Elecnor posted a 12.2% increase in net profit in 2015 to EUR 65.7 million

Madrid, 29 February 2016.- The Elecnor Group reported net profit of EUR 65.7 million in 2015, up 12.2% compared with EUR 58.5 million in 2014. 

The main positive factors which affected the Group's 2015 results were:

• The positive contribution of most Group companies operating in international markets. 
• The profit from the export of Deimos-1 and Deimos-2, Elecnor's two Earth observation satellites, as part of the strategic deal struck last June with the Canadian group UrtheCast.
• The strong performance of the domestic market in terms both of business volume and profit.
• The strong energy output by wind farms managed by Elecnor in Spain, helped by the prices achieved on the  Iberian Electricity Market ("MIBEL").

This improvement in PAT was attained despite the Group attributing just 51% of the results from its transmission networks business in Brazil and Chile and its Canadian wind business following the agreements struck in the second half of 2014 for the entry of strategic partners in these businesses, whereas 100% was attributed last year. It was also achieved despite the start-up costs in countries where the Group has begun operating in recent years, in particular the US. Both strategic alliances with partners and operations in priority markets are expected to deliver profits in the short to medium term.

Meanwhile, the Group continued to step up the cost-control policies that all Group companies have been applying consistently, and above all in the current market. This also helped cushion the negative impact of the factors described above. In this context, the Group made a significant effort to adapt the resources used in its activity to the current economic environment. 

Sales 

Consolidated sales in 2015 amounted to EUR 1,881 million, up 9.1% compared with 2014. This increase is due to:

• The sound performance by Group companies on international markets, especially Australia, where a solar PV plant is being built for Moree Solar Farm, the work on a section of Peru's Southern Gas Pipeline, and the volume of business secured by the Scottish company IQA and the US firm Hawkeye.
• The business volume generated by Elecnor's subsidiary in Jordan as a result of the construction of the country's first wind farm.
• The strong energy output by wind farms managed by Elecnor in Spain, helped by the prices achieved on the  Iberian Electricity Market ("MIBEL").
• A strong performance by the Group's traditional infrastructure business on the domestic market.

The international market accounted for 54.7% of total revenue and the domestic market the remaining 45.3%. 

Backlog

The order backlog at 31 December 2015 stood at EUR 2,502 million, up 3.5% compared with year-end 2014. By markets, international orders accounted for EUR 2,095 million (84% of the total), up 5.9%, while domestic orders totalled  EUR 407 million, 16% of the total.

Net financial debt

Elecnor ended 2015 with net corporate financial debt of EUR 280 million, compared with EUR 348 million in 2014, down 19.5%. Meanwhile, the Net Financial Debt/EBITDA ratio of the Restricted Group was 2.20x, far lower than the limits established in its financial agreements.

Main corporate transactions

Elecnor, through its technology division Elecnor Deimos, signed a strategic alliance last year with Canadian company UrtheCast for joint projects in the aerospace sector. The agreement included the sale to UrtheCast of Deimos-1 and Deimos-2, Elecnor's two Earth observation satellites, and a series of ancillary agreements. 

Elecnor Deimos and UrtheCast also agreed to work together on opportunities of common interest. As a result, Elecnor became a strategic partner on UrtheCast's “Constellation” programme, the aim of which is to develop the first fully-integrated Earth observation satellites and radar constellation. Specifically, the Spanish company will work on mission control, direct tasking and receive ground stations, mission analysis and flight dynamics, and on the integration and testing of radar satellite payloads in the clean room at Elecnor's Satellite Assembly and Operations Centre in Puertollano (Ciudad Real).

Subsequently, on 15 July the satellites were finally sold for a total joint amount of EUR 76.4 million.

Also, and taking advantage of improvements on finance markets due to the current low interest rates, on 2 June 2015 Elecnor signed a novation contract to modify several of the conditions of the EUR 600 million syndicated loan taken out in July 2014 with 19 Spanish and international financial institutions.

The novation is effective immediately, extending maturity by one year to July 2020, and the margin conditions originally agreed last year are better. The loan limit remained EUR 600 million, repaid in two tranches: a EUR 300 million loan tranche and a revolving credit facility in the same amount.

The transaction is led by Banco Santander as Sole Bookrunner, Coordinator and Agent. Bankia, Caixabank, Banco Sabadell, Kutxabank, Credit Agricole, BBVA and Barclays are acting as MLAs alongside Banco Santander.

Finally, agreement was reached last year with the banks providing project financing for the solar thermal plants in which Elecnor is participating in Alcázar de San Juan (Ciudad Real) on the adaptation of the funding of these facilities to reflect the new reality of the Spanish renewables industry following regulatory changes. These new conditions include an extension of the loan repayment term and a reduction in the interest spread.