Madrid, 28 February 2017.- Elecnor reported consolidated net profit of EUR 68.5 million for 2016, up 4.3% from EUR 65.7 million in 2015.
The main factors behind this strong performance are:
There were two main adverse factors: first, the Group continued to incur implementation costs in countries where it has started operating in recent years, in particular the United States and the UK. However, estimates for 2017 point to a marked improvement in earnings in these two countries. Second, the performance of some local currencies in which project financing transactions are structured compared with functional currencies has had a negative impact on the Group's income statement.
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 backdrop.
In terms of normalised EBITDA, calculated based on consolidated EBITDA and stripping out the impact of the application of IFRIC 12 relating to Service Concession Arrangements to the transmission lines operated by the Group in Brazil, Elecnor posted a figure of EUR 291.7 million, up 6.7% compared with normalised EBITDA in 2015. Based on this interpretation, only income associated with the maintenance services and operation of these transmission lines is recognised as operating income, so to reflect a more analysable figure this EBITDA has been eliminated from the accounts.
This strong performance was shaped primarily by the same factors that boosted net profit, with the exception of the abovementioned performance of some local currencies in which project financing transactions are structured compared with functional currencies.
The Elecnor Group attained consolidated EBITDAof EUR 244.3 million, an increase of 8.9% compared with 2015.
In 2016, Elecnor's sales surpassed the EUR 2,000 million mark for the first time. More specifically, sales totalled EUR 2,035 million, an increase of 8.2% compared with the total of EUR 1,881 million in 2015.
The contributory factors are:
The international market accounted for 55% of total revenue and the domestic market the remaining 45%.
The order backlog at 31 December 2016 stood at EUR 2,339 million. By markets, international orders accounted for EUR 1,917 million (82% of the total) of this amount, while domestic orders totalled EUR 423 million, 18% of the total.
With regard to the Group's two core businesses, Infrastructure and Concessions and Investment, the former posted a 20% increase in net profit to EUR 53 million, while its sales grew by 7.1% to EUR 1,892 million. This unit encompasses the execution of engineering, construction and services projects, with a particular focus on the electricity, power generation, telecommunications and systems, facilities, gas, construction, maintenance, environmental and water, railway and space industries.
Meanwhile, the concessions business (which includes the operation of services through investment in power transmission and generation assets, primarily wind and solar thermal) posted a net profit of EUR 19.8 million, down 6 % compared with 2015. The reason for this decline is the abovementioned performance of some local currencies. Meanwhile, sales climbed 5.4%, to EUR 211 million.
Net corporate financial debt stood at EUR 272 million at year end, compared to EUR 280 million in 2015, a year-on-year decline of 3% following the 19.5% reduction achieved in 2015.
The Net Financial Debt/EBITDA ratio for the Restricted Group was 2.02, well below the limits set in the financial covenants.
Elecnor's shares ended the year at EUR 8.98, up 9.1% compared with the end of 2015 and outperforming the Ibex-35, which fell by 2.01%. The cash trading volume totalled EUR 34.4 million, Market cap amounted to EUR 781 million while the price earnings ratio stood at 11.4x, 0.5 points higher than in 2015.
The dividend yield was 3.2%, compared with 2.9% in 2015.
In 2016, the Group's workforce grew by 665 (+5.2%) to 13,405 employees. The main reason for this increase were several new telecommunications maintenance and infrastructure contracts signed in the latter part of the year, The number of employees outside Spain grew by 334, largely as a result of an increase in activity in Angola and the Dominican Republic.
Elecnor, via its wind subsidiary Enerfin Sociedad de Energía, completed the sale of the Parques Eólicos de Villanueva company to Cubico Naranja Wind Spain for EUR 34 million, a transaction that made a positive contribution to the Group's results in the year. This transaction is in keeping with Elecnor's strategy for securing returns on its infrastructure promotion, development and construction projects.
Also, taking advantage of current low interest rates, Elecnor signed a novation contract last June 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. This resulted maturity being extended by one year and a marked improvement in the original margin conditions. Under this new agreement, which came into force immediately, maturity is extended by one year to July 2021 and the margin conditions originally agreed last year are maintained.
In addition, the Board of Directors of Elecnor, S.A., at its meeting on 21 September 2016 and in accordance with its orderly succession policy, agreed, unanimously and with effect from 1 January 2017, the appointment as Non-Executive Chairman of the Board of Directors and of its Executive Committee of the former Deputy Chairman, Jaime Real de Asúa Arteche, to replace Fernando Azaola, who had voluntarily resigned as Executive Chairman from that date. Following his replacement as Chairman, Fernando Azaola remains a member of the Board of Directors and of its Executive Committee. Fernando Azaola also remains Chairman of the Elecnor Foundation. In addition, the Chief Executive Officer, Rafael Martín de Bustamante, remains in office as Elecnor's most senior executive.
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Elecnor is one of the leading corporations in project development, construction and operation through two major mutually-enriching business areas: Infrastructure and Concessions.
Infrastructure, renewable energy and new technologies are the main areas of activity in which the Infrastructure and Concessions businesses are involved.