ACS Net Profit accounts for 357 Euro million in the first half of 2013
Sales stand at 19,121 Euro million, 84.6% of them from abroad.
29.08.2013
- Recurrent net profit accounted for 310 Euro million.
- Net debt of the Group has decreased in the last twelve months by 30.5% down to 5,965 Euro million.
- Amortization of treasury stock to compensate the capital increase after the scrip dividend paid in July.
Consolidated Results
Sales in the first semester of 2013 accounted for 19,121 Euro million, representing a growth of a 1.5% thanks to the growth of the international activity of the Group, that now represents 84.6% on sales.
Sales by geographical areas demonstrate the diversification of the income sources of the Group, where Asia Pacific weights 39% of sales, America a 34% and Europe a 26%. Spain represents a 15% of the total sales of ACS.
Total backlog by the end of June 2013 accounted for 69,786 Euro million, showing a comparable year to year decrease of a 4.5% after eliminating the effects from the exchange rates variations, in this case after the depreciation of the Australian Dollar, the predominant currency in the backlog, and the perimeter changes, mainly after the sale of Thiess Waste Management in the third quarter of 2012.
This reduction is caused by the singularity of the last year’s awards, full of large contracts in mining and waste treatment services, whose duration is longer.
Grupo ACS EBITDA accounted a 2.1% decrease down to 1,545 Euro million, with a margin on sales of a 8.1% , after the sale of several assets in 2012.
On the contrary, EBIT grew up to 850 Euro million, a 2.3% more than in June 2012. Margin on sales stood at 4.4% .
Attributable net profit of the Group, that accounted for 357 Euro million, cannot be compared to the figure accounted in June 2012, as last year’s figure was heavily affected by the restructuring of the investment in Iberdrola carried out the second quarter of 2012.
Recurrent net profit, excluding the extraordinary results and the contribution of Abertis and Iberdrola, accounted for 310 Euro million, 7.5% lower than the figure recorded last year, affected by the drop in the activity in Spain and a higher tax impact.
Investments
Grupo ACS has carried out net investments in the period that accounted for 649 Euro million, with the objective to promote the future growth of the company.
Amongst the investments of the period, it is worth highlighting the acquisition of machinery for mining contracts in Australia, and those dedicated to the development of concessional assets.
In Industrial Services the investment has been dedicated to complete energy projects and in Environment the investment carried out has been focused on waste treatment plants abroad.
Financial Situation
Net debt of Grupo ACS accounts for 5,965 Euro million, and decreases a 30.5% compared to June 2012.
33% of the net debt of Grupo ACS corresponds to HOCHTIEF, that in the first semester of 2013 accounted a net debt growth of 802 Euro million thanks mainly to the seasonal variation of its working capital, the payment of dividends and from the net investment in machinery and concessions of 378 Euro million. Including this impact, the year to year debt increase of Hochtief accounts just for 156 Euro million.
The net debt of the rest of the Group has increased by 211 Euro million in the first semester after the seasonal operating working capital increase and the aforementioned investments.
The current net debt account does not include the cash from the sales of the Airports and the services business of Hochtief, which will grant a combined amount ahead of 1.3 Euro billion, that the Group is expecting to receive during the coming month.
Cancellation of Treasury Stock
The Board of Directors of Grupo ACS has approved the cancellation of 7,853,637 own shares to compensate for the shares issued after the capital increase carried out last July as a consequence of the scrip dividend paid that month. The payment in shares was chosen by 45% of the shareholding base. This cancellation will be carried out during the month of September of 2013.
Results per Area of Activity
Construction
Sales in Construction accounted for 14,602 Euro million, showing an increase of 1.8% thanks to the growing international activity of the Group.
International sales in Construction account for 13,807 Euro million, a figure now representing 94.6% of the total sales of the area.
EBITDA accounted for 940 Euro million, with a margin on sales of a 6.4%. Net profit accounted for 120 Euro million.
Backlog by June 2013 accounted for 53,704 Euro million. International backlog represents 93.9% of the total in Construction.
Amongst the most important awards of the period, these are the most significant:
- Extension of the contract for the civil and underground works for the Gorgon project in Australia
- Project for the Ottawa´s light train construction (Canada)
- Project for the Shatin to Central Link railway development in Hong Kong, that will connect several existing railway lines to form two strategic railway corridors.
- Passive Fibre Network Design and Construction to bring high speed, fibre optic broadband to Melbourne, Brisbane and southern New South Wales (Australia)
- Refurbishment of the highway A1/A6 between Schiphol-Amsterdam-Almere (Holland)
- Building of the Esso head office in Port Moresby (Papua New Guinea)
- Preparatory works for relocation of the School of Military Engineering (SME) and other Defense Units from Moorebank to Holsworthy in Sydney (Australia)
- Cape Lambert Port B Wharf Extension construction, a project included as part of the Rio Tinto Iron Ore Expansion projects (Australia)
- Works for the building of Pelli´s Tower in Seville (Spain)
- Enlargement works for Los Angeles World Airport with the expansion and improvements of its Terminal 4 (United States)
- Construction of the ARGE Neubau EKZ shopping center in Böblingen (Germany).
Industrial Services
Sales in Industrial Services accounted for 3,640 Euro million, showing the same sales figure as in 1H2012 even after the slight drop accounted in Spain’s domestic market, of a 3.2%. On the contrary, international sales grew by 2.7% up to 2,063 Euro million, a 56.7% of the total.
EBITDA grew by 6.1%, up to 481 Euro million. Net profit also grew by 4.4% up to 237 Euro million.
Backlog of this area accounted for 7,399 Euro million by the end of the period, equivalent to 13 months of production, being 72.6% from international contracts. The most important awards of the period are:
- EPC project for the low-medium gas compression platform Litoral -A in the oil offshore platform Sonda Campeche (Mexico)
- Works and services in oil wells included in the Chicontepec project (Mexico)
- Construction of 2 wind farms with a total installed capacity of 109.7 MW in the province of Limarí (Chile)
- Installation of toll road systems, and intelligent transport systems, in the East-West highway in Algeria
- Construction of a wastewater treatment plant in Tunisia
- Project for two electricity transmission lines and five electrical substations in the states of Baja California, Chihuahua and Coahuila (Mexico).
Environment
Environment accounted for sales of 897 Euro million, showing an increase of a 4.5%. Waste Treatment, a capital intensive activity that includes recycling, treatment, incineration and biomethanisation plants, landfills and several renewable energy sources has grown by 45.4%, thanks mainly to the incorporation of the Chilean business and the start up of several plants abroad.
EBITDA in Environment accounted for 138 Euro million with a margin on sales of 15.4%. Net Profit accounted for 46 Euro million.
Backlog stood for 8,683 Euro million, equivalent to 60 months of activity, with a 42.9% coming from abroad. Amongst the most important awards of the period are:
- Project for the construction of a solid urban waste incineration plant in Gloucester (United Kingdom)
- Contract for street cleaning services in London Borough Waltham Forest (United Kingdom)
- Enlargement of the biogas plant Loma de Los Colorados 2, in Altos de Punitaqui (Chile).
- Project for the Burgos sewage plant enlargement (Spain)
- Net debt of the Group has decreased in the last twelve months by 30.5% down to 5,965 Euro million.
- Amortization of treasury stock to compensate the capital increase after the scrip dividend paid in July.
Consolidated Results
Sales in the first semester of 2013 accounted for 19,121 Euro million, representing a growth of a 1.5% thanks to the growth of the international activity of the Group, that now represents 84.6% on sales.
Sales by geographical areas demonstrate the diversification of the income sources of the Group, where Asia Pacific weights 39% of sales, America a 34% and Europe a 26%. Spain represents a 15% of the total sales of ACS.
Total backlog by the end of June 2013 accounted for 69,786 Euro million, showing a comparable year to year decrease of a 4.5% after eliminating the effects from the exchange rates variations, in this case after the depreciation of the Australian Dollar, the predominant currency in the backlog, and the perimeter changes, mainly after the sale of Thiess Waste Management in the third quarter of 2012.
This reduction is caused by the singularity of the last year’s awards, full of large contracts in mining and waste treatment services, whose duration is longer.
Grupo ACS EBITDA accounted a 2.1% decrease down to 1,545 Euro million, with a margin on sales of a 8.1% , after the sale of several assets in 2012.
On the contrary, EBIT grew up to 850 Euro million, a 2.3% more than in June 2012. Margin on sales stood at 4.4% .
Attributable net profit of the Group, that accounted for 357 Euro million, cannot be compared to the figure accounted in June 2012, as last year’s figure was heavily affected by the restructuring of the investment in Iberdrola carried out the second quarter of 2012.
Recurrent net profit, excluding the extraordinary results and the contribution of Abertis and Iberdrola, accounted for 310 Euro million, 7.5% lower than the figure recorded last year, affected by the drop in the activity in Spain and a higher tax impact.
Investments
Grupo ACS has carried out net investments in the period that accounted for 649 Euro million, with the objective to promote the future growth of the company.
Amongst the investments of the period, it is worth highlighting the acquisition of machinery for mining contracts in Australia, and those dedicated to the development of concessional assets.
In Industrial Services the investment has been dedicated to complete energy projects and in Environment the investment carried out has been focused on waste treatment plants abroad.
Financial Situation
Net debt of Grupo ACS accounts for 5,965 Euro million, and decreases a 30.5% compared to June 2012.
33% of the net debt of Grupo ACS corresponds to HOCHTIEF, that in the first semester of 2013 accounted a net debt growth of 802 Euro million thanks mainly to the seasonal variation of its working capital, the payment of dividends and from the net investment in machinery and concessions of 378 Euro million. Including this impact, the year to year debt increase of Hochtief accounts just for 156 Euro million.
The net debt of the rest of the Group has increased by 211 Euro million in the first semester after the seasonal operating working capital increase and the aforementioned investments.
The current net debt account does not include the cash from the sales of the Airports and the services business of Hochtief, which will grant a combined amount ahead of 1.3 Euro billion, that the Group is expecting to receive during the coming month.
Cancellation of Treasury Stock
The Board of Directors of Grupo ACS has approved the cancellation of 7,853,637 own shares to compensate for the shares issued after the capital increase carried out last July as a consequence of the scrip dividend paid that month. The payment in shares was chosen by 45% of the shareholding base. This cancellation will be carried out during the month of September of 2013.
Results per Area of Activity
Construction
Sales in Construction accounted for 14,602 Euro million, showing an increase of 1.8% thanks to the growing international activity of the Group.
International sales in Construction account for 13,807 Euro million, a figure now representing 94.6% of the total sales of the area.
EBITDA accounted for 940 Euro million, with a margin on sales of a 6.4%. Net profit accounted for 120 Euro million.
Backlog by June 2013 accounted for 53,704 Euro million. International backlog represents 93.9% of the total in Construction.
Amongst the most important awards of the period, these are the most significant:
- Extension of the contract for the civil and underground works for the Gorgon project in Australia
- Project for the Ottawa´s light train construction (Canada)
- Project for the Shatin to Central Link railway development in Hong Kong, that will connect several existing railway lines to form two strategic railway corridors.
- Passive Fibre Network Design and Construction to bring high speed, fibre optic broadband to Melbourne, Brisbane and southern New South Wales (Australia)
- Refurbishment of the highway A1/A6 between Schiphol-Amsterdam-Almere (Holland)
- Building of the Esso head office in Port Moresby (Papua New Guinea)
- Preparatory works for relocation of the School of Military Engineering (SME) and other Defense Units from Moorebank to Holsworthy in Sydney (Australia)
- Cape Lambert Port B Wharf Extension construction, a project included as part of the Rio Tinto Iron Ore Expansion projects (Australia)
- Works for the building of Pelli´s Tower in Seville (Spain)
- Enlargement works for Los Angeles World Airport with the expansion and improvements of its Terminal 4 (United States)
- Construction of the ARGE Neubau EKZ shopping center in Böblingen (Germany).
Industrial Services
Sales in Industrial Services accounted for 3,640 Euro million, showing the same sales figure as in 1H2012 even after the slight drop accounted in Spain’s domestic market, of a 3.2%. On the contrary, international sales grew by 2.7% up to 2,063 Euro million, a 56.7% of the total.
EBITDA grew by 6.1%, up to 481 Euro million. Net profit also grew by 4.4% up to 237 Euro million.
Backlog of this area accounted for 7,399 Euro million by the end of the period, equivalent to 13 months of production, being 72.6% from international contracts. The most important awards of the period are:
- EPC project for the low-medium gas compression platform Litoral -A in the oil offshore platform Sonda Campeche (Mexico)
- Works and services in oil wells included in the Chicontepec project (Mexico)
- Construction of 2 wind farms with a total installed capacity of 109.7 MW in the province of Limarí (Chile)
- Installation of toll road systems, and intelligent transport systems, in the East-West highway in Algeria
- Construction of a wastewater treatment plant in Tunisia
- Project for two electricity transmission lines and five electrical substations in the states of Baja California, Chihuahua and Coahuila (Mexico).
Environment
Environment accounted for sales of 897 Euro million, showing an increase of a 4.5%. Waste Treatment, a capital intensive activity that includes recycling, treatment, incineration and biomethanisation plants, landfills and several renewable energy sources has grown by 45.4%, thanks mainly to the incorporation of the Chilean business and the start up of several plants abroad.
EBITDA in Environment accounted for 138 Euro million with a margin on sales of 15.4%. Net Profit accounted for 46 Euro million.
Backlog stood for 8,683 Euro million, equivalent to 60 months of activity, with a 42.9% coming from abroad. Amongst the most important awards of the period are:
- Project for the construction of a solid urban waste incineration plant in Gloucester (United Kingdom)
- Contract for street cleaning services in London Borough Waltham Forest (United Kingdom)
- Enlargement of the biogas plant Loma de Los Colorados 2, in Altos de Punitaqui (Chile).
- Project for the Burgos sewage plant enlargement (Spain)