ACCIONA net profit increased by 21% in the first quarter

ACCIONA reported €60 million in net profit in the first quarter of 2017 (+20.8%) as a result of broadly good business performance, particularly in Construction, and a sharp (-26.4%) reduction in financial expenses as a result of the group's new funding approach. These factors contributed to a 37% increase in earnings before taxes (EBT) to €98 million.

EBITDA amounted to €301 million (+8.5%), basically due to performance by the Construction division (+118%) in the international market.

Group revenues increased to €1,634 million (+15.2%), driven particularly by Construction (+70.4%) and despite a decline in Energy revenues (-19.1%). The latter figure was due primarily to deconsolidating ACCIONA Windpower (AWP) since the end of the first quarter of 2016.

At 31 March 2017, net interest-bearing debt amounted to €5,498 million (+7.1%), mainly due to ongoing investments: gross capital expenditure amounted to €272 million in the quarter, including €139 million to acquire Geotech.

Results by division

ACCIONA Energy saw power generation revenues rise by 7.7% to €361 million and EBITDA by 5.6% to €226 million. However, the division's revenues and EBITDA declined overall, basically because of deconsolidating ACCIONA Windpower. ACCIONA Energy's total revenues amounted to €463 million (-19.1%) and EBITDA stood at €208 million (-2.1%). The division's EBT increased by 83% to €70 million.

Consolidated installed capacity increased in the first quarter of 2017 due to adding 228 MW of solar photovoltaic capacity in Chile, 93 MW of wind capacity in the US and another 51 MW of wind capacity in India.

The Infrastructure division (which encompasses Construction, Water and Services) ended the first quarter with €1,066 million in revenues (+44.6%) due primarily to superb performance by Construction, where revenues amounted to €728 million (+70.4%) and EBITDA to €50 million (+117.6%) as a result of the contribution by large international projects.

At 31 March 2017, the Construction backlog stood at €8,001 million (+22%), of which 82% was international (75% a year ago). The international backlog expanded by 34% while the domestic backlog declined by 12%.

The Water business reported €176 million in revenues (+7.5%) with EBITDA amounting to €32 million (+17.4%). Services attained €172 million in revenues (+8.5%) and €4 million in EBITDA (+59.9%), primarily due to growth by APD and municipal services.

The Other Businesses division, which includes Trasmediterranea, Real Estate, Bestinver and Wineries, held revenues stable at €128 million but experienced a decline in EBITDA to €7 million, broadly due to Trasmediterranea and despite a stronger contribution by Bestinver.

Trasmediterranea reported negative EBITDA of €-6 million due to the decline in passenger and vehicle traffic, primarily because Easter this year fell in the second quarter (whereas in 2016 it fell in the first) and also due to higher fuel costs.

Bestinver increased funds under management in year-on-year terms to €5,674 million at 31 March 2017, which resulted in a 12.6% increase in EBITDA to €16 million.

Income Statement Data

Balance Sheet Data and Capital Expenditure