José Manuel Entrecanales, chairman of ACCIONA, explains the ways in which the company generates value in the medium and long term.
2016, a year of solid financial results. Stability, good operating performance, strong balance sheet are just some of the objectives that have characterised the year.
* Includes Concessions and Industrial
ACCIONA has amply exceeded the financial targets set for 2016, whilst laying the foundations for solid growth over the coming financial years.
ACCIONA Energy continues to consolidate its growth thanks to its great team of professionals and its commercial efforts throughout the year, with selective criteria and a long-term outlook for projects. At year-end 2016, the low prices of the Spanish power pool, together with the low resource for the year and the deconsolidation of ACCIONA Windpower, have negatively affected the evolution of EBITDA. The increased portfolio capacity has not had a substantial impact on yearly production for 2016, since the start of commercial operation with the new installed capacity this year took place at the end of the year.
2016 was marked by the Division’s good performance, with a generalised increase in revenues, significant EBITDA growth (91.8%) and 13.3% growth in the project portfolio. An important part of this growth comes from the consolidation of ATLL's concession in ACCIONA Agua. Another highlight of the year was the progress of international projects (the Föllo Line railway tunnels in Norway, the Metro in Quito, Ecuador, the Site-C dam in Canada and desalination plants in Qatar), which have improved significantly both in terms of production and profitability.
ACCIONA also develops other business lines that are complementary to its main divisions, diversifying activities and offering opportunities based either on their growth potential or on the possibility of performing corporate operations that are of interest to the company. The lower investment needs of these businesses as compared to the core businesses, and their good performance in 2016, have helped generate a positive impact on ACCIONA's results, which in turn helps reduce and improve debt/EBITDA levels.