VKT (Vehicle kilometers travelled)
In 2022, VKTs increased by +30.5% vs 2021, after the removal of all COVID-19 related restrictions by the government of the Province of Ontario in 1Q 2022, although a slow economic reopening followed throughout the year. In addition, the 4Q traffic performance was negatively impacted by the end of some construction works in the corridor, as well as, higher seasonality impact due to the increase of work flexibility, as well as, the calendar effect (-0.4%).
Revenues were up by +29.7% in 2022, reaching CAD1,327mn.
OPEX (+14.8%) was higher in 2022, mainly on the back of higher traffic in the toll road. The main changes in the opex were higher customer operations costs resulting from a higher provision for lifetime expected credit loss, higher billing costs and collection costs, coupled with higher general and administration expenses and higher operations expenses. This was offset by lower system operations expenses resulting from lower consulting and licensing costs, mainly related to the Company’s enterprise resource planning and customer relationship management project due to higher capitalization of costs in 2022.
EBITDA +32.6%, as a result of higher traffic volumes. EBITDA margin was 85.8% vs 84.0% in 2021.
Dividends: In 2022, dividends paid to shareholders amounted to CAD750mn compared to CAD600mn in 2021. The dividends distributed to Ferrovial were EUR237mn in 2022 (EUR164mn in 2021).
Net debt at end of December: CAD9,050mn (average cost of 4.05%). 51% of debt matures in more than 15 years’ time. Upcoming bond maturity dates are CAD21mn in 2023, CAD272mn in 2024 and CAD373mn in 2025.
Toll rates remain unchanged since February 2020.
The COVID-19 pandemic is considered a Force Majeure event under the provisions of the Concession and Ground Lease Agreement, and therefore the 407 ETR is not subject to Schedule 22 payments for 2020 and until the end of the Force Majeure event.
The 407 ETR and the Province agreed that the Force Majeure event terminates when traffic in 407 ETR and adjacent roads reach pre- pandemic levels (measured as the average of 2017 to 2019), or when there is an increase in toll rates or user charges.
Upon the termination of the Force Majeure event, the 407 ETR will be subject to a Schedule 22 payment, if applicable, commencing the subsequent year.
In 2022, the traffic in NTE & LBJ continued to improve, while NTE35W traffic was impacted by the construction works of the NTE 3C. NTE & NTE35W traffic was above pre-pandemic levels (2019), although LBJ traffic is still below, mainly due to the construction works developed in the area. Traffic performance was impacted during 1Q by Omicron spike and severe weather, but it has recovered sequentially since then, showing in September a strong recovery after school’s opening. All MLs posted double digit avg revenue per transaction growth vs 2021 driven by toll increases, the soft cap linked to inflation and better mix of vehicles with higher exposure to heavy vehicles (NTE35W).
In 2022, traffic increased by +9.2% vs 2021. A strong recovery was seen in March after traffic had been impacted by Omicron spike and severe winter storms in January and February. During the summer, traffic was impacted by seasonality showing a strong recovery in September following schools’ reopening. 4Q was impacted by the heavy rainfall in October. Additionally, NTE registered more mandatory mode events when compared to pre- pandemic levels.
The average revenue per transaction reached USD6.7 in 2022 vs. USD5.6 in 2021 (+18.8%) positively impacted by higher toll rates.
Dividends: In 2022, NTE distributed two regular dividends in June and December, for a total of USD155mn (EUR92mn FER’s share). In 2021, NTE distributed USD100mn dividend (EUR53mn FER’s share).
NTE net debt reached USD1,223mn in December 2022 (USD1,223mn in December 2021), at an average cost of 4.12%.
In 2022, traffic increased by +7.3% vs. 2021, but is still below 2019 levels. Traffic was primarily impacted by Omicron and construction works in the area, along with the bad weather early in the year and the work-from-home.
The average revenue per transaction reached USD4.0 in 2022 vs. USD3.6 in 2021 (+11.8%) positively impacted by higher toll rates.
Dividends: In 2022
LBJ distributed two regular dividends in June and December, a total of USD59mn (EUR31mn FER’s share). In 2021, LBJ distributed USD360mn dividends (EUR167mn FER’s share) following the issuance of USD609mn secured notes in 2021.
LBJ net debt was USD2,020mn in December 2022 (USD1,998mn in December 2021), at an average cost of 4.03%.
In 2022, NTE35W traffic decreased by -2.2% vs 2021, due to the impact from construction works of the NTE 3C. Although the toll road has shown higher traffic figures than pre-COVID levels (+7.1% vs 2019) given the positive effects of ramp-up & heavy vehicles resilience, partially offset by some adverse weather events during the year.
Average revenue per transaction was USD4.8 in 2022, vs. USD4.0 in 2021 (+20.7%), positively impacted by higher toll rates and higher proportion of heavy vehicles.
NTE 35W net debt reached USD1,233mn in December 2022 (USD1,055mn in December 2021), at an average cost of 4.84%, including NTE 3C.
In December 2022, Ferrovial acquired an additional 7.135% stake in I-77, from Aberdeen, for EUR104mn (USD109mn). The deal raises Ferrovial’s stake in I-77 to 72.24%.
In 2022, traffic increased by +18.7% vs 2021, showing a strong recovery after traffic had been impacted by Omicron spike in 1Q. In September, traffic rebounded after summer months performance due to return to school. 4Q continued up from September’s recovery with October recording the highest weekly traffic since the opening in November 2019. Additionally, traffic was impacted in November by Hurricane Nicole and a helicopter crash that led to 24 hours of road closure.
The average revenue per transaction was USD1.8 in 2022 vs. USD1.2 in 2021 (+43.1%).
I-77 net debt was USD257mn in December 2022 (USD263mn in December 2021), at an average cost of 3.65%.
IRB’s financial year starts on April 1st and ends on March 31st of the next year. Full year 2022 information is built adding up the 4Q of the last year and the 9M of its new financial year. Consequently, Ferrovial’s financial statements includes the company’s last 12 months contribution (i.e. January to December 2022). IRB’s equity contribution to Ferrovial’s income statement has had a positive impact of EUR22mn.
IRB showed a solid performance with double digit traffic growth vs. 2021 in its main assets, already above pre-COVID levels: Mumbai- Pune +16.5% and Ahmedabad-Vadodara+10.9%.
In 2022, IRB was able to reach significant milestones within its financing activity following the refinancing processes achieved, such as Mumbai-Pune toll road project. In addition, IRB increased its corporate rating from A+ to AA- by India Ratings (Fitch) in 2022, which was been reaffirmed in February 2023.
|(EUR million)||INVESTED CAPITAL||PENDING COMMITTED CAPITAL||NET DEBT 100%||CINTRA SHARE|
|Ruta del Cacao||-54||-3||-220||30.0%|
*Capital invested & committed includes the acquisition of the additional 5.704% stake (EUR162mn).
** Capital invested & committed refers to Seg. 3C. Net debt 100%: includes all 3 seg.
Ferrovial keeps focused on the USA as main market, and the Group continues to pay close attention to private initiatives:
Apart from the USA, Cintra is active in other geographies where selective investments could be pursued.