other distributions of results | (236, 527) | (236, 527) | ||||||||
| Net profit for the year | 2,414,352 | 2,414,352 | 1,856,635 | |||||||
| Balance as at March 31, 2008 | 204,635,695 | (22, 558, 791) | 87,256,034 | (136, 109, 980) | 45,586,328 | (10, 100, 028) | (21, 077, 970) | 141,301,487 | 288,932,776 | 52,782,811 |
MOTA-ENGIL, SGPS, S.A. EDIFÍCIO MOTA TEL: 351 22 5190300
CAPITAL SOCIAL: 204 635 695 EUROS 4300-454 PORTO WWW.MOTA-ENGIL.PT MATRICULADA NA CONSERVATÓRIA DO REGISTO COMERCIAL DO PORTO COM O Nº 502 399 694 RUA MÁRIO DIONÍSIO, Nº 2 TEL: 351 21 4158200 NIPC: 502 399 694 2796-957 LINDA-A-VELHA FAX: 351 21 4158688
SOCIEDADE ABERTA RUA DO REGO LAMEIRO, Nº 38 FAX: 351 22 5190303
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