The australian branch of the ACS suffers a loss of 400 million in the Middle East

ACS is to be recorded a negative impact of 400 million in their accounts of 2019 as a result of the losses that its australian subsidiary Cimic will register to

The australian branch of the ACS suffers a loss of 400 million in the Middle East

ACS is to be recorded a negative impact of 400 million in their accounts of 2019 as a result of the losses that its australian subsidiary Cimic will register to sell their business in the Middle East, as reported by the companies in the market. The group was confident, however, that this adjustment will be dampened and compensated with the "improvement" of the evolution of their business and with the proceeds from divestitures as of its portfolio of photovoltaic technology. According to the company, will not influence the billing or in the operating profit (Ebitda) or in dividend, for which it will maintain a pay out of 65%.

This adjustment in the accounts of ACS, 2019, has its origin in the "strategic review" that the australian Cimic has made in its business in the Middle East, an activity that is channeled through the 45% stake that it has in the signature BIC Contracting (BIIC). In a statement, Cimic attributed his departure from the Middle East to the "impairment" that shows this market and its intention to focus on Australia, New Zealand and Asia-Pacific. In addition, stated that it negotiates with a group of potential interested in buying your participation in BIIC, a firm that, in turn, arranges with creditors and shareholders to ensure its future viability.

The decision of the united nations mission out of this market and sell this participation has forced it to update the value at which he had posted his exhibition at BIIC, both the participation in their capital as loans that had been granted. This has resulted in the need to sign a fit to 1,800 million australian dollars (about 1,112 million euros).

This setting is expected to turn in red numbers, the initial forecast of the subsidiary to close the year with a net profit of $ 800 million (500 million euros), so that the subsidiary austral has suspended the dividend. In addition to the impact in the accounts of 2019, the united nations mission estimates that this process will entail a cash outflow of about $ 700 million (430 million euros) during 2020 to cater to certain guarantees and financial responsibilities owed by the subsidiary to a third party.

ACS channels through Cimic all the business he has in Australia and Asia-Pacific, market which is your current second-largest source of income of the company behind north America. Cimic is controlled 72.8% of Hochtief, German construction of which, in turn, ACS holds 50.4% of the capital and, therefore, consolidates globally in their accounts.

however, the German firm has "intent" to maintain the dividend of 5.8 euros per share, thanks to the "robust evolution of the business," and despite the fact that the effect Cimic will also be a cash outflow of 400 billion in 2020.

Updated Date: 23 January 2020, 14:00

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