Engineering and Construction

Revenues in Engineering and Construction increased by 19% compared to the previous year, to €4,512 M (€3,807 M in 2011), while EBITDA increased by 36% to €724 M compared to the figure recorded in 2011 (€531 M). This growth was mainly driven by:

• Execution of the Solana solar plant in Arizona (USA) and the Mojave plant in California (USA), as well as Khi and KaXu (South Africa).
• Construction of thermosolar plants in Spain.
• Higher volume of transmission lines construction in Brazil and Peru.
• Higher volume of technological licenses and manufacturing of technological components related to our solar and water business.

Concession-type Infrastructures

Revenues in the Concession-type Infrastructures area increased by 11% compared to the previous year, to €473 M (€427 M in 2011), while EBITDA rose by 3% to €307 M compared to €299 M in 2011. These increases were mainly due to:

• Contribution from the solar hybrid/combined cycle SPP1 plant in Algeria, which came into operation at the end of the first half of 2011, as well as the contribution of the new solar plants in Spain (Helioenergy 1 and 2, Solacor 1 and 2, Helios 1 and 2 and Solaben 2 and 3), which came into operation at different times during the last quarter of 2011 and the year 2012.
• Start-up of the ATN line in Peru and the desalination plant in Honaine (Algeria) during 2011.
• The decline in the results from transmission concessions was due to the sale of part of the Brazilian transmission lines to CEMIG.

Industrial Production

Revenues in the Industrial Production activity declined by -2% compared to the previous year, to €2,798 M (€2,855 M in 2011), while EBITDA decreased by -21% to €215 M compared to €273 M in 2011. These variations were mainly driven by:

• The reduced level of sales and Ebitda in Bioenergy due to the lower price of ethanol caused by the decrease in consumption of gasoline, the high cost of grain, in particular in the US, due to the severe drought (the worst in 60 years), as well as poor weather conditions in Brazil, which negatively influenced the sugar harvest.
• The increase in recycling sales was primarily due to the higher zinc price and a modest rise in the volume treated.