Abertis reports recurrent net profit increase of 6% to €536 million

Iñaki Ferreras | 01-11-2012

Spain’s abertis ended its first nine months of 2012 with improved results in all key areas with revenue enhancements (+1%), recurring EBITDA (+3%) and recurrent net profit (+6%) standing out in a period of negative growth of traffic on the Group’s highways in Spain and France.
These results don’t reflect the impact of the company’s integration of OHL's toll road concessions in Brazil. In the first half of 2012, these assets generated revenues of €560 million, up 23% year-on-year.
Consolidated profit for the first nine months of 2012 includes gains from the sale of Eutelsat from the accelerated placement to qualified investors in January of a 16% stake as well as the agreement with China Investment Corporation (CIC) for the sale of an additional 7% in June.
The results also incorporate gains from the group’s sale of its stake in Brisa last August and the provision of various cost items for the adaptation of the company’s structure to domestic demand. Capital gains from the sale of Eutelsat and Brisa brought the group's net profit to €1,003 million (+69%). Regardless of these extraordinary contributions, recurrent net profit came to €536 million (+6%).
Salvador Alemany, the chairman of abertis, commented: "Abertis' board has approved an interim dividend of €0.33 per share that represents another milestone in the group's shareholder remuneration policy, which stands out for its robustness and stability. The continuation of our dividend policy - based on distributing an increasing dividend in two payments and a scrip issue - is one of the cornerstones of the company and a sign of its strength in what are very challenging economic times."
Abertis’ managing director, Francisco Reynes, said: "The results presented today emphasise how the company's ongoing international expansion and the stepping-up of its operational and cost efficiency plan have helped to offset the impact of the decline in traffic on Spanish toll roads". He added: "We have noted the decline in traffic is levelling off after the summer, although we forecast a decrease of around 10% in Spain this year, which means that traffic has fallen by approximately 30% in cumulative terms since the onset of the crisis."
Abertis' CFO and director of corporate development, José Aljaro, commented: "Abertis is implementing a dynamic asset management strategy that enables it to grow and improve its leverage ratios. The long-term debt market has recognised the impact of the company's management drive, as evidenced by our successful placement in October of a €750 million seven-year bond issue at a very competitive interest rate of 4.75%."
Abertis revenues in the first nine months of 2012 amounted to €2.992 million, 1% more than the same period last year; 53% of revenues were generated outside of Spain - mainly from France, Chile and the UK in relation to 2011. Of the total revenue, 80% was generated from toll roads, 13% from the telecommunications sector and 7% from airports. Operating expenses increased by 2% to €1,092 million due to non-recurring costs related to adapting the company’s structures to domestic demand.

The company’s EBITDA amounted to €1,900 million (+0.3%), 50% of which was generated outside Spain. Regardless of the effect of non-recurring costs, comparable EBITDA amounted to €1.958 million, up 3%.
Net debt fell €1,370 million in the first nine months of the year to €12.512 million, down 10% from end-2011. Of the total debt, 56% was secured with the company's own projects (non-recourse). 91% of debt is long term and 85% is fixed rate.

Finally, the average cost of debt was 4.68% with an average maturity of six years. During October abertis, as part of its strategy of actively managing its balance sheet, closed a bond issue aimed at qualified investors in the amount of €750 million, with an annual coupon of 4.75% maturing in October 2019. The bond issue extends the group’s maturity profile of debt and keeps financing costs competitive.