2 november 2015

Elecnor posts a 15.2% increase in net profit and 13.9% sales growth in the first nine months

At 30 September, net profit stood at EUR 48 million and sales totalled EUR 1,287 millionSales continue to pick up in the Spanish market, where they rose 10%, while international sales grew by 17.6%

Madrid, 2 November 2015.- Elecnor  obtained consolidated net profit of EUR 48 million in the first nine months of 2015, up 15.2% from EUR 41.7 million for the same period a year earlier.

This increase was underpinned by the following key factors: 

  • The positive contribution of most Group companies operating in international markets, in particular in Australia,  where a major new solar PV plant is being built for Moree Solar Farm Pty Ltd; Peru, where initial work on a section of the Southern Gas Pipeline is underway; and Mexico, with the contribution to consolidated profit of the Morelos company from the final phase of construction of the Morelos gas pipeline for the country's Federal Electricity Commission. 
  • 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.

This 15.2% growth in net profit - higher than the 7.2% increase reported at the end of the first half and the 5.1% rise in the first quarter - 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 and operations in priority markets are expected to deliver profits in the short to medium term.

Revenue 

At 30 September, Elecnor's consolidated sales totalled EUR 1,287.2 million, up 13.9% from EUR 1,130.5 million in the first half of 2014. 

Of this figure, 53.4% were international revenues, which advanced 17.6% in the nine months. In Spain growth stood at 9.9%, with domestic revenues accounting for 46.6% of the total in the period.

These positive figures were underpinned by factors such as: 

  • The abovementioned positive performance of the Group's companies operating in Australia, Peru and other international markets. 
  • The business volume generated by Elecnor's subsidiary in Jordan as a result of the construction of the country's first wind farm by Elecnor.
  • The strong energy output by wind farms managed by Elecnor in Spain, helped by the prices achieved on the  Iberian Electricity Market ("MIBEL").
  • The strong performance by the Group's traditional infrastructure business on the domestic market.

This robust sales performance is expected to be maintained over the final few months of the year. This forecast is based on the solid international backlog valued at EUR 2,010 million, 1.6% more than at the start of the year. This accounts for 80.2% of the total backlog at 30 September 2015, which stood at EUR 2,507 million (a 3.7% increase compared with the previous year). This growth illustrates the Group's firm focus on the international market, and confirms the progress made in recent years. The domestic backlog also continues to improve and grew by 13.5%

Outlook for 2015

With a solid order backlog, the Elecnor Group remains on track to achieve its 2015 target of surpassing last year's results by 10%. 

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