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Ferrovial records loss after taking £296M hit on US roads contracts

ferrovial servicios ford valencia

Spanish infrastructure firm Ferrovial has recorded an £84M loss in the first quarter of 2019, down from a £138M loss recorded this time last year.  

Despite better performance from infrastructure assets and airport revenue, Ferroival reported the loss due to a £296M hit on US highways contracts - without which, net profit would have been approximately £98M. 

Ferrovial put the losses in the US down to “delays in design approvals, that imply prices cannot be signed off with subcontractors”.

Overall construction revenue topped £940M, a 2.4% rise in like-for-like terms, with the companies order book at £9.7bn - 89% of which are outside of Ferrovial’s home country of Spain.

A significant stake in Heathrow airport netted the company £100M in dividends, as well as £678M in revenue thanks to a record 17.9M passengers passing through the airport.  

Ferrovial has been struggling to sell its global support services division since December, when Goldman Sachs was appointed to find a buyer, but continuing issues with its UK contracting arm Amey are thought to be deterring prospective buyers off.   

New Civil Engineer recently reported that Ferrovial bosses have split the embattled Amey away from the rest of the division in hopes of finding a buyer after slashing Amey’s value by £660M to just £88M. 

Amey remains locked in rows over a 25-year £2.7bn private finance initiative contract with Birmingham City Council, for which Amey has not been paid since December 2017.  Ferrovial has made repeated attempts to buy its way out of the contract, with offers in the hundreds of millions, which have all been rejected.  

Despite this, Ferrovial’s services revenues in the United Kingdom increased by 36.1% amounting to £6M. 

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