Elecnor earns €110.1 million in 2023, up 7% from the previous year

EBITDA amounts to €204.9 million, or 38.8% compared to the same size in the previous year.

Elecnor Group has achieved a Net profit of 110.1 million euros in 2023, which is 7% more than the figure achieved in the previous year.. For this part, As of December 31, 2023, sales amounted to €3,792.9 million, 11.8% higher than in the same period in 2022. Both the national market (representing 39% of total revenues) and the international market (representing 61%) saw a significant increase of 6.1% and 15.8%, respectively.

This positive development at all sizes of the Group has been made possible thanks to the increase in the volume of activities related to core services that the Group develops in the United States and European countries, especially Spain and Italy, and the implementation of sustainable projects in Elicanor in Australia, Brazil and Chile in particular.

he EBITDA from continuing operations amounts to EUR 204.9 million, i.e. 38.8% compared to the same volume in the previous year. The result is driven by the contribution of core services businesses and sustainable projects developed by the Group.

The group carried out its activities during the year 2023 through three sub-groups of companies that complement each other, and which individually define their goals:

Elicanor (essential services and sustainable projects)

Go into details according to business areas and business size Elicanor (essential services and sustainable projects) by 13.5% to 3,886.6 million euros, while its net attributable profits reach 84.4 million euros (+9%), with a positive performance this year.

In the national marketActivity continued its upward trajectory thanks to the basic services implemented for the energy, communications, water, gas and energy transmission sectors. In addition, it is necessary to highlight the maintenance activity carried out for the public and private sectors. Likewise, construction of wind and solar parks and those related to self-consumption and energy efficiency stand out.

In the international marketThe good trajectory in business volume is based on the sustainable projects that the Group is developing in Australia, Brazil and Chile (mainly renewable energy and electric power transmission lines). The construction of photovoltaic parks in Colombia, the Dominican Republic and Ghana, wind farms in Brazil, hydropower stations in Cameroon, substations also in that country, Mozambique and Gambia, and transmission lines in Zambia are also contributing. The activity of US subsidiaries (Hawkeye, Pelco, and Energy Services) is highlighted in these figures.

Production portfolio Implementable within the next 12 months Up to 2,577.7 million euros (compared to 2,408.4 million euros at the end of 2022). Of this portfolio, 71% is directed to the international market, amounting to 1,828.1 million euros, and 29% is directed to the national market, amounting to 749.6 million euros. The national market portfolio consists mainly of contracts for basic services activity, as well as sustainable projects for the construction of renewable energy plants. They contribute to the international portfolio both in European countries (Italy and the United Kingdom) where service-related activities are carried out, and in other countries (mainly Australia, the United States and Brazil) where important construction projects of power plants have been carried out. The energy is contracted from renewable sources and power transmission.

Innervin

Within the framework of the Elecnor Group’s strategy to rotate investments that consume high capital needs, the company has signed a contract with Statkraft to sell 100% of its shares in Enerfín and the transaction is expected to close in mid-2024. In the said contract (signed on November 17, 2023), the enterprise value is estimated In the amount of 1.8 billion euros, with a cash flow of 1.4 billion and a consolidated net capital gain of 0.8 thousand million.

Innervin It achieved a result of 39.6 million euros in 2023, compared to 44.7 million in 2022. All this is due to the rise in energy prices that characterized the fiscal year 2022, which allowed obtaining amounts higher than those expected in the budgets.

Enerfín is involved in 1,734 MW (1,552 MW at the end of last year) of renewable energy in operation and construction in Spain, Brazil, Canada and Colombia. In addition, it has a project portfolio that currently exceeds 10 GW.

Celio

Celio, a company 51% owned by the Elecnor Group and jointly managed by APG, is involved in 7,942 km of electric transmission lines in Chile, Brazil and Peru, in operation and under construction (6,891 km at the end of 2022), in addition to 345 MW of electricity. Renewable energy (photovoltaics and solar thermal) in Spain and Brazil (also 345 MW at the end of 2022). Total operating assets under management amounted to approximately €6,317 million at the end of the year (compared to €5,924 million twelve months earlier).

In terms of new project awards, 2023 was a historic year for Celeo, taking home 5 new franchise projects:

  • Lot 6 was acquired by Celeo Redes Brasil from the ANEEL (Leilão 1/2023) auction held on June 30 in São Paulo. The concession includes the financing, construction and operation of the 500 kV SE Xingó – SE Camaçari II transmission line, with a length of 357 km in a double circuit and including connection equipment at the respective substations.
  • In the next auction of the year, in December, Lilabio 2/2023, Celeo Brasil turned out to be the winner of Lot 3, with the LT 500kV Marimbondo 2-Campinas project. This project consists of a simple circular line with a length of 388 km in the states of Minas Gerais and São Paulo.
  • In the case of Chile, Celeo has been awarded two new expansion works for the Hualqui and La Pólvora substations, as part of the international public tender for the expansion works provided for in Exemption Decree No. 200/2022.
  • In addition, Celeo has strengthened its presence in Peru by being awarded its third concession contract in the country, Piura Nueva-Frontera, a project that includes the expansion of an existing substation and the construction of a 270-kilometre-long 500 kV line that will connect with Ecuador to exchange electrical power.

In fiscal year 2023, Celeo contributed a consolidated attributable net profit of €15.4 million (compared to €17.2 million in the previous year).

Strong balance sheet and moderate leverage

During fiscal year 2023, Elecnor Group was able to generate a Cash flow: 206 million euros It made a net investment effort worth 268.1 million euros.

Net corporate financial debt with recourse closed at 222.6 million euros Compared to the 120.8 million with which it closed 2022. The growth is mainly due to the investment efforts undertaken by the Group through the establishment of new renewable energy generation projects in the Enerfin subgroup.

Debt ratio at the end of this yearis calculated as net financial debt with recourse divided by EBITDA with recourse, It is 0.91 times. This ratio has already been standardized to less than 1 times, thus respecting the reference ratio specified in the co-financing contract (2.75 times). The positive DFN/EBITDA ratios maintained in recent years have been possible thanks to the good development of the business in terms of cash generation.

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The Board of Directors agreed to propose to the General Assembly of Shareholders the payment of a supplementary dividend of 0.38724598 euros per share, which, together with the interim dividend against the results of the financial year 2023 paid to shareholders on December 20 (from 0.06572862 euros per share), amounts to a total ordinary dividend. It amounts to 0.4529746 euros per share. This is assumed An increase of 7% in relation to the dividends charged for the last fiscal year 2022 and a payment of 35.8% on the corresponding group results for the fiscal year 2023, In line with the policy of caring for shareholders and significantly improving their remuneration.

A consistent financial strategy, again, linked to sustainability

In line with its firm commitment to a strong and sustainable strategy, Elecnor Group maintains a strategy of diversification and cost optimization of its financing sources, which includes:

  • And Joint financing agreement (formalized in 2014 with last renewal in 2021) up to a maximum of €350 million, divided into a loan tranche of €50 million and a credit tranche of €300 million maturing in September 2026. This financing complies with the requirements set by the Loan Principles associated with sustainability,” which is why it is classified as sustainable.
  • And New program for multi-currency promissory notes (in euros and dollars) in the MARF (published in 2023), with a maximum of €400 million and terms of up to 24 months, to finance “working capital” needs and new projects, both in Spain and beyond our borders, in the fields of engineering, infrastructure development and construction, renewable energy and technologies. New. The program is linked to Sustainability, including targets for reducing greenhouse gas emissions and workplace accidents which, if not achieved, imply a commitment to contribute to sustainable projects. This process falls within the framework of the strategic goal of diversifying funding sources and improving financial costs.
  • Since 2021, Elecnor Group has maintained three long-term private placements with a total value of €100 million:
    • 50 million euros over 10 years Sustainable loandeveloped by Banca March.
    • 20 million euros over 10 years, which is additionally consistent with the principles “Green Loan Principles”The funds are allocated to projects classified as green, developed by Banco Sabadell.
    • 30 million euros over 14 years Sustainable bonds, also developed by Banco Sabadell, has been integrated into MARF. They have a BBB- rating from the Elecnor Group (investment grade) issued by Axesor.
  • The group established a securitization fund called “ELECNOR 2020 ENERGY EFFICIENCY, SECURITIZATION FUND” Since December 2020, the credit rights derived from contracts for the Department of Energy Services and the maintenance of public lighting facilities, executed for the benefit of 43 Spanish municipalities and public authorities, have been assigned. Through this structure, Elecnor obtained financing for investments in customized contracts worth €50 million.

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