Elecnor achieves a profit of 126.4 million euros

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