Airport, concessions divisions drive ICA's Q3 revenue increase

By
Monday, October 27, 2014

Mexican construction company ICA's concessions and airport divisions were the main drivers behind a 13% growth in revenue during 3Q14, said CFO Víctor Bravo during a 2Q14 results call.

"We opened two highway concessions this quarter, and the airport business continues to exceed expectations," said Bravo.

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ICA reported 8.75bn pesos (US$645mn) in total revenue for the quarter, up from 7.77bn pesos in 3Q13.

Passenger traffic in the airport division was up 9%, while traffic in the company's highway concessions division jumped 21% compared to the prior-year period.

During the quarter, ICA opened its 54km Mayab-Playa del Carmen tollroad in Quintana Roo state and the Nuevo Necaxa-Tihuatlán section of the highway between Mexico City and the port of Tuxpan. The latter was damaged by a series of landslides caused by tropical storms Manuel and Ingrid in September last year.

Construction backlog as of September 2014 grew 11% to 34bn pesos, partly as a result of the award of a concession for the Monterrey VI pipeline project.

In terms of its existing water concessions, ICA expects the Agua Prieta wastewater treatment plant and the El Realito dam to start commercial operations in the fourth quarter.

RESULTS

ICA posted a consolidated net loss of 519mn pesos for 3Q14, compared to a 447mn-peso net profit in the same quarter last year.

Adjusted Ebitda was 1.50bn pesos, up 51% compared with the same year-ago period.