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The Q1 results were driven by good traffic in Spain (+6.1%), France (+2.3%), Italy (+2.2%) and Brazil (+3.1%). Revenue and EBITDA were both up by +7% lfl. Cash flow reached €547m, up +6.7% yoy. The group now controls 90% of its Italian subsidiary. Regarding the takeover, Abertis reminded that the Spanish stock market commission (CNMV) has authorised the modification of the characteristics of the offer tendered by Hochtief. As a result, the acceptance period has been extended until 8 May.
Abertis Infraestructuras
Abertis released a robust set of FY17 results, reflecting positive traffic momentum and tariff increases in most geographies, positive FX effects and higher net profits following the buy-back of minorities in France and Italy. The group also announced the resignation of CEO F Reynes Massanet ahead of the likely takeover of the company by Atlantia or Hochtief.
Abertis released a solid set of 9m figures, marked by positive traffic trends in most geographies, levered at the bottom line level by solid cost control and some buy-outs of minorities (HIT and A4H). Key highlights: Revenue up 15.9%, to €4,186m (+5.7% lfl) EBITDA up 14.4%, to €2,754m (+7.2% lfl) Net income up 2.4%, to €735m (+20% lfl) Traffic: Spain +4.2%, France +1.4%, Brazil +2.8% €0.40 interim dividend, up from €0.36 last year Net debt at €15,425m, from €14,377m at 31/12/2016 Lfl discretionary FCF* up 12.8%, to €1,711m Other developments During the period, Arteris (Brazil) won the tender process of a 30-year concession for the management of 317km of toll roads in the state of Sao Paulo, due to expire in 2018. *after financial, results, income tax and operating capex.
Abertis released a solid set of H1 results, marked by the outstanding performance of Spain where traffic is growing quickly, positive foreign impacts and stable to growing ADT in almost all geographies. Management did not comment on Atlantia’s bid, and it expects the CNMV review to take two to three months. Key highlights Revenue up 20.3% (+6.5% lfl), at €2,698m (consensus: €2,660m) EBITDA up 17% (+8.5% lfl), to €1,757m (€1,721m) Net income down 18.6% (+19% lfl), to €415m (€356m) ADT growing in a majority of countries Net debt up 11%, to c.€16bn Discretionary cash flow +15.2% Other developments In May, Abertis reached an agreement with Eutelsat to acquire its 33.69% stake in Hispasat for €302m. At closing, the participation will therefore rise to 90.74%. In May, the group disposed of Infracom, a non-core Italian asset included in A4 Holding, for €58m (pending closing).
Abertis released a good set of Q1 results, broadly in line with expectations, marked by a strong momentum in Western Europe although hindered by unfavourable calendar effects (Easter in April this year, leap year in 2016), and, dare one say it, the long-awaited recovery of traffic in Brazil, and a strong cash generation. Please note that management made no comment regarding the talks with Atlantia. Key highlights: Revenue was up 18.3% (+4.6% lfl), at €1,281m (€1,275m consensus). EBITDA rose 13% (+6.6% lfl), at €807m (€809m consensus). Net profit fell 66.3% (+13% lfl), at €130m (€134m consensus). FCF increased by 11.3%, at €385m. Note that the net result was impacted by a positive €293m non-cash one-off last year, corresponding to the revaluation of Autopista Central’s book value following the acquisition of a majority stake. On a lfl basis, net income grew +8.7%. On a ytd basis (to 17 April), traffic trends were positive in most geographies (Spain +6%, France +1.4%, Italy +3.7%, Chile +6.4%, Brazil +1.1%), except for Puerto Rico (-0.9%) and Argentina (-3.1%). Net debt increased to €14,994m, from €14,377m (at 31 December 2016) while management expects it to stand c.€1.5bn higher at 31 December 2017, following the acquisition of minority stakes in Sanef (see below). Other developments The group announced the acquisition of a c.€353m concession by Arteris in Brazil: a 720km highway in the state of Sao Paulo. The concession will expire in 2047 and is expected to generate €135m revenue and €85m EBITDA, starting in 2019.
Abertis announced this morning that it has closed the acquisition of a 9.65% stake in HIT (owner of Sanef, the French toll road operator) from AXA, which was announced on 1 March. Additionally, the group announced the acquisition of an additional stake from Predica of between 15% and 17%, for a €700-800m sum. This new acquisition would give Abertis a total interest of up to 88% (vs 52.55% on 1 January 2017), for a total investment of €1,640m. With Sanef’s operations already consolidated into Abertis’ accounts, the only impact on the group’s P&L will be at the net profit level. The acquisition should add another €45m to net attributable income by reducing minorities. Net debt should increase by the same amount. We believe that buying back minorities might be a good opportunity for Abertis to generate significant earnings without taking much risk as France should benefit from the two stimulus plans launched by the French government. Moreover, the potential to increase margins and to reduce the cost of local debt from 4.3% to 4.1% following the issuance of a €300m 0.95%-coupon bond maturing in 2028 should also support the division. Lastly, this increased interest will allow the group to ramp up the average portfolio duration while reducing the group’s exposure to foreign exchange risk. In 2016, FX moves had a total impact of €-124m on revenue and €-49m on EBITDA, or -2.5% and -1.5%, respectively.
Abertis released a strong set of full-year 2016 results. Results Group revenue reached €4,936m, up 13% yoy (+6.1% lfl) and 0.5% above consensus, while EBITDA increased by 20% (+8.5% lfl) and beat market expectations by 2% as it benefited from better cost control and efficiency plans (margin up 140bp). Finally, net profit reached €796m, up 13% (lfl) yoy, broadly in line with the €808m consensus. Traffic continued to grow in 2016. The uptrend continued in Europe, with increases of 5.3% in Spain, 1.9% in France, and 2.6% in Italy. Also, the performance in Chile was noteworthy, where Average Daily Traffic (ADT) advanced 6.4%. These increases offset the decline in traffic in Brazil, where the economic situation prompted a 2.8% decline. Net debt at 31 December 2016 stood at €14,377m, up from €12,554m in 2015 reflecting both organic extension capex (c.€1bn) and acquisitions. However, the net debt/EBITDA ratio decreased from 4.7x in 2015 to 4.4x in 2016. The board proposed a second dividend of €0.37 gross per share (scrip or cash) bringing direct shareholder remuneration via dividends of €0.73 gross per share (€0.01 higher than AV’s forecast). Guidance The company gave a geographical breakdown of traffic growth expectations: +3% in Spain, +1.5% in France, +2.8% in Chile, +1% in Argentina, +1.1% in Brazil, +1.2% in both Italy and Puerto Rico and +7% in India. As regards tariff increases, management gave the following breakdown: Spain -0.5% National / +1.1% Regional, Italy +1.6%, France +0.6%, Puerto Rico +1.3%, Brazil +15.9% Federal / +9.3% State, Argentina +37.1%, Chile +6.5% / +2.8%. The company also detailed its 2017 investment plan, including €1bn of expansion investments and c.€1.3bn expected acquisitions, of which €128m for the Indian concession, €937m for the acquisition of CDC and AXA stakes in Sanef, €47.5m for an additional 8.53% stake in A4 in Italy and around €150m in minorities. The group also sees an EBITDA of c.€3,600m and a net debt of c.€14,700m. Recent developments Abertis announced in February the acquisition of an additional 8.53% stake in A4 Holding, thus increasing its control of the group to 59.93% from 51.4%. The group also announced today that it has reached an agreement with AXA to acquire an additional 9.56% stake in Holding d’Infrastructures de Transports (HIT), increasing its participation in Sanef’s parent company to 72.63% from the current 63.07%.
In line with the recent acquisition of CDC’s stake in Sanef in January 2017, Abertis announced the acquisition of an additional 8.53% stake in A4 Holding for €47.5m from Gruppo Gavio (8.37%) and Gruppo Mantovani (0.16%). At completion, Abertis will therefore control 59.9% of the company.
Abertis has decided to exercise its preferential acquisition rights for the Caisse des Dépôts et Consignations’ (CDC, French state-owned bank) stake in Holding d’Infrastructures de Transports (HIT) which controls 100% of Sanef, the concessionaire operating 1,760km of toll roads in the north-west of France (c.73% of Abertis’ French EBITDA). As a consequence, Abertis’ stake will increase to 63.07%, up 10.52% from the current 52.55%. Closing of the acquisition is expected to take place in the first quarter of 2017.
Abertis has announced the acquisition, from Macquarie, of controlling stakes in two brownfield toll-road concessionaires in India, for €128m. The deal is subject to the completion of certain conditions, including the consent of the companies’ lenders.
Abertis released a strong set of results for the 9-month period. On a like-for-like basis, revenue was up 6%, EBITDA up 7.6% and net income up 10.1% versus +6%, +7.4% and +9.2% during the first half of the year, respectively. Traffic improved in all divisions with higher growth rates in Spain (+5.5%), France (+1.6%), Chile (+6.7%) and Puerto Rico (+0.8%), and lower declines in Brazil (-3.1%) and Argentina (+0%). The Italian toll roads, acquired earlier this year, also performed strongly with traffic up 2.8%. The net debt/EBITDA ratio decreased from 4.7x in 2015 to 4.4x, and the cost of debt fell 20bp. Source: AlphaValue, Company report.
Abertis has reached an agreement with a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), which will result in the latter achieving a minority 20% economic stake in Abertis’s Chilean assets. The transaction values the company at €3.7bn (100% EV). The agreement involves the six concessions managed by Abertis in the country, in which the group currently holds a 100% stake. Abertis will retain an 80% stake and will continue to play the industrial role. The subsidiary will also continue to be fully consolidated in the group’s accounts. This transaction will imply a cash inflow of €495m for Abertis. The closing of the deal is subject to the accomplishment of certain conditions.
OHL announced last week that it has sold the remaining stake it owned in Abertis (4.425%).
Abertis has closed the acquisition from Intesa, Astaldi and the Tabacchi family of 51.4% of the Italian industrial group, A4 Holding, currently managing 235km of toll roads. Source: Company. Its main assets are two toll roads in the region of Veneto in Italy: Part of the A4 toll road (146km), known as “La Serenissima”, the country’s third busiest toll road, with an Average Daily Traffic (ADT) of around 91,000 vehicles. This brownfield highway consists of separate roads each with three lanes and has been operating since 1956. The 89kms A31 (“Autostrada della Valdastico”) has an ADT of more than 12,000 vehicles. Part of the highway (36km) has been operating since 2005 while the other has been in operation only since 2015 (53km). An extension project was recently endorsed by the Italian government under the terms of which the group will carry out the execution of the road corridor. Detail design and execution is expected to occur over the next few years. The concession contracts of both toll roads (A4 and A31) expires on 31 December 2026. The acquisition, which was announced in May, was completed for a total of €594m, €5m of which has already been paid and €589m (all in) to be paid in March 2023.
H1 16 consolidated revenues (€2,243m; +€37m) grew 5.3% (+6% lfl) and operating margins improved: - EBITDA (€714m +€35m) up +10.4% (+7.4% lfl); - EBIT (€896m; +€31m) up 13.3% lfl with the help of the extension of the concessions in France, with a positive impact on depreciation and a positive comparison base since the H1 15 results were impacted by Arteris’s impairment and the provision related to the AP-7 traffic guarantee. - Adjusted net profit €510m, +9% lfl. Negative FX effects were strong and they reduced the consolidated revenues and EBITDA by €139m and €70m respectively, translating average FX vs H1 15 of - 24.9% for the Brazilian real - 10.9% for the Chilean peso - 62.3% for the Argentine peso.
OHL (which became Abertis’s second shareholder a few years ago with 15.67% of the shares through a complex LatAm assets and shares exchange) announced today it has sold through a private placement a block of shares of Abertis representing 7% of the share capital to “qualified investors” at a price of €11.75, representing a cash amount of c. €814m and a capital gain of €110m.
Q1 16 consolidated revenues (€1,082m; +€37m) grew 3.5% (+8.1% lfl) and operating margins improved: - EBITDA (€714m +€35m) up +5.8% (+8% lfl) - EBIT (€415m; +€31m) +8.1% (+17% lfl) - Adjusted net profit +9% lfl
The FY 15 results translate (as expected) good traffic trends, asset impairments due to provisions, tariff changes in Spain, profits from the Cellnex IPO, a change in the accounting method and a negative forex effect. Abertis saw a total traffic increase of 1.8%, with Spain +6.1%, Chile +8.5% and France +1.8%, but Brazil –2.3%. Consolidated revenues amounted to €4,378m (-1.6%; +5% at same perimeter but before the forex impact). The decrease due to the €146m exclusion from the traffic guarantee related to the AP-7 agreement and €101m from forex impacts (the devaluation of the BRL) was partially offset by the appreciation vs. the Chilean and Argentine pesos. EBITDA was €2,692m (-5.9% but +5% at cc), impacted by €45m of negative forex, the different accounting treatment of the AP-7 traffic guarantee agreement, the 9.2% increase in total operating expenses (vs 2.2% lfl) due to the efficiency programme (lay-off indemnities), the TSI operations and Argentine inflation. Consolidated net profit (€1,880m) is shaped by the non-recurrent items. On a “comparable basis”, the recurrent net profit (Abertis's calculation) increased 7% from €484m to €517m. Around 73% of Abertis's revenues now comes from outside Spain: the French market becomes the largest for the group (37% of total revenues and 38% of EBITDA) followed by Spain (27%; 45% of EBITDA), Brazil (16%) and Chile (5%). In January 2016, Abertis acquired 50% of the Chilean company Autopista Central for €948m. Abertis now holds 100% of this company and it will be consolidated (FY revenues €219m, EBITDA €149m, EBIT €118m). FY 16 guidance: revenue €4.7bn (c.+8%), EBITDA €3.1bn (c.+ 15%) and net debt €14bn (+€1.5bn due to growth investments).
Since 16/10/15, three significant stakes have appeared in the shareholder register for a total of 9% of the voting rights 3.09% for Capital Research and Management Company, a US.based investment management company that manages the American funds family of mutual funds. 3.03% for Lazard Asset Management Llc managed on behalf of its clients 2.353% for Blackrock on behalf of its clients. The stake is 2.998% including financial instruments
Abertis, through its subsidiary Inversora de Infraestructuras, has bought the 50% stake owned by Canadian fund Alberta Investment Management Corporation (AIMco) in Chile's Autopista Central for €948m. Abertis gains full ownership of the concession which expires in 2031. Autopista Central's full consolidation (from equity associate in 2015) will contribute to an approximate annual impact in 2016 of: Revenue €220m EBITDA €160m Net debt €400m Abertis' business in Chile doubles with this transaction and becomes the Group's third largest market in terms of EBITDA behind France and Spain (and ahead of Brazil), representing 11% of the total for the Group.
Merrill Lynch International announced it has sold through a private placement a block of shares of Abertis Infraestructuras SA, representing 6.339% of the share capital and belonging to Trebol.
9M 15 results are in line with expectations, translating good traffic trends, asset impairments and profits from the Cellnex IPO, accounting method change and negative forex effect. Abertis saw a total traffic increase of 1.8%, with Spain +5.9%, Chile +8.3% and France +2.1%, but Brazil –1.3%. Consolidated revenues (€3,328m) at same perimeter are down 1.1% due to the €146m exclusion from the traffic guarantee related to the AP-7 agreement and to forex impacts (the devaluation of the BRL (€80m) was partially offset by the appreciation vs. the Chilean and Argentine pesos. (With the same accounting treatment for the AP-7 and other non-recurrent items, revenues increased by 5.2% thanks to the traffic and tariff increases.)
