Elecnor records net profits of 48.5 million euros and increases sales by 10.6%

EBITDA increases by 3.5% to 103.9 million euros

The portfolio of contracts pending execution has risen by 15.4%, also thanks to an increase in international activity of 54.2%

Madrid, 31 July 2013. Elecnor closed the first half of 2013 with consolidated sales of 939.6 million euros, representing an increase of 10.6% over the same period in 2012. This development was possible thanks to growth of 90.6% in external markets, which compensated for the fall of 29.4% in the internal market. Consequently, external sales (538.4 million euros) overtook those for the internal market (401.2 million euros) and now represent 57.3% of the total.

This steep rise in international business comes as a result of four main factors:

• Greater contribution from the wind-farm companies that operate overseas, thanks partly to the commencement of operations at Ventos da Lagoa and Ventos do Litoral in the state of Rio Grande do Sul, Brazil.
• The growing contribution from the companies operating in the United States, particularly as a result of the development of a 20 MW solar farm for the Californian firm PG&E.
• The beginning of development on Elecnor’s first gas pipeline in Mexico, in Morelos.
• The contributions of the Scottish company IQA, 55% of which has been owned by the Elecnor Group since June 2012.

Results

In terms of results, EBITDA grew by 3.5% to reach a total of 103.9 million euros. Meanwhile, consolidated net profits reached 48.5 million euros, 8.1% less than during the first half of 2012.  These changes are the result of four main events:

• The completion in late 2012 of the construction of three solar-thermal energy projects in Spain that the Group is participating in; along with the delay to the commencement of certain major overseas construction projects, which it is hoped will be overcome during the second part of the year.
• The smaller margins obtained in Elecnor’s traditional business areas as a result of reduced investment on the part of the clients with whom the Group operates.
• The reduced contributions from the solar-energy company Atersa, as a result of the drop in activity caused by successive regulatory changes in Spain with regard to energy production and the anti-competitive behaviour of the Asian countries that produce photovoltaic modules.
• The smaller-than-expected margins obtained via the operation of the solar-thermal energy plants in which the Group participates, as a result of the significant regulatory changes in late 2012 and February 2013.

 
In contrast, the continuation of the policy of containing and controlling general expenses applied in recent financial years has helped alleviate the impact of the aforementioned events.

Contracts portfolio

The portfolio of contracts pending execution has shown positive development during the first half of 2013, with overall growth of 15.4% in comparison with the same period for 2012, resulting in a total of nearly 2.1 billion euros as of 30 June. The external markets also saw the greatest amount of activity in this area, with the portfolio growing by 54.2% to reach 1.57 billion, or 75.2% of the total portfolio.

Outlook for 2013

In light of these six-month figures, Elecnor anticipates that the 2013 financial year as a whole will see turnover and results that are similar to those for 2012. This forecast is subject to the effects of the regulatory framework for the electrical sector that was approved by the Government on 12 June. It will therefore be necessary to analyse the implementation of this framework in order to calculate the effects it will have on accounts for the 2013 financial year.