By Thomas Allen16 March 2018
Astaldi’s full-year financial results for 2017 were negatively impacted by a faltering Venezuelan market.
Due to political and economic instability in the South American country, Astaldi suffered a €230 million impairment. As a result, the company’s EBIT (earnings before interest and taxes) margin was 2.5%, with an EBIT of €76.3 million, down from €317 million in 2016, and a net loss of €101.1 million was made.
EBITDA (earnings before interest, taxes, depreciation and amortization) came to €366.4 million, compared to €380 million in 2016, with an EBITDA margin of 12%.
However, when the non-recurring impairment is excluded, a positive business trend was said to become apparent, with EBIT exceeding €306.3 million, the EBIT margin equalling 10%, and a net profit of €103.5 million being made.
Regardless of the hit from Venezuela, the company’s total revenue increased to €3.1 billion, from €3 billion in 2016. This was said to stem from a positive development in Astaldi’s operation and maintenance activities.
Net financial debt for 2017 came in at €1.26 billion, which was down from the €1.39 billion recorded at the end of September 2017, but up on the €1.09 billion seen at the end of 2016. The sale of assets linked to the concession holder of the Third Bosphorus Bridge in Turkey was said to mark the first step of a major planned reduction of gross debt.
The company’s total order backlog stood at €24 billion, with approximately €3.7 billion of new orders
The company’s capital and financial strengthening programme, which was first announced in November 2017, has been re-examined by Astaldi’s board of directors, and another meeting will be called in April to approve the final capital and financial strengthening programme, as well as a new 2018-2021 business plan.
Astaldi recently renegotiated the financial covenant for its €500 million revolving credit facility in order to secure more breathing space in the wake of the hit it took from the Venezuelan market.