The Elecnor Group has achieved a net profit of 85.9 million euros in 2021, 9.7% above the figure recorded in the previous year. For its part, sales stood at 3,122.4 million euros as of December 31, 2021, which represents an improvement of 27.1%. Both the national market (which accounts for 46% of the total) and the international market (with 54%) recorded positive growth of 14.9% and 39.6%, respectively.
This positive evolution in the Group’s figures has been possible thanks to the significant increase in Elecnor’s business volume, mainly due to activities related to Services and that the Group carries out in European countries, mainly Spain, the United Kingdom and Italy, and in the United States. Joined. The beginning of the execution of large projects in Australia, Chile and Brazil, fundamentally, has also had a positive influence.
EBITDA reached 271.8 million euros, 10.6% over the same magnitude of the previous year. The Group’s result this year has absorbed the costs of launching new telecommunications and electricity service contracts in the United Kingdom and Italy, as well as non-recurring costs such as those related to the segregation project.
Services and Projects Business
Going into detail by Business, Services and Projects areas, it reflects a notable growth in its attributable net profit, reaching 77.1 million euros (+7.8%).
In the domestic market, activity has continued its growth path thanks to the services developed for the energy, telecommunications, water, gas and transport sectors, where it provides an essential service for all utilities. Likewise, the construction works of power generation plants from renewable sources have contributed both to the Sales Figure and to the Group’s results.
In the international market, the positive evolution is mainly due to the construction of electricity transmission lines in Brazil and Chile, as well as to the US subsidiaries (Hawkeye and Belco) and the large projects in Australia that have started in the year. The construction of wind farms in Colombia, photovoltaic solar parks in the Dominican Republic and Panama, hydroelectric plants in Cameroon and Angola, substations in Guinea, DR Congo and Cameroon, as well as a biomass project in Belgium, among others, also contribute to the Group’s results. Many.
The Concession Business, which the Elecnor Group carries out through its subsidiary Enerfín and its investee Celeo and their subsidiaries, performed well in the period, reaching an attributable net profit of 34.9 million euros, +12 .6% higher than that registered in 2020.
Enerfín participates in 1,355 MW of renewable energy in operation and construction in Spain, Brazil and Canada and continues with its intense promotional activity to ensure its growth. Enerfín’s wind power business, for its part, has been favored by the entry into operation of the San Fernando complex in Northeast Brazil at the beginning of this year and the Cofrentes wind farm in Spain in April of last year.
Celeo already operates 6,804 km of electricity transmission lines in Chile and Brazil, and participates in 345 MW of renewable energy. The set of assets in operation that it manages is around 5,600 million euros. The power transmission business continues to grow with the increase in assets in Brazil, and new concessions obtained in Chile and Peru. It is worth mentioning as a singular operation the acquisition of 29 operating transmission line assets of Colbún Transmision, SA (located throughout Chile) by the company Alfa Desarrollo, SPA, owned 20% by Celeo Concesiones and 80% by APG Asset Management. NV Through this acquisition, Celeo becomes the second largest operator in the Chilean transmission market.
A growing production portfolio with good prospects
The portfolio of signed contracts pending execution as of December 31, 2021, and whose execution is scheduled for the next twelve months, amounts to 2,507 million euros (vs. 2,273 million at the end of 2020). Of the aforementioned figure, 72% corresponds to the international market (for an amount of 1,798 million euros) and 28% to the national market (709 million).
The national market portfolio is made up of contracts for traditional service activities, as well as wind and photovoltaic parks. The international portfolio increases both in European countries (Italy and the United Kingdom) where activities related to services are carried out, and in other countries (Australia, Chile and Brazil, fundamentally) where important wind, photovoltaic and energy transmission projects have been contracted .
A strong balance sheet and declining corporate financial debt
During the 2021 financial year, the Group has been able to generate, through its operating activity, a cash flow of 206.2 million euros and has made a net investment effort of 100 million euros.
Corporate Net Financial Debt (119.4 million euros) has been reduced by 8.1% compared to the end of last year (129.9 million euros). This is mainly due to the positive evolution of the Group’s businesses in terms of cash generation, due to its operating activities.
The debt ratio at the end of this year, calculated as Net Financial Debt with recourse divided by EBITDA with recourse, stands at 0.72 times (0.83 at the end of last year).
The Board has approved to propose to the General Shareholders’ Meeting, the payment of a complementary dividend of 0.293836 euros per share, which, together with the interim dividend of the result of the 2021 financial year paid to the shareholders last December (from 0 0.059618 euros per share), amounts to a total dividend of 0.353454 euros per share. This represents an increase of 6.5% with respect to the dividend charged to the previous financial year 2020 and a Pay-out of 36% on the Group’s profit for the financial year 2021, in line with past years and the shareholder care policy of the Elecnor Group.
Promotion of green and sustainable financing
In line with its firm commitment to achieving the objectives linked to the sustainable agenda, the Elecnor Group announced last year the restructuring of its long-term financing sources, which have become sustainable by complying with the requirements established by the “Sustainability Linked Loan Principles”. In September 2021, the Elecnor Group has signed a novation of the Syndicated Financing Agreement that it formalized in 2014. This novation extends the maturity by just over two years, until September 2026.
Additionally, Elecnor signed three long-term private placements for an amount of 100 million euros:
- 50 million over 10 years, in a sustainable loan format, coordinated by Banca March.
- 20 million over 10 years, which, additionally, complies with the principles of the “Green Loan Principles”, as the funds are allocated to projects classified as green, subscribed by ICO and Banco Sabadell acting as coordinator.
- 30 million over 14 years, in a sustainable bond format issued on the MARF, with a rating from the Elecnor Group (Investment Grade; BBB-, issued by Axesor), structured and placed by Banco Sabadell.
With this restructuring, the Elecnor Group manages to extend the terms of its long-term financing to average lives close to 10 years, while maintaining low cost levels.