33% profit increase in the first quarter

The Mota-Engil Group recorded a net increase of 33% to 7.3 million Euros in the 1st. quarter of 2014 with an order book now standing at 3.9 billion Euros, of which 81% derives from markets other than Portugal.

Turnover reached in the first quarter was 488 million Euros, an increase of 3.5% in comparison with the same period last year, derived largely from Africa and Latin America which grew 33.2% and 17.6% respectively.

The level of operating profit for the Group continued the growth trend with an EBITDA which grew 21.7% to 75.7 million Euros with an EBIT of close to 33% with margins of 15.5% and 10% respectively.

The regions of Africa and Latin America continued to be the driving force in the Group’s development, representing 68% of the total business of the Group with the tendency for growth expected to be maintained in line with the expectations set out in the Strategic Plan Ambição 2.0 along with the commercial dynamism witnessed over recent quarters.

In Africa, which represents some 47% of the Group’s business, the growth pattern witnessed over recent years continued with an increase of 33.2% with a turnover of 231 million Euros and an EBITDA of 50.3 million Euros, representing an increase of 52% in comparison with the same period last year. This achievement is due in large part to the Nacala railway corridor project and to the significant increase in business in Mozambique as well as other new markets in the region with Uganda as the most recent instance.

In Europe the volume of business reached 177 million Euros with a drop of 20% due to the fall in Engineering and Construction business, influenced by the reduced public and private investment taking place in the region. The region was able to maintain its EBITDA margin compared with the same period last year due to its resilience and capacity for generating operating efficiency which is of note.

In Latin America the first quarter was notable for the maintenance of the growth trend with business activity consolidated in Mexico and Brazil, while Colombia began a process of tendering for new projects. For the first time, the region achieved a turnover in excess of 100 million Euros in a first quarter and an EBITDA of 8.2 million Euros. Growth in the size of the order book and increased diversification of business is evidence of the region’s increasing commercial strength.

The Group continues to exercise tight control of its debt having brought down indebtedness to 37 million Euros while maintaining the level of debt due in more than 12 months above 70% which ensures adequate maturity.

The Group continues with a strong operating performance and therefore strengthens its balance sheet each quarter, creating value, seeking increased profitability and controlled financial management.