ACCIONA doubles net profit to 348 million euros in the first nine months of 2016

• The company took advantage of the strong results to advance with its investment plan, reduce funding costs and improve its debt structure. 
• Successful contract awards in Chile, Mexico and Australia represent a portfolio of firm orders for 675 MW of renewable energy capacity. 
• The Construction backlog amounted to €7,182 million (+28%), including a sharp increase in the international backlog (+48%) and a decline in Spain (-14%), reflecting the slack domestic market.

ACCIONA reported €348 million in net profit in the first nine months of 2016, a 109.3% increase year-on-year. The company took advantage of its strong performance in the period to advance with its investment plan (€745 million) and improve its debt structure, reducing financial costs.

Net profit through September includes €711 million in extraordinary gains, mainly due to booking the merger of ACCIONA Windpower (AWP) with Nordex, and €619 million in extraordinary losses, approximately half of which were non-recurring financial costs for cancelling and refinancing the company's debt in order to reduce its cost and improve its structure.

Consolidated revenues amounted to €4,324 million (-12.6%), mainly caused by the decline in electricity prices in Spain (-32% year-on-year) and the effect of deconsolidating AWP.

With its new scope, the Energy division reported €1,360 million in revenues (-35.2%). The Infrastructure division increased revenues to €2,535 million (+3.8%) due to good performance by Construction and Industrial activities outside Spain and to the Water division.

EBITDA amounted to €840 million (-4.8%).

Sustained capital expenditure

At the end of the third quarter, net financial debt amounted to €5,426 million (+5.2%). ACCIONA made major investments in the first nine months of 2016, amounting to €745 million.

Energy was the largest single recipient of capital expenditure (€387 million), to develop new capacity in Chile, the US and India. In addition to the increase in the ATLL stake, capital expenditure in Infrastructure (€298 million) also included heavy machinery for projects in Norway, Canada and Ecuador. Investment in the other businesses amounted to €61 million.

As regards future prospects, ACCIONA expanded its portfolio of firm energy orders due to successes in public and private sector tenders in Chile, Mexico and Australia, assuring the construction of approximately 675 MW (net) in the coming years.

In Infrastructure, the Construction backlog expanded by 28% to €7,182 million due to landing major value-added contracts such as the Dubai Metro expansion.

Results by division

ACCIONA Energy revenues amounted to €1,360 million (-35.2%), while EBITDA amounted to €534 million (-21.4%). Both figures reflect the deconsolidation of ACCIONA Windpower due to the merger with Nordex (ACCIONA is a core shareholder of the resulting company) and also the sharp decline in electricity prices in Spain.

Consolidated installed capacity increased by 287 MW in the last twelve months to 7,338 MW at 30 September, and consolidated output in the first nine months amounted to 13,324 GWh (+1.6%).

The Infrastructure division (which encompasses Construction, Water and Services) booked €2,535 million in revenues in the first nine months (+3.8%). The division's EBITDA amounted to €203 million (+79.4%).

Construction and Industrial achieved a major increase in margins in their international businesses, which increased EBITDA (+33.3%). Growth in international revenues did not fully offset the deterioration in the Spanish market, resulting in a 4.6% decline in revenues.

The Construction and Industrial backlog expanded strongly (+28%) to €7,182 million at the end of September 2016. The international backlog increased by 48%, while the backlog in Spain declined by 14%. International orders now account for 78% of the total backlog, up from 67% a year ago.

Water revenues increased to €515 million (+71.6%) and EBITDA amounted to €92 million, driven by the international plant design and construction business and the consolidation of ATLL, the Barcelona metropolitan area wholesale water concession, since 1 January 2016. At the end of September 2016, the Water backlog amounted to €10,547 million.

The Other Activities division, which includes Trasmediterranea, Real Estate, Bestinver and Wineries, increased revenues by 5.9% to €500 million, and EBITDA increased to €104 million (+16.8%), due to good results at Trasmediterranea and a higher contribution by Real Estate. Shipping company Trasmediterranea increased EBITDA by €17 million due to traffic growth, operational efficiency improvements and lower fuel costs.

Income Statement data (Million euro)  

Balance Sheet Data and Capital Expenditure (Million euro)