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ACCIONA net profit increases 17.4% to €49 million in first quarter

05/12/2016

Consolidated revenues decreased 7.2% to €1,418 million
Consolidation of ATLL partially compensates for lower electricity prices in Spain
Net ordinary capital expenditure amounted to €299 million, and represented a large part of investment outlays for full year

ACCIONA posted a net profit of €49 million in the first quarter of 2016, 17.4% higher than in the same period of 2015. The result was aided by the consolidation of ATLL following the acquisition of an additional 37% of the concession consortium, which partially offset the strong decline of electricity prices in Spain.

Consolidated revenues fell 7.2% to €1,418 million as a result of lower revenues in the Energy and Infrastructure businesses. A significant drop in electricity prices, which were 33% lower in the first quarter of 2016 than a year ago, led to a 10.6% fall in revenues in the Energy division. Revenues in the Infrastructure division were 5.9% lower as a result of the sharp decline of Construction activity in Spain.

EBITDA was stable (-1%) at €277 million thanks to better margins in the Construction business and higher contributions from the Concessions and Water businesses, which helped offset the impact of lower electricity prices in Spain. The Energy business continues to make the highest contribution to Group EBITDA, at 77% of the total.  EBIT reached €170 million, 14.3% higher than the first quarter of 2015.

Net financial debt increased slightly, from €5,159 million on the 31st December 2015 to €5,396 million at the end of March 2016. The increase was due to the fact that the first quarter concentrated most of the investments planned for the entire year, including one-off investments such as the acquisition of two new vessels by Trasmediterránea and the acquisition of a 37% stake in ATLL from BTG Pactual. As a result, net capital expenditure totalled €299 million in the first quarter of the year, compared to €55 million in the same period of last year.

Results by division

ACCIONA Energy revenues fell 10.6% to €573 million. EBITDA decreased 11.7% to €213 million. The results reflected the low electricity prices in Spain, which averaged €30.7/MWh in the first quarter and led to a 9.2% drop in revenues and a 14.5% drop in EBITDA from generation activities in Spain. As a result, Earnings before Tax at the division fell more than 40%, from €65 million to €38 million.

At an operational level, consolidated production increased to 5,038GWh, 1.5% higher than in Q1 2015 due to the higher wind load factor in Spain and, to a lesser extent, a higher hydro load factor which compensated the lower solar resource as well as a lower international wind production.

During the last twelve months, consolidated installed capacity increased by 53MW (30MW wind in Poland, 4MW wind in Spain and 19MW solar PV in Chile)

ACCIONA Infrastructure – which includes the Construction, Water and Services – posted revenues of €738 million in the first quarter, a fall of 5.9%, mainly as a result of a 20.3% drop in Construction revenues to €427 million, a figure that reflects the sharp drop of activity in Spain. Construction EBITDA rose 4.2% to €23 million.

As of 31st March 2016 the construction backlog amounted to €6,535 million, 4.3% higher than in March 2015. The International backlog reached an overall weight of 75% of total vs. 69% a year ago.

Revenues from the Water business increased 83.8% to €163 million, while EBITDA rose from €3 million to €28 million. Excluding the consolidation of ATLL, revenues increased by 41.6%, while EBITDA almost trebled thanks to an increase in the international design and construction of water treatment plants. As of 31st of March 2016, the water backlog totalled €10,752 million, a 12.3% increase over the past 12 months.

Services – which groups a range of businesses including airport handling, facility services, logistics services and solid waste management – were stable with revenues of €158 million (-4%) and EBITDA of €3 million (+3.2%).

Other activities – which includes Trasmediterranea, Real Estate, Bestinver and Wineries – posted stable revenues of €128 million (+0.8%). EBITDA increased 7.2% to €12 million led by Trasmediterranea, where EBITDA improved by €5 million (from negative €3 million to a positive €2 million) thanks to an increase in revenues, improved operational efficiency and lower fuel and staff costs.

Bestinver had €5,012 million of funds under management as of 31st March 2016 and posted an EBITDA of €14 million, in line with results of the first quarter in 2015. 

Income Statement Data

 Jan-Mar
2015
Jan-Mar
2016
Chg(%)
Revenues 1,528 1,418 -7.2
EBITDA 280 277 -1.0
EBIT 149 170 14.3
Ordinary EBT 66 45 -32.0
EBT 66 71 7.4
Net attributable profit 42 49 17.4

Balance Sheet Data and Capital Expenditure

 31-Dec-201531-Mar-2016Chg (%)
Equility 3,754 3,785 0.8
Net debt 5,159 5,396 4.6
 Jan-Mar
2015
Jan-Mar
2016
Chg (%)
Ordinary Capital Expenditure 55 299 442.6

Operating Data                                                                                                                         

 31-Mar-201531-Mar-2016Chg (%)
Construction backlog (Million Euro) 6,264 6,535 4.3
Total wind installed capacity (MW) 7,180 7,212 0.5
Total installed capacity (MW) 8,586 8,637 0.6
Total production (GWh) (Jan-Mar) 6,146 6,252 1.7
Average workforce 32,066 31,766 -0.9
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