U.S. Markets closed

Grupo Graña y Montero reduced its debt by 21%

LIMA, Peru--(BUSINESS WIRE)--

The year 2018 was formally closed, in which the company prioritized financial strengthening focusing on the development and consolidation of the business for 2019

Grupo Graña y Montero reported financial statements for the Fourth Quarter of 2018 in which it was possible to reduce the total debt of the company by US$ 174 million (-21%) to US$ D 654.67 million, thanks to the successful execution of the debt reduction plan.

Regarding revenues, the Company reached a total of US$ 1,243 million, which represents a decrease of 2% against the result of the previous year. The difference in sales is mainly explained by the decrease in revenues in the Engineering and Construction area (-16%) and to a lesser extent in the Real Estate area (-3%).

This figure, in line with accumulated Backlog plus Recurring Business of US$ 2,105 million, represents almost two years of sales, due to the new contracts awarded in 2018 as the mining projects from Quellaveco (Peru), Minera Escondida (Chile) and Mina Justa (Peru) and does not include recently announcement of Quebrada Blanca Phase 2 Project.

Finally, regarding the results of December 2018, the Company reported a loss of US$ 21.9 million, due to the provision included by the potential civil compensation in favor of the Peruvian State by the two Group companies that have been incorporated as civilly responsible third parties, according to the terms of Law No. 30737 and its Regulations, approved by DS No. 096-2018-EF.

For the Chief Executive Officer of the Group, Luis Díaz Olivero, the company will begin 2019 with a greater focus on the development of its three business units: "The important financial strengthening process undertaken during 2018 and which we hope to conclude at the end of the first quarter of the year 2019, allows us to be prepared for the great challenges that our clients will demand for us this year," he said.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190201005532/en/