Acciona first half profit tumbles

Spanish contractor Acciona has blamed changes in renewable energy regulation and falling earnings in its infrastructure division for a 40% year-on-year fall in net profit for the first half to €48 million.

Revenues for the six months to the end of June were down 2.8% to €3.3 billion compared to the first half of 2012.

Acciona said new laws that came into force in Spain at the end of last year and the start of 2013 cut average prices for wind energy by 12%. As a result, gross profit in the contractor’s energy division fell 43% year-on-year in the first half to €58 million, despite a 12% increase in wind production in Spain during the period, and a 70% rise in hydroelectric output.

Another factor affecting first-half results was a 74% year-on-year drop in earnings before tax from Acciona’s infrastructure division to €11 million. The company said this was due to the slowdown of construction in Spain.

The infrastructure backlog stood at €6.3 billion at the end of June, down 7.7% year-on-year.