The Spanish construction group has been awarded one of the largest road contracts of the year in the US to expand the I-35 interstate highway in Texas, with a budget that means 20% of the group’s total 2020 revenues. Ferrovial was chosen in 2005 as a strategic partner of the Texas government to design and build the TT Corridor 35. Furthermore, this US state is one of the Group’s largest markets given that its three largest consolidated concessions globally are located there.
Ferrovial has won a contract from the UK Ministry of Justice for 632 million pounds (about 725 million euro) through Amey, its UK services subsidiary. This unit is currently up for sale and therefore deconsolidated from the Spanish infrastructure group’s accounts.
Renta 4 | Ferrovial (FER) obtained a net profit of 268 million euros last year, which managed to settle in “black numbers” and thus reverse the losses with which it had closed 2018 and had been justifying over the first three quarters of 2019, thanks to the capital gains from the sale of the Ausol highway in Malaga.
Morgan Stanley | The transformation of Ferrovial (FER) into an almost North American pure play infrastructure is underway with the service sales and construction reduction plan.
Banc Sabadell | The bank guarantees of around 1 Bn€ held by Ferrovial´s Services Division (which we value at approximately 2.5 Bn€; ~7X EV/EBITDA) are complicating its sale and could lower its valuation to 2 Bn€ (vs 2.5 Bn€ rumoured).
Renta 4 | Ferrovial (FER) remained in the red at the close of the first quarter. According to the company it registered losses of 98 M€ on making provisions of 345 M€ for the delays which have accumulated in the construction of two motorways in the US.
Sabadell | The funds Lone Star and Apollo have demonstrated interest in acquiring 100% of Ferrovial’s services subsidiary. Goldman Sachs distributed the indicative document (teaser) several weeks ago.
Alphavalue | The Spanish constructor revealed on Friday the traffic figures for February. Heathrow airport had 1.48 M passengers in February, an increase if +1.7% yoy.
Ferrovial, principal private sector Spanish airport management company, intends to participate in the privatisation of the French Aeroports de Paris, which the French government is trying to offer on a 70 year concession. They calculate it will make between 8 and 10 billion euros. Ferrovial recognises that the scale of the operation will require the formation of consortia.
Santander | The growth in passenger numbers registered at Zurich in November (6.0 % vs. 6.0% est), Aena (6.9% vs 6.5% est) and ADP (5.4% vs 4.8% est) was more or less in line with our estimations, while the traffic in Fraport (4.7% vs 6.5% est) and Heathrow (3.3% vs 0.2%) remained below.