FCC blames public utility cuts for dip in Aqualia water revenues
Spanish environment services group FCC has reported that revenues in its Aqualia water division have declined 2.3% year on‐year...
MADRID, Spain – Spanish environment services group FCC has reported that revenues in its Aqualia water division have declined 2.3% year on‐year.
In its 2016 financial report, the company attributed the revenue dip to a “decline in the technology and networks business in the domestic market as public administrations cut back investment in water infrastructure”.
Despite the drop in water-related revenues, EBITDA (Earnings before interest, tax, depreciation and amortization) increased by 1.7% to €231.4 million, compared to 2015.
FCC said this was due to an increase in the profitability of its concession business, resulting from improvements in “contract operating efficiency and in structural and support expenses”.
In terms of new business, the company cited a €114.6 million deal to build a desalination project in Egypt and a €148 million to construct and operate two wastewater treatment plants in Colombia. It also secured network contracts in Riyadh, Saudi Arabia worth €23 million euro.
Overall, FCC reported an EBITDA of €833.7 million in its 2016 annual results - a 2.3% increase on the previous year.
Water and Environmental Services accounted for over 80.4% of the group’s earnings, compared to 19.6% for its construction and building related businesses.
Carlos M. Jarque, CEO, said: "With these transactions in 2016, the FCC Group made major progress towards strengthening and optimising its capital structure, to provide it with a solid funding platform and strengthen its capacity and operational flexibility."