Elecnor, the Spanish infrastructure, energy and telecommunications group improved its results in 2019 after achieving a net profit of 126.4 million and sales of 2,453 million, representing a growth of 9%.

The international business represents more than 52% of total sales, while the national business grows by 18.3%.

By segments, the Infrastructure Business reached sales of 2,279.5 million euros, up by 8.8% over the previous year, while revenues in the Concession Business grew to 190.8 million, which represents an increase of 20.3% compared to 2018. The growth in terms of activity has been achieved due to the good performance of both businesses.

Infrastructure has improved its figures on the back of: a) the leadership in services activities in the national market for large operators, mainly electricity and telecommunications, b) the construction of power transmission lines in Brazil, c) the growth of operations in Africa thanks to the participation in different construction projects, d) the new projects in Norway, e) the photovoltaic activity in the Dominican Republic and f) the development of wind farms in Panama, Jordan and Chile.

The positive development of the Concession Business is due to: a) the greater electricity generation of the national wind farms; b) the growth of the transmission business supported by the new projects acquired last year; c) the activities to promote renewable energy; and d) the improved performance in terms of revenues from solar thermal plants.

In 2019 the Group's Consolidated Net Profit reached 126.4 million euros, driven by the positive accounting impacts as a result of the alliance between Elecnor and APG for the joint management of the Celeo Concesiones Group. Besides this non-recurring accounting impact, it is worth noting the good performance of the businesses that make up Elecnor Group in its ordinary course of business.

EBITDA, without considering extraordinary corporate operations, amounted to 265 million euros, representing a growth of 6.8% compared to the previous financial year.

Most relevant corporate operations of 2019

In late 2019, the Elecnor Group signed an agreement with the Dutch fund APG to expand its strategic alliance and jointly control Celeo Concesiones e Inversiones. This agreement will enable the development and investment in energy transmission and renewable energy projects jointly, with the exception of wind projects. This alliance, which closed the deal on 17 December 2019, includes a commitment made by both parties to invest 400 million in capital, over the next five years, for new projects, which will undoubtedly represent a growth lever for both the concession business as well as for the infrastructure business of the Elecnor Group.

On the other hand, the Group maintains a cost containment and control policy that is currently reinforced by the development of several digitisation projects to improve the efficiency of business processes, some of which were implemented last year and from which returns are expected in the short term.

A solid backlog

The backlog of signed contracts that are expected to be executed within the next 12 months amounted to EUR 2,222.7 billion (which represents a growth of 4.5% with respect to the closing of 2018). Of this figure, 75% of the backlog corresponds to the foreign market.

With the development of its business in 2019, Elecnor proves yet another year that it continues to be a benchmark in the sectors in which it operates within the national market and, in addition, continues to strengthen the internationalisation process of activities.

Sustainability

Elecnor is aware of the importance of its actions on people and the environment in which it operates. For this reason, our objective is to maximise positive impacts while minimising negative ones on society and the environment, throughout our value chain, through ethical and transparent behaviour. We have established a number of commitments that guarantee the well-being of people and the environments with which we are in contact:

People

·        Occupational health and safety at the heart of the business

·        We promote equality and diversity

·        9.4% increase in the Elecnor team

·        15.7% increase in women on the workforce

Environment

·        Climate Change Strategy

·        AENOR CO2 Environment Certificate verified according to ISO 14064-1

·        The ratio of emissions generated per hour worked decreases by 13.6%

·        27.8% reduction in carbon footprint in five years

·        Higher score in “Climate change management” in the CDP international ranking

Company

·        Elecnor, Signatory Partner of the UN Global Compact

·        SDG allies

·        Elecnor Foundation

·        Corporative volunteering

·        Dialogue with local communities

Good Governance

·        The highest ethical standards

·        Zero tolerance towards malpractices

·        Information transparency

·     Approval of a new Policy of Communication and Engagement with Shareholders, Investors and Other Stakeholders.

·        UNE-ISO 37001 of Anti-bribery management systems

·        UNE 19601 Management system for criminal compliance

The Spanish infrastructure, energy and telecommunications group Elecnor, has been awarded a contract for 86 million euros to build a green Combined Heat and Power (CHP) plant in the Belgian city of Ghent. This is the first contract the company has won in Belgium.

The plant is promoted by the Gentse Warmte Centrale (GWC), a society set up for this project by Belgian Eco Energy (BEE)—a Belgian energy company specialised in the production and supply of locally generated renewable energy—and the British fund manager Equitix.

The plant will have an electrical generation capacity of 19.9 megawatts (MW) by burning locally sources non-recyclable demolition wood. The facility will be located in a former coal terminal in the port of Ghent (North Sea Port), one of the most dynamic in the country. In addition, the project includes the production of steam to service a nearby industrial company.

During the implementation of this project, Elecnor will carry out all the geotechnical and topographical studies required, as well as the engineering work. In addition, the contract includes all construction work, such as demolition, earthmoving, piling and building, together with electrical and mechanical assembly.

The works on the CHP plant in Ghent, which are expected to take about 2 years, will have a significant economic impact on the city, as it will lead to the creation of up to 300 temporary jobs and about 35 permanent jobs. This contract joins the portfolio of biomass projects that Elecnor has undertaken in recent years, including the Viseu and Fundao facilities in Portugal.

The wide diversification of the businesses in which it operates has allowed Elecnor to consolidate itself on an international level and to find new opportunities in a highly mature and competitive market such as Europe. In this respect, the company has recently been awarded the electrification of over 730 km of railway lines in Lithuania, a strategic project for the country’s railway network valued at over 350 million euros. In Italy, Elecnor has been deploying optical fibre (FTTH) for over two years, specifically in the city of Novara, with Enel Open Fiber, an Enel subsidiary. Moreover, IQA, the Elecnor Group's subsidiary in the UK, has won the contract for 66 million euros to deploy the United Kingdom’s fibre optic network together with a local company. 

The Spanish infrastructure, energy and telecommunications group Elecnor has been awarded the turnkey construction of Girasol solar plant for the Dominican power company Empresa Generadora de Electricidad Haina (EGE Haina). It will be located in Yaguate, in the province of San Cristóbal. It will have a peak power capacity of 120 MW, and the energy it produces will be distributed through the SENI (Sistema Eléctrico Nacional Interconectado — National Interconnected Electric System).

This new photovoltaic power station is set to be the largest in the country and will boost the capacity of the solar projects connected to SENI by 64%. Construction will be carried out on a 220-hectare site with a higher solar irradiance than the Dominican average. It will involve the installation of 300,000 photovoltaic modules, a 150-MVA substation and a 138-kV transmission line stretching 10 km.

Elecnor in the Dominican Republic

Elecnor first won a contract in the Dominican Republic in 1980 and has been firmly established there since 1985. With 40 years of continuous experience and being fully established in the country, Elecnor can execute its projects there directly without recourse to external subcontractors. Elecnor is leading the way in the country in terms of constructing and distributing transmission lines, facilitating the improvement and modernisation of the Dominican electricity network. Of particular note is the recent construction of the 48-MW Larimar II Wind Farm in the province of Barahona, for the same client, EGE Haina.