DF slightly increased its sales in 2014 with greater geographic diversification of the business

International sales accounted for 2014% of consolidated turnover in 89

Hiring prospects for 2015 are positive, with opportunities worth over 400 million euros in Peru, Mexico, Brazil and the Middle East.

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DF achieved during the 2014 financial year a sales level slightly higher than the previous year and achieved a higher Geographical diversification of its international business, while its results reflected the progressive adjustment that has been recorded in the margins of the projects it executes.

The net amount of the turnover as of December 31, 2014 was 927,6 million euros, a figure that slightly exceeds that of the same date of the previous year and is in line with that achieved in the two previous years, all in an environment of market complex and dominated by economic weakness and geopolitical instability, mainly in Europe and Latin America, as well as increased competition on a global scale.

 

 

 

International sales represented 2014% of the 89 turnover consolidated, highlighting a greater geographic diversification having reduced the weight of up to 37% Latin America in the business as a whole, in parallel with the growth experienced in other areas, mainly Asia Pacific, which accounts for 23%; Europe (20%) and Africa and the Middle East (8%). Sales in the Spanish market experienced slight growth compared to the previous year.

 

 

By business lines, the three areas dedicated to Execution of turnkey projects (Energy, Mining and Handling and Oil & Gas) account for 82% of sales, with the year-on-year increase of 20,5% in the mining sector standing out. For its part, the line of Services represents 8%, the same percentage as Material, an area whose turnover increased by 37% and which achieved a pre-tax profit of 5,4 million, compared to losses of 4,5 million in 2013, thanks to the reorganization and optimization of resources carried out in the same with the aim of maintaining only profitable businesses.

The progressive narrowing of margins in the projects executed by DF, whose profitability is adjusting to levels closer to the average of the sector, had its impact on the annual results, such that the gross operating profit or EBITDA decreased by 33%, standing at 70,8 million euros, representing 7,6% of sales compared to 11,5% in 2013. For its part, the benefit Consolidated profit before tax was €60,2 million (6,5% of sales compared to 10% in 2013), and net profit attributed to the parent company, with a higher tax rate than in previous years, amounted to €48 million, 42,5% less than in the previous year.

The total contracting amount to 31 December was 453 million euros, compared to 1.521 billion euros the previous year. If the contract for a combined cycle power plant in Algeria, signed on 26 December 2013, had taken place in 2014, as planned, the contracting amount for both years would have been equal to around 1.000 billion euros.

77,7% of the contracts signed during 2014 corresponded to international projects. The most significant hires were recorded in the Energy business, with the signing of the contract for the construction of the 100 MW Expansion Project of the Chilca Uno Thermoelectric Power Plant in Peru; in the Oil & Gas business, for the execution of a fuel supply terminal in Panama and other projects in Colombia and Peru; as well as in the Services business, with awards mainly in Argentina, Spain and other European countries.

Hiring expectations for 2015 are positive according to the pipeline of offers, with a historic figure for the company that exceeds 9.000 million euros and with opportunities which individually exceed 400 million euros in various cases in Peru, Mexico, Brazil and the Middle East.

At the end of the 2014 financial year, the company's work portfolio reached 1.530 billion euros, 96,3% of which was made up of international projects. The composition of the portfolio, which gives the business visibility of almost two years with the current sales level, maintained a similar balance to the previous year by business lines, while by geographic areas greater geographic diversification was achieved. Africa and the Middle East account for 39%, Latin America 32%, with the remainder distributed between Europe (11%) and Asia Pacific (13%). In terms of the balance sheet, DF is in a favourable position, with gross cash of 354 million euros and net cash of 120 million euros, after deducting bank debt, which includes 20,2 million euros in leasing for the acquisition of the new headquarters in Madrid. The company also holds 10% of its capital in treasury stock, which at current market prices would be equivalent to 69,2 million euros.

Working capital has increased to 259 million euros compared to 203 million in the previous year, reflecting the company's financial strength.