ACS, Actividades de Construcción y Servicios, S.A. Announces Consolidated Earnings Results for the First Half of 2016
July 28, 2016
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ACS, Actividades de Construcción y Servicios, S.A. announced consolidated earnings results for the first half of 2016. Sales in the first half of 2016 accounted for EUR 16,387 million, representing a decrease of 8.2% due to the negative impact of exchange rate variations against the euro, in particular the Australian dollar (-6%) and the Mexican peso (-18%), as well as the sale of renewable assets in the first quarter of 2015. Excluding the effect of exchange rates and the sale of renewable assets, sales of ACS Group in the first half of 2016 decreased by 5.3%, mainly in the area of Construction due to the completion of major LNG projects in Australia during the first half of 2015. Total EBITDA accounted for EUR 1,225 million, decreasing by 6.9%. However, in a like for like basis, adjusted by forex impact and sale of renewable assets in Spain, EBITDA is barely reduced by 0.3% and margin improves in 30 bp up to 7.5%. Likewise, EBIT stood at EUR 897 million and increased by 7.8%, in a like for like basis, the good operating performance of the activities. Net Profit of Grupo ACS in the first half of 2016 reached EUR 388 million, 4.7% lower than the same period of 2015 which included extraordinary results from fair value adjustments of financial instruments at Corporation level. Net debt of Grupo ACS accounted for EUR 3,741 million, EUR 233 million higher to that held in June 2015, representing an increase of 6.6%, despite investments carried out during this period amounting to 766 million devoted to increase the stake in HOCHTIEF and CIMIC. The substantial increase in funds from operations (FFO) in the last twelve months, which have increased by 21% up to EUR 1,291 million has contributed to this evolution.
ACS, Actividades de Construcción y Servicios, S.A. is one of Spain's leading construction groups. Net sales break down by activity as follows:
- construction of infrastructures and buildings (93.3%): civil engineering infrastructures (primarily highways, hydraulic constructions and railroads), non-residential and residential buildings;
- services (5.4%): cleaning, waste collection and treatment. Moreover, the group offers maintenance services of urban and industrial infrastructures, port and logistical services, and also social services and personal assistance services.
- industrial services (0.5%): development, construction, installation and maintenance of distribution networks of electricity, gas and water, industrial production systems, telecommunication networks, road traffic control systems, etc.;
- other (0.8%).
Net sales are distributed geographically as follows: Spain (9.4%), the United States (56.3%), Australia (20.2%), Canada (5.3%), Germany (2.4%) and others (6.4%).