Elecnor reports net profit of EUR 37.2 million in the first half of 2019

Spanish infrastructure, energy and telecommunications group Elecnor has ended the first half of 2019 with consolidated net profit of EUR 37.2 million, which represents an increase of 5% compared to the figure reported in the same period of the previous year. This growth was driven by the strong performance of both of the company's business lines: Infrastructure and Concessions. In this regard, the most notable aspect is the positive trend in the company's operations at its head office in Spain as well as at its permanent offices in other countries, including Elecnor's subsidiaries in overseas markets such as the United States, Brazil, Chile and Australia, among others.

Earnings before interest, tax, depreciation and amortisation (EBITDA) reached EUR 152.6 million, increasing by 6.8% compared to the figure reported in June 2018 (EUR 142.9 million). This significant growth is primarily due to the strong performance of the aforementioned operations.

 

In the first half of 2019, net revenues reached EUR 1.070 billion, 1.1% higher than the figure reported in the same period of the previous year. Elecnor maintains its position as a leader in the domestic market and is continuing its decisive internationalisation process. As such, 54% of the Group's sales originates from overseas sales. 

In this regard, the Group's results in international markets were driven by growth in Italy and the United Kingdom, greater presence in Africa, strong performance of subsidiaries in the United States, and the construction of two railway tunnels in Norway and wind farms in Panama, Jordan and Mauritania.

Increasing order intake and a significant backlog 

With regard to order intake, the Infrastructure and Concessions business lines performed strongly during the first half of the year. In terms of Infrastructure, Elecnor maintains its position as a leader in the domestic services market for major electricity and telecommunications operators. The Group has intensified its activity in the electricity sector. Elecnor has been awarded the construction of several wind farms: one 50-MW facility in the municipality of Cofrentes (in the Valencia region), which is the first wind farm to be built in the region in the last eight years; and six in Zaragoza (with a combined capacity of 231 MW) developed by Forestalia. 

In terms of the Concessions line of business, the first half of the year was marked by the strong performance of Celeo Redes' subsidiaries in Brazil and Chile. The Group has commenced the construction of six solar power plants in the state of Piauí (Brazil) and is constructing new power transmission projects in Chile. 

Meanwhile, Elecnor's wind power subsidiary, Enerfín, signed 20-year power purchase agreements in Brazil for two new wind farms in the state of Río Grande do Norte, which has enabled it to commence construction of its first wind farm projects in that region of the country. Given the Group's continued activity in Australia, Enerfín has also initiated a 73-MW wind farm project in Woolsthorpe, Victoria. 

Meanwhile, the backlog, whose implementation is expected to occur within the next 12 months, reached EUR 2,237 million (vs. EUR 2,229 million as of 31 December 2018), 78% of which originated from outside of Spain and the remaining 22% from the domestic market. 

The figures reported and the backlog enable us to maintain our objectives of increasing sales and profit in the full year 2019 compared to the previous year.