IBEX 35 companies lose more than 9 billion euros in 2020, tourism and banking are the worst affected sectors

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The companies that make up the IBEX 35 have closed 2020 with losses of around 9,000 million euros due to the consequences of the pandemic caused by COVID-19, an amount that can be explained by the almost total economic paralysis during the confinement and the subsequent restrictions.

According to data compiled by Agencia Efe, this has been the worst year for these 35 Spanish companies, which chained 2 consecutive quarters in negative. However, only 12 of these companies closed the year with losses.

Banking and tourism were the sectors most affected by losses. Banco Santander, which lost 8,771 million euros due to the adjustment of its accounts, the million-dollar provisions for COVID, and the restructuring of Spain, stands out in particular.

The rest of the banks in the index also worsened their results, although only Santander posted losses.

Santander is followed by IAG, which lost 6.9 billion euros in 2020, or 17.5 million euros a day for the whole year. These are record losses in a year in which the coronavirus pandemic has hit the airline industry hard, although the figures are better than expected by analysts, who insist that airlines need more aid and funding to survive the crisis.

“Our results reflect the tremendous impact COVID-19 has had on our business. We have taken effective measures to preserve cash, strengthen liquidity and reduce our cost base,” said IAG CEO Luis Gallego.

The group has focused on reinforcing its liquidity with a cushion amounting to 10.3 billion euros, more than before the pandemic.

As for the rest of the sector, Aena posted first-time losses of €126.8 million, while Meliá and Amadeus recorded a drop of €595.9 million and €505.3 million, respectively.

Repsol is also in the top 3: it lost almost 3.3 billion euros due to the unprecedented plummeting of crude and gas prices, which are coupled with the collapse of demand caused by the pandemic, explains Europa Press.

The rest of the energy companies, on the other hand, performed better than Repsol, encouraged by the increase in the use of electricity during the months of confinement: 5 of the 6 that are present in the index closed the year in positive and all except Red Eléctrica improved their results.

The coronavirus causes losses of more than 7.5 billion to the State in its shareholdings in listed companies

Despite this situation, the companies that make up the index did not register such a high drop in revenues, explains Efe, which calculates that it is close to 19%.

The most capitalized company on the Spanish stock exchange, Inditex, presents its results on March 10. The latest figures published by the company, corresponding to the first 9 months of 2020, indicated that Inditex was in the best financial position in its history, with net cash of 8,265 million euros: it could withstand 10 months without sales.

“With the current sales level of €14 billion and more than €8 billion in cash, Inditex could go three quarters or ten months without sales,” explains XTB analyst Dario Garcia in a previous interview with Business Insider Spain.

Amancio Ortega’s company could make use of this liquidity to invest in the development of new brands and corner new market niches.

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