Elecnor posted a 10% increase in net profit in 2014 to EUR 58.5 million
EBITDA amounted to EUR 228.8 million, up 3.8%
Sales stood at EUR 1,724 million, with international markets accounting for 54%
The order backlog was worth EUR 2,417 million at the end of 2014, with international markets accounting for 82%
Madrid, 25 February 2015.- The Elecnor Group reported net profit of EUR 58.5 million in 2014, up 10% compared with EUR 53.3 million in 2013. EBITDA stood at EUR 228.8 million, an increase of 3.8%.
This growth was achieved despite the still weak recovery of the Spanish market and the impact of energy reform, as a result of which Elecnor's Spanish wind farms contributed EUR 9 million less than in 2013 to consolidated profit and the profitability of the Group's three solar thermal plants in Spain was lower than forecast when they were promoted and developed. The tax reform effective from 1 January 2015 also reduced the Group's earnings by a further EUR 10 million.
In contrast, the main positive factors in 2014 were:
- A larger contribution from the wind projects operated by the Group in Brazil and Canada.
- An increase in the productivity of infrastructure projects.
- Our strong presence in countries such as Angola, Chile and Brazil and a better return from other facilities that have recently come into operation.
- The sharp increase in telecommunications infrastructure activity in the domestic market.
- The start-up of new transmission lines in Brazil and the strong performances of the concession companies that operate the other transmission lines in the country.
Sales
Consolidated sales in 2014 amounted to EUR 1,724 million, down 7.5% compared with 2013. This decline is due to the lower revenue from power generation projects in which the Group participates and the impact of lower (public and private) investment in sectors in which the Group operates in Spain.
In 2014, the international market accounted for 54% of total Group sales, with the domestic market contributing 46%. It is the third year running that international sales, which represented just 36% in 2010, have accounted for the largest proportion of the total. These figures underline the Elecnor Group's commitment to international expansion as the growth driver over the coming years while at the same time cementing its leadership of the domestic market.
Order book
The order backlog at 31 December 2014 stood at EUR 2,417 million. International orders accounted for EUR 1,979 million (82%) of this amount, while domestic orders totalled EUR 438 million, the remaining 18% of the total.
Main corporate transactions
In 2014, Elecnor signed a strategic agreement with the Dutch group APG, which manages the world's second largest pension plan, over the joint development of new power transmission projects in Latin America. Pursuant to the latter agreement, APG took a 49% interest in Celeo Redes, previously a wholly-owned Elecnor Group subsidiary which oversees investment in power transmission projects. APG paid EUR 236.7 million for this stake.
Also noteworthy was the CAD 71.8 million deal finalised on 28 November with the Canadian fund Eolectric Club Limited Partnership, which saw the latter take a 49% stake in the 100 MW L'Érable wind farm, promoted and built by the Elecnor Group, in Québec.
Finally, a EUR 600 million syndicated facility was arranged with a group of 19 Spanish and international banks, which replaces the EUR 401 million outstanding on the syndicated facility arranged in 2012 and will provide funding for the Group's planned investments over the coming years, especially in foreign markets and activities with the strongest growth potential and stable regulatory frameworks. The deal was carried out at the upper end of the forecast range, further underscoring Elecnor's ability to raise finance with banks and their confidence in its operations. The new syndicated facility is for five years, thereby extending the average maturity of the Company's borrowings, and includes considerably better conditions in terms of interest and covenants than the previous facility taken out in January 2012.
Download Presentation of results