ACS earns 962 million, 5.1% more, by offsetting the impact of Cimic with the sale of renewables

It remains one step away from its goal of exceeding 1,000 million euros in profit

ACS obtained a net profit of 962 million euros in 2019, 5.1% more than a year earlier, thanks to offsetting the negative impact caused by its Australian subsidiary etching with the sale of its photovoltaic plants, the application of provisions and the contribution of Abertis. The company he presides over Florentino Perez However, it was one step away from meeting the objective that had been set for 2019, that of exceeding the level of 1,000 million euros in profit.

ACS accounts finally include a negative adjustment 420 million derived from the ‘hole’ of about 1,100 million euros that has caused Cimic, its Australian subsidiary, the sale of its business in the Middle East.

The Spanish group records the corresponding part of this adjustment for its indirect participation in this company. Cimic is 72.8% controlled by High Low, a German construction company of which, in turn, ACS controls 50.5% of the capital. However, ACS has managed not only to cushion the impact of this adjustment, but also to grow its profit, contrary to what happened with Cimic and Hochtief, which ended the year in ‘red numbers’.

The Spanish group has achieved this by writing down in the 2019 accounts a gain of 250 million from the sale of its portfolio of photovoltaic assets and projects in Spain, the bulk of the total capital gains of 330 million expected from the operation.

Likewise, its results include a contribution of 245 million euros for its 30% stake in the highway company Abertis and, in addition, the group has “activated provisions linked to international risks”.

ACS also attributes its results to the “good evolution of all its areas of activity” and to the “solid growth” of recurring profit, that is, the one that does not register extraordinary impacts.

Thus, the company recorded a gross operating profit (Ebitda) of 3,148 million euros, 7% more, after registering a 6.5% increase in turnover, which ended the year at 39,049 million.

During last year, ACS continued to promote its investment in the construction of renewable energy facilities, to which it dedicated 674 million euros, more than half (53%) of the group’s total investment.