The decline is only natural in light of the reduced highway traffic due to the COVID-19 pandemic.
Rabat – The turnover of Autoroutes du Maroc (ADM), the public company managing Morocco’s highways, has reached MAD 1.36 billion ($148.4 million) at the end of June 2020. The figure represents a decline of 20% compared to the same period in 2019.
The decrease is mainly due to a 29% decline in operating revenue following the decreased traffic in highways during Morocco’s lockdown.
The company recorded an annual increase of 49% in turnover linked to investment projects. However, its value was not enough to offset the overall turnover decrease.
ADM’s investment spending reached MAD 68.05 billion ($7.41 billion) in the first half of 2020. The vast majority of the budget, however, was spent in the first quarter of 2020.
During Morocco’s strict COVID-19 lockdown, which ran from March to June, the company only invested MAD 149 million ($16.23 million). The investment mainly went into the extension project of the Casablanca-Berrechid highway and the construction of the Casablanca bypass.
Despite the reduced traffic in the first half of 2020, ADM’s expenditures for major repairs and maintenance work increased by 30% compared to the same period in 2019. The budget spent on repairing and sustaining highways and engineering structures across Morocco reached MAD 291 million ($31.7 million) at the end of June.
The reduced turnover did not prevent ADM from slightly decreasing its total debt. The debt went from MAD 38.99 billion ($4.25 billion) at the end of June 2019 to MAD 37.3 billion ($4.06 billion) in 2020.
The company is currently pursuing a management strategy, launched in 2016, to reduce its debt. The strategy aims to pull total debt below MAD 23 billion ($2.5 billion), making it easily controllable.