Energy reforms in Spain cause 1.97bn euros loss at Acciona

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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.