OREANDA-NEWS. Empresas ICA, S.A.B. de C.V. announced today its unaudited results for the second quarter of 2016, which have been prepared in accordance with International Financial Reporting Standards. During the fourth quarter of 2015, the Company suspended the sale of its social infrastructure projects.  Accordingly, these projects are no longer classified as available for sale, and financial statements from prior periods have been restated for comparability. In addition, ICA is no longer consolidating San Mart?n, effective on the fourth quarter of 2015, as a result of the reduction in ICA’s shareholding to 31.2% from 51%.

  • The Airports and Concessions segments grew 21% and 5%, respectively over the same period in the prior year.
  • Construction revenues in Mexico began stabilizing.  The decrease in revenues of 34% versus 1Q16 was less than the 66% drop versus 2Q15 and principally due to the slowdown in Facchina’s U.S. projects.
  • Ps. 2,999 million net loss generated principally as a result of the effect of a Ps. 1,675 million foreign exchange conversion loss.
  • Comprehensive backlog was Ps. 58,630 million at June 30, 2016, of which Ps. 28,685 million corresponds to ICA’s participation in non-consolidated affiliates and joint ventures.
  • The company continues to focus on its operating restructuring process.  For the year to date, the company has reduced cost and expenses by 50%.

Financial and Operating Results

Second quarter consolidated net revenues decreased 42% to Ps. 5,281 million from Ps. 9,042 million in 2Q15. This reduction was principally the result of the termination of foreign projects.

Net revenues of the Construction segment decreased to Ps. 2,007 million in 2Q16 from Ps. 5,943 million in 2Q15.

The consolidated net loss was Ps. 2,999 million in 2Q16. The net loss was principally the result of the foreign exchange conversion loss and the decrease in revenues due to the slow-down in the projects in Facchina. Loss per share was Ps. 5.49 (US$ 1.2 per ADS).

Liquidity and Debt

Total consolidated debt decreased 4.53% to Ps. 64,556 million as of June 30, 2016, as compared to December 31, 2015.  The decrease was principally the result of loan payments to Santander, Deutsche Bank, Barclays, and Value that were secured by the pledge of OMA B shares, payment of a working capital line to BBVA Bancomer, and scheduled amortizations of debt of operating projects.

Total cash was Ps. 6,949 million at June 30, 2016. The 16% total cash reduction was principally generated in non-restricted cash which decreased from Ps. 3,997 million in June 2015 to Ps. 2,946 million in June 2016.

Comprehensive backlog

Comprehensive backlog, including ICA’s share of backlog of unconsolidated affiliates and joint ventures, reached Ps. 58,630 million at June 30, 2016, a decrease of Ps. 2,127 million compared to March 2016 and a decrease of Ps. 5,913 million compared to December 2015. Consolidated backlog was Ps. 29,897 million, down Ps. 1,232 million compared to last quarter. Total backlog of non-consolidated affiliates and joint ventures (principally at ICA Fluor) decreased Ps. 1,802 million to Ps. 60,452 million, of which ICA’s proportional share was Ps. 28,685 million at June 30, 2016. 

Reduction in Costs and Expenses

From January 2015 to July 2016, the workforce has decreased 54%. In the same period, cost and expense has been reduced by 50%. This efficiency of resources has permitted the company to maintain at close of 2Q16 an EBITDA margin of 20.5%, similar to the 20.3% reported for 2Q15.

Financial and Operational Restructuring Activities

ICA is currently focused on the consolidation of its operational restructure and ensuring the long term continuity of the business in order to be in the position to define its financial restructuring plan.