CICSA Reports Profits in 4Q22 After Bearing Line 12 Costs
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CICSA Reports Profits in 4Q22 After Bearing Line 12 Costs

Photo by:   Javier Santos Guzmán
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Fernando Mares By Fernando Mares | Journalist and Industry Analyst - Thu, 02/02/2023 - 17:31

The construction branch of Grupo Carso, CICSA, reported profits during 4Q22 despite the costs that the collapse of Mexico City Metro’s Line 12 entailed. The company took over the repairs of the collapsed line as it was the developer of the section that fell apart. 

During a conference with analysts, CICSA representatives reported that the company finally registered profits in the last quarter of the year. “In 2022, we faced expenses tied to the restoration of Mexico City’s Metro and registered extraordinary costs during that period,” the company said. 

According to El Economista, costs associated with Line 12 repair jobs impacted CICSA’s profit and EBITDA in 4Q21, resulting in losses of MX$443 million (US$23.7 million). In 4Q22, the company registered a net profit of MX$1.8 billion (US$99.4 million). 

On May 3, 2021, Line 12’s elevated section collapsed, resulting in 26 deaths and several injuries. After the event, the company refused to take responsibility for the incident, arguing that there were differences between the government’s version and the company’s technical studies. However, CICSA agreed that it was important to restart the line’s operations as soon as possible and announced that it would start repair works. The company also showed interest in contributing to a compensation fund for the victims. According to El País, the company paid over MX$6 million (US$321,000) to the victims. 

After the collapse, local media highlighted that CICSA and other companies involved in the construction of Line 12 were also part of the construction of some of President López Obrador’s key infrastructure projects like the Mayan Train. CICSA participated in the construction of Section 2 of the latter project, while ICA, also owned by Carlos Slim, participated in the development of Section 4. 

After 12 months of inactivity, the Mexico City government announced a partial reopening of Line 12 on Jan. 15, 2023. The government said that the line would operate from Atlalilco station to Mixcoac. However, the elevated section would remain indefinitely closed. According to Mexico City Mayor Claudia Sheinbaum, the reopening was certified by the Germany-based technical services provider TÜV Rheinland and the Metro’s Consultative Council and will benefit over 175,000 users per day, reducing travel times by 20 minutes. Before the line was closed, it transported over 370,000 users per day. 

Photo by:   Javier Santos Guzmán

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