Abengoa Net Beats Estimates By 22% as Construction Surges
Abengoa SA (ABG)’s net income jumped last year, exceeding analysts’ estimates by 22 percent as sales from its engineering and construction division surged.
The Seville-based company, which develops solar thermal power plants, builds power transmission lines and ethanol refining facilities, posted profit of 257.4 million euros ($345.1 million) compared with a mean forecast of 210.3 million euros in a survey of 13 analysts. Profit rose 24 percent from a year ago.
Abengoa aimed to boost its sales and reduce its borrowings in 2011 selling its Telvent business to Schneider Electric SA (SU), a 300 million-euro stake to First Reserve Corp. and a parcel of power lines in Brazil to Cia Energetica de Minas Gerais while boosting output of clean energy and biofuels.
“We have prepared a very strong base to enter 2012 with confidence,” Chief Executive Officer Manuel Sanchez Ortega said on a conference call for investors.
Earnings before interest, tax, depreciation and amortization from engineering and construction rose 69 percent to 438 million euros. Overall ebitda rose 36 percent to 1.1 billion euros. The company’s order backlog rose 20 percent to 7.5 billion euros.
Net corporate debt fell to 1.5 billion euros from 2.3 billion euros a year earlier while net non-recourse debt for financing projects rose to 4 billion euros from 2.9 billion euros.
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