A FCC reduz as suas perdas em 91% no primeiro semestre atingindo os 52,7 milhões


FCC reduces its losses by 91% during the first semester, reaching €52.7 million

  • EBITDA (€381 million) increased by 32.2% owing to adjustments in progress in Spain and steady increases in profitability abroad
  • FCC Construcción has won railway contracts worth €3.5 billion
  • The environment and water sectors hold firm with stable results

Madrid, 1 August 2014. FCC reduced its losses over the first six months of the year, reaching €52.7 million, which is 91.3% less than the same period in 2013. The effect of adjustments implemented last year and greater profitability of the group’s international business are now beginning to bear fruit, with an increase in gross operating profit (EBITDA) to reach €381 million, i.e., 32.2% higher than in June 2013.

The most important events over the six-month period have included the award in March to a consortium including FCC Construcción of the contract for the design and build of Lima metro line 2 and a branch of line 4, worth €3.3 billion. The completion time for the construction phase has been scheduled as five years, after which a 30-year operations period will begin. In addition, in the Middle East, FCC Construcción is leading a consortium that has won the contract to build Doha metro’s Red Line in (Qatar), with a total value of €250 million.

A small selection of these awards, which are still in the order portfolio, includes two other international contracts in selective markets, including Costa Rica, worth €70 million, to build a hydro plant and sewer, raising the portfolio of Works contracts to €6.306 billion at the end of June, thereby assuring more than two and a half years of business. The group’s portfolio at the end of the six-month period stood at €33.43 billion, 0.3% more than in 2013.

Also in the first half of the year further progress was made to normalise the periods of payment by public entities. Specifically, during the first quarter the Public Services Group received €71 million, corresponding to payment of the second phase of the Second Fund for Payments to Providers, approved in July 2013.

This plan, besides introducing new rules for trading debts and electronic billing for the public sector, aims to achieve a 30-day reduction in the average payment period for providers. Despite this, and after the progress noted on 30 June, FCC held a balance of more than €400 million in outstanding unpaid trading debts with various public entities in Spain.


During the first half of the year earnings reached €2.966 billion in 2014, which is 3,7% less than in June last year. This variation is almost entirely due to the temporary contraction of 14.5% of earnings in the construction sector, where international business will have to make a higher contribution in the short term, as a result of new contracts (such as the Lima and Riyadh metro systems), during the second half of the year. This is expected to gradually offset to dip in the group’s business noted over the period in Spain (-5,3%), which in turn can be explained by the adjustment in public investment in infrastructure in the construction and cement sectors.

Additionally, the positive performance of the environment and water sectors largely attenuates the still restrictive situation of the construction sector in Spain, which is lagging behind the more advanced cycle recorded in other business areas. During the second half of the year the conversion into income of the considerable contraction recorded abroad, together with steady stabilisation of the construction cycle in Spain, is expected to yield positive variation percentages in consolidated income for the year as a whole.

Operating margins grew to 12.9%, compared with 9.4% in 2013. This progress can be attributed both to the adjustments to the production structure in Spain in construction-cycle business and to a more moderate increase in the water sector, as well as stable performance in the environment sector.

Another relevant event in the first half of the year was the closure of all the group’s corporate refinancing. Thus, by the end of June a marked increase in the maturity of the financial debt was recorded, with only 21.8%, classified as short term. This debt is concentrated in the cement sector, together with the financing of various projects with no major impact on the bulk of the business. Apart from this, also classified as short term since the end of June is €450 million for the convertible bond issued by FCC S.A., the renewal of which, with a new due date of October 2020 (six years) was agreed last May. This means that as soon as it is recorded it will be reclassified as long-term debt.

Despite everything, the net financial debt at the end of June stood at €6.413 billion, an increase of 7.5% compared with last December’s figure, as its evolution does not yet reflect the impact of asset sales in progress or the elimination of the seasonal expansion recorded in working capital during the first six months, both of which are forecast for the second half of the year.

KEY FIGURES (in millions of euros)


Junho 2014

Junho 2013


Montante líquido do volume de negócio (INCN)




Lucro Bruto de Exploração (EBITDA)




Lucro atribuído à sociedade dominante





Junho 2014

Dez. 2013


Total Dívida Financeira








Receitas por áreas geográficas



Beja irrigation block


This contract, which is a part of the Alqueva Global Irrigation System, includes the construction of the drainage system, road network, irrigation system and monitoring automation and remote control system (SMAT) for the Beja Block.

The contract, worth €19 million, will have a completion time of 18 months following the award date.

The contract is part of a set of four irrigation blocks known as Beringel-Beja, all located in the Beja area, over a total area of nearly 5,300 hectares.

Specifically, the Beja Block covers a total area of nearly 2,560 hectares and is located to the west and south-west of Beja. It is supplied from a pumping station at the foot of Cinco Reis dam, with support from the Reservatório do Cerro (terminal tank).

The irrigation system includes the installation of 42 hydrants and 66 irrigation outlets, 24 isolating valves, 68 vents and 67 bottom outlets, over a total length of approximately 26,146 m, with design diameters for the pipes — made of ductile cast iron and high-density polyethylene — ranging between 180 mm and 1,600 mm.