SENER increases its EBITDA by 22.5%

03/07/2019 (International)
SENER increases its EBITDA by 22.5%

The engineering group presents its results for 2018, which show an increase in EBITDA of 22.5%, a profit before taxes of 29.2 million euros—27.7% higher than in 2017—and an investment in R&D that remains above 20 million euros.

SENER has published its Annual Report, which details the key facts regarding its projects, social action activities, and financial results obtained during the 2018 financial year. Under the catch line ‘Contigo vamos a más’ (With you we aim higher), the document is available on the SENER corporate website in Spanish and English.

An exercise in structural and management changes

One of the most noteworthy milestones of the previous year was the acquisition of 100% of the TRYO Aerospace & Electronics group (which includes the companies TRYO Aerospace Flight Segment and RYMSA RF) which specializes in the design and manufacture of radio frequency communications equipment for the aerospace sector, with great technological, commercial, and operational synergies with SENER. With this operation, SENER has strengthened its position as a leading international supplier of aerospace components and systems.

In parallel, the organizational structure of the SENER group changed, as it separated its aerospace activities from the subsidiary SENER Ingeniería y Sistemas to create two divisions, Engineering and Aerospace, in addition to the Energy and Environment division, with the consolidation due to be formally completed in 2019.

2018 has also been a year of changes in SENER’s management team, with the separation of the functions of President and CEO, which were previously both carried out by Jorge Sendagorta. The Board of Directors appointed Jorge Unda as the new CEO, while Jorge Sendagorta continues to hold the position of President. Also in 2018 Jorge Sendagorta Cudós and José Julián Echevarría joined as General Managers of the two subsidiaries of the SENER group, Engineering and Aerospace, respectively.

Along with the changes in management, SENER’s Board of Directors has carried out a thorough review of the company’s corporate governance system. At the same time, the shareholders have replaced the previous Family Protocol with a new Family Constitution, in order to modernize and improve the governance and control of the SENER group and to strengthen its institutionalization.

Main figures for 2018

In 2018, the ordinary income of the Group was 589.2 million euros, down 22.3% on the previous year. This decrease is explained to a large extent by the completion of the major energy projects contracted in 2015, which have not been replaced by new large contracts.

However, the earnings before tax (EBT) of continuing operations was 29.2 million euros, 27.7% higher than in 2017, reflecting the results of the improvements in operations and in risk management carried out in recent years. EBITDA total 26.2 million euros. With a growth of the EBITDA/sales ratio of 58%, SENER has seen profitability improve and, with this, it will be able to consolidate its growth in the medium and long term.

The group maintains its commitment to excellence in engineering and innovation, with an investment in R&D in 2018 of 21.2 million euros, which represents 3.6% of the group’s income. SENER thus continues with the same levels of investment, proportional to its income, as in previous years (with a slight increase compared to the percentage of revenues in 2017), which demonstrates the importance of innovation in SENER, as this is key to guaranteeing technological differentiation from its competitors and allows the group to offer products and services with very high added value.

Regarding its workforce, SENER closed 2018 with a total of 2,308 professionals, 62% of whom are graduates.

International turnover in 2018 represented 78% of the total, although the recovery of the national market, which accounts for the remaining 22%, is remarkable. SENER’s activity in Mexico has been noteworthy, and this continues to be the second country with the largest number of professionals in the group, after Spain.

Evolution of projects and new hires

By sectors, in Aerospace, once again the presence of SENER in large space exploration and science projects such as FLEX, Solar Orbit and WSO/UV stood out, while the development continued of an industrial model based on own products for the entire aerospace sector.

In Infrastructure, work continued on line 3 of the Guadalajara metro and the Toluca-Mexico City intercity train, as well as on the High Speed Two London-Birmingham (United Kingdom) high-speed line and on the high-speed line between Los Angeles and San Francisco (USA). There were new contracts in Brazil, as well as in Canada, with the executive project of the Finch tram facilities and the independent engineering review of the Montreal tram, and in Panama, through the conceptual design of the tram in the country’s capital. The first contracts were also won in Australia and in Colombia, GCC and the entire Andean region, with which SENER has seen the expansion of the business strengthened in different sectors (rail, water, ports, airports, and highways) with technologically differentiated products.

In Energy, progress continued on large solar power plants in Morocco (Noor Ouarzazate I, II, and III) and in South Africa (Ilanga-1 and Kathu Solar Park), in a record year in which 550 MW of clean energy have been produced through more than 1,000 million euros invested in solar thermal projects. Electricity generation plants with biomass for ENCE Energía y Celulosa in Spain progressed, while SENER entered new markets such as wind energy and solar photovoltaic with its own products. Furthermore, new contracts were signed in Oil & Gas, Power, and Industrial Solutions, especially in Mexico, but also in France and Colombia.

Lastly, in Marine, the consolidation of FORAN as a leading ship design and construction system continued, with the launch of the v80r3.0 version and the development of the 4.0 Shipyard concept, while in Marine Engineering innovative conceptual and basic projects were carried out, such as vessels linked to the transport of liquefied natural gas.

Prospects for 2019

SENER has a good cash situation, which will allow it to continue making investments to consolidate its leadership in its main technological sectors, both in Aerospace and in Engineering (Energy, Infrastructure and Marine).

In other areas, in 2019 SENER will continue to make progress on its structural reorganization, with a view to improving the group’s competitiveness and strengthening its capabilities in products and services.

Technological differentiation, the opportunities that arise, and the determination of the team of professionals in developing business and executing projects will be key to achieving these objectives.

The complete Annual Report is available here.

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