Fomento de Construcciones y Contratas, S.A (FCC) has increased its gross operating profit (EBITDA) up 12.1% to €804 million (US$899.3 million) in 2014.
According to the firm, the efficiency and restructuring measures adopted in FCC Group's Strategic Plan launched during the second quarter of 2013 are the reasons for the increase of the EBITDA.
Over the past year, the Citizen Services Group, that delivers environmental services, infrastructure and water management globally, has reduced its losses by more than half (51.9%) to €724 million, compared to €1.506 billion a year earlier.
The improvement in EBITDA has also been helped by further stability in the Environmental Services (FCC Medio Ambiente) and Water (FCC Aqualia) areas. The overall result of this is that operating margin rose to 12.7%, compared to 10.6% last year. Split by business areas, Environment and Water account for three quarters of FCC Group's overall operating profit. Another significant contribution to the growth in EBITDA came from cement subsidiary, Cementos Portland Valderrivas. The €104 million end-of-year result obtained is double that of 2013. It was also helped by a recovery of the market in Spain.
The improvement in financial debt is one of the highlights of the 2014 results. At year end, after the capital increase carried out in December, the Group's debt stood at €5.016 billion, representing a decrease of 15.9% compared to the amount on the books at the end of 2013.
Turnover reached €6.334 billion, a drop of 6.2% over the previous year, largely attributable to the contraction that is still occurring in demand for construction in Spain and to the more selective approach to growth exercised by FCC Construction in overseas markets.
Looking at the situation by geographical regions, one sees a strong 90.3% growth in revenue in the Middle East and North Africa thanks to work commencing on the Riyadh Metro, in the Construction area. By contrast, revenues in Latin America decreased by 27.1%, mainly due to the completion of other projects such as the Metro Line 1 and road realignment in Panama City.