Provisions and charges absorb part of the capital gain Triggered by the September – Yahoo Finance Spain

By Jose Elias Rodriguez

MADRID (Reuters) – Acciona announced on Friday a net profit that was lower than expected until September due to a series of accounting adjustments are linked in good part to its core business of energy while the operational hold of the low prices of electricity in Spain, thanks to a contribution to growing the business infrastructure.

The group controlled by the family Entrecanales said before the market opened that its net profit reached 348 million euros in the first nine months, below about 700 million euros that analysts had expected after the juicy capital gains from the sale of the business of wind turbines to the German Nordex.

The costs for the refinancing of energy assets, (301 million) and the provisions and impairments in some projects and in energy assets, and soil (318 million), they ate a part of the 711 million of extraordinary positive, among which highlighted a capital gain of 657 million from the sale of Acciona Wind Power.

The chief development officer Juan Muro Lara said at the conference with analysts that the provisions would have no effect neither on the box nor in the net debt, which at the end of September stood at 5.426 million without counting the passive assets for sale.

The executive also highlighted that the refinancing of energy projects will save the group interest of 75 million euros per year from 2017.

In operational terms, the greatest contribution of the business infrastructure and the overall improvement in margins offset the drag of the power division, affected by the low prices of electricity in Spain.

The result gross operating (EBITDA) was slightly higher than the estimates of the market to mitigate his fall to the 5 percent to 840 million euros.

“we Keep the forecast to close the year with Ebitda flat” compared to 1.174 million in 2015, said Wall Lara.

The growth of the result on infrastructure, which rose 79 per cent to provide as 24 per cent of the Ebitda, and other business such as construction (+33%), or Trasmediterránea (+44%), partially offset by the fall of 21 per cent in the energy.

To 1327, the titles of Acciona fell 1.7 percent while in the year to revalue a 13 per cent. The Ibex-35 index down 1 per cent at the same time.

“Excluding (extraordinary elements) the results have not been bad and, although the recourse debt increases this will result in lower financial costs in the future”, said analysts from Banco Sabadell.