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Operating Segments
 12 Months Ended
Dec. 31, 2022
Operating Segments [Abstract]  
Operating Segments

7. Operating Segments

 

Operating segments are reported consistently with the internal reports that are reviewed by the Corporation’s chief decision-maker; that is, the Executive Committee, which is led by the Corporate General Manager. This Committee acts as the maximum authority in operations decision making and is responsible for allocating resources and assessing the performance of each operating segment.

 

The Corporation’s segments are assessed by the activities of the following business units: (i) engineering and construction, (ii) energy, (iii) infrastructure, and (iv) real estate.

 

As set forth under IFRS 8, reportable segments based on the level of revenue are ‘engineering and construction’, ‘infrastructure’ and ‘energy’.

 

Income derived from operations abroad (Chile and Colombia) represents 19.5% of the Corporation’s total income in 2022 (20.7% in 2021 including Chile and Colombia).

 

Inter-segmental sale transactions are made at prices similar to those that would have been agreed to with non-related third parties. Revenues from external customers reported are measured in a manner consistent with the basis of preparation of the statement of profit or loss. Sale of goods are related to real estate segment. Revenues from services are related to other segments.

 

Corporation’s sales and accounts receivable are not concentrated in a few customers. There are no external customers representing 10% or more of the Corporation’s revenue.

 

The Corporation has determined four reportable segments. These operating segments are components of a company about which separate financial information is available that is regularly evaluated by the Corporate Governance Board (“CODM”) in deciding how to allocate resources and assess performance.

 

The operations of Corporation in each reportable segment are as follows:

 

(a)Engineering and construction: This segment includes traditional engineering services such as architectural planning, structural, civil and design engineering for advanced specialties including process design, simulation, and environmental services, as well as construction at three divisions: i) civil works, such as the construction of hydroelectric power stations and other large infrastructure facilities; (ii) electromechanical construction, such as concentrator plants, oil and natural gas pipelines, and electric transmission lines; iii) building construction, such as offices, residential buildings, hotels, and affordable housing projects, shopping centers, and industrial facilities.

 

(b)Energy: This segment includes oil exploration, exploitation, production, treatment, and trade in four oil deposits, separation and trade of natural gas and its byproducts at the gas processing plant, as well as the construction and assembly of oil facilities or those linked to the oil and gas industry. It also includes storage and dispatch of fuel and oil byproducts.

 

(c)Infrastructure: The Corporation has long-term concessions or similar contractual arrangements in Peru for three highways with tolls, Lima Metro, a sewage treatment plant in Lima, and operation and maintenance services for infrastructure assets.

 

(d)Real Estate: The Corporation mainly develops and sells properties for low- and middle-resource sectors, which are experiencing a significant increase in available income, as well as luxury properties to a lesser degree. It also develops commercial spaces and offices.

 

The CODM uses the Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) as the primary relevant measure to understand the Corporation’s operating performance and allocate resources and its operating segments.

 

Adjusted EBITDA is not a measurement of results based on International Financial Reporting Standards. The Corporation’s definition related to adjusted EBITDA may not be comparable to similar performance measures and disclosures from other entities.

 

The adjusted EBITDA is reconciled to net loss as follows:

 

In thousands of soles  2020   2021   2022 
Net loss   (215,178)   (101,816)   (362,054)
Financial income and expenses   145,705    209,495    141,020 
Interests for present value of financial asset or liability   (28,182)   63,032    86,014 
Income tax   50,408    41,443    131,346 
Depreciation and amortization   197,125    205,307    177,023 
Adjusted EBITDA   149,878    417,461    173,349 
Adjustments to adjusted EBITDA for other items               
Impairment of investments   
-
    
-
    14,525 
Provisions: civil compensation and legal claims   89,084    30,457    256,198 
Put option on Morelco S.A.S. acquisition   
-
    (70,322)   
-
 
Adjusted EBITDA for other items   238,962    377,596    444,072 

  

The adjusted EBITDA with non recurring items per segment is as follows:

 

In thousands of soles  2020   2021   2022 
Engineering and construction   15,461    47,295    (72,335)
Energy   109,443    173,664    184,199 
Infrastructure   91,255    197,066    262,626 
Real estate     32,555    36,912    137,671 
Parent company operations   (145,017)   (34,450)   10,550 
Intercompany eliminations   135,265    (42,891)   (78,639)
    238,962    377,596    444,072 

 

The following table shows the Corporation’s financial statements by operating segments:

 

Operating segments financial position

Segment reporting

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction		   Energy   Toll
roads		   Transportation   Water
treatment		   Real
estate		   Company
operations		   Eliminations   Consolidated 
As of December 31, 2021                                    
Assets.-                                    
Cash and cash equivalent   303,925    121,873    114,100    182,607    7,499    109,828    117,346    
-
    957,178 
Trade accounts receivables, net   610,651    67,662    38,418    106,856    1,003    9,958    84    
-
    834,632 
Accounts receivable from related parties   95,390    121    48,012    4,309    
-
    3,166    52,644    (182,825)   20,817 
Other accounts receivable   390,133    31,092    30,057    18,734    960    3,783    12,297    2    487,058 
Inventories, net   48,192    35,489    7,662    31,949    13    366,650    
-
    (1,629)   488,326 
Prepaid expenses   15,838    3,575    6,531    344    52    
-
    5,802    
-
    32,142 
Total current assets   1,464,129    259,812    244,780    344,799    9,527    493,385    188,173    (184,452)   2,820,153 
Long-term trade accounts receivable, net   851    
-
    15,654    666,801    
-
    
-
    
-
    
-
    683,306 
Long-term accounts receivable from related parties   335,150    
-
    19,700    42    11,536    
-
    584,596    (307,127)   643,897 
Prepaid expenses   
-
    981    20,558    1,894    684    
-
    
-
    (510)   23,607 
Other long-term accounts receivable   10,448    86,815    
-
    
-
    7,346    57,243    39,508    
-
    201,360 
Investments in associates and joint ventures   108,038    8,951    
-
    
-
    
-
    5,443    1,447,556    (1,538,815)   31,173 
Investment property, net   
-
    
-
    
-
    
-
    
-
    22,416    42,558    (1,963)   63,011 
Property, plant and equipment, net   142,228    153,456    7,056    749    181    6,845    1,653    (8,998)   303,170 
Intangible assets and goodwill, net   142,499    257,580    322,625    351    
-
    733    14,575    5,028    743,391 
Right-of-use assets, net   3,825    3,890    5,308    61    17    1,888    40,789    (8,061)   47,717 
Deferred income tax asset   180,586    4,717    21,304    
-
    644    16,960    47,038    5,097    276,346 
Total non-current assets   923,625    516,390    412,205    669,898    20,408    111,528    2,218,273    (1,855,349)   3,016,978 
Total assets   2,387,754    776,202    656,985    1,014,697    29,935    604,913    2,406,446    (2,039,801)   5,837,131 
Liabilities.-                                             
Borrowings   136,512    27,046    3,687    45    18    69,065    13,573    (8,606)   241,340 
Bonds   4,896    
-
    36,637    24,496    
-
    
-
    3,809    
-
    69,838 
Trade accounts payable   699,851    67,686    44,210    30,637    464    30,401    38,894    683    912,826 
Accounts payable to related parties   130,848    1,079    47,340    42,185    19    19,155    13,623    (203,245)   51,004 
Current income tax   59,407    15,748    17,922    
-
    347    1,058    476    
-
    94,958 
Other accounts payable   560,920    23,116    38,198    9,104    791    91,342    31,510    
-
    754,981 
Provisions   71,301    25,498    4,158    
-
    
-
    560    54,028    
-
    155,545 
Total current liabilities   1,663,735    160,173    192,152    106,467    1,639    211,581    155,913    (211,168)   2,280,492 
Borrowings   5,382    121,693    1,721    15    
-
    5,315    205,244    (810)   338,560 
Long-term bonds   21,386    
-
    215,296    602,201    
-
    
-
    352,201    
-
    1,191,084 
Other long-term accounts payable   54,026    
-
    8,163    219    2,862    24,427    2,672    
-
    92,369 
Long-term accounts payable to related parties   25,957    
-
    1,006    88,213    24,671    
-
    197,844    (286,979)   50,712 
Provisions   56,362    55,279    33,188    3,039    
-
    
-
    181,629    
-
    329,497 
Deferred income tax liability   19,705    31,187    
-
    47,515    
-
    
-
    
-
    
-
    98,407 
Total non-current liabilities   182,818    208,159    259,374    741,202    27,533    29,742    939,590    (287,789)   2,100,629 
Total liabilities   1,846,553    368,332    451,526    847,669    29,172    241,323    1,095,503    (498,957)   4,381,121 
Equity attributable to controlling interest in the Company   528,033    378,653    149,904    125,271    763    139,728    1,308,104    (1,427,411)   1,203,045 
Non-controlling interest   13,168    29,217    55,555    41,757    
-
    223,862    2,839    (113,433)   252,965 
Total liabilities and equity   2,387,754    776,202    656,985    1,014,697    29,935    604,913    2,406,446    (2,039,801)   5,837,131 

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction		   Energy   Toll
roads		   Transportation   Water
treatment		   Real
estate		   Company
operations		   Eliminations   Consolidated 
As of December 31, 2022                                    
Assets.-                                    
Cash and cash equivalent   209,737    104,553    130,213    171,747    2,910    111,487    186,907    
     -
    917,554 
Trade accounts receivables, net   697,512    80,245    34,183    118,867    898    146,316    561    
-
    1,078,582 
Accounts receivable from related parties   86,146    68    51,523    4,455    52    378    115,736    (230,613)   27,745 
Other accounts receivable   298,784    39,921    28,902    15,229    30    5,380    7,294    (2,345)   393,195 
Inventories, net   41,933    29,935    9,655    39,780    
-
    227,067    
-
    (1,587)   346,783 
Prepaid expenses   10,945    2,055    5,496    369    160    448    8,625    -    28,098 
Total current assets   1,345,057    256,777    259,972    350,447    4,050    491,076    319,123    (234,545)   2,791,957 
Long-term trade accounts receivable, net   2,806    
-
    16,215    699,487    1,392    3,969    
-
    
-
    723,869 
Long-term accounts receivable from related parties   299,268    
-
    15,858    42    14,015    
-
    602,004    (388,795)   542,392 
Prepaid expenses   
-
    826    14,549    1,731    632    
-
    65    (510)   17,293 
Other long-term accounts receivable   101,366    89,782    
-
    
-
    7,346    55,347    31,889    -    285,730 
Inventories, net   
-
    
-
    
-
    
-
    
-
    65,553    
-
    
-
    65,553 
Investments in associates and joint ventures   975    12,049    
-
    
-
    
-
    2,752    1,509,790    (1,510,650)   14,916 
Investment property, net   
-
    
-
    
-
    1,507    
-
    19,823    40,594    
-
    61,924 
Property, plant and equipment, net   102,822    176,596    6,193    848    150    7,531    1,286    (10,961)   284,465 
Intangible assets and goodwill, net   131,431    363,066    274,597    238    
-
    615    13,414    3,975    787,336 
Right-of-use assets, net   8,745    12,795    7,106    23    143    2,580    38,485    (19,670)   50,207 
Deferred income tax asset   175,702    4,572    26,787    
-
    415    23,781    59,316    5,065    295,638 
Total non-current assets   823,115    659,686    361,305    703,876    24,093    181,951    2,296,843    (1,921,546)   3,129,323 
Total assets   2,168,172    916,463    621,277    1,054,323    28,143    673,027    2,615,966    (2,156,091)   5,921,280 
Liabilities.-                                             
Borrowings   19,191    38,612    3,844    17    6    43,118    480,735    (11,261)   574,262 
Bonds   4,554    
-
    41,343    31,203    
-
    
-
    
-
    
-
    77,100 
Trade accounts payable   740,142    124,259    52,916    52,292    223    35,939    16,950    4,535    1,027,256 
Accounts payable to related parties   297,505    2,734    46,257    22,421    296    12,227    20,291    (348,243)   53,488 
Current income tax   12,495    247    8,609    2,433    104    45,092    672    
-
    69,652 
Other accounts payable   490,494    19,724    49,187    9,146    1,298    115,661    24,837    (4,905)   705,442 
Provisions   81,288    20,535    1,722    1,197    
-
    540    27,644    
-
    132,926 
Total current liabilities   1,645,669    206,111    203,878    118,709    1,927    252,577    571,129    (359,874)   2,640,126 
Borrowings   6,480    100,597    3,462    -    138    10,852    192,435    (8,333)   305,631 
Long-term bonds   16,719    
-
    177,341    598,753    
-
    
-
    
-
    
-
    792,813 
Long-term trade accounts payable   
-
    
-
    
-
    9,757    
-
    
-
    
-
    
-
    9,757 
Other long-term accounts payable   94,261    
-
    2,243    189    2,932    
-
    2,694    
-
    102,319 
Long-term accounts payable to related parties   7,886    57,300    1,176    27,294    21,663    
-
    189,451    (277,477)   27,293 
Provisions   11,453    49,701    11,463    4,947    
-
    
-
    491,463    
-
    569,027 
Deferred income tax liability   16,670    53,242    
-
    58,396    
-
    
-
    
-
    
-
    128,308 
Total non-current liabilities   153,469    260,840    195,685    699,336    24,733    10,852    876,043    (285,810)   1,935,148 
Total liabilities   1,799,138    466,951    399,563    818,045    26,660    263,429    1,447,172    (645,684)   4,575,274 
Equity attributable to controlling interest in the Company   363,404    417,970    166,678    177,208    1,483    278,501    1,165,811    (1,509,551)   1,061,504 
Non-controlling interest   5,630    31,542    55,036    59,070    
-
    131,097    2,983    (856)   284,502 
Total liabilities and equity   2,168,172    916,463    621,277    1,054,323    28,143    673,027    2,615,966    (2,156,091)   5,921,280 

 

   Engineering       Infrastructure       Parent         

In thousands of soles

  and
construction		   Energy   Toll
roads		   Transportation   Water treatment   Real
estate		   Company
operations		   Eliminations   Consolidated 
For the year ended
December 31, 2020		                                             
Revenue   2,131,740    369,798    466,824    345,258    3,359    182,439    71,197    (385,062)   3,185,553 
Gross profit (loss)   83,124    53,251    40,858    107,918    366    40,345    (2,344)   (46,136)   277,382 
Administrative expenses   (102,985)   (16,119)   (16,584)   (12,738)   (289)   (16,462)   (23,647)   54,811    (134,013)
Other income and expenses, net   (43,573)   (4,185)   (79,576)   72    42    1,962    (55,984)   60    (181,182)
Operating (loss) profit   (63,434)   32,947    (55,302)   95,252    119    25,845    (81,975)   8,735    (37,813)
Financial expenses   (53,605)   (15,745)   (30,194)   (9,316)   (275)   (12,625)   (48,371)   28,328    (141,803)
Financial income   4,239    1,014    4,326    1,586    897    2,900    21,913    (30,293)   6,582 
Gain(loss) on present value of financial asset or financial liability   3,985    (555)   (2,182)   
-
    
-
    1,662    25,489    (217)   28,182 
Share of profit or loss in associates and joint ventures   
-
    2,391    
-
    
-
    
-
    34    (137,238)   135,583    770 
(Loss) profit before income tax   (108,815)   20,052    (83,352)   87,522    741    17,816    (220,182)   142,136    (144,082)
Income tax   4,422    (7,500)   (13,477)   (26,681)   (277)   (2,854)   (7,768)   (37)   (54,172)
(Loss) profit from continuing operations   (104,393)   12,552    (96,829)   60,841    464    14,962    (227,950)   142,099    (198,254)
Profit (Loss) from discontinuing operations   
-
    
-
    
-
    
-
    
-
    
-
    (16,919)   (5)   (16,924)
(Loss) profit for the year   (104,393)   12,552    (96,829)   60,841    464    14,962    (244,869)   142,094    (215,178)
(Loss) profit from attributable to:                                             
Owners of the Company   (100,107)   9,176    (88,865)   45,631    464    1,391    (244,829)   135,742    (241,397)
Non-controlling interest   (4,286)   3,376    (7,964)   15,210    
-
    13,571    (40)   6,352    26,219 
   (104,393)  12,552   (96,829)  60,841   464   14,962   (244,869)  142,094   (215,178)

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction		   Energy   Toll
roads		   Transportation   Water treatment   Real
estate		   Company
operations		   Eliminations   Consolidated 
For the year ended
December 31, 2021		                                    
Revenue   2,753,987    541,859    515,382    348,915    3,650    239,391    67,202    (328,988)   4,141,398 
Gross profit (loss)   139,035    110,078    81,964    81,993    1,322    42,025    3,372    (46,674)   413,115 
Administrative expenses   (125,094)   (14,575)   (14,460)   (14,267)   (449)   (14,911)   (46,193)   50,336    (179,613)
Other income and expenses   40,301    (4,400)   (3,683)   1,537    4    1,337    (38,705)   (868)   (4,477)
Operating profit (loss)   54,242    91,103    63,821    69,263    877    28,451    (81,526)   2,794    229,025 
Financial expenses   (118,725)   (13,436)   (27,568)   (8,298)   (124)   (11,927)   (46,265)   29,928    (196,415)
Financial income   1,278    298    2,544    520    510    470    40,740    (43,714)   2,646 
(Loss) gain on present value of financial asset or financial liability   (2,395)   (533)   (1,874)   
-
    
-
    1,779    (72,411)   12,402    (63,032)
Share of profit or loss in associates and joint ventures   (1,794)   2,833    
-
    
-
    
-
    831    35,686    (38,417)   (861)
(Loss) profit before income tax   (67,394)   80,265    36,923    61,485    1,263    19,604    (123,776)   (37,007)   (28,637)
Income tax   (14,140)   (22,469)   (10,012)   (19,382)   (500)   (6,644)   26,808    (66)   (46,405)
(Loss) profit from continuing operations   (81,534)   57,796    26,911    42,103    763    12,960    (96,968)   (37,073)   (75,042)
Loss from discontinuing operations   
-
    
-
    
-
    
-
    
-
    
-
    (26,716)   (58)   (26,774)
(Loss) profit for the year   (81,534)   57,796    26,911    42,103    763    12,960    (123,684)   (37,131)   (101,816)
(Loss) profit from attributable to:                                             
Owners of the Company   (82,160)   51,294    15,946    31,577    763    794    (123,637)   (36,347)   (141,770)
Non-controlling interest   626    6,502    10,965    10,526    
-
    12,166    (47)   (784)   39,954 
   (81,534)  57,796   26,911   42,103   763   12,960   (123,684)  (37,131)  (101,816)

 

   Engineering       Infrastructure       Parent         
In thousands of soles  and
construction		   Energy   Toll
roads		   Transportation   Water treatment   Real
estate		   Company
operations		   Eliminations   Consolidated 
For the year ended
December 31, 2022		                                    
Revenue   2,679,198    633,792    614,525    388,811    4,412    367,276    68,091    (350,981)   4,405,124 
Gross profit (loss)   (23,293)   118,934    105,400    119,729    4,644    151,797    11,702    (41,282)   447,631 
Administrative expenses   (126,844)   (13,942)   (12,861)   (10,806)   (947)   (15,932)   (35,543)   54,277    (162,598)
Other income and expenses   79,114    639    25,291    (3,042)   
-
    (5,014)   (332,399)   (55,203)   (290,614)
Operating profit (loss)   (71,023)   105,631    117,830    105,881    3,697    130,851    (356,240)   (42,208)   (5,581)
Financial expenses   (70,040)   (17,704)   (26,655)   (7,235)   (1,691)   (9,407)   (65,285)   41,543    (156,474)
Financial income   2,010    1,692    2,119    2,440    223    1,086    52,271    (46,387)   15,454 
(Loss) gain on present value of financial asset or financial  liability   (6,196)   2,078    (267)   
-
    
-
    2,616    (84,245)   
-
    (86,014)
Share of profit or loss in associates and joint ventures   13,511    3,098    
-
    
-
    
-
    626    14,338    (29,666)   1,907 
(Loss) profit before income tax   (131,738)   94,795    93,027    101,086    2,229    125,772    (439,161)   (76,718)   (230,708)
Income tax   (15,755)   (30,905)   (19,587)   (31,836)   (746)   (42,885)   10,397    (29)   (131,346)
(Loss) profit from continuing operations   (147,493)   63,890    73,440    69,250    1,483    82,887    (428,764)   (76,747)   (362,054)
(Loss) profit for the year   (147,493)   63,890    73,440    69,250    1,483    82,887    (428,764)   (76,747)   (362,054)
(Loss) profit from attributable to:                                             
Owners of the Company   (145,695)   56,800    59,262    51,937    1,483    31,094    (428,905)   (77,127)   (451,151)
Non-controlling interest   (1,798)   7,090    14,178    17,313    
-
    51,793    141    380    89,097 
   (147,493)  63,890   73,440   69,250   1,483   82,887   (428,764)  (76,747)  (362,054)

 

Segments by geographical areas:

 

In thousands of soles  2020   2021   2022 
Revenues:               
- Peru   2,510,415    3,284,674    3,544,465 
- Chile   521,076    750,565    708,996 
- Colombia   151,876    106,160    151,663 
- Mexico   2,187    
-
    
-
 
    3,185,553    4,141,398    4,405,124 
Non-current assets:               
- Peru   2,918,529    2,752,560    2,911,954 
- Chile   267,850    165,652    151,328 
- Colombia   107,486    98,766    66,041 
    3,293,864    3,016,978    3,129,323