During the first nine months of 2020, ACCIONA recorded a net profit of €78 million. Although the company's results remain affected by the pandemic, the third quarter results show a significant improvement at the financial level, a sign of a gradual recovery in activity and an upwards trend that is expected to continue in the fourth quarter and into 2021.
The company's total revenues reached €4.55 billion, a decrease of 13.9%. This figure reflects the impact of the health crisis, which has caused the company to lose €759 million, and led to a fall in energy prices, mainly in Spain, as well as the slowdown of some Construction and Services activities.
The EBITDA accumulated amounts to €760 million, stemming from the impact of COVID-19 this year (-€195 million) and the positive effect of the settlement with the client on Sydney's Light Rail project in 2019.
Thus, the company's net profit has reached €78 million.
A slight drop in Infrastructure revenues
Concerning investments, they were slowed down in the third quarter as a measure to contain debt, in a year in which operating results have been affected by the pandemic.
After the second quarter of this year, ACCIONA continued to implement measures to protect its growth plans in the medium and long term. Hence, at the end of the period, the infrastructure portfolio grew to €15.97 billion, a historical figure that entails a 40.2% increase so far this year.
Infrastructure revenues have reached €3.18 billion (-13.9%), whereas EBITDA stood at €128 million (-63.4%). The results reflect the economic effects of the pandemic, particularly on Construction and some non-essential Services.
Even so, in nine months ACCIONA has added €7.13 billion in new contracts to its Infrastructure portfolio. Worth noting are Line 6 metro in São Paulo, Brazil; the urban transport system in Brisbane, Australia; the extension of the Vancouver Metro in Canada; and new desalination plants in Hong Kong and the Philippines.
Increased revenues in the Water business
The revenues in the company's Water business rose to €701 million, an increase of 36.5%. On the other hand, the EBITDA in this area was €65 million, a 25.7% increase. This increase is mainly due to the greater contribution of new projects.
At the beginning of this year the Hong Kong Water Supply Department selected a consortium including ACCIONA for the design, construction, operation and maintenance of the first phase of the Tseung Kwan O desalination plant. The project value is €1.04 billion and the plant will be operational starting in 2023.
Moreover, in 2016 ACCIONA was awarded the design, construction, operation and maintenance for a year of the Putatan 2 water treatment plant in Muntinlupa, Philippines. The New Putatan drinking water treatment plant was inaugurated in April of 2019; it was the first of several contracts ACCIONA obtained in the country and is a reference for the company to promote its presence in Southeast Asia, considered a market with very high potential for infrastructure projects.
Furthermore, the company will build its fourth desalination plant in Saudi Arabia, after the Saudi public company Saline Water Conversion Corporation (SWCC) awarded ACCIONA, together with its partner RTCC, the construction of the Al Khobar 2 desalination plant in Khobar, on the eastern coast of Saudi Arabia.
The project, a turnkey contract valued at €460 million, involves one of the larger plants in the country, and the largest reverse osmosis plant in the world to be built under an EPC scheme in a single phase.
This way ACCIONA consolidates its water treatment business in Saudi Arabia, a country where it currently has three ongoing projects, and shows a clear intention to strengthen its business presence in Asia.