Elecnor posts 4.3% increase in net profit and 19% EBITDA growth in the first half

Madrid, 1 August 2016.- Elecnor obtained a consolidated net profit of EUR 32.6 million for the first half of 2016, up 4.3% year-on-year. This increase was driven mainly by the Group's Infrastructure business, despite the significant weakening of the Brazilian real compared to the first half of 2015, which has impacted the results of the Group's projects in that country.

Other factors influencing the performance of net profit to 30 June are: 

• The positive contribution by Group companies operating outside Spain, especially in Chile, due to the execution of assembly works for the largest wind farm in the country for Latin America Power.
• The contribution of key projects in renewable energies and power transport and transformation developed by the Group in Latin America (Dominican Republic, Brazil, Chile and Mexico) and Africa (Angola). 
• Strong results in the domestic infrastructure market.

These positive factors offset the implementation costs in countries where the Group has started operating in recent years and where, once the adaptation process is complete, it expects to return strong earnings in the years ahead. In addition to the ongoing control over overhead expenses that the Company has been applying in the past few years.  

EBITDA was EUR 102.3 million in the first half compared to EUR 86 million in the same period in 2015, marking an increase of 19%.  

Sales 

At 30 June 2016, sales stood at EUR 894.3 million, 7.3% higher than the EUR 833.7 million posted in the same period in 2015. Reasons for this increase include:

• The strong progress made in projects being executed by the Group in foreign markets, especially in Mexico, with the start of work on the combined cycle plant that the Elecnor Group is building in this country with partner Duro Felguera, and in Chile, where the aforementioned works are being executed for Latin American Power.
• The start up of the Alto Jahuel transmission line in Chile and its second circuit; lines that supply the country's backbone transmission system.
• The continued strong performance of the Group's traditional infrastructure business in the domestic market seen over the past few years.

By geographical area, the international market accounted for 53.5% of total revenue and the domestic market the remaining 46.5%. These figures underscore the Elecnor Group's focus on international markets, where it grew by 9.7% in this first half, as a driver of growth for the next few years, although the domestic market also saw growth of 4.6% during the same period.

Backlog

At 30 June, the backlog stood at EUR 2,614 million, up 4.5% compared with the end of the previous year.

This sharp growth is largely attributable to the Group's firm focus on the international market and continues the progress made in recent years. Specifically, the international backlog amounted to EUR 2,136 million, up 1.9% compared with December 2015, which means it now represents 82% of the total backlog.

Download Presentation of results