Mota-Engil ends 2020 with €20 million losses

After a net profit of €27 million in the previous year, the Portuguese company has now reported losses of 20 million in 2020, due in large part to the Covid-19 pandemic.

Mota-Engil felt the strong effects of the Covid-19 pandemic. After profits in 2019, it reported a €20 million loss last year, a period in which Covid-19 reduced revenues, but also led the construction company to make large provisions and impairments.

According to a statement sent to the CMVM, the Portuguese company reported a net loss of €20 million, “of which €10 million related to a one-off provision.” This result compares with a net profit of €27 million presented a year earlier. EBITDA fell 9% to €380 million, with turnover retreating 17% to €2,429 million.

Covid-19 took 45 million off EBITDA, says the company led by Gonçalo Moura Martins, pointing out that the loss of revenue because of the pandemic amounted to 360 million. “EBIT was down 23% year-on-year to €144 million” with around €39 million related to provisions and impairments.

The pandemic negatively affected Mota-Engil’s activity, but businesses continued to take place. The order backlog reached a record level: €6,052 million “with increasing relevance of long-term contracts (Mining, Oil, Gas and Power),” says the company.

Engineering and Construction (E&C) “represents 89% of the total with a comfortable level of backlog/sales ratio in the E&C activity,” the company says.

It should be noted that this order backlog does not include recent contracts signed after December, namely a US$1,820 million contract in Nigeria and another of US$150 million in Poland.