ACCIONA increased net profit by 70% to €352 million in 2016, a year in which the company significantly buttressed future growth potential with a major expansion of its renewable energy pipeline and infrastructure project backlog, and higher capital expenditure.
The results include €721 million of extraordinary revenues, mainly from the integration of ACCIONA Windpower (AWP) into Nordex, as well as €626 million in provisioning and costs related to refinancing operations to improve liquidity and reduce the average cost of debt.
EBITDA increased slightly to €1,192 million, in line with the Company's guidance, thanks to a strong performance from the Infrastructure division (+91.8%), which offset the decline in Energy EBITDA caused by the slump in electricity prices in Spain. Nevertheless, the renewable energy division remains the main source of EBITDA, accounting for 62% of the Group total.
ACCIONA reported €5,977 million in revenues in 2016 (-8.7%), reflecting the decline in Energy revenues (-33.9%) as a result of deconsolidating AWP and of the low power prices in Spain. Both impacts were partly compensated by a solid performance from the Infrastructure division, where revenues in 2016 increased to €3,611 million (+9.2%), and by Other Activities, where revenues rose by 8.9% to €668 million.
Capital expenditure increased more than four times to €916 million, compared with €222 million in 2015. This major increase in investment outlays, focused mainly on the Energy division, was achieved with a simultaneous reduction of debt, which fell to €5,131 million (-0.5%).
The company reduced leverage to 4.3x EBITDA, from 4.4x in 2015. In addition, refinancing operations will result in annual savings of €75 million.
Energy closed 2016 with €1,796 million in revenues (-33.9%) and €740 million in EBITDA (-17.5%). The result reflects the decline in electricity prices in Spain and the deconsolidation of AWP.
Consolidated installed capacity increased by 294 MW in 2016, including 246 MW of photovoltaic capacity at the El Romero plant in Chile. ACCIONA Energy's consolidated output in 2016 totalled 17,354 GWh, and installed capacity at year-end was 7,349 MW, of which 2,677 MW were located outside Spain.
ACCIONA expanded its portfolio of firm energy projects in 2016 due to successful bids in public and private sector tenders in Chile, Mexico and Australia, which assures the construction of 700 MW in the coming years.
Infrastructure, which encompasses the Construction, Water and Service units, reported €3,611 million in revenues (+9.2%), while EBITDA almost doubled to €321 million. The Construction area performed well, increasing revenues by 4.4% to €2,267 million due to growth in international business; as a result, margins expanded and EBITDA increased by 70.5%.
At 31 December 2016, the Construction backlog stood at €8,140 million (+21%). The international backlog accounts for 83% of the total, up from 73% one year earlier.
The Water business reported €708 million in revenues (+57.2%) and a three-fold increase in EBITDA to €119 million, mainly as a result of the full consolidation of ATLL, the water supply concession for Barcelona city and province, since 1 January 2016.
Excluding ATLL, Water division revenues increased by 24.2% and its EBITDA by 6.1% as a result of international design and construction activity.
The Service area reported €677 million in revenues (-5.5%) and EBITDA of €28 million (-9%).
The Other Activities area (Trasmediterranea, Inmobiliaria, Bestinver and Wineries) reported an 8.9% increase in revenues to €668 million. Trasmediterranea improved EBITDA by 48.5% due to higher traffic, improved operational efficiency and lower fuel costs. Inmobiliaria doubled revenues to €105 million, while EBITDA was €14 million. Bestinver had €5,222 million in assets under management at 31 December 2016 and generated €59 million euros in EBITDA last year.
|Jan-Dec 2015||Jan-Dec 2016||Chg (%)|
|Net attibutable profit||207||352||70.0|
|Jan-Dec 2015||Jan-Dec 2016||Chg %|
|Construction backlog (Million euro)||6,722||8,140||21.1|
|Water backlog (Million euro)||3,536||10,469||196.0|
|Total wind installed capacity (MW)||7,212||7,260||0.7|
|Total installed capacity (MW)||8,619||8,913||3.4|
|Total production (Gwh) (Jan-Dec)||20,875||20,830||-0.2|