November 28, 2016 / 3:38 PM / 2 years ago

UPDATE 1-Mexican construction firm ICA's loss doubles in third quarter

(Adds details on construction revenue, debt reduction)

MEXICO CITY, Nov 28 (Reuters) - Mexico’s cash-strapped construction firm ICA nearly doubled its loss in the third quarter compared with the same period last year as construction revenue plunged, its results report showed on Monday.

ICA, struggling under a high dollar-denominated debt load, recorded a loss of 4.97 billion pesos ($256.4 million) in the July to September period, 98 percent bigger than the 2.507 billion peso loss it posted last year.

The company, which is in the process of restructuring its debt, said revenue fell 35 percent to 5.06 billion pesos from 7.74 billion last year, dragged down by a 71 percent slump in construction revenue as the company exits foreign businesses.

ICA first began defaulting on interest payments last year and hired Rothschild Mexico to advise its restructuring. The company has slashed its technical administrative work force by 51 percent, ICA said on Monday.

It continues to restructure its operations and “is preparing to initiate a negotiation with its debt-holders” to finish its financial restructuring, ICA said.

Total consolidated debt eased 4 percent to 65 billion pesos ($3.354 billion) from December as the company paid off loans to Santander, Deutsche Bank, Barclays and Value that were backed by shares of lucrative airport operator Grupo Aeroportuario Del Centro Norte (OMA).

ICA currently has a 14.3 percent stake in OMA, it said.

Despite the dramatic slump in profit, the company has had some recent successes. It led a consortium to win a $406 million contract to build the foundation of a terminal building at Mexico City’s new airport last month, and secured a $215 million loan from financier David Martinez’s Fintech in June.

$1 = 19.382 Mexican pesos at the end of September Reporting by Alexandra Alper and Adriana Barrera; Editing by Jeffrey Benkoe and Meredith Mazzilli

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