The Spanish infrastructure, energy and telecommunications group Elecnor has completed its first quarter of 2019 with a consolidated net profit of 21.7 million euros, which represents 4% growth compared to the 20.9 million achieved in the same period for the previous year. The positive trend in the figures is supported primarily on the favourable behaviour of both the infrastructure business and the concessions business, activities that complement one another and are mutually enriching.
The Infrastructure Business has grown thanks to the favourable behaviour of service activities on the domestic market, positive trends in the U.S. Subsidiaries Elecnor Hawkeye and Belco, the construction of power transmission lines in Brazil, a wind power farm in Toabré (Panama), and one in Boulenouar (Mauritania), railroad tunnelling projects in Norway, and the development of other projects on the foreign market.
The Concessions Business, in turn, has maintained the positive dynamic it enjoyed in past quarters, also contributing to the Group’s good results. Elecnor currently operates 5,740 kilometres of power transmission lines in Chile and Brazil and participates in 1,213 MW of wind power in operation or under construction in Spain, Brazil and Canada.
At the same time, it is highlighted that Elecnor continues making strides in its policies to contain and control expenses, having achieved a significant improvement in the Group’s efficiency in recent years.
Revenues and portfolio of pending lump-sum contracts
On 31 March, Elecnor's consolidated sales totalled 497.7 million euros, a figure that shows a +2.7% improvement over what was achieved in the first quarter of 2018 (vs. 484.5 million in Q118). Out of the Group's total revenues, 55% comes from the foreign market and the rest, 45%, is generated on the domestic market.
These encouraging data have influenced the volume of sales in the Infrastructure Business, thanks to positive trends in domestic activities in services, as well as the businesses in the United States, Brazil, Panama, Mauritania, and Norway primarily. In the case of the Concessions Business, the company's domestic revenues grew based on good production data from Spanish wind farms. At the international level, the start-up of the Cantareira line in Brazil was responsible for driving revenues in the power transmission sector.
The portfolio of contracts pending execution shows an increase of 4.1%. This amount grew to 2,320 million euros, compared to 2,229 million in 31 December 2018). The international market is responsible for 77% of the current figure, with the domestic market responsible for 23%.
The numbers obtained in the first quarter of this fiscal year, and the sizeable portfolio of projects pending execution allow Elecnor to maintain its objectives for 2019 as a whole: to exceed the figures achieved in 2018 for turnover and profit.
Elecnor is one of the leading corporations in project development, construction and operation through two major mutually-enriching business areas: Infrastructure and Concessions.
Infrastructure, renewable energy and new technologies are the main areas of activity in which the Infrastructure and Concessions businesses are involved.