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02.25.2009

Befesa’s profit after tax rose 23.3% in 2008 to €58.7 million

Erandio, 25 February 2009. Befesa’s results for 2008 improved significantly compared to the previous year. EBITDA increased by 27.4% and profit after tax by 23.3%. Strategically, this year has seen Befesa consolidate its position as one of the leading companies in Europe for steel waste recycling as well as for aluminium waste recycling, an area in which the company has successfully integrated Alcasa. Similarly, in the water management and generation business, Befesa has established itself as one of the key players in the international market, mainly through growth in the large sea water desalination plant division.

Befesa’s consolidated sales in 2008 totalled €873.5 million, a 13.5% increase compared to €769.7 million the previous year.

EBITDA increased by 27.4% to €157.8 million compared to €123.8 million in 2007.

Income after tax attributable to the parent company was €58.7 million, an increase of 23.3% over the €47.6 million from 2007. To make a like-for-like comparison of profit after tax in 2008 with 2007, the impact of the sale of the land belonging to Befesa Desulfuración in Baracaldo and changes in the consolidation scope need to be excluded, among other factors. The result is a 5.11% increase in profit after tax attributable to the parent company compared to the previous year.

The evolution in the results for 2008 is shown below.

Evolution in the results for 2008
 € MillionVar %
 2008200708 / 07
Sales873.5769.713.5
EBITDA157.8123.827.4
EBITDA / Sales18.1 %16.1 %12.4
PBT83.563.631.3
PAT62.748.030.6
PAT Parent58.747.623.3

The above results represent earnings per share of €2.17/share, higher than the €1.76/share obtained in 2007.

The distribution of sales by business unit is shown in the table below.

Distribution of sales by business unit
 Net revenues
Business Unit2008 € million2007 € million%Var (08/07)
Aluminium Waste Recycling252.4218.115.7
Steel and Galvanisation Waste Recycling253.6251.80.7
Industrial Waste Management136.9124.310.1
Water230.6175.531.4
Total873.5769.713.5
  • Aluminium Waste Recycling. Sales during 2008 grew by 15.7% to €252.4 million, mainly due to the increase in the volume of treated waste. Some 421,000 tonnes of aluminium-containing waste were treated during the year, an increase of 18.1% over 2007.
  • Steel and Galvanisation Waste Recycling. Sales for the year rose by 0.7% to €253.6 million. In 2008, a total of 645,000 tonnes of steel and galvanisation dust was treated, an increase of 5% compared to 2007.
  • Industrial Waste Management. This business unit recorded sales of €136.9 million compared to €124.3 million the previous year, equivalent to a 10.1% increase. The unit treated more than 1,425,500 tonnes of industrial waste, an increase of 3.5% compared to 2007.
  • Water. Sales by the water business unit increased by 31.4% to €230.6 million versus €175.5 million the year before, as a result of the increase in the volume of projects.
Geographic area
Geographic area2008 € million%2007 € million%
Domestic Market427.349411.353
Foreign Market446.251358.447
Total873.5100769.7100

Our activities are increasingly international. In 2008, 51% of total sales came from abroad compared to 47% in 2007.

Significant events this year include the successful integration of the aluminium waste recycling businesses (Befesa Aluminio and Aluminio Catalán) signed in 2007 with the Qualitas investment fund. In July 2008 Befesa Zinc Aser’s new production facilities in Erandio (Vizcaya) opened as part of the modernisation and plant improvement plan begun in 2004 with an investment of €35 million. In the industrial waste management field, Befesa acquired two companies to strengthen its services. These are Tracel, a liquid waste treatment company, and L.I.R.S.A., a company specialising in exchanger cleaning with a presence in Spain, France, Italy, Switzerland, Portugal and the UK. Soluciones Ambientales del Norte, a subsidiary of Befesa Chile, began operations at its hazardous and non-hazardous waste treatment plant located 120 kilometres from Antofagasta in Chile.

Finally, in the water management and generation activity, Befesa was awarded various projects in Spain and abroad including a project to design, finance, construct and operate the sea water desalination plant in Ténès, Chlef (Algeria), which requires an investment of more than $232 million with total revenues exceeding $1.4 billion from the sale of water. Construction of the desalination plant in Skikda, also in Algeria, has been completed and it is now operational. In 2008 Befesa acquired 51% of the US firm NRS Consulting Engineers, one of the leading engineering companies in Texas in the sector for desalinating underground and brackish water. The acquisition will strengthen Befesa’s position in the international market and give it access to the US market through a highly specialised company with good growth prospects in this promising market.

Javier Molina, Chairman of Befesa, said "2008 has been a very good year for Befesa despite the economic situation and the uncertainty in international markets. During the year Befesa has continued to grow in every area at a similar rate to previous years, which has led to excellent results across all our businesses".

Befesa, the environmental services subsidiary of Abengoa, focuses on providing environmental services to industry and the construction of environmental infrastructures. It is a public listed company with a market capitalisation in excess of €325 million (close 2008). (www.befesa.com).