|(EUR million)||DEC – 21||DEC – 20|
|EBIT (ex disposals & impairments)||337||173|
|Disposals & impairments||1,139||16|
|Corporate income tax||10||34|
|NET PROFIT FROM CONTINUING OPERATIONS||974||-393|
|NET PROFIT FROM DISCONTINUED OPERATIONS||361||20|
|CONSOLIDATED NET INCOME||1,335||-373|
|NET INCOME ATTRIBUTED||1,197||-424|
NCP: Net cash position. Includes discontinued operations
In March 2020, the WHO declared COVID-19 as a global pandemic. The numerous restrictions to mobility taken by governments to reduce social contact and mobility have had an impact on Ferrovial’s activities for the past two years, although unevenly among the different businesses. In 2021, the advances towards herd immunity on the back of vaccination roll-outs have allowed the various countries in which Ferrovial operates to partially or entirely lift mobility restrictions, while the appearance of new COVID-19 variants led to surges in cases and the return of certain restrictions in some countries. Infrastructure assets were highly impacted where restrictions to mobility, stay-at-home orders and quarantines remained in place. A reduction of these restrictions had a very positive impact on the performance of our main toll roads and some of them recovered or even exceeded pre-pandemic levels. Airports has been the division most heavily impacted from COVID-19 given that restrictions for air travel have been in place in 2021. As for the impact on the contracting activities it has not been material in 2021.
Throughout COVID-19 pandemic, Ferrovial has and continues to undertake, all necessary measures to safeguard the health and safety of its employees and clients as its main priority.
Ferrovial remains focused on keeping a strong financial position and looking for investment opportunities that create value. As of December 2021, liquidity ex-infrastructure level stood at EUR6,421mn, including EUR991mn available liquidity lines. Net cash ex-infra stood at EUR2,182mn (incl. discontinued operations).
Operationally, the COVID-19 pandemic has impacted Ferrovial’s activities in 2021, especially on air and road traffic where mobility restrictions remained present:
The impact on Cash flow of COVID-19 is measured on the reduction in dividends received by main infrastructure assets; mainly Heathrow and 407 ETR. Heathrow did not pay dividends in 2021 (vs. EUR145mn in 2019, pre-COVID) and 407 ETR paid dividends in 2021 of EUR164mn (vs. EUR309mn in 2019, pre-COVID).
DIVIDENDS FROM PROJECTS
Total dividends received from projects reached EUR550mn in 2021 (vs EUR458mn in 2020); main distributions:
Ferrovial has acquired 24.99% of the share capital of the acquiring entity for a price of EUR17mn.
Toll roads: revenues increased by +36.8% LfL and EBITDA by +47.9% LfL. EBITDA stood at EUR415mn.
Texas Managed Lanes traffic was impacted by COVID-19 in the beginning of the year, but showed a solid recovery once mobility restrictions were eased in March despite the impact of COVID surges during the summer and in December. In addition, winter storms in February and heavy rainfall during May also took their toll. All in all, NTE & NTE35W traffic performed in line or above pre-pandemic levels, while LBJ kept improving. Our assets reported strong results compared to 2020:
I-77 Managed Lanes revenues reached USD36mn (+102.1% vs. 2020), above pre-pandemic levels, as a result of increasing congestion in the area despite the surge in COVID-19 cases in the summer. Traffic reached pre-COVID-19 levels back in June. EBITDA stood at USD20mn with 54.9% of EBITDA margin (24.9% in 2020).
407 ETR revenues reached CAD1,023mn increasing by +12.6% given the steady recovery in traffic volumes when restrictions ease, higher proportion of heavy vehicles and higher toll rates since February 2020. EBITDA reached CAD859mn (+16.1%) with 84.0% EBITDA mg.
Airports: Heathrow & AGS accounted through equity consolidation.
Construction: revenues were up +3.1% LfL, 83% international. EBIT reached EUR132mn, vs. EUR101mn in 2020. EBIT margin reached 2.2% in 2021. The order book reached EUR12,216mn (+7.4% LfL), at all time high, not including pre-awarded contracts of around EUR560mn.
Services (discontinued operations): net income from Services held in discontinued operations stood at EUR246mn, which mainly includes the impact from the divestments of the Environmental activity in Spain & Portugal (EUR335mn)
EUR2,182mn net cash ex-infrastructure projects (including discontinued operations) vs EUR1,991mn in December 2020. Net debt of infrastructure projects reached EUR6,633mn (EUR4,532mn in December 2020). Net consolidated debt reached EUR4,451mn (EUR2,541mn in December 2020), mainly due to the integration of I-66 total debt on Ferrovial’s balance sheet.
Sustainability remains at the core of our strategy. In 2021: