3 november 2016

Elecnor posts a 4.3% increase in net profit and 4.5% sales growth in the first nine months

Net profit totalled EUR 50 million and sales amounted to EUR 1,345 million

Madrid, 3 November 2016.- Elecnor reported a consolidated net profit of EUR 50 million for the first nine months of 2016, up 4.3% from EUR 48 million for the same period a year earlier. This increase was driven mainly by the Group's Infrastructure business,whose performance offset the impact of the weakening of the Brazilian real on the results of the Group's projects in that country.

Other factors that shaped net profit at 30 September 2016 compared with the same period last year are: 

  • The strong contribution of projects being executed by the Group in foreign markets, especially in Chile, where work is underway on the installation of the country's largest wind farm for Latin American Power and on public lighting and other energy projects.
  • The contribution of key projects in the area of renewable energies and power transmission and transformation developed by the Group in Latin America (Peru, Dominican Republic and Chile) and Africa (Angola). 
  • The good performance of 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 coming years. 

In addition to the ongoing control over overhead expenses and the efficiency improvements that the Company has been applying in the past few years.  

Sales 

At 30 September 2016, sales totalled EUR 1,345 million. This represents an increase of 4.5% from the figure of EUR 1,287 million reported for the same period in 2015. 

Of this volume, 53.4% was international revenue, which advanced 4.5%. In the domestic market revenue growth stood at 4.6% and they accounted for 46.6% of the total.

These promising figures were shaped by factors including: 

  • The strong progress of projects being executed by the Group in foreign markets, especially in Mexico, with the start of work on the new combined cycle plant that the Elecnor Group is building in this country, and in Chile, where Elecnor is installing a wind farm for Latin American Power.
  • The start-up of the Alto Jahuel transmission line in Chile and its second circuit. These lines supply the country's backbone transmission system and came into service in September 2015 and in January 2016 respectively.
  • The increased volume attained by the Group's companies operating in the United States.
  • The continued strong performance of the Group's traditional infrastructure business in the domestic market seen over the past few years and the improved showing of the Group's solar PV subsidiary Atersa. The latter helped to offset the impact on the renewables business of the decline in wind project revenues in Spain owing to the low average sale price of energy generated in the Iberian Electricity Market (MIBEL). 

Backlog

Our order backlog at 30 September amounted to EUR 2,505 million. Especially noteworthy was the 15% increase in domestic contracts compared with year-end 2015, though international contracts represent a larger volume (81.3% of the total). 

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