ACCIONA reports €68 million net profit in the first half of 2014

ACCIONA obtained €68 million in net profit in the first half of 2014, i.e. 43% more than in the same period of 2013, basically as a result of lower depreciation and amortisation and of asset sales. These two factors drove a 65% increase in earnings before taxes (EBT) to €89 million, in spite of regulatory changes in Spain. Excluding the accumulated effect of the energy reform in Spain, EBT would have been €216 million higher in the first half of 2014.

Two main factors drove ACCIONA's earnings performance: firstly, a reduction in depreciation and amortisation due to the combination of a change in the depreciation period for wind assets (from 20 to 25 years, with a positive impact of €61 million), and to the smaller asset base following impairments recognised in December 2013. The second positive factor was the extraordinary gain of €39 million from property, plant and equipment, principally from the sale of renewable assets in Germany and tramway concessions in Barcelona.

Group revenues slipped by 2.5% in the first half, to €3.005 billion, as declines of 6.3% in Energy and 9% in Construction were broadly offset by growth in Services and Other Activities.

Net financial debt at 30 June 2014 amounted to €5.848 billion, 3.2% lower than at 2013 year-end, basically due to €318 million in operating cash flow, which offset €190 million in net ordinary capital expenditure in the period.

Results by division

ACCIONA Energy saw revenues decline by 6.3% to €980 million and EBITDA by 22.3% to €363 million as a result of the net reduction in installed wind capacity by 151 MW and, above all, of the impact of the various regulatory changes in Spain. Earnings before taxes (EBT) declined by 69.3% to €18 million as a result of the impact of the latest regulatory changes. The accumulated effect of the energy reform in Spain on EBT amounted to €216 million in the first half.

Installed capacity totalled 8,370 MW at 30 June 2014, of which 6,804 MW are attributable, and output totalled 11,485 GWh (9,325 GWh attributable).

The new Infrastructure, Water and Services division billed €1.735 billion in the first half, a decline of 4.4% with respect to the same period of 2013, basically because of a 9% reduction in Infrastructure revenues, which was partly offset by good performance in Services, where revenues increased by 16.1% in the first half to €335 million.

The division's EBITDA amounted to €66 million, a reduction of 12.7%, shaped by a 19.3% decline in Infrastructure, while EBT increased by 58.8% to €27 million.

The Other Activities area, which includes Trasmediterranea, Real Estate, Bestinver and the Wineries, increased turnover by 21.6% to €339 million, while EBITDA practically doubled to €42 million. Earnings before taxes amounted to €7 million, contrasting with €22 million in losses in the first half of 2013.

Bestinver had €10.198 billion under management as of 30 June 2014, a 14.2% increase with respect to 2013 year-end.

Key Figures Income statement (Millions of euros)

Balance Sheet Data (Millions of euros)