Mota-Engil sees €12M H1 profits, best in last six years

Mota-Engil closed the first half of 2022 with a profit of €12 million, 37% more than the results recorded in the same period last year, the construction company announced on Thursday in a statement.

In the same period of 2021, the group posted profits of €8 million, compared to negative results of €5 million obtained in 2020.

According to Mota-Engil, this year’s result is “the best of the last six years”.

“The group achieved a growth of 19% in its turnover, reaching €1.354 billion, and of 14% in its EBITDA (to €207 million), reaching in both indicators record figures (…) in a first half, which contributed decisively to achieving a net attributable profit of €12 million, the statement reads.

However, in the first six months of 2022, the construction company recorded an improvement in the Net Debt/EBITDA ratio to 2.6x with a reduction in net debt to €1.117 billion, highlighting “the growth trend in operating profitability combined with judicious management of investments.”

Mota-Engil once again achieved “a new record in the volume of orders”, reaching a figure of €9.2 billion in June.

The company also said that in the “third quarter it signed contracts in Angola, Mexico and Brazil worth €2.2 billion,” having recorded “amongst the new contracts projects of a larger average size and concentrated in the group’s core markets, where Mota-Engil has established that it will continue to be the biggest commercial and investment focus over the next five years, in accordance with the New Strategic Plan, known as ‘Building’26’, which runs from 2022 to 2026,” it noted.

In relation to performance by business area, Mota-Engil highlighted the 28% growth in the Engineering and Construction business, impacted in a very relevant way by the 54% growth in Africa, with Angola and Ivory Coast standing out, where invoicing doubled in this period compared to the same period last year.

It also highlighted the 18% growth in activity in Portugal, compared to 11% in the same period of 2021, while in Europe, “in a consolidated manner, there was a slight decrease in activity due to greater selectivity in the presentation of commercial proposals in Poland as a result of the high volatility in the region, as well as the effect of the sale in January of operations in the United Kingdom and Ireland.

For its part, in Latin America, the company “increased its turnover by 36%, with a preponderance of the Mexican market, the largest in the region, achieving a 41% growth in activity, as well as Peru, which achieved 55% growth”.

The group stressed that the portfolio record level in that region was “over €3 billion” and “will boost growth in the coming years”.

In financial management, Mota-Engil recalled that it “maintained its investment commitments in line with what was projected at the beginning of the year with a CAPEX of €108 million, 55% related to growth investment and in medium and long-term contracts”.

The group also highlighted the 34% increase in equity, “which reinforces the sustainability of the balance sheet, as well as the conditions for the full implementation of the Strategic Plan”.