Positive year-end results from FCC

Fomento de Construcciones y Contratas (FCC) has announced a 2.3% rise in earnings before interest and taxes (EBITDA) in its 2016 annual results.

The Barcelona-based environmental services, infrastructure and water management group said its earnings had risen to €833.7 million (US$ 892.3 million), which it attributed to group-wide reductions in structure and administration expenses.

The group said it had worked in unison to improve productivity, which had the effect of increasing its 2016 EBITDA margin to 14.0%, from 12.6% in the previous year.

FCC also revealed is has reduced its levels of debt to €3.6 billion (US$ 3.86 billion), a significant 34.3% reduction and around € 2 billion (US$ 2.14 billion) lower than the 2015 levels.

Less positive were the group’s revenue figures for 2016, showing a decline of 8.1% from the previous year. In its statement, the organisation attributed this to an ongoing decline in construction activity in Spain.

FCC's CEO, Carlos M. Jarque, said, "With these transactions in 2016, the FCC Group made major progress towards strengthening and optimising its capital structure, to provide it with a solid funding platform and strengthen its capacity and operational flexibility."