“We have an agreement,” declared the US president, Joe biden, like the one who announces the election of a new pope. The truth is that carrying out the bipartisan bill has cost more than a delivery and, in fact, its budget has been reduced to half of what was planned, to 1.2 trillion dollars. Now, it is the turn of the companies, and these are the Spanish listed ones, from ACS to Gestamp, which are better positioned to capitalize on this infrastructure plan.
The construction company chaired by Florentine Perez It has been unmarked better than anyone in recent years to position itself in North America, a region in which it has had a turnover of 17,300 million euros in 2020 alone, more than half of its total income.
ACS also owes 44% of its current portfolio, of more than 70,000 million to this region. “The North American region remains stable thanks to the resilience of the US and Canadian markets,” the company itself acknowledged in its latest quarterly results. There is no lack of reason, and that is that it has been awarded projects for 4,000 million in the US and in such a ‘stopped’ year for the sector as 2020.
Also be careful with Ferrovial. The also listed construction company of our Ibex obtains almost 25% of its income from the US and, through its US subsidiary, Cintra, closely monitors several projects. In addition, it is also present in the region through Webber, another Rafael del Pino subsidiary.
Gestamp It is another of the most invested Spanish companies in the US. The company has plants in five states in the country, and already has plans to open a sixth. In recent statements to the Cinco Días newspaper, the company acknowledged that they were following “very closely” the Biden plan with a view to participating in it.
The US is also the first market for OHL, which owes it 1,189 million euros (42% of the total) of its revenues invoiced in 2020, of which only a small part came from Canadian projects. That year, the company’s portfolio in the country reached 1,851 million, 37.3% of the total.
Iberdrola is, next to Acciona, one of the Spanish companies that plans to benefit from Biden’s ‘green’ ambitions. The Ibex listed company will not do badly in Europe according to Bank of America, which sees it as especially well positioned to get a slice of the electric car, a trend that has a turning point in 2021.
IMPACT, BUT NOT MUCH
US listed companies in ‘graceful’ sectors, such as Caterpillar, They have not been slow to celebrate this infrastructure plan with increases. However, the widely held opinion of experts is that it will not have as significant an impact as might be expected.
It is the case of Josh duitz, manager of Aberdeen Standard Global Infrastructure Income Fund, which foresees an acceleration of trends that were already taking place without the need for the Biden plan, such as 5G and clean energy. In this sense, the experts of Julius Baer also expect an economic impact “much more limited”, although they reiterate their constructive vision of the sector “since the investment opportunities continue being ample”.