Befesa's sales up 18% in the first quarter

May 11, 2010

Erandio, 11 May 2010. Befesa's results at the end of the first quarter recorded significant growth compared to the same period last year, mainly driven by the increase in the volume of industrial waste treated by the recycling activity thanks to the recovery in the sectors in which this business operates.

Befesa’s consolidated sales at the end of the first quarter of 2010 rose by 18% to €188 million compared to €160 million the year before.

EBITDA increased by 26% to €29 million compared to €23 million for the same period the previous year. The EBITDA/Sales ratio was 16%, up 1% compared to last year.

Income after taxes attributable to the parent company was €10 million, a rise of 19% over the €9 million for Q1 2009.

The evolution of the results at the end of the first three months of 2010 is shown below.

The evolution by business segment at the end of March 2010 is as follows:

Industrial Waste Recycling

During the first quarter of 2010 Befesa treated some 483,000 tonnes of industrial waste at its plants in Spain, Germany, France, Sweden and Latin America, compared to 372,000 tonnes during the same period in 2009, an increase of 30%. Sales by this activity jumped by 45% to €136 million compared to €94 million the previous year. EBITDA rose by 44%, from €17 million in 2009 to €24 million year on year. Finally, net income grew by 53% to €9 million compared to Q1 2009.

Water

In the first quarter of the year, project execution and new contracts in the water segment, which includes the engineering and construction businesses (EPC), and the management and operation of water infrastructures and facilities under concession agreements, continued to perform strongly. Sales levels were similar to those in Q1 2009, while the project order book for 2010 and 2011 has grown significantly. Although the figures for EBITDA and income after tax of the parent company declined, this was due to the irregular seasonality of the business. The targets for 2010 therefore remain unchanged since Befesa has a solid project order book which ensures its levels of execution and activity.

Significant events for the period included the awarding of the project to construct the La Tomilla II drinking water plant in the Peruvian city of Arequipa to Befesa as part of the Alto Cayma Consortium, worth €55 million. The plant will have the capacity to produce 130,000 cubic meters of water per day, enough to supply nearly 850,000 people.

Agencia Catalana del Agua, the public water company of the Catalonian regional government, has also awarded Befesa, in a joint venture with a local company, the contract to carry out the works to segregate brackish water, which will reduce the salinity of the water that reaches the treatment plants in Sant Feliu and Prat de Llobregat in Barcelona, worth more than €8.4 million.

Finally, Befesa Agua will carry out the project to construct a desulphurisation plant in the port of Bilbao worth an estimated €70 million. The project already has the necessary licences and is in the development phase (design and engineering).

Javier Molina, Chairman of Befesa, said “the significant improvement in the company’s figures is the result of a clear recovery in the sectors in which Befesa operates, combined with the actions implemented in previous quarters, which enables us to position ourselves strongly with regard to the economic recovery and to continue with our growth strategy in sustainable businesses”.