• Operations outside Brazil grew by 21%. Revenue for other Businesses (not including Engineering & Construction and Chemicals & Petrochemicals), surged by 32%, strongly influenced by investments of approximately BRL 36 billion (USD 16.5 billion) in recent years, focused on diversification.
• When the Ethylene XXI Petrochemical Complex (Mexico) and the Chaglla Hydropower Plant (Peru), among other projects, begin operations, projections are that 55% of the Group’s revenue will come from abroad in the next few years. The priority is maintaining robust levels of liquidity focused on carrying out contracts awarded in recent years, which already guarantee an annual increase in EBITDA margin of 19% for 2015-2017.
• Odebrecht S.A. reported a record consolidated cash flow in 2014, totaling BRL 25.1 billion (USD 9.5 billion), and a leverage ratio (in dollars) of 3.8x.
São Paulo, April 27, 2015 – Odebrecht S.A., the holding company for the Odebrecht Group’s Businesses and Companies, released its consolidated financial statements today for 2014. Gross revenue totaled BRL 107.7 billion (USD 45.8 billion), up 11% against BRL 96.9 billion (USD 44.9 billion) in 2013. Excluding the Engineering & Construction and Chemicals & Petrochemicals (Braskem) Businesses, revenue grew by 32% compared with the previous year, confirming the success of the Group’s strategy of diversifying its operations, implemented since 2007.
The share of earnings from abroad in Odebrecht S.A.’s revenue is growing steadily, rising from 39% in 2011 to 49% in late 2014, reflecting the Group’s increased operations outside Brazil. Odebrecht is currently present in 21 countries.
The Group’s EBITDA reached BRL 14.9 billion (USD 6.3 billion), up 30% compared with cash flow for the previous year. That growth mainly originated from other Businesses (excluding Engineering & Construction and Chemicals & Petrochemicals). The EBITDA margin rose from 12.9% in 2013 to 15% in 2014. The completion of major projects in 2015, such as the abovementioned Ethylene XXI Complex and Chaglla Hydropower Plant, will result in increased cash flow and a significant reduction in debt in the next few years.
Odebrecht S.A. reported a net profit of BRL 498 million (USD 211 million), in line with the results for 2013. In 2014, the Odebrecht Group as a whole paid BRL 3.5 billion (USD 1.5 bilion) in taxes and BRL 14.1 billion (USD 6.0 billion) in wages and benefits. During the last fiscal year, the Group invested BRL 112 million (USD 47.6 million) in social outreach programs focused on environmental education, work and income creation, and the protection of citizen’s rights, benefiting over 2,770 communities. In 2015, the Group will maintain the same level of investment in social programs.
In 2014, the Group contributed USD 12.7 billion (USD 5.4 billion) in investments and fixed assets, similar to the previous year. That figure includes BRL 3 billion (USD 1.3 billion) invested in the Ethylene XXI project, BRL 1.9 billion (USD 0.8 billion) in Odebrecht Transport, BRL 1.5 billion (USD 0.6 billion) at Odebrecht Latinvest, BRL 1.4 billion (USD 0.6 billion) in Odebrecht Environmental, BRL 1.3 billion (USD 0.6 billion) in the Enseada Shipbuilding, BRL 0.7 billion (USD 0.3 billion) in the Chaglla Hydroelectric Power Plant, and BRL 2.9 billion (USD 1.2 billion) in other Group Businesses. The investment projected for 2015 will total approximately BRL 11 billion (USD 4.1 billion), mainly in ongoing projects with previously contracted financing.
In 2014, the Group reported net debt of BRL 63.3 billion (USD 23.8 billion), up 21%, reflecting the investments made. This amount includes BRL 33.1 billion (USD 12.5 billion) in project financing transactions, which will be serviced with each project’s cash flow. Note that the change in debt is lower than the 30% growth in cash flow (EBITDA) for the same period, generating a decrease in leverage ratio, as measured by the “Net Debt/EBITDA” ratio. In dollars, that indicator closed at 3.8x (against 4.2x in 2013) and in Brazilian reais, it ended the year at 4.3x (against 4.6x in 2013). Average debt maturity is 12 years and 3 months, reflecting longer terms compared with 11 years reported in 2013.
The debt includes diversified sources of funding. In all, 39% was raised in the capital markets; 23% from multilateral organizations, export credit agencies (ECAs) and development banks (including 15% from the BNDES); 25% from local Brazilian commercial banks and 13% from international commercial banks.
It is important to mention the Group’s strong liquidity position at the end of 2014 (BRL 25.1 billion/USD 9.5 billion, in cash), resulting from selective investments and the strict application of the Group’s financial policy, which sets minimum cash and liquidity limits and ensures segregation of risk among the Business.
About the Odebrecht Group
Odebrecht Group is Brazil’s fifth-largest private-sector organization. In 2014, it marked its 70th anniversary with a presence in 21 countries and 20% average annual gross revenue growth in the last 15 years, particularly outside Brazil. With a commanding market share in the engineering & construction and chemicals & petrochemicals industries in Latin America, the Group is also active in bioenergy, environmental engineering, defense, real estate, oil & gas, shipbuilding, transportation and logistics, with its own leaders, strategic partners, established corporate governance, compliance systems and completely segregated cash flows. The Odebrecht Entrepreneurial Technology (TEO), an entrepreneurial philosophy whose basic tenets include the Ethos of Service and Confidence in People, enables the decentralization of Businesses that operate autonomously, based on Planned Delegation. The Group comprises over 168,000 professionals from 65 different nationalities, and exports products and services to more than 60 countries worldwide.
* USD values converted by FX rate (end of period) for Balance sheet and FX average rate of the year for Statement of Income”.
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