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Energy reforms in Spain cause 1.97bn euros loss at ACCIONA


New regulatory regime for renewables is directly responsible for a €257m shortfall in results during 2013.

Regulatory changes lead to goodwill write-off and impairment charges on renewable energy assets totalling €1.68bn.

Investment falls 55.4% to €381m.

Net financial debt falls 10.2% to €6.72bn at end December 2013.

ACCIONA, a global provider of renewable energy, infrastructure and water services, posted a net loss of €1.97bn in 2013, fundamentally as the result of the impact of regulatory reforms to the energy sector that were approved, with retroactive effects, in Spain last year.

These changes to the renewable energy regime caused a direct impact of €257m on group results, and forced goodwill write-offs and impairment charges on renewable energy assets totalling €1.68bn.

To a lesser extent, group results were also affected by the depreciation of certain real estate assets and other businesses, and the provisioning against possible losses in a small number of contracts pertaining to the Infrastructure division. On the positive side, group results also reflect the positive impact of capital gains resulting from the sale of wind assets and a hospital concession in 2013.

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) totalled €1.23bn, 14.1% lower than in 2012, mainly as a result of the impact of regulatory changes in Spain on ACCIONA's Energy division.

Group revenues fell 5.8% to €6.61bn in 2013.

Net investment across ACCIONA's different businesses totalled €381m in 2013, a 55.4% drop compared with the previous year. Of the total, €205m were invested in the organic growth of the Energy division, and €198m went to the Infrastructure division, mainly in concessions.

As a result of the losses registered during the period, ACCIONA's equity attributable to shareholders stood at €3.23bn at the end of 2013, a 38.2% reduction compared with the €5.23bn figure a year before.

The company lowered its net financial debt by 10.2% in 2013, from €7.48bn at the end of 2012 to €6.72bn on December 31, 2013. Among the factors contributing to this reduction were lower investment outlays, the good use of working capital in the last quarter, and gains from exchange rate movements against the euro.

Main business areas

ACCIONA Energy's revenues were flat during the period at €2.12bn (+0.6%). Higher wind and hydro production, and the entry of 105MW of new capacity, partly mitigated the €257m impact of successive regulatory changes in Spain.

The changes to the remuneration regime for renewable energy installations in Spain led to a 13% fall in EBIDTA, which came to €979m, and to a 95.9% fall in pre-tax profits, which shrank to €6.7m.

ACCIONA Energy's annual production totalled 22,404 GWh from an installed capacity totalling 8,480 MW at the end of 2013, 5,974 MW of which are in Spain.

ACCIONA Infrastructure revenues fell 17.8% in 2013 to €2.73bn, as a result of a fall in construction activity in Spain and abroad. EBITDA fell 49.6% to €82m. The construction backlog at the end of 2013 totalled €5.72bn, down 15.4% on the year before. The international construction backlog represents 54% of the total.

ACCIONA Agua increased sales by 15.6% to €585m and improved EBIDTA by 30.5% to €54m as a result of its design and construction activity as well as its operation and maintenance operations. Pre-tax profit was €24m in 2013, compared with €23m the year before. The division's backlog stood at €10.73bn at end 2013, 5.3% lower than the previous year, as a result of works completed last year.

The Services group posted sales of €641m, 8.3% higher than in 2012, thanks to a higher volume of business in facility services. EBITDA totalled €20m, up 13.5%, thanks to improved margins in handling activities.

Within the company's Other Businesses, Bestinver, an asset manager, performed well, with assets under management of €8.93bn at the end of 2013, up 51% on 2012. Bestinver's revenues grew 39.4% to €113m, while EBITDA rose 42% to €78m.

Finantial Results (€Million)

Sales 7,016 6,607 -5.8
EBITDA 1,431 1,228 -14.1
EBIT 646 -1,771 n.a.
Pre-tax profit 246 -2,174 n.a.
Ordinary pre-tax profit 245 29 -88.1
Net attributable profit 189 -1,972 n.a.

Balance Sheet Data (€Million)

Net investment 854 381 -55,4%
Net Equity 5,508 3,399 -38.3%
Net debt 7,482 6,715 -10.2%
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