Net income was €102 million, an increase of 11% over the previous year. The cash flow from operating activities in the first half of the year was €516 million and as of June 30th, 2011 total net debt was €5,953 million.
Abengoa’s dedicated and ongoing commitment to geographic diversification in new markets continues to be one of the key factors behind its continued growth. The company’s international businesses recorded revenues of €2,452 million and accounted for 78% of the total. The growth in revenues in the Americas was particularly significant, a region that now accounts for 54% of the total, most notably in Brazil and the U.S., which generated 26% and 18% of total revenues respectively.
By segment, Engineering and Construction had a significant revenue increase of 33% to €1,569 million, with 56% of revenue coming from external customers. EBITDA increased by 57% to €183 million and backlog for the Engineering and Construction activity totaled €7,808 million at June 30th, 2011, which provide significant visibility for the company’s revenues over the coming 24 months.
Revenues of the Concession-type Infrastructures business, which primarily includes electricity generation and transmission, increased by 41% to €192 million, with an EBITDA margin of 71%. This growth was primarily due to the contribution of three new concentrating solar thermal plants and a new transmission line which were brought into operation during the last 12 months.
Lastly, revenues in the Industrial Production business, which includes primarily industrial recycling and bioenergy, increased by 43% to €1,382 million. This increase is a result of an increase in the production capacity of the bioenergy business together with higher ethanol prices year-over-year, and the strong performance in terms of volume and margins of the industrial recycling business.
In this first half of the year Abengoa has continued with a successful asset rotation and value creation strategy closing an agreement with Schneider Electric to sell the 40% stake in Telvent for €423 million. Abengoa has also completed the sale of certain Brazilian transmission lines to CEMIG for €506 million, while creating a strategic vehicle to pursue future investment opportunities in Latin America. Both transactions are expected to close in the third quarter of 2011, and will imply a reduction in consolidated net debt of €1,409 million improving the Company´s financial flexibility.
During the first six months of 2011 Abengoa continued to develop its projects in the R&D+i area with programs focusing on demonstrating viability of new superheated steam technology, building a demonstration molten salt tower plant and concluding performance test of new heliostats for the solar business. On bioenergy, fermentation technology, to increase yields in first generation ethanol, was validated at a demo scale, and we successfully produced ethanol from corn stover in our second generation demonstration plant in Salamanca. Finally we made improvements in the validation and design of a new and cost effective remineralisation process for desalination plants.
Manuel Sánchez Ortega, CEO of Abengoa, said, “I am very pleased to share another successful quarter, in all financial parameters such as revenues, EBITDA, net income and cash flow generation. In addition we have continued executing both, our investment plan and our asset rotation strategy, as previously anticipated, which demonstrate our focus on generating value for our shareholders and increasing the financial flexibility of the group”.
He added “In addition, Abengoa has continued to grow its solid backlog which will secure future growth, and has continued to invest in R+D+i to develop innovative technology in its markets. These achievements are only possible thanks to the dedication of its outstanding professionals”.
Details for the Earnings Presentation Conference
The CEO, Manuel Sánchez Ortega, and the Head of Investor Relations and Reporting, Bárbara Zubiría Furest, will hold today a conference call to present the results, which will be simultaneously broadcast via the internet, at 3.00 pm (Madrid time), 2.00 pm (London) and 9.00 am (New York).
To access the conference please dial +34 91 788 93 03. The conference can be followed live via Abengoa’s website. We recommend that you access the website at least 15 minutes prior to the start of the conference to be able to register and download the audio software required to listen.
A recording of the conference will be available on Abengoa investors’ webpage approximately two hours after the conference has finished.
Abengoa (MCE: ABG) is an international company that applies innovative technology solutions for sustainable development in the energy and environment sectors, generating electricity from the sun, producing biofuels, desalinating sea water and recycling industrial waste.