Financial Capital

Highlights of the Consolidated Income Statement referring to the 2016 financial year are set out below:

  • Net turnover was adversely affected to the extent of 154.8 million euros as the result of the recognition of losses in the legacy projects and of 117.0 million euros due to the negative trend in exchange rates
  • The adverse impact on the Gross operating profit in the amount of 520.2 million euros (476.2 million euros due to the legacy projects and 44.0 million euros in the Industrial division)
  • The adverse impact on the Gross operating profit in the amount of 103.4 million euros due to the negative trend in exchange rates
  • The extraordinary recognition of losses totaling 149.4 million euros in the construction of the Centre Hospitallier de L´Université de Montreal (CHUM)
  • The positive result from Impairment and disposal of financial instruments stemming from asset rotation, mainly due to the sale of an 11.425% stake in Abertis Infraestructuras, S.A. and of a 28.0% interest in Metro Ligero Oeste, S.A.

Considering the foregoing, the normalized Income Statement for the 2016 financial year presents:

  • i. A Gross operating profit of 20.5% on Sales
  • ii. A Financial result of -97.8 million euros that includes the positive outcome under the Impairment and disposal of financial instruments heading, stemming from asset rotation, due mainly to the sale of an 11.425% stake in Abertis Infraestructuras, S.A. and of a 28.0% interest in Metro Ligero Oeste, S.A. Poner punto final en el español
  • iii. The consolidated profit for the year would total 476.8 million euros, that is, 11.5% on Sales, placing the result attributed to the parent company at 247.5 million euros, or 6.0% on Sales
CONSOLIDATED PROFIT AND LOSS ACCOUNT
CONSOLIDATED PROFIT AND LOSS ACCOUNT TABLE
CONSOLIDATED BALANCE SHEET

The main headings on the Consolidated Balance Sheet are:

Fixed assets in concession projects

This heading takes in all of the Group’s concession assets, both those under the intangible asset model as well as those under the financial asset model.

  • The balance at December 31, 2016 totaled 6,439.6 million euros, accounting for 49.8% of the Total Assets
  • Of the total balance, 5,115.0 million euros refer to the Mexican concession companies under the financial asset model, that is, 79.4% of the total
  • Likewise, 48.4% of the financial assets, or 3,114.8 million euros, are made up by the amount entered as Guaranteed Returns

Parent Company shareholders’ equity

At December 31, 2016 totalled 2,439.7 million euros, representing 18.9% of the total assets and decreasing by 607.3 million euros with respect to the figure at December 31, 2015, due to the net effect of:

  • The attributable loss for the 2016 financial year in the amount of -432.3 million euros
  • A decrease of 13.7 million euros due to the dividend paid in July 2016
  • A decrease in reserves in the amount of 272.5 million euros, brought about by the conversion of financial statements in foreign currency, principally those of the Mexican companies
  • An increase in reserves in the amount of 131.4 million euros as a result of the impact of the valuation of financial instruments, taken to the Income Statement
  • A decrease of 42.1 million euros in bought-back shares. At December 31, 2016, the treasury stock was made up by 11,961,801 shares, worth 46.1 million euros
  • An increase of 21.9 million euros from other changes in reserves, arising mainly from changes in the scope of consolidation

Banks and bond issues

The comparison of the borrowings at December 31, 2016 with those at December 31, 2015 is as follows:

OHL Group Debt. 2016/2015

OHL Group Debt.
  • The gross recourse borrowings at December 31, 2016 totalled 1,519.9 million euros
  • The situation of the net recourse debt during 2016 is shown below:

Recourse liquidity

Recourse liquidity

Table notes.

Recourse Business

  • Significant equity investment of 96 €Mn in Canalejas and Old War Office and in Construction 95 €Mn of Judlau and other
  • Construction includes a 315 €Mn impact from legacy projects loss recognition, (34 €Mn) from construction regular business and Corporate includes 90 €Mn of financial costs and 55 €Mn of headquarters & others
  • Other financial transaction including among others:
  • Operaciones financieras, incluyendo entre otras:
    • Construction assets disposals (160 €Mn)
    • 14 €Mn of dividends paid
    • 22 €Mn of treasury stock and 38 €Mn adjustment of stock program

59% of the gross recourse debt matures between 2020-2023, in respect of the bonds issued, that is, 14% in 2019 and the rest, consisting of renewable credit lines and others, in 2017.

The table shows the recourse liquidity at December 31, 2016 and at December 31, 2015.

The recourse availability of the OHL Group totals 1,645.4 million euros.

The Group’s recourse liquidity, measured as the cash and cash equivalents plus the available recourse financing, totals 897.0 million euros.

With respect to the total gross borrowings, 86.0% is long-term, while the remaining 14.0% is short-term.

The gross non-recourse debt totalled 2,872.4 million euros, that is, 65.4% of the total gross borrowings, decreasing by 1,328.8 million euros, due mainly to:

  • The sooner repayment of a loan backed by Abertis Infraestructuras, S.A. shares in the amount of 874.9 million euros, on the occasion of the divestitures made
  • The sooner repayment of a loan backed by OHL México shares in the amount of 169.5 million euros
  • A decrease due to the transfer to non-current liabilities held for sale of the debt of the hotel companies and of the golf course in Mayakoba (Mexico) in the amount of 139.7 million euros
  • A decrease in the amount of 233.3 million euros stemming from the 15.1% devaluation of the closing exchange rate of the Mexican peso against the euro
  • A net increase of 88.6 million euros in other loans
SHARE PRICE PERFORMANCE

The share capital at December 31, 2016 totalled 179,255,398.80 euros, represented by 298,758,998 ordinary shares with a face value of 0.60 euros each, all belonging to a single class and series, listed at 3.30 euros and with a P/E ratio of -2.3 on the attributable net profit for 2016.

During 2016, a total of 850,290,271 shares (284.6% of the total tradable shares) were traded on stock exchanges, with a daily average of 3,308,522 securities and a share price depreciation of -37.5% in the year.

At the end of the year, OHL held a total of 11,961,801 shares, equivalent to 4.004% of the company’s current capital. This figure includes the purchase of 3,453,908 shares from the stock option plan for executives of the company, which finalised on March 21, 2016.

This stock option plan has been cancelled without any income for any of the executives involved, due to the negative performance of the share.

The recourse availability of the OHL Group totals 1,645.4 million euros and its recourse liquidity, 897.0 million euros.

OHL share price in 2016

OHL share price in 2016

OHL share price performance in 2016

OHL share price performance in 2016

Most significant details of the bonds issued by OHL and OHL Investments, S.A., a subsidiary of OHL Concesiones:

Bonds issued by OHL and OHL Investments

Bonds issued by OHL and OHL Investments

OHL México, S.A.B. de C.V., a subsidiary of the Concessions division of the Group, is listed in Mexico.

Its evolution during 2016 on the Mexican Stock Exchange is reflected on the following chart:

OHL Mexico share price performance in 2016

OHL Mexico share price performance in 2016
OHL is listed on the Electronic Market of the Madrid Stock Exchange.

During 2016, 850,290,271 shares were traded on the stock exchange, representing 284.6% of the total tradable shares, with a daily average of 3,308,522 securities.

The OHL Group has belonged to the FTSE4Good Ibex sustainability index continuously since its launch in 2008. Its presence on this index ranks the company as a committed security and of particular interest to those investors who combine their profitability targets with their concern for ethical, social, environmental and good governance issues in business management.