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Sacyr Concesiones has been selected as the awardee of the second P3 contract of Ruta 68 "Santiago - Valparaíso - Viña del Mar Road" project, which connects the Metropolitan and Valparaiso regions, in central Chile. Sacyr was the winner of this contract at the opening of the economic bid. This project seeks to improve the standard of this strategic 141 km-long route. Revenues are estimated to reach €3.3 Bn million throughout the project’s 30-year maximum concession term.

The project includes the improvement, construction, maintenance, and operation of both the existing route and the new works to increase the capacity of Ruta 68. In addition, free flow electronic toll gates will be incorporated along the road’s main branch and new infrastructures will be built, such as junctions, footbridges, bridges, bus stops, that will enhance road and pedestrian safety.   

This project adds a new road P3 to Sacyr Concesiones’ portfolio in Chile, with nine assets in operation. The recently awarded Ruta del Itata contract shall also be included in this figure once it has been formalized. 

Ruta 68 is one of the largest projects tendered by Chile's Ministry of Public Works with an investment of $1.6 Bn (€1.5 Bn) and will address significant infrastructure and connectivity-related challenges.

Sacyr is already present in the Valparaiso and Metropolitan regions through the San Antonio – Santiago Highway P3, Ruta 78, a vital road for commerce, tourism and connection between the capital and the coast; and Ruta de la Fruta, a strategic highway for agricultural development in central Chile.

Presence in Chile

Sacyr has activities in Chile since 1996, when it was awarded its first P3 for the construction and operation of the Los Vilos - La Serena highway, marking the beginning of its participation in the P3 system.

Since then, Sacyr has developed projects in its three key areas: P3s, Engineering and Infrastructure and Water, with a focus on playing a role as drivers of change in society, with sustainability being a fundamental pillar in the activities carried out by the Group.

Noteworthy P3 projects include five airports and nine highway sections, seven hospitals in different development stages and five integrated water cycle treatment plants. 

Other flagship projects include developments such as the construction of EFE’s New Railway Bridge, a project that will replace the current structure that is more than 130 years old. 

Present in 14 of Chile’s 16 regions, Sacyr creates more than 4,500 direct jobs, focused on quality, and committed to local realities and needs, always aiming to enhance the well-being of communities.

Peru’s Ministry of Transport and Communications and Sociedad Concesionaria Anillo Vial, comprising Ferrovial-Cintra, Sacyr and ACCIONA, have signed the contract to kickstart the construction of an urban highway of nearly 35 km that will connect 11 districts in Metropolitan Lima and one in Callao.

Concession term for this project is 30 years and calls for a $3.4 Bn investment, including the contribution of public funding from the Peruvian government.  Operation of this road section is contracted under a co-financed P3 scheme. 

This project comprises the design, financing, construction, management, and maintenance of a 34.8 km urban toll road. The new route will connect 11 districts of Metropolitan Lima and one of Callao for the benefit of 4.5 million residents. Project scope includes three sections: 

- 8.7 km: Ovalo 200 Millas - Panamericana Norte (Ovalo del Naranjal). 

- 15.1 km: Panamericana Norte - Av. Ramiro Priale.

- 11.0 km: Av. Ramiro Priale - Av. Circunvalacion (before Av. Rosa Toro).

Project scope spans from the Ovalo 200 Millas in Callao and to the intersection of Av. Del Aire with Av. Rosa Toro, in San Luis.

This infrastructure will contribute to transforming the Peruvian capital and is integrated into road infrastructure planning at a local, regional, and national level, addressing mobility challenges in the Peruvian capital and nearby areas. It also represents an important step in Peru’s mobility development, and it is expected to significantly improve traffic efficiency and road safety and contribute to the region’s economic development.

The project will have toll-free side roads in both directions along the main road to facilitate connectivity in the city.

It is estimated that this project will generate more than 70,000 jobs (direct and indirect) in its construction stage, 5,000 of which would be directly associated. During its operation, the creation of 20,000 direct and indirect jobs per year is anticipated. 

The Peripheral Ring Road will also incorporate the most advanced technology, including Design Information Management (BIM), Asset Management and Intelligent Transport Systems (ITS) systems, in order to ensure efficient and safe infrastructure management.

About Sociedad Concesionaria Anillo Vial

Sociedad Concesionaria Anillo Vial is a consortium comprising Ferrovial, through its toll road subsidiary Cintra (35%), Sacyr (32.5%) and ACCIONA (32.5%).

All three companies have extensive experience participating in flagship projects both in the city of Lima, such as the expansion of the Jorge Chávez International Airport in Lima, and in the rest of the country, which contribute to improving the well-being and quality of life of Peruvian people.

Additional information

• Project key features
• The Peripheral Ring Road will have three lanes in each direction on the main express road.
• There will be toll-free secondary roads in both directions that will enhance connectivity in the existing urban fabric.
• Design speed is 80 km/h.
• 4.22 km of double and triple lane tunnels.
• 3 main toll gates (1 for each section) and 2 side toll stations (1 in section 3 and 1 in section 2).
• Includes 11 viaducts, 16 underpasses, 18 overpasses, 11 intersections, pedestrian crossings every 500m and connections of the expressway and side roads with the rest of the local road fabric. Eliminates same-level intersections.
• Includes Mandatory Services during the operation stage, compliant with services established in the P3 contract.
• OSITRAN is in charge of project supervision, in accordance with applicable laws.

Sacyr has obtained an operating cash flow of €805 million from January to September 2024, 65% more than in the same period of 2023. 

Cash flow is the indicator that best reflects growth and value generation in a company like Sacyr, in which 90% of EBITDA comes from P3 assets, in most cases with no demand risk or risk mitigation mechanisms. Through September, 85% of the EBITDA was converted into cash flow, compared to 50% in the same period of 2023. 

Revenues reached €3,262 million (+1%) up to September. EBITDA stood at €948 million (-2%) and net profit reached €74 million (+1%). 

Recourse net debt stood at €215 million by Q3 2024 end. Net investment in 2024 reaches €577 million.

New P3 contracts and project commissionings    

Sacyr has won four P3 projects in 2024: Lima’s Peripheral Ring Road in Peru, Turin’s Health Complex in Italy, and the Northern Airport Network and Ruta del Itata in Chile. These contract awards are proof of the company's high success rate in tender processes.

In addition, last August the company reached financial close of the I-10 Calcasieu River Bridge project in Louisiana (USA). This P3, where Sacyr is partners with Acciona and Plenary, calls for a $3.4 Bn investment and boasts a concession term of 50 years.

As for commissioned projects, this year the Uruguay Central Railway has come into operation, with an investment of €915 million, and so has the last section of the Pamplona-Cucuta highway (Colombia), with a total investment of €592 million.

On the other hand, Sacyr Water was awarded the expansion and operation of the desalination plants of Torrevieja, Alicante and Carboneras, in Alicante, and Aguilas (Murcia).

Capital increase

Last May, Sacyr carried out a €222 million non-preemptive share capital increase. Net proceeds of this operation will fund the company’s investment needs through 2027. 

This operation will provide more liquidity to the company’s shares and greater financial flexibility with which to reach an investment grade rating, one of the major goals for the 2024-2027 strategic cycle. 

Voreantis and asset rotation

Also in May, at the presentation of its 2024-2027 Strategic Plan, Sacyr announced the creation of a new investment vehicle that will pool most part of the company’s assets in operation. 

This new company, called Voreantis, will welcome a stable minority share partner with up to 49% stake, with the aim of generating resources to expand in P3 activities, highlight asset value and co-invest. 
 

The Port Authority of Bilbao has awarded the contract for the construction of the second phase of the Central Pier of the Port of Bilbao to a Sacyr Engineering and Infrastructure-led JV. This contract has a €55.2 million budget and has an execution period of two years.  

This scope of this project includes the development of the East infrastructure of the Central Pier of the Port of Bilbao, comprising a vertical caisson dock that will generate a new port area of 31.2 hectares, as well as 1,011 linear meters of new berthing docks: 664 meters in the new A3 quay and 347 meters as an extension of the current A4 quay.

This intervention will culminate the Expansion of the Port in the Outer Pass, which started in the 1990s. 

The different caissons will be manufactured in the port’s hinterland by means of the Sacyr Uno floating dock.

A strategic project

This project is strategic for the Port of Bilbao, as it will allow it to accommodate the demand for port land to fit new projects and maintain its position as a reference port in the Cantabrian Sea.

The main project activities will involve the manufacture of new concrete caissons, followed by their filling with sand from dredged maritime deposits; the construction of a quay apron, the backfill of the quay with land-based riprap, the execution of the seaside and land-side superstructure, the extension of the stormwater drainage network, and the installation of port equipment.

Sacyr has extensive experience in maritime infrastructure projects such as the extension of the Punta Sollana dock-dock in the port of Bilbao, the pontoon in the Port of Langosteira in A Coruña, the shelter works and the Cruise Ship Dock of the North Extension of the Port of Valencia, the expansion in the Port of Garrucha (Almeria), the fishing port of Blanes (Girona) and the Port of Marín. Its maritime bases in Povoa de Santa Iria (Lisbon) in the Azores Islands have allowed it to undertake projects in different geographies such as the extensions of the Port of Lomé (Togo) and multiple works in the Azores Islands, such as the expansions of the Port of Punta Delgada, the Port of Pipas and Praia da Vitoria and the Port of Lajes and the reinforcement of the Port of Santa Maria. 

Sacyr Neopul, Sacyr’s company specializing in the electrification and maintenance of railway tracks, has won the €76.3 million contract to maintain the electrification network of the Dublin Area Rapid Train (DART) in Ireland for a period of eight years, extendable for another two. 

The DART network serves the city of Dublin and the Irish capital's coastline and caters to about 20 million passengers per year. 

Sacyr is the maintenance operator of this Irish Rail section since 2008, covering a network of 130 kilometers. In addition, this contract includes the renovation of 80 kilometers of catenaries.

Sacyr Neopul, a Sacyr Engineering and Infrastructure company, is a leader in the maintenance of conventional and high-speed railway infrastructure in Spain, Portugal and Ireland.

Bus stands at the new world class transport hub became operational this week in the first phase of opening. Set to be Ireland’s largest integrated transport hub, the new facility will advance the transformation of public transport with a step change in customer experience.

A date for the commencement of rail services will be confirmed once the rail safety authorization process is complete.  That important and necessary process is continuing and will be finalized as soon as possible to enable train services at the new station to get underway. 

Public Realm work to put a clear focus on allocation of road space to pedestrians, cyclists and public transport around the station will continue in to 2025.

Speaking as he opened Grand Central Station as bus services begin to operate, John O’Dowd said:

“This is truly a new era for public transport here in Belfast and across the north and indeed the island of Ireland.  This new flagship station is iconic as well as historic and it signals our intent in relation to our climate commitments and our focus on transport decarbonization. 

“There is no doubt that this is an impressive facility with the space to cater for up to 20 million customer journeys per year.  At the moment, 16 bus stands are operational and this will increase to 26 and double the number of rail platforms from four to eight.  With 200+ spaces for bicycles, we are focused on encouraging more active travel and providing passenger facilities and services that deliver an enhanced user experience. 

“This is an example of the importance of infrastructure and the transformative changes my department can deliver.  I would like to thank everyone who has worked tirelessly on this project to make this happen and bring the vision of Ireland’s largest integrated transport hub to reality.”

Chris Conway, Translink Group Chief Executive said: “We are excited to be opening this modern major transport interchange this week.  With advanced customer features and integrated networks, it offers huge opportunity to grow public transport driving economic development across the region and play a major part in tacking the climate emergency.  That means a better-connected future for people and communities for generations to come.  I would like to thank the Minister and his Department for the funding and the wider NI Executive for their support in designating this as a Flagship Project.  I would also like to thank the Translink team and the contractors for their commitment and dedication to get this project to this key stage”.

Duane McCreadie, Project Director for Farrans Sacyr JV, said: "The departure of the first bus from Belfast Grand Central Station this weekend has been a proud moment for the FS JV team who have worked hard to deliver this first operational phase on time. There has been a true sense of collaboration on this project since day one and we have worked closely alongside Translink, Babcock and our local supply chain to meet the challenging construction program. This is an impressive building which has been built for the city of Belfast by local people who are invested in our region. We know that it will have wide ranging positive benefits for sustainable travel in Northern Ireland." 

Sacyr UK & Ireland

The United Kingdom is one of the priority markets in Sacyr’s 2024-2027 Strategic Plan. Belfast Grand Central Station joins other successful construction projects such as the Edinburgh Tramway, the University of Ulster in Belfast and the A6 motorway between Dungiven and Drumahoe.
In addition, in July 2022, Sacyr was awarded its first concession in the country, the new Velindre Cancer Center in Wales. Construction for this project started in early Summer 2024. 

In 1H 2024, Sacyr obtained €574 million in operating cash flow, 59% higher than in the same period in 2023, and €657 million in EBITDA (+4.5%).

Operating cash flow is the indicator that best reflects growth and value generation at a company like Sacyr, with 90% of the EBITDA coming from low demand risk P3 assets. In 1H 2024, 87% of the EBITDA reverted to cash flow, as opposed to 57% in the same period of 2023.

On the other hand, net profit reached €52 million, 2.4% higher than in 1H 2023. Revenues stood at €2,119 million.

Recourse net debt decreased to €196 million as of June 30, 2024, €126 million less than in March 2024. Net investment in 1H 2024 was €77 million. 
 

New P3 projects and commissioned projects

In 2024, Sacyr continues to reinforce its P3 activity, and its growth platform with the award of new assets and commissioned projects. 

The company, as part of SIS consortium, signed the operation contract over five sections of the A21 and A5 highways in Turin. This P3 project, calling for a €1,127 million investment, will span 12 years. 

In addition, a consortium that Sacyr is a member of was selected to develop a 34.8 km urban highway in Lima, Peru. The project calls for a €3,131 million investment, with a 30-year concession term. 

A Sacyr Water consortium won the expansion and operation for four years of the Torrevieja desalination plant (Spain) for €90 million. 

As for projects commissioned in 1H 2024, the Ferrocarril Central de Uruguay entered operation, with a €915 million investment, and well as the last section of Pamplona-Cucuta (Colombia) highway, with €592 million in total investment.  

Capital increase

Last May, Sacyr launched a €222 million non-preemptive share capital increase. Proceeds of this capital increase will contribute to fund the company’s investment needs through 2027. 

This operation is expected to aid the company in improving stock liquidity and attain greater financial flexibility to achieve an investment-grade rating, which is one of the goals for the 2024-2027 Strategic Plan.

Voreantis and asset rotation

In the presentation of its 2024-2027 Strategic Plan last May, Sacyr announced the creation of a new investment vehicle that will group most of the company’s P3 assets already in operation.

This new company, called Voreantis, will welcome a stable, minority stake partner with the aim of generating resources to drive P3 growth, highlight asset value and explore opportunities to co-invest. 

Asset value

Sacyr has a 73 P3 asset portfolio, with an average lifecycle of 28 years. These assets are valued at €3,551 million and feature €22 Bn in managed investment.

Since 2022, Sacyr has won eight projects and has commissioned a total of 11. These figures demonstrate the strength of the company’s growth platform.

Shareholder remuneration

In January 2024, Sacyr paid a scrip dividend of €0.062/share or one new share for every 50 old shares. 92% of shareholders chose to be paid in shares. The next scrip dividend is planned for September. 

Evolution by business unit

Sacyr Concesiones.- Sacyr Concesiones obtained €425 million in EBITDA (+6%) thanks to the contribution of projects that entered operation, such as Rutas del Este (Paraguay), Ferrocarril Central (Uruguay) and several sections of Pamplona-Cucuta (Colombia). El Loa Airport (Chile) and the performance of assets like Ruta 78, also in Chile, had a positive impact on results.

Sacyr Concesiones reached financial close of Velindre Cancer Centre (United Kingdom), a cutting-edge cancer treatment facility due to start operating in 2027.

Sacyr Engineering and Infrastructure.- Strategy for this business unit prioritizes profitability over volume. EBITDA was €195 million. 

Backlog increased 21% to €9,143 million, equaling 53 months of activity. 80% of the new backlog comes from Sacyr Concesiones’ projects. 
EBITDA margin of the construction unit was 4.9%.

Sacyr Water.- In its first semester as an independent business unit, Sacyr Water reached €116 million in revenues (+3%) and €24 million in EBITDA (+3%).

This growth is due to projects performing well, especially in Australia.

In this semester, Sacyr Water has won contract awards all over Spain: desalination plants in Torrevieja, Carboneras and Alicante and the Cuevas de Almanzora drinking water treatment plant (DWTP).  
 

We have been selected to build the first residential development based on the Smart City concept in Spain. The real estate investment manager Lagoom Living has awarded us this contract to construct 530 subsidized homes that will be located in University of Malaga sector, near the Teatinos Campus. The project has €68 million budget. 

It is a residential development with affordable rental housing for a period of 75 years and is financed with the EU's Next Generation funds. The estimated rental price for these homes will be around €600.

The projected building has several blocks of flats, from 2 to 6 storeys tall, plus a ground floor, and one or two underground floors for garages and storage rooms. In addition, the plots have a swimming pool, garden areas, a gym and a children's playground.

Smart city 

According to the developer, these homes will be differentiated by the optimization of spaces, the integration of their neighbors and the search for a sense of belonging to a community.

An audit for the renewal of Sacyr Neopul's certification as a Maintenance Responsible Organization took place in late April at the Pegões Maintenance Park in Portugal, in accordance with the European Commission Implementing Regulation (EU) 2019/779. The certification was conducted by Certifer Belgorail.

Sacyr Neopul and the Pegões Offices have obtained this certification, that is valid for a period of five years.

These certifications are of great relevance for Sacyr Neopul as they ensure the maintenance of all railway vehicles and equipment, providing significant competitive advantages.

Respective Maintenance Responsible Entity and Maintenance Functions Certificates are attached.
 

Today, Sacyr’s Annual General Meeting (AGM) approved all the items on the meeting’s agenda, which provide a significant boost to the company’s corporate governance model.

Shareholders approved the appointment of Susana del Castillo as a new independent director in Juan María Aguirre’s stead after his resignation. After del Castillo’s appointment, the number of women directors in the board increases to five, making up 36% of the total. The proportion of independent directors in the company’s top decision-making body remains at 50%.

The AGM also approved the renewal for a new term of Francisco Javier Adroher Biosca as proprietary director and Luis Javier Cortés as external director, and the appointment of Tomás Fuertes Fernández as proprietary director.

2024-2027 Strategic Plan 

In his address to the shareholders, Manuel Manrique, Sacyr Chairman and CEO, outlined the main key points of the 2024-2027 Strategic Plan. “This is our first step towards becoming the first transportation, health and water infrastructure developer in 2033”, Manrique highlighted. 

At the AGM, the Chairman explained that Sacyr’s focus on P3 projects provides “increasing value” to the company, with assets currently valued at €3.6 Bn and estimated to be worth €5.1 Bn by 2027. Projections for 2033 place the company’s asset valuation in the €9-10 Bn range.

“We’ve demonstrated our capacity to commission P3 projects and bring them to operation with the 11 projects we’ve delivered and the eight P3 contract awards we’ve won in the past two years”, Manrique added. 

In his address, Manuel Manrique, highlighted four key strengths unique to Sacyr that serve the company in meeting its goals: a vertically integrated business model; a platform capable of detecting, designing and winning projects with an outstanding success rate of three to four contracts per year; a highly committed and qualified team of professionals; and a sustainable management system able to win stakeholders’ trust.

These strengths, the Chairman defended, will help Sacyr achieve an invested equity in P3 assets of €4.5-5 Bn in 2033, compared to the €1.6 Bn by 2023 financial close. Over the next 10 years, Sacyr will manage over €60 Bn in investment.

The Chairman also explained that Sacyr will create a new investment vehicle called Voreantis and give entry to a partner with a minority stake. The aim with Voreantis is to accelerate growth and acquire more resources to magnify Sacyr’s capacity to take on new projects, bid on larger-scale assets and co-invest. “Voreantis will be a long-term, low-risk asset management company”, Manrique pointed out. 

Manrique underlined the angle to promote Sacyr Water, which will consolidate itself in this plan as a cutting-edge P3 management and operation company with a fast growth potential. 

P3 projects: present and future of Sacyr

In his intervention, the Sacyr Chairman noted that the positive outcome of the company’s P3-driven strategy is self-evident in the “excellent 2023 economic and financial results”.

Last year, Sacyr’s EBITDA grew by 7% to €1,523 million, boasting record profitability rates of 33%, 430 b.p. more than in 2022. Operating cash flow soared to €848 million, 20% higher than in 2022.

“Sacyr’s present and future in P3s is clearly proven with two milestones we reached in 2023: the P3 contract of a section of the I-10 in Louisiana (USA), and the full opening to traffic of our largest asset to date, the Pedemontana-Veneta highway in Italy”, he stressed. 

Shareholder remuneration 

The AGM authorized two capital increases through profits or reserves, for a maximum nominal amount of €20 million each, to pay out two scrip dividends with a dividend yield rate of circa 5%.

The Chairman explained that Sacyr’s growth comes with updates in the Shareholder remuneration policy, that now includes at least €225 million to be paid out in cash in the 2024-2027 period.

Sustainability

The chairman emphasized that Sacyr presents a solid sustainability strategy integrated in its business that is what made it possible to meet the objectives in the 2021-2025 Sustainability Plan in terms of reducing polluting emissions, environmental investments, recycled or reused materials, reducing workplace accidents and diversity.

“We now embark on a new 2024-2027 Sustainability Plan, with updated, more ambitious objectives across four action lines: Planet, Team, Prosperity and Governance”, Manrique said.
 

SIS consortium, comprising Fininc and Sacyr, has signed the contract to operate and manage the Italian A21 Turin-Alexandria-Piacenza and A5 Turin-Ivrea-Quincinetto highways, the connecting highway A4/A5 Ivrea-Santhià and Turin’s Beltway Highways System (Sistema Autostradale Tangenziale Torinese, SATT) and the Turin-Pinerolo stretch. These roads, already in operation, add up to 320 km in total.

This contract, awarded by the Italian Ministry for Infrastructures and Transport, is expected to generate traffic revenues over €2.9 billion over the 12-year concession term. This Design Build contract includes improvement works on the road sections with an estimate investment of €800 million.  

These road networks are considered strategic for connectivity in Northern Italy, as they connect Turin to other large cities in one of the country’s most industrialized areas. 

Overall, these road infrastructures have an estimated average daily traffic of close to 33,000 vehicles. 

Growth in Italy

Italy is a strategic home market for Sacyr. Through SIS, the group operates four P3 road projects: the Pedemontana-Veneta, the A3 Naples-Pompei-Salerno, the Via del Mare and the just signed A-21.

Sacyr Concesiones is an industry benchmark in infrastructure development and is ranked 3rd in PWF’s World’s Largest Transportation Developers ranking.

The company currently manages an international and diversified project portfolio, valued at more than €3,250 million

In Q1 2024, Sacyr reached €339 million in EBITDA, 15% higher than in the same period the previous year, and €221 million (+28%) in operating cash flow.  

Sacyr’s successful transformation into a P3 firm had its reflection in the first three months of 2024 with a steep increase in profitability rates: EBITDA margin soared to a record 34.1%, 590 b.p. more than in first quarter 2023. 

The statements reflect the company’s ability to continually create value thanks to its focus on P3 assets, which now make up 90.4% of the company’s EBITDA. 

Similarly, net profit reached €25 million, 6% more than in Q1 2023. Revenues were €994 million. 

Recourse net debt stood at €322 million at Q1 close, in which net investment was €38 million. 

New P3 contracts and project deliveries

In Q1 2024, Sacyr continued to strengthen its P3 activity and its growth platform with new assets and project deliveries.

Sacyr, as SIS consortium, has signed the operation and management contract over five sections of the A-21 and A-5 highways in the Turin area. This P3 project, requiring a €1.1 Bn investment, has an operation term of 12 years. 

In addition, a consortium of which Sacyr is a member was selected to develop a 34.8 km urban highway in Lima, Peru. This project calls for a €3.1 Bn investment and will span 30 years. 

In recent weeks, the company reached financial close of the new Velindre Cancer Centre P3 project (Wales, United Kingdom), a state-of-the-art medical facility that will start construction later this year and be fully operational in April 2027. 

In 2024, Sacyr delivered the Ferrocarril Central de Uruguay project, with a €900 million investment, and will shortly bring to operation the last stretch of Pamplona-Cúcuta highway (Colombia), with a total investment of more than €590 million. 

Asset valuation

Sacyr’s continual value creation-driven business model is reflective in Sacyr Concesiones’ asset valuation, which, as of December 2023, was close to €3.3 Bn, €443 million higher than the valuation performed for the 2021 Investor Day.

Sacyr has 57 P3 infrastructure assets in its portfolio, with an average lifecycle of 28 years. The company had very positive performance over the past months with new contract awards: the aforementioned Peripheral Ring Road in Peru, a section of the I-10 in the United States, the Vía del Mare and A-21 highways in Italy, and El Loa Airport in Chile.

As a result, Sacyr has consolidated its position, according to PWF magazine, as the world’s third transportation P3 projects developer, and one of the largest P3 companies in the world.

Enhanced shareholder remuneration

In January 2024, Sacyr paid out a scrip dividend of €0.062 per share or one new share per every 50 old ones. 92% of shareholders chose to cash out their dividends in shares. 

Evolution by activity 

Concesiones. - Sacyr Concesiones obtained €217 million in EBITDA (+16%), thanks to the contribution of highway projects that were brought to operation, such as Rutas del Este (Paraguay), Ferrocarril Central (Uruguay) and several sections of Pamplona-Cúcuta (Colombia).  

Sacyr continues to demonstrate its capability to deliver new P3 assets. Since 2022, ten assets have become operational, and Pamplona-Cúcuta highway (Colombia) will fully enter operation in upcoming days.

Engineering and Infrastructure.– The strategy of Sacyr’s construction unit prioritizes profitability over volume, with EBITDA increasing by 10% to €101 million. The EBITDA purely linked to the construction activity, not accounting the Pedemontana and A3 projects, grew by 2%.

EBITDA margin for Sacyr’s construction activity stood at 4.9%, improving on the 4.3% in Q1 2023. 

Backlog for this activity grew 21% to €9.1 Bn. 62% of this comes from Sacyr Concesiones projects.

Water.– Water is an activity with great growth potential for Sacyr due to the necessity to invest in climate change and drought mitigation efforts. In its first quarter as a separate activity, the Water unit reached revenues of €57 and a €12 million EBITDA.

Sacyr Water is one of the world’s largest desalinated water producers, supplying 10 million people globally. 

In this quarter, Sacyr Water was awarded the contract to operate the Alicante desalination plant in Spain and started the operation and maintenance of the Carboneras desalination plant in Almeria, Spain. 
 

Hydro has chosen Sacyr Engineering and Infrastructure, through its subsidiary Sacyr Proyecta, to execute the EPCM (Engineering, Procurement & Construction Management) contract for a new aluminum recycling plant in Torija (Guadalajara).

The new facility will have an annual production capacity of 120,000 tonnes of recycled aluminum and will be capable of treating up to 70,000 tonnes of post-consumer scrap per year, enabling the supply of low-emission recycled products to key European sectors such as transport, automotive, building, construction, renewable energy installations and consumer durables markets. Production is expected to begin in 2026.

With the construction of this state-of-the-art aluminum recycling plant, Hydro, together with its suppliers, are contributing to the decarbonization of the industry, generating low-carbon aluminum, which is essential for achieving the European green transition. The project requires an investment of €180 million.

"This contract is a reflection of the trust that Hydro places in Sacyr Proyecta after having collaborated in previous phases of the project. We take pride in helping our customer achieve their demand goals for new responsibly produced materials with a low carbon footprint, such as recycled aluminum from this new plant. We are very aware of our role and seek to contribute to a greener and more sustainable future with our interventions," says Raúl López Perdiguero, General Manager of Sacyr Proyecta.

For Miguel Ferrón, Project Manager at Sacyr Proyecta, "this project is a great challenge for us due to its demanding deadlines, especially those related to civil construction".

About Sacyr Proyecta

Sacyr Proyecta has more than 350 professionals and specializes in energy projects, with a focus on the business areas of oil and gas, energy, chemicals and petrochemicals, LNG, and renewable hydrogen.

It is currently developing, among other projects, the new LNG terminal for HEH in Stade (Germany), the expansion of the LNG facilities of Fluxys in Zeebrugge (Belgium); a gas compressor station in Egypt for GASCO; a Repsol Polyethylene plant in Puertollano (Spain) and a Repsol Advanced Biofuels plants in Spain.

Sacyr fights climate change through decarbonization and adaptation as fundamental pillars of its Climate Change Strategy, with the commitment to reduce absolute greenhouse gas (GHG) emissions and achieve carbon neutrality by 2050.

2023 was the year when Sacyr completed its strategic shift towards infrastructure P3 management with the incorporation of new assets into its portfolio and the sale of its two main services units: Valoriza Servicios Medioambientales and Sacyr Facilities. 

The 2023 balance sheet is reflective of the company’s continual value creation strategy thanks to said focus on P3 assets, currently making up 93% of the group’s EBITDA. 

The EBITDA increased 7% in 2023 to €1.5 billion, while profitability (measured as EBITDA margin), grew in 430 basis points to a record 33%.  

Operating cash flow skyrocketed by 20% and stood at €848 million. 

Net profit reached €153 million, 39% higher than the €111 million obtained in 2022. Turnover was €4.6 million.

P3 asset valuation: €3.3 billion 

The sustained value creation strategy in Sacyr’s business model is reflected on Sacyr Concesiones’ asset valuation. This figure was €3.3 billion at 2023 year-close, €443 million higher than in the valuation performed for the 2021 Investor Day. 

After the volcano erupted, the lava devastated several towns in the southwest of the island, destroying roads and isolating the the Aridane Valley residents. One of the affected roads was the San Simón-Tajuya connection, part of the LP-2, a 33 km route that we first built in the south of the island. In the eruption, a 3-km section of this road was buried with a flow of up to 50 meters.

At the request of the Government of the Canary Islands, we got to work to reconnect the affected towns as soon as possible by building an emergency road that detoured from the main route affected by the lava.

The new road is 2.2 km long with one lane in each direction and is built adjacent to the lava flow while the volcano was erupting.

Javier Donado, from the project production team, tells us more details about this key project for the island.

The objective of the Cognitive Hospital project file number: 59/178676.9/23 is to develop a smart platform based on innovative technologies such as AI, advanced algorithms, BIM, Big Data, etc. Development and implementation of this project will optimize design, build and operation and maintenance processes, improve energy efficiency and air quality in our hospital assets, as well as reduce the environmental footprint linked to our infrastructures in both the construction and operation stages.

Sacyr Concesiones leads this project along with eight other companies and the participation of Sacyr Engineering and Infrastructures and corporate services.

Organizations involved are Sener Mobility, Fracttal, 4Digital, Open Ingenius, Áptica, Tecnalia’s tech centers, UPM and CSIC.

This is an ambitious project with a €6.1 million budget and €2.9 million in aid funds from the Community of Madrid. This funding is part of the 2023 call to promote public-private cooperation in R&D&I with PPP projects with a traction effect. They are co-financed by the European Regional Development Fund within the ERDF operational program of the Community of Madrid for the 2021-2027 period.

Implementation at the Hospital del Henares 

Its implementation will take place at the Hospital del Henares, managed by Sacyr Concesiones, with a three-year execution deadline (2024-2027).

Antonio Ramírez, Innovation Manager at Sacyr Concesiones said: "Through the application of innovative technologies, we can achieve more efficient hospital management."

All of this will bring significant benefits to all stakeholders involved in the management and operation of the hospital, as well as for patients and clients.

Ana Esteban, Innovation Manager at Sacyr Ingeniería e Infraestructuras, highlights that the Cognitive Hospital will "introduce innovation in the center's operation and maintenance environments and improve the patient's experience."

This project represents a new milestone in public-private partnerships, a cornerstone of Sacyr's business model, maximizing the value offered to our client beyond contractual requirements and bringing together the best internal and external talent.

Sacyr has been recognized for leadership in corporate transparency and performance on climate change and water security by global environmental non-profit CDP, securing a place on its annual ‘A List’. 

Based on data reported through CDP’s 2023 Climate Change and Water Security questionnaires, Sacyr is one of a small number of companies that achieved a double 
‘A’, out of over 21,000 companies scored. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. 

In 2023, over 740 financial institutions with over US$136 trillion in assets requested companies to disclose data on environmental impacts, risks and opportunities through CDP’s platform. A record-breaking 23,000 companies responded.

A detailed and independent methodology is used by CDP to assess these companies, 
allocating a score of A to D- based on the comprehensiveness of disclosure, awareness and management of environmental risks and demonstration of best practices associated with environmental leadership, such as setting ambitious and meaningful targets. Those that don’t disclose or provide insufficient information are scored an F.

Fernando Lozano, Corporate General Manager at Sacyr said "being included in CDP’s A List for the second year in a row is a result of our team’s commitment to fulfill our goals to reduce our CO2 emissions, consuming renewable energy and applying good practices throughout the entire value chain. This year, we obtained a double A score for the first time thanks to our meticulous and responsible water resource management”. 

Sacyr is committed to a continuous improvement strategy in water resource management and has a strategic goal to reduce its own water consumption in all activities by at least 10% before 2025, both in high and low water-stressed areas. In addition, in 2023, Sacyr renewed its water footprint verification certificate covering all its global activities. Thanks to water treatment and production activities, Sacyr has a highly positive impact, improving water quality and providing freshwater in areas with very high water stress.

In the fight against climate change, Sacyr works on decarbonization and adaptation as fundamental pillars of its Climate Change Strategy. It is committed to reducing its Scope 1 and 2 greenhouse gas (GHG) emissions by 42%, and Scope 3 emissions by 25% by 2030, aiming for carbon neutrality before 2050. These objectives are validated through the SBTi and are aligned with limiting the increase in global temperature to 1.5°C.

Sherry Madera, CEO of CDP, said: “Congratulations to all the companies on CDP’s A List, and those companies that started or accelerated their journey towards environmental transparency in 2023 – we saw a 24% increase of disclosures last year and that trajectory is to be applauded. It is only by laying the groundwork of disclosure that companies can show they are serious about the vital part they play in securing a net-zero, nature-positive future. 

Earning a place on the A List is about more than the score. It’s an indication of high quality, complete data that equips companies with a holistic view of their environmental impact, serves as a baseline for transition plans and – crucially – enables them to follow through on their ambitions. As we move deeper into the Decade of Action, and as CDP continually raises the bar for what represents environmental leadership, the work of A List companies is never complete. We look forward to seeing all companies turn their commitments into further and more meaningful and effective action.”

The full list of companies that made this year’s CDP A List is available here: 
https://www.cdp.net/en/companies/companies-scores 

We are in the final stretch of the construction of the Almudévar reservoir (Huesca, Spain), which will contribute flow to the irrigation system of Alto Aragón.

Currently, the professionals at Sacyr Engineering and Infrastructure are working on the automation of the monitoring system, electrical connections, plantations, archaeological excavations, construction of a hermitage, urbanization, and roadworks. After the completion of the project, the commissioning phase will begin, involving the filling of the reservoir.

More than 120 people have worked daily in the joint venture led by Sacyr Engineering and Infrastructure, along with Lantania, Vías y Construcciones, and Sogeosa. The project's budget is 113 million euros.

Disassembly of a medieval wall

The operation has already started disassembling the medieval wall of the old hermitage of Santo Domingo, under the supervision of Cultural Heritage. The wall will be relocated to a hill to be reassembled in a new hermitage that will be built safe from flooding. Meanwhile, archaeological excavations are underway at the Morrón del Villar site.

The site consists of a core of defensive structures around a tower of Islamic origin, a Romanesque church built from the 12th century onwards, and, around this complex, a series of medieval Christian houses that were likely abandoned due to demographic crises in the 14th century.

Capacity of 169 cubic hectometers

The Almudévar reservoir will have a capacity of 169.7 cubic hectometers and will receive the surpluses from the Gállego and Cinca rivers. The reservoir is closed with two dams, for which more than 7.5 million cubic meters of materials, mostly argillites, have been used. In total, it will flood more than 1,152 hectares.

The conveyance channel has a length of 1,300 meters, transporting water to a reversible station equipped with six pumps, plus a seventh in reserve. The station's design flow is 24 m³/s, conveyed to the reservoir through two parallel pipes of 2,500 mm in diameter. Additionally, the station will have two 5MW turbines to generate electrical energy from the released water.
 

The Spanish Ministry for the Ecological Transition and Demographic Challenge has awarded Sacyr with the ‘Calculo-Reduzco-Compenso’ triple badge for the third year in a row. Companies can obtain this badge for calculating and tracking their carbon footprint for a four year-period minimum, having a carbon emission reduction plan in place, effectuating their carbon emission reduction goals and participating in a CO2 absorbtion project.

The Spanish Office for Climate Change manages the carbon footprint registration forms and companies can subscribe it voluntarily. 

Sacyr has reduced its average emission intensity in the 2020-2022 period by 74% compared to the 2019-2021 period for Scope 1 and 2 emissions. This reduction is compliant with the company’s firm commitment to carbon footprint goals in the Sacyr Sustainable Action Plan 2021-2025. This plan defines Sacyr’s goals referring to climate change fighting, environmental and social protection in its influence area. 

Sacyr has compensated part of its 2022 carbon emissions through a CO2 absorption project consisting of reforesting an area in Villanueva de Abajo (Palencia), which will allow to regenerate degraded or natural spaces which have lost their forest cover. This project also contributes to reducing erosion, conserving biodiversity and job creation in the area. 

The scope of the ‘Calculo-Reduzco-Compenso’ badge encompasses all the activities of Sacyr and its subsidiary companies in Spain. Sacyr continues to work to meet its most ambitious climate commitment goal: being carbon neutral by 2050.

Climate change strategy

Sacyr’s Climate Change strategy includes the commitment to have reduced its absolute greenhouse gas (GHG) Scope 1 and 2 emissions by 42% and Scope 3 emissions by 25% by 2030. 

These goals are aligned with the goal of limiting global warming to 1.5 ºC above pre-industrial levels. The Decarbonization plan guides Sacyr’s actions with over 300 initiatives within its business units’ activities in all locations. 

Since 2021, JV Farrans Sacyr, has been developing the construction works of the Belfast Grand Central Station, set to replace the existing Europa Buscentre and the Great Victoria Street train station. 

This infrastructure is expected to cater for around 20 million passenger journeys a year.

Following the completion of the structure in July, the Farrans-Sacyr JV team has achieved notable progress:

• All eight tracks are installed, with platform fit-out well underway.
• The station terrazzo flooring is 75% complete, and the ceiling support system is 90% in place.
• Glass installation is at 85% complete, incorporating two advanced rain protection systems, with final panels currently being fitted in select areas.
• Work is currently underway to facilitate the final connections of public services.

Looking ahead to Q1 2024, planned enhancements include the installation of the final fins of the roof, the five lifts that the building will benefit from, and the internal fit final finishes, including doors, toilet fit outs and floor finishes.

Works are currently underway to allow the final utility connections to take place, and once complete the site wide external finishes will commence, including the development of footpaths and the road network.

Social Value and Community benefits

Commissioned by Translink, Northern Ireland's public transport service operator, this project encompasses a range of social and collaborative initiatives. Our commitment to social value is a key driver in this contract, we aim to generate enduring social value for the community. 

Commmunity benefits initiatives include:

• 29 individuals from under-represented groups have benefited from the project.
• Engaged with 13 local Social Enterprises on the project. 
• 58 education attainment events for 2,500 people. 
• 65 Environmental Awareness initiatives on the project.
• 26 health and well-being initiatives looking after our staff and workforce.
• The project has raised over £20,000 for charity, through various events, from coffee mornings to mountain hikes.

These initiatives have contributed to the project receiving the highest score in the Considerate Constructors Scheme award last October, reflecting our excellence in community relations management, environmental care, and employee care.

For more information about Belfast Grand Central Station, visit the project page.