Actividades de Construcción y Servicios, S.A. (ACS) reports €548 million net profit in the first nine months of 2013

Madrid, Spain, 19-11-2013 — /EuropaWire/ — Sales stand at 28,045 Euro million, 85.1% of them from abroad.

Consolidated Results
Sales in the period accounted for 28,045 Euro million, representing a slight decrease of a 1.5% due to the impact of the exchange rates. Not taking this effect into consideration, sales grew by 3.3% in the period thanks to the significant international activity of the Group, accounting for 85.1% of the total.

Sales by geographical areas demonstrate the diversification of the income sources of the Group, where Asia Pacific weights 38% of sales, America a 35% and Europe a 26%. Spain represents less than 15% of the total sales of ACS.

Total backlog by the end of the period accounted for 67,727 Euro million, showing a comparable year to year decrease of a 1.2%, 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 4.2% decrease down to 2,164 Euro million, with a margin on sales of a 7.7% , affected also by the exchange rate. In comparable terms, the variation accounts for a 0.5% growth.

On the contrary, EBIT grew up to 1,184 Euro million, a 5.1% more than in 2012. Incomparable terms, excluding the effect of the exchange rates, EBIT growth accounts for a 9.5%. Margin on sales stood at 4.2% .

Attributable net profit of the Group, that accounted for 548 Euro million, cannot be compared to the figure accounted in 2012, as last year’s figure was heavily affected by the restructuring of the investment in Iberdrola carried out during last year.

Recurrent net profit, excluding the extraordinary results accounted for 447 Euro million, 7.6% lower than the figure recorded last year, affected by the drop in the activity in Spain, a higher tax impact and the aforementioned exchange rate variations. Not including this forex effect, the drop would have been of a 3.7%.

Investments
Grupo ACS has carried out net investments in the period that accounted for 1,876 Euro million, with the objective to promote the future growth of the company.

Amongst the investments of the period, it is worth highlighting in Construction 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.

The disposals that accounted for 1,976 Euro million, are coming mainly from HOCHTIEF, that during September has closed the disposal of their airports and services businesses, obtaining 1,083 Euro million and 236 Euro million respectively. Also Leighton sold its telecomm business for an equivalent amount of 451 Euro million.

Financial Situation
Net debt of Grupo ACS accounts for 5,297 Euro million, and decreases a 42.5% compared to September 2012, after the strong disposals of the Group in the last year.

In this period, Hochtief has reduced its net debt by 881 Euro million, especially in the last quarter after the disposals of the airports and services businesses, for 1,319 Euro million.

The net debt of the rest of the Group has decreased by 3,037 Euro million in the last twelve months after the partial disposal of Iberdrola carried out by late 2012. In the last quarter the debt has increased by 296 Euro million mainly because of the dividend payment in July 2013.

Results per Area of Activity
Construction
Sales in Construction accounted for 21,338 Euro million, showing an decrease of 2.2% due to the effect of the exchange rates. In comparable terms, the variation would have been a positive growth of 3.4%.

International sales in Construction account for 20,277 Euro million, a figure now representing 95.0% of the total sales of the area.

EBITDA accounted for 1,266 Euro million, with a margin on sales of a 5.9%. Recurrent net profit accounted for 181 Euro million.

Backlog by September 2013 accounted for 51,999 Euro million. International backlog represents 93.8% of the total in Construction.

Amongst the most important awards of the period, these are the most significant:
– Contract to design and build the Wynn Cotai, an integrated hotel resort in Macau (China)
– Contract for the construction of gas compression facilities and associated works for the QCLNG project in the Surat Basin (Australia)
– Operation and maintenance contract for the Kings mining deposit at the Solomon Hub for Fortescue Metals Group (FMG) in Australia.
– Extension of the contract for the civil and underground works for the Gorgon project in Australia
– Works for the construction of the North West Rail Link in New South Wales (Australia)
– Project for the Ottawa´s light train construction (Canada)
– Project for the Shatin to Central Link railway development in Hong Kong, which will connect several existing railway lines to form two strategic railway corridors.
– Contract for the development of the Moreton Bay Rail Link Project, a stretch of 12.6 kilometers that will connect the Brisbane rail network with the Moreton Bay zone in Australia
– Project for the improvement of the road network around Perth Airport and surrounding areas (Australia)
– Project to expand the capacity of the London Underground Bank Station (London, UK)
– Development of new commercial building at 177 Pacific Highway, located by North Sydney and with an area of 40.000sqm (Australia)
– Refurbishment of the highway A1/A6 between Schiphol-Amsterdam-Almere (Holland)
– Contract to build a luxury residential development “The Camellias” in Gurgaon, India
– 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 5,390 Euro million, showing the same sales figure as in 9M2012 even after the slight drop accounted in Spain’s domestic market, of a 3.0%. On the contrary, international sales grew by 2.3% up to 3,113 Euro million, a 57.8% of the total.

EBITDA grew by 7.5%, up to 716 Euro million. Recurrent net profit also grew by 1.5% up to 334 Euro million.

Backlog of this area accounted for 7,379 Euro million by the end of the period, equivalent to 13 months of production, being 73.3% 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)
– EPC contract for the development of a polyoxymethylene plant in Saudi Arabia with a production capacity of 50,000 tonnes.
– Project for the engineering, procurement, and installation of 10 Ethylene Oxide Reactors in different SABIC affiliated companies in Saudi Arabia.
– Management contract for vehicles mobility in several areas of Madrid (Spain)
– 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
– EPC contract for the enlargement of loading rack facilities and other facilities required for interconnection with the existing units at the refinery in Ras Tanura of Saudi Aramco (Saudi Arabia)
– 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 1,344 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 35.9%, thanks mainly to the incorporation of the Chilean business and the start up of several plants abroad.
EBITDA in Environment accounted for 208 Euro million with a margin on sales of 15.5%. Recurrent net Profit accounted for 64 Euro million.

Backlog stood for 8,349 Euro million, equivalent to 57 months of activity, with a 43.3% 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 street cleaning and solid urban waste collection contract in Denia (Valencia, Spain)
– Enlargement of the biogas plant Loma de Los Colorados 2, in Altos de Punitaqui (Chile).
– Project for the Burgos sewage plant enlargement (Spain)