FCC Group's net profit improved by 21.5% reaching 339.9 million euros
In 2019, the company obtained a net profit of 339.9 million euros, 21.5% more than in the previous year.
Meanwhile, the resulting net profit was 266.7 million euros, an increase of 6% over last year. This was achieved despite the increase in profit for minority shareholders reaching 73.2 million euros, compared to 28.2 million euros in 2018.
FCC Group's net revenue in 2019 rose by 4.8% over the previous financial year with a total of 6,276.2 billion euros. This increase was reflected in all business areas, with the most dynamic performance recorded in Water with 6.4% and Cement with 10.8%. Revenues increased by 3.9% in the Construction area, and the Environment area recorded growth of 3.3%.
FCC Group's gross operating profit at the end of 2019 reached 1,025.8 billion euros, representing an increase of 19.1%. This increase is based on higher revenues obtained in all of the FCC Group's business areas as well as on the increased and obtained operational efficiency.
Per business area, Ebitda performance in 2019 was as follows: as for Environment area increased by 11.6% reaching 492.5 million euros; Water registered a 13.8% increase reaching 281.7 million euros; the Construction area registered 100.2 million euros, 54.1% more than the previous year; and Cement increased its Ebitda by 21.8% reaching 86.4 million euros.
Earnings from companies under the equity accounting method increased significantly reaching 120.6 million euros. In addition to the repeated contribution of investees, it is important to note the positive impact of 36.5 million euros due to the recognition at fair value of the investment prior to the change in the consolidation method of the Cedinsa group.
Group's revenue portfolio closed as of December 31 last year with an increase of 7.1% reaching 31,038.4 billion euros. Per contribution volume, it is worth noting the increase in Construction in Spain, increased by 86.9% due to the award of important contracts, as well as the increase in the backlog in the Environment area as a result of the new contracts obtained abroad, mainly in the U.S. A.
The consolidated net financial debt closed as of December 31st at 3,578.7 billion euros, with a 33% increase compared to December 2018, mainly due to the effect of the change to global consolidation of Cedinsa. It should be noted that as of December 31, 2019, the Group's parent company reached a net cash position of 12.8 million euros.
On the other hand, the Group's equity increased until it reached 2,473.8 billion euros, 26.3% more than at the end of the previous year.
Milestones of year 2019
FCC Construcción increases its portfolio by 24.5% this year
At the end of the year, the Construction area reached a portfolio of projects under development of 5,623 billion euros, 24.5% more than the previous year. In the last quarter, the company was awarded a two-year contract for the construction and subsequent maintenance of a section of the A-9 motorway ring road around Amsterdam and its airport, worth 845 million euros. In Spain, among others, the year witnessed the inclusion in the portfolio of the remodelling of the Santiago Bernabéu stadium worth 475 million euros as well as the road closure of the island ring of Tenerife for another 203 million euros.
New impulse of business in the USA in the area of Environment
The Environment area reinforced its business presence in the North American country by adding the contract for the collection of solid urban waste from the city of Omaha, in Nebraska, over the next ten years for an amount of 255 million dollars. FCC will provide the service with a fleet of 69 trucks powered by compressed natural gas. The contract includes a possible extension for an additional period of 10 years. In addition, last August, the County of Volusia, in Florida, approved the award of the contract for the collection of urban solid waste, with a duration of seven and a half years and a portfolio of 87 million dollars. This fifth contract awarded in Florida, along with those in Orlando (Orange County) as well as Lakeland (Polk County), strengthens FCC's presence in the U.S. A. The total volume of FCC's portfolio in the country, where it already has ten other contracts in Texas, exceeded 1 billion euros at year-end and serves more than eight million citizens.
Aqualia has entered France and strengthened its business in the United Arab Emirates with new contracts worth 100 million euros
Last June, Aqualia purchased the full-service cycle management company Services Publics et Industries Environnement (SPIE) in France. Likewise, in Spain, Agua y Gestión and a stake in Codeur were purchased. The combined amount of these purchases was 38 million euros.
In addition, the company was awarded the contract for the operation and maintenance of the sewerage system in the capital of Abu Dhabi, as well as in the adjacent islands, for 40 million euros. On the other hand, the sanitation contract for the city of Al Ain was extended for seven years, for an amount of more than 60 million euros. The total value of the contracts Aqualia manages in the Arabian Peninsula (Saudi Arabia, UAE, Qatar and Oman) exceeds 600 million euros. These projects, mostly mid- and long-term contracts, reflect the growing success and acceptance of models of partnerships between public and private institutions to promote the development and operation of essential infrastructure in the region, with a total population of six million.
Environment area completes its reorganization and is awarded the World Smart City
Environment area completed its corporate and financial optimization in the last quarter. On the one hand, the process of subsidising and reorganising holdings was completed with a new parent company that brings together all the area's activity within its different jurisdictions, FCC Servicios Medio Ambiente Holding. In addition, last November the new parent company of the area issued two long-term green bonds in the GBE of the Irish Stock Exchange (ISE) for a combined amount of 1.1 billion euros. Both issues were rated investment grade and viewed favourably on their application to sustainable and climate change mitigating assets.
In addition, in November 2019, FCC Medio Ambiente won the World Smart City awards in the "Innovative Idea" category for its highly energy-efficient e-mobility platform. The award-winning project is a modular chassis-platform, 100% electric, for urban service vehicles that has been developed by FCC Medio Ambiente and the Irizar Group, and which receives a subsidy from European funds. The strategic goal of this platform is the implementation of affordable electric mobility in urban services with environmental benefits, such as the reduction of pollutant emissions, noise, carbon footprint and the maximization of energy efficiency.
|(M€)||Dec. 19||Dec. 18||Chg. (%)|
|Ebitda margin||16.3%||8.1%||2.0 p.p.|
|Ebit margin||8.2%||8.4%||0.1 p.p.|
|Income attributable to equity holders of the parent company||266.7||251.6||6.0%|
|(M€)||Dec. 19||Dec. 18||Chg. (%)|
|NET FINANCIAL DEBT||3,578.7||2,691.4||33.0%|