ACCIONA's net profit to September reaches €222 million

• Ebitda grows strongly (+10%) in like for like terms
• Infrastructure (+8.3%) and Energy (+1.2%) improve their operating profit
• Debt (-11.4%) and financial expenses (-9.7%) fall significantly in past 12 months.
• The company allocates €926 million to investments

ACCIONA’s net attributable profit reached €222 million in the first nine months of the year (-4.2%). The figure reflects a change in the group’s perimeter following the sale of non-strategic assets. ACCIONA improved the Ebitda of its Infrastructure (+8.3%) and Energy (+1.2%) divisions, which increased group operating profit on a like-for-like basis (+10%). During the last twelve months, the company significantly reduced its debt (-11.4%) and its financial expenses (-9.7%), thus advancing in its deleveraging strategy. All of this while maintaining a strong pace of investment (€926 million) in an environment of operational strength.

In May, ACCIONA sold its five solar thermal plants in Spain (250 MW), and in June it closed the sale of Trasmediterranea. The perimeter comparison until September is also affected by the sale, in the the last quarter of 2017, of the Route 160 concession in Chile.

ACCIONA obtained an attributable net profit of €222 million (-4.2%) and an Ebitda of €883 million (-2.6%). In like for like terms, Ebitda would have grown by 10% if we only considered the current perimeter of the group.

Total revenues in the first nine months of 2018 amounted to €5.43 billion (+1.8%), due to an increase in Energy revenues (+24.5%), the growth in Infrastructure turnover (+1.4%) and despite the decline in Other Activities, which included Trasmediterranea until it was sold.

Total investment during the period reached €926 million. The figure includes €443 million of gross investments, €101 million to boost ACCIONA Real Estate's development activity, €209 million for projects (capex) and €173 million for the temporary share buyback programme.

Net debt stood at €5.05 billion at the end of September, compared to €5.70 billion a year earlier (-11.4%). In addition financial expenses declined (-9.7%).

Results by business divisions

Energy increased its Ebitda to €531 million (+1.2%). In like-for-like terms, without the contribution of the solar thermal plants in Spain, Ebidta would have grown by 13%. The division's turnover increased to €1.59 billion (+24.5%). The division's pre-tax profit stood at €99 million (+25.1%).

The generation business in Spain decreased its Ebitda (-7.9%). However, the operating profit of international generation grew (+14.9%) for three reasons: greater operating capacity, higher production (+13%) and higher prices, despite a negative evolution in exchange rates.

In the last twelve months, consolidated installed capacity increased by 74MW. This figure mainly reflects the sale of solar thermal power in Spain and the incorporation of new wind farms in Mexico (183 MW) and Australia (132 MW). Consolidated production during the period amounted to 13,770GWh (+11.2%).

Infrastructure increased its Ebitda to €310 million (+8.3%), thanks to the contribution of large international projects, especially the Quito Metro. Revenue also continued to grow to €3.66 billion (1.4%). The division's pre-tax profit was €93 million (+15.9%).

Construction continues to be the Infrastructure business area that contributes the most in terms of turnover (€2.33 billion, +2.3%) with a margin of 6.7%. At the end of the quarter, its backlog amounted to €5.49 billion (-12.7%) as a result of the high volume of work being delivered mainly in Australia, Ecuador and the United Arab Emirates. The backlog was partly replenished by new contracts in Norway (E6 Ranheim-Vaernes motorway) and Australia (Southern Program Alliance).

The Industrial area experienced strong growth in its portfolio during the period (€828 million, +72.3%) with the award by clients of major works such as a waste to energy plant in Australia and a large solar thermal plant in the Atacama Desert in Chile.

The Concessions business reduced its turnover to €85 million (-21.6%) mainly as a result of the sale of Route 160 in Chile at the end of last year.

The completion of two desalination plants in Qatar lowered turnover in the Water area to €447 million (-12%). However, new contracts in Saudi Arabia and the United Arab Emirates have strengthened the water business backlog to €11.24 billion.

Services also performed well during the period, with turnover increasing to €565 million (+2.4%) and the development of new businesses such as an electric scooter sharing service recently launched in Madrid.

In Other Activities, the deconsolidation of Trasmediterránea and the change in the perimeter of the real estate business due to the transmission of assets to Testa Residencial reduced turnover to €288 million (-46%) and Ebitda to €45 million (-54.2%). Following the end of the quarter, ACCIONA Real Estate reached an agreement to sell its stake in Testa Residencial for €379 million – a deal which has yet to close.

At the end of September, Bestinver had €6.20 billion in funds under management and improved its revenues (+10.1%) and Ebitda (+8.1%).

Key Figures

Income Statement Data (Millon Euro)  

Balance Sheet Data and Capital Expenditure

Operating Data