Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aenza SAA (LIM:AENZAC1, Financial) successfully completed a capital increase, raising $55 million, demonstrating investor confidence in the company's strategic direction.
- The company completed the registration process with the SEC, allowing it to focus on local markets and align its financial and operational strategy with regional priorities.
- Aenza SAA's sustainability initiatives were recognized as finalists in the 2024 GRI Infrawards, reaffirming its focus on creating value with a positive impact.
- The company reported an increase in energy revenues due to higher oil production and increased gas plant revenues.
- A temporary bridge was installed quickly after the Changkai Bridge incident, restoring road connectivity and minimizing disruption.
Negative Points
- Consolidated revenues decreased by 7.8% compared to the previous year, primarily due to lower production volumes in engineering and construction projects.
- Gross profit decreased by 50.3% in 2024, mainly due to lower margins in the engineering and construction business.
- The company recorded a consolidated net loss of $248 million in 2024, with a net margin dropping from 2% in 2023 to -6.2% in 2024.
- Administrative expenses increased by 1.5% in 2024, reaching 5.6% of revenues, up from 5.1% in 2023.
- The Changkai Bridge collapse, although not expected to have a significant financial impact, highlights potential risks in infrastructure management.
Q & A Highlights
Q: Can you elaborate on the strategies being implemented to address the backlog contraction in Cumbra and whether further capital increases will be needed?
A: The performance of Cumbra has not aligned with our projections, primarily due to the Santa Monica project with Eco Petrol in Colombia, which resulted in cost overruns not recognized by the client. We anticipate limited recovery in the construction sector for 2025 but expect a more favorable outlook for 2026 and 2027. We are preparing for these opportunities and do not plan to receive additional capital for this year. (Respondent: Unidentified_3)
Q: What is the guidance for EBITDA at Cumbra's level for this year, considering the worrisome results in the fourth quarter?
A: For 2025, we do not expect any extraordinary effects on our EBITDA. The impacts related to the Santa Monica project are already included in the 2024 results. (Respondent: Unidentified_3)
Q: Could you provide insights into the reasons behind the impairment of Moreco's goodwill and the loss registered on the Santa Monica project?
A: Moreco assumed unforeseen expenses expecting recognition by Eco Petrol as per the contract. However, Eco Petrol did not recognize these expenses due to increased economic costs, changes in operating conditions, and heightened social conflicts. (Respondent: Unidentified_3)
Q: Can you provide an estimate of the CapEx required for the reconstruction of the Changkai Bridge and any amendments needed to the concession agreement?
A: We do not yet have a CapEx estimate, but it is not expected to significantly impact our results. No amendments to the concession agreement are anticipated as we have complied with all contractual obligations. (Respondent: Unidentified_5)
Q: What is the current status of the renewal of the Noral concession, and when do you expect to sign the addendum?
A: The concession ends in 2028, and we are working with the government on an extension. The Changkai issue may delay the addendum by a few months, but we expect to sign it by early next year. (Respondent: Unidentified_5)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
