Spain-based infrastructure operator and municipal services provider Ferrovial SA reported a net loss in the first quarter of 2018 and lower revenues than the year-ago quarter.
The company posted a net loss of €161 million for the quarter, compared with net income of €72 million a year ago.
Ferrovial said its results for the quarter were negatively affected by a €237 million provision for possible losses on a contract with the Birmingham City Council; without that charge, its profit was up 3.3% from the year-ago quarter to €76 million.
Revenues were down 6.3% year over year to €2.70 billion because of weaker services results in the U.K. and Australia, along with the deconsolidation of Portuguese toll roads.
EBITDA came in at negative €75 million, down 132.9% from €227 million in the prior-year quarter. Excluding the provision for loan losses, EBITDA was €162 million for the quarter.
In the company's services business, EBITDA fell by 270.1% from the year-ago quarter; the construction business posted a 64.4% year-over-year decrease in EBITDA; and toll roads EBITDA was down by 19.7%. The airports business reported a 10.4% year-over-year increase in EBITDA.
The company said its main infrastructure assets, including Canadian toll road 407 ETR, Managed Lanes and Heathrow Airports, turned in strong performances during the quarter.
Contributions from Ferrovial's equity-accounted consolidated assets increased to €79 million in the quarter from €48 million in the prior-year quarter on the strength of an improved Heathrow contribution due to a positive mark-to-market hedge performance and positive performance of toll roads.
