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ACCIONA posts First Quarter profit of 33 million euro thanks to one-off items

05/14/2014

Spain's energy sector reforms, which took effect in July 2013, led to a 67.6% drop in ordinary net profit before extraordinary items, estimated at €81 million.

EBITDA fell19.3% to €226 million.

Revenues were 8.7% lower at €1,402 million.

ACCIONA posted a pre-tax profit of €33 million in the first quarter of 2014, 3.5% lower than in the same period last year. The result includes capital gains of €28 million resulting from the sale of wind farms in Germany. Without this one-off item, ordinary net profit would have fallen 67.6% to €13 million, mainly due to the loss of €81 million of profits contributed by the Energy division as a result of regulatory changes to the energy sector that came into force in July 2013 (Royal Decree Law 9/2013).

EBITDA fell 19.3% in the first quarter to €226 million.

Revenues in the first quarter were 8.7% lower at €1,402 million, reflecting the regulatory cuts to the remuneration of wind energy assets in Spain, and delays to the scheduled start of some international construction projects.

Net financial debt on the 31st of March, 2014 stood at €5,902 million, a reduction of 2.3% from the end of 2013, as a result of higher cash flows from operational activities totalling €169 million that helped balance financial and investment outlays. Ordinary capital expenditure in the first quarter totalled €84 million, similar to the outlay in the same period of 2013.

The Company's balance sheet was strengthened in the first quarter thanks to the reduction in net debt, as well as a €700 million increase in liquidity.

Results by division

ACCIONA reduced its amortisation outlays by €31 million since the 1st of January 2014 by extending the useful life of its domestic and international wind energy assets from 20 to 25 years. Nevertheless, the division's pre-tax profit fell 69.5% to €12 million as a result of the pre-tax losses incurred by the Company's renewable energy business in Spain.

Pending the finalisation of Spain's energy sector reforms, the Company estimates their impact on the energy division's pre-tax profit in the first quarter to be in the order of €81 million.

The energy division's revenues fell 13.8% to €487 million, as a direct result of the regulatory changes in Spain and a reduction of installed wind energy capacity of 138MW. The fall in installed capacity is the result of the sale of 212MW of wind farms in Germany and South Korea, on the one hand, and the addition of 74MW of new installed capacity during the quarter.

The new division of Infrastructure, Water and Services posted revenues of €789 million in the first quarter, a drop of 9.7% over the same period in 2013. While revenues from Infrastructure activities fell 16.4% to €524 million, the Services sector increased revenues by 20.5% to a total of €159 million.

EBITDA for the Infrastructure, Water and Services division totalled €28 million, a 20.6% drop over the same quarter a year ago, as a result of the reduction of 24.6% and 31.6% in the EBITDA of Infrastructure and Services activities respectively.

In Other Activities, which includes Trasmediterranea, a Real Estate business, Bestinver and Wineries, revenues increased 21.1% to €151 million, while EBITDA showed a 44.1% increase, growing from €7 million to €10 million.

Bestinver had €9,854 million under management at the end of March 2014, a 10.3% increase over the end of December 2013.

Key Figures
Income statement


(Millions of euros)

Jan-Mar
2014

Jan-Mar
2013

Change (%)

Revenues

1,402

1,537

-8.7

EBITDA

226

279

-19.3

EBIT

129

110

17

Pre-tax Profit

41

41

0

Attributable net profit

33

34

-3.5

 

Balance Sheet


(Millions of euros)

31/03/2014

31/12/2013

Equity

3,435

3,396

Net Debt

5,902

6,040

Financial gearing

172 %

178 %

Ordinary Capital Expenditure

84

84

 

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