Increase in public works contracts break negative seven year cycle

Construction works

The main award went to ACS, the Spanish civil engineering giant, which received €504 million, an 18% increase on the amount awarded in 2013. The second award went to OHL, which was awarded  €218 million worth of contracts compared to €62 million a year before.

Bankinter analysts believe that the impact those companies’ value will be “slightly positive”, because ACS will maintain its leadership position in the sector, while the awards to OHL are consistent with the company’s strategic plan for 2015-2020. The company expects Spain to be of paramount importance among the eight markets in which it is present, estimating that its operations at home will generate 85% of revenues in the next five years.

ACF also believes the news is positive because it “confirms the turnaround that we saw last year”. While it is true that Spanish construction companies are highly diversified in their business models and markets ,“ public works projects in the domestic market should not be underestimated, as they continue to be a strong area of employment generation and business expertise.”

 

 

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