News Column

Grupo ACS - Net Profit in the first semester of 2014 grew by 10.7% up to 395 Euro million

September 1, 2014



ENP Newswire - 01 September 2014

Release date- 29082014 - Net debt of the Group accounts for 5,812 Euro million, showing a slight increase of a 3.4% after the significant increase of investments, that grew by 57%.

Consolidated Results

Sales in the first semester of 2014 accounted for 18,759 Euro million, representing a decrease of a 5.0% due to the impact of the exchange rates and the changes of perimeter after the sales of services and telecomm businesses in HOCHTIEF in 2013. Not taking these effects into consideration, sales grew by 5.1% in the period thanks to the significant international activity of the Group, accounting for 83.8% of the total.

Sales by geographical areas demonstrate the diversification of the income sources of the Group, where Australia weights 32% of sales, North America a 29%, Europe a 25%, Asia a 9%, South America a 5% and Africa 1%. Spain represents 16% of the total sales of ACS.

Total backlog by the end of June 2014 accounted for 63,103 Euro million, showing a comparable year to year decrease of a 3.5%, after eliminating the effects from the exchange rate variations, caused by the depreciation of the Australian Dollar, the predominant currency in the backlog, and the perimeter changes after the disposals in Hochtief.

Grupo ACS EBITDA accounted a 15.2% decrease down to 1.277 Euro million, affected also by the exchange rate, the sale of assets during the second half of 2013, mainly the Services and Telecom businesses of HOCHTIEF and Leighton, and the creation of a mining Fleet Company in Australia (FleetCo) that implies an increase of the operative leasing and a reduction of depreciation. In comparable terms, eliminating all these effects EBITDA of the Group would have decreased by 2.1%. The margin on sales stands at 6.8%.

EBIT grew up to 838 Euro million, which means, in comparable terms, excluding the effect of the exchange rates and perimeter changes, a growth of a 13.9%, slightly ahead of the comparable growth of the turnover. Margin on sales stood at 4.5%, 40bp better than in June 13.

Net Results of the operating activities show the resilience of the Group as, in comparable terms, Construction decreases slightly (-1.3%), whilst Industrial Services and Environment grow solidly by 6.0% and 7.2% respectively.

Net profit accounts for 395 Euro Million, a 10.7% ahead of the figure accounted in June 2013. In comparable terms grows by 19.2%, showing a positive trend in all areas of activity. Construction net profit grows by 6.2%, Industrial Services by 3.3% and Environment by 8.8%.

Financial Situation

Net debt of Grupo ACS accounts for 5,812 Euro million, and grows by 3.4% compared to June 2013. This increase is due mainly to the significant increase of net investments, of a 57%, including the proportional public offer from Hochtief in Leighton, completed in May and accounting for 577 Euro million.

Out of the total net debt, 681 Euro million correspond to project finance, without recourse for ACS, whilst 5,131 Euro million are related to the rest of the business activities of the Group.

Results per Area of Activity

Construction

Sales in Construction accounted for 14,277 Euro million, showing a decrease of 6.2% due to the effect of the exchange rates and the perimeter changes after the disposals already mentioned. In comparable terms, the variation would have been a positive growth of 5.6%.

International sales in Construction account for 13,488 Euro million, a figure now representing 94.5% of the total sales of the area.

EBITDA accounted for 692 Euro million, with a margin on sales of a 4.8%. Net profit accounted for 109 Euro million.

Backlog by the end of June 2014 accounted for 46,918 Euro million. International backlog represents 93.1% of the total in Construction.

Amongst the most important awards of the period, these are the most significant:

Works for the construction of Line 2 and stretch from Av. Faucett-Av Gambetta of the Lima subway network (Peru)

Design and construction of a 56km highway plus five interchanges of New Orbital Highway in Doha (Qatar)

Construction of a passenger clearance building for Hong Kong'sInternational Airport

Construction, rehabilitation and upgrading works in the Pacific Highway 1 connection (Colombia)

Works for the project 'Jewel of the Creek' in Dubai comprising of buildings, marina, bridges and landscaping works (United Arab Emirates)

Project for the construction of the motorway A7 between Hamburg and Bordesholm (Germany)

Construction of tunnel buildings, systems and fitting out works for Central Wanchai Bypass in Hong Kong

Construction of structural, mechanical, piping, electrical and instrumentation works for the Roy Hill iron ore mine, Western Australia

Supply and installation of 120 kilometers of ductile iron pipes in the Mega Resoervoir Corridor Main 1 project to supply water in Doha (Qatar)

Projec for the construction of the S7 national road in the Random ringroad with the Voivodato Mazowieckie border (Poland)

Works for the Optus project for the installation and upgrade of LTE internet networks in rural areas (Australia)

Building of the new Stockton Courthouse in California (USA)

Project for the construction of a 5.6 kilometers of the Noth Luzon Expressway Segment 10 in Manila (Philippines)

Rehabilitation and upgrading works in the I-295 highway in Florida (United States)

Construction of a subway tunnel in the area of Nordhavnen (Copenhagen, Denmark)

Building of the new headquarter office of Banco Popular (Madrid)

Industrial Services

Sales in Industrial Services accounted for 3,642 Euro million, a 0.1% higher than in the first quarter of 2013. Not taking into consideration the exchange rates, sales would have grown by 3.7%. International sales accounted for 1,943 Euro million, a 53.3% of the total.

EBITDA accounted for 480 Euro million, flat versus June 2013. Net profit accounted for 237 Euro million.

Backlog of this area accounted for 7,555 Euro million by the end of the period, equivalent to 13 months of production, being 71.6% from international contracts. The most important awards of the period are:

Contract for the public facilities and energy management of urban facilities in the city of Madrid (Spain)

Contract for the construction of new facilities within the Ma'aden Phosphate Company (MPC) complex for storage and interconnection to the Ras Al-Khair Port (Saudi Arabian)

Design, supply and construction of the Renace III hidroelectric plant in Alta Verapaz (Guatemala)

Project for the construction of 520 kilometers of high voltage transmission line in Brazil

Thermal power station construction with an installed capacity of 182 MW in the Cerro Verde mine (Peru)

Mechanical EPC contract for Suez thermal plant with an installed capacity of 650 MW (Egypt)

Design, supply and construction of 281 kilometers of electricity transmission lines in Bangladesh

Works for Entel telecommunication company as well as supply and maintenance services for its clients (Chile)

Two contracts for public lighting of two areas (center and west areas ) of the city of Madrid (Spain)

Construction of electricity transmission lines in Belo Monte (Brazil)

Contract for maintenance and operation road services in the A-6 and N-IV in the Community of Madrid (Spain)

Environment

Environment accounted for sales of 852 Euro million, showing an increase in comparable terms of a 0.3%.

EBITDA in Environment accounted for 131 Euro million with a margin on sales of 15.4%. Net Profit accounted for 46 Euro million.

Backlog stood for 8,630 Euro million, equivalent to 60 months of activity, with a 44.3% coming from abroad. Amongst the most important awards of the period are:

Extension of the street cleaning and urban waste collection contract for the eastern area of Barcelona (Spain)

Contract for street cleaning and urban waste collection in the municipality of Arrecife (Lanzarote, Spain)

Contract for urban waste collection and street cleaning in the municipality of Santa Cruz de Tenerife (Spain)

Urban waste collection and street cleaning contract extension for Santa Cruz de Tenerife

Street Cleaning and waste collection in the municipality of Coronel (Chile)

Street cleaning contract extension for the city of Paris (France)

Investor Contact:

Tel: + 34 91 343 92 00

Fax: +34 91 343 94 56

Email: ir@grupoacs.com


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Source: ENP Newswire


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