2023-11-20 20:44:30
A few weeks ago (Management 10/26/2026) Aenza announced a corporate reorganization that aimed to leverage its growth. This announcement, added to a capital increase of US$ 22.5 million, is part of a new stage, of a new Aenza. In dialogue with Management, the company’s directors announce the next plans to follow.
After your third quarter results, in which you achieved growth in profits, how do you perceive the progress of this last period of the year?
Juan Revilla (JR): The outlook is positive to end 2023. In our concessions and infrastructure business, what corresponds to Norvial or Line 1 will be stable. In the energy business, which are lots III and IV (Talara), we plan to accelerate production, which may imply an improvement not only by the end of the year but also by the beginning of 2024. And in Cumbra, we are going to continue advancing with the contract with LAP and we think we should finish it by 2025.
Dennis Fernández (DF). We have won the construction of the Parque La Molina shopping center, a project that totals S/ 100 million. Its construction will take the next 14 months and will have an impact in 2024.
READ ALSO: Aenza notified its voluntary intention to withdraw from the New York Stock Exchange
And in a context facing El Niño, what do you expect for next year?
DF: If it is very strong or moderate to strong, the impact would occur especially in the first months of the year in our businesses, energy, road concessions and also in the delivery of apartments. However, we think that in 2024 we should have growth, the necessary measures have already been taken to address the possible impact, but it will depend on its gradualness.
What progress do you project?
DF It will be a challenging year, especially in the engineering and construction unit due to the environmental conditions, there are not many projects that will be tendered in 2024, but there are others that compensate, such as Parque Arauco.
JR: It will also contribute the project with LAP and Ecopetrol’s Santa Mónica project in Colombia, which are very likely to have expansions. In energy we should generate better results than this year, in road concessions, traffic should recover, and with Viva we will deliver more apartments than this year.
Aenza announced organizational changes, but it goes beyond that…
DF: This is a new company, with a new controlling shareholder (IG4 Capital), a new team of directors and renewed management. We have closed two of the biggest challenges we had. The first, the financial one, since in the conditions that the group was in it was not eligible for the financial sector and that changed with the entry of the controlling shareholder. The second challenge was the solution of the legal problems; To achieve this, it was not only the signing of the effective collaboration agreement but also its approval by the judiciary on August 22. Without a doubt, this changes the figure of the group for the better, which today is totally different.
JR: The difference between the old and new Aenza is that from the moment the changes occur in the board of directors, when the takeover bid is launched two years ago, the decision is made to improve the company in different aspects and in parallel, improves the company’s financial structure with a bridge loan of US$ 120 million.
Amount that has been renewed…
JR: Yes, for US$ 100 million paying US$ 20 million. In parallel, the effective collaboration agreement has been secured and we are only waiting for the judge’s decision, and we are focused on being a leading infrastructure company in the country and in the region.
Do you feel that this advance in stability has completely taken hold?
DF: It all boils down to the fact that there is renewed confidence among shareholders in where they want to take Aenza. Another example is seen in the financial environment with the renewal of credit. If they do not trust, they would ask for their money back. And the shareholders who agreed to the capital increase of US$ 22.5 million trust.
JR: This is not enough for an infrastructure and construction company and we are starting to look for long-term financing that will help not only repay the bridge loan but also help invest in the company’s businesses.
READ ALSO: Aenza does not rule out spin-offs of some businesses as part of the company’s reorganization
Is there any progress in this regard?
JR: We are talking with local and international banks to see long-term possibilities, with different financing alternatives, and evaluate which one satisfies growth.
DF: In that sense, there are possibilities for the future, mainly, with two of our businesses. On Line 1 of the Lima Metro, there is the option to expand passenger flow by 50% with a great impact for the Villa El Salvador (VES) to San Juan de Lurigancho (SJL) section. I know that there is an understanding and possibility with the Ministry of Transportation and Communications (MTC) and we can begin to see it this year.
What would be the other business?
DF: The impact that will be had on the area of influence of the Port of Chancay will generate a different situation and there is a need to carry out road works to facilitate the movement of the local community. We are willing to deliver these works because we are responsible for Norvial (road that connects Ancón with Pativilca). We have to do with the MTC that allows us to expand the concession.
Regarding the next financing you want to obtain, how much is it?
JR: In the next few months, we should have the figures, it is an issue that we have been working on for some time, as soon as we have it we will announce it.
DF: And we are studying several options. Our organization aims to be the leading infrastructure platform at the regional level, and the most important thing is the market. The demand for infrastructure works in Chile, Colombia, Brazil and Peru is enormous, which is not happening today, but will change when works accelerate in those countries.
READ ALSO: Ositrán: “Without a schedule for metro line 2 we will not be able to move forward”
READ ALSO: Aenza improves profits, but still fails to rebound its sales
By what date can something be closed?
JR: In the first semester we will have news yes or yes, we even hope it will be the first quarter.
Do you consider acquisitions as a way for growth?
JR: We are also looking for inorganic growth in those countries. If the option exists it will also be the opportunity to go to the financial system.
DF: If there is an opportunity, for example, a company or a concession that has been awarded and that the investor wants to exit, we will be there. Our focus will be infrastructure concessions. In the case of construction, we will go more for works or find a partner to support growth.
As foreign investors, what is your evaluation in Colombia and Chile?
JR: The most important change is that projects have been postponed and that is like a kind of temporary paralysis but in the end, at the level of risks and substance, there are not many changes, that allows us to be optimistic that more opportunities will come.
Do you have any progress in Brazil?
DF: It is a great opportunity, a giant market and we are exploring our entry there, it is being studied and looking at establishing alliances.
A purchase is the best way out…
DF: Without a doubt, all possibilities are open
Will it bring you greater advantages than Chile and Colombia?
DF: Without a doubt the pace of infrastructure investments in Brazil is faster but it is a new market, it is not like Chile and Colombia where we are already established.
JR:. To date, there have been opportunities specifically for Cumbra, in the construction part and we are working to see if there is any possibility in the infrastructure part.
Besides these countries, do you see others in the region?
DF: Our vision is concentrated in those three countries due to the identity of the work, the need for infrastructure.
Do you think that by the end of 2024 you might achieve the goal of being a regional platform?
DF:The infrastructure business is long-term and we are seeing in the medium term, that is, 2025 or 2026, that our most active presence in these three countries should already crystallize.
And in Peru, for those years, what is Aenza’s goal?
JR: For those years it will be a completely renewed Aenza, which has resolved all financial liabilities. We are very confident in our abilities.
For those dates we are also in a pre-election year, how do you assume this in your plans?
DF: We have faced the financial situation, the legal situation with the effective cooperation agreement, when the takeover bid was decided it was in 2021, an electoral year and in which there was capital flight, but the operation was carried out.
READ ALSO: El Niño: Transfer of up to S/ 9.6 million authorized in favor of ANIN
READ ALSO: Ad Hoc Attorney highlights approval of Aenza’s effective collaboration in the Lava Jato case
After reorganization
“We expect the infrastructure business to contribute 60% of our sales”
In the local market, in the short term, Aenza’s goal is to recover all its capacity and boost organic growth. At the same time, progress is seen in the countries where it has set its sights. These plans in turn lead to a change in the total recomposition of their sales. Juan Revilla, president of the company’s board of directors, maintains that today Engineering and Construction contributes 55% of sales, and Infrastructure provides 35% and the remaining 10% is contributed by Real Estate Development (10%). “The immediate objective is for Infrastructure to represent more than half of the income, that is, 55% or even reach 60%. I would say that in 2025, the majority of group income should come from that division,” he said.
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