Activity Report

Construction

The OHL Group has been active in construction for over one hundred years. Currently, OHL Construcción is an international leader in the construction of civil works, infrastructure and unique buildings.

BUSINESS PERFORMANCE IN 2015
MILESTONES
Tunnel of the Water Siphon project, under New York Bay.

Construction is the main activity by sales of the Engineering and Construction business area and in the OHL Group, with 85.5% and 65.0% of total sales, respectively. In 2015 sales reached 3.248 million euros, an increase of 16.5%. This increase was due to the good performance of the international activity, especially in the US, for new projects in Texas, California, New York and Florida, as well as increased activity in Mexico and accelerating the pace of implementation of work in the Mecca-Medina project, in Saudi Arabia. In the development of the activity of this division we would, also, highlight the significant improvement in working capital management and the higher conversion rate of EBITDA into cash, with a generation of organic net cash of 46.4 million euros. The short-term backlog at year-end amounted to 6,586.5 million euros, and equals 24.3 months of sales, ensuring the growth of this activity. It consists of contracts of high technical quality, mostly linked to niche specialization in which OHL is particularly strong, such as roads, railways and hospitals. Backlog presents a balanced profile, both geographically and by size of work, with 82.3% in the home markets and only 21% in works of more than 300 million euros.

Main projects awarded in 2015*:

During 2015, OHL Construcción achieved sales worth 3.2 billion euros, with 16.5% growth, obtaining an EBITDA figure of 150 million euros
  • Oslo-SKI High-speed line, Norway, for 261.7 million euros.
  • Queens Midtown Tunnel Rehabilitation in New York, for 213.1 million.
  • Elevated Viaduct Puebla-Mexico, for 171.8 million.
  • Rehabilitation New York Cortlandt Street subway station, 91.1 million.
  • CP5 and CP35 Infrastructure Optimization, USA, for 66.5 million.
  • Medellin River Parks, Industriales station, Colombia, for 58.6 million.
  • LAV platform Vitoria-San Sebastian, Spain, for 56.8 million.
  • I-90 Jane Addams Tollway-Oakton Manheim, Illinois, USA, for 52.9 million.
  • Toledo University Hospital, Spain, for 52.3 million.
  • Will County 159th St-Will Cook to Ravina, Illinois, USA, for 51.4 million.

(*) Budget assigned to OHL.

 

North America

Award 2015 Major Infrastructure Project of the Year, awarded by The Tunnelling Association of Canada, for the project The Toronto-York Spadina Subway Extension Twin Tunnels
Construction work on the bridge over the BNSF railway at Av. Magnolia in the city of Riverside, California.

OHL has very significantly expanded its construction activity in the United States, in 2005, in the state of Florida. Now also operates in New York, Connecticut, Washington DC, Maryland, Virginia, Illinois, California, Texas and, since 2015, Massachusetts. The New York subsidiary Judlau has been awarded significant projects in 2015. This includes the Queens Midtown Tunnel works, for 213 million euro, and the design and construction of improvements in energy, communication and signaling the Metro-North Hudson Line, a project of 170 million euro. Both structures were damaged by Hurricane Sandy. Also, it won the contract for the second phase of rehabilitation of the Cortlandt Street subway station, at the World Trade Center. In Florida, Community Asphalt has been awarded, for 100 million euro, the expansion of the SR-821 between Bird Road and north of SR-836, one of the highest traffic areas in Miami. It has also won a 36 million euros contract in the All Aboard Florida Railway. We would highlight the progress in Illinois, with two major awards to OHL Construcción in 2015, the new contracts for more than 190 million euros are in Texas and represent our entry into the state of Massachusetts. In Canada, we are continuing the work of the Hospital Center at the University of Montreal (CHUM), in which we have begun planning for the second phase, and the Toronto subway.

Latin America

Construction work on the Puebla Elevated Viaduct, in Mexico.

OHL Construcción maintains a robust backlog in Mexico. Currently, the division is building the first tranche of Mexico-Toluca intercity railway, two contracts on line 3 of the Guadalajara light rail system and the elevated viaduct on the Mexico-Puebla, a 7 km highway on which the group holds the concession. In Colombia, the country’s president, Juan Manuel Santos Calderon, inaugurated on 20 October the stretch of 4.3 km of the Medellin tramway built by OHL. Also, the construction of the El Quimbo hydroelectric project and phase 1.1 of the road system of the Parks Rio Medellin project were completed, and the project to improve Malaga-Los Curos highway was awarded for 30 million euros. OHL has consolidated its position in Peru as a road builder. We have completed 261 km of the 285 of the second carriageway of the Red Vial 4, a highway concession held by the Group, and has been awarded a stretch of 20 km of the Andahuaylas-Huancabamba road, for 30 million, and projects in the mining sector for 21 million. In Chile, OHL has completed three major projects in 2015: Chacrillas reservoir, the aircraft parking apron Santiago Airport and Route T-85. Projects still under construction include Gustavo Fricke Hospital and works of shafts and galleries in sections 5 and 6 of the Santiago Metro Line 3. We have also started the last stretch of Route 60 international road, of 24 km, and the beginning of works is expected in Container Terminal 2 in the Port of Valparaiso.

Spain

Ricobayo Viaduct over the Esla River.

In 2015, OHL has achieved in Spain, among others, the following awards: University Hospital of Toledo, Atxondo-Abadiño section of the Vitoria-Bilbao-San Sebastian high speed line, new hotels Hard Rock (Tenerife) and Playa Real (Ibiza), building rehabilitation of Castellana 81 in Madrid, former headquarters of the bank BBVA and expansion of the Canal of Navarra. Outstanding projects in progress include the El Espiño tunnel, in Orense, for the high-speed train (AVE) to Galicia, and the Zumárraga tunnel, in Guipúzcoa, for the AVE to the Basque Country, the Botín Arts Center in Santander, and the Lagares wastewater treatment plant in Vigo, set to be the largest in Spain.

Europe

The works OHL is executing in Poland include the project for the expressway connecting the airport to the port in Gdansk, which includes twin tunnels, each 1,072 m, under the mouth of the Vistula River on the Baltic Sea. In Central and Eastern Europe through OHL ŽS, the Group is present in Czech Republic and Slovakia, as well as the countries in the area of influence: Poland, Slovenia, Croatia, Bosnia and Herzegovina, Romania, Kazakhstan and Moldova. Meanwhile, the OHL Group has achieved an outstanding success with the award in Norway of OHL's first project in the area. This is the turnkey contract for the reconstruction of the Ski railway station, 25 km south of Oslo, within the high-speed Follo Line, the largest infrastructure developed in Norway to date.

Middle East

The Mecca-Medina high-speed railway, in Saudi Arabia.

In Saudi Arabia, OHL’s work on the high-speed Mecca-Medina line in 2015 reached a completion rate of 75%. In the first quarter we completed and equipped a train workshop in a record time of five months. This performance and commissioning of the electrical substation in April allowed Talgo begin train approval testing on a stretch of 100 km of double track, of which 64 are in ballast and 36 in slab track. Works also continue in Turkey (Marmaray CR3 railway project), Kuwait (Jamal Abdul Nasser urban viaduct) and Algeria (Annaba-Ramdame Djamel railway).

Asia-Pacific

Southeast Asia is a market with great economic potential and a major infrastructure deficit. In this geographical area, OHL has opened a representative office in Hanoi and work continues apace on two contracts in Vietnam, where we are the only Spanish construction company, and one of the few European, that have been awarded projects. In Australia work continues on the execution of three sections of motorway for Roads and Maritime Services in the state of New South Wales, with a budget of 217 million euros.