FCC, the Citizen Services group, obtained net profit of 53.4 million euro in the first half of 2012, 47% less than in the same period of 2011. The sharp decline in infrastructure activity in Spain contrasted with the good performance of business in other countries, where revenues rose by 12.6% to 2.985 billion euro, accounting for a record 56% of the Group's total. Debt was reduced by 10.1% compared with 1H11, to 6.646 billion euro.
According to Baldomero Falcones, FCC Chairman and CEO: "These results reflect the internationalisation of the group's core business: environmental services, water, and infrastructure". Mr Falcones underlined the "we are reaping the rewards of geographic and sector diversification and we are firmly committed to debt reduction".
Revenues remained practically stable (-1.4%), amounting to 5.331 billion euro, in spite of the impact of divestments at Versia in December 2011 and weak infrastructure demand in Spain. Revenues outside Spain increased by 12.6%, boosted by the Construction and Environmental Services divisions, which offset the 14.8% reduction in revenues in Spain, attributable mainly to the Cement and Construction businesses.
By geographic area, growth was notable in America and in other new markets, where revenues almost doubled with respect to 1H11 due to progress with large infrastructure projects and to the good performance of the urban furniture business in the US. Revenues in the United Kingdom increased by 11.7%, mainly driven by the construction of a new waste treatment plant and a number of infrastructure projects. In contrast, revenues declined by 3.2% in Eastern Europe due to the completion of several infrastructure works and the fact that they have not been replaced by other contracts that have been awarded but have not yet commenced execution. Waste management and treatment in the region performed satisfactorily.
EBITDA declined by 20.3%, to 516.7 million euro, due mainly to the impact of the restructuring under way at Cementos Portland Valderrivas and to the decline in ad space occupancy in the urban furniture business. Environmental Services performed well, and accounted for 63% of Group EBITDA. EBIT totalled 281.3 million euro, down 13.4% with respect to the first half of 2011.
Reduction of debt; Payments to public administrations
Net financial debt at the end of 1H12 stood at 6.646 billion euro, down 744 million euro year-on-year (-10.1%). Debt performance was impacted by the collection of 1.217 billion euro by 30 June from Services and Construction clients in Spain as a result of the central government's Supplier Payment Plan.
Milestones in the first six months
1) Aqualia became the first Spanish company to land a water management contract in the United Arab Emirates
FCC subsidiary Aqualia was awarded a contract in January to manage the sewage and water treatment system in eastern Abu Dhabi (UAE). This contract includes the operation and maintenance of more than 2,400 km of sewers, 68 wastewater pumping stations and 19 wastewater treatment plants in the city of Al Ain. This is the first time that a Spanish company has been awarded a water management contract in the United Arab Emirates.
2) FCC strengthened its leading position in railway works with new contracts in Romania and Norway
Romania's National Railway Company (RFC) awarded an 830 million euro contract to refurbish and upgrade three sections of the Simeria-Braşov railway line to a consortium headed by FCC. Moreover, Alpine, which heads FCC's businesses in Central Europe, obtained a combined road-rail contract worth 170 million euro.
3) FCC signed a 438 million euro syndicated loan
In March, FCC signed a three-year syndicated loan amounting to 438 million euro, arranged with a syndicate of twelve banks. The loan, with partial amortisation of 10% in both April and October 2014, replaced the syndicated loan that matured on 29 April 2012.
4) Sale of handling businesses in Spain and Belgium
In May, FCC reached an agreement to sell Flightcare, its handling business in Spain and Belgium, to Swissport for 129.5 million euro. At mid-year, the transaction was pending approval from the airport and EU authorities.
Income attributable to equity holders of the parent company
Net interest-bearing debt