FCC Group's attributable net profit increased by 64% in the second quarter of 2017 with respect to the first quarter of the year. In the first half of the 2017, it amounted to €56.5 million, a 3.1% increase year-on-year despite the sizeable extraordinary items booked in the first half of 2016. This figure was obtained by incorporating income tax, income from discontinued operations and minority interests into income before taxes from continuing operations. 

Group revenues declined by -3.4% in the first half to €2,789.6 million; this was due entirely to the deconsolidation of Giant (Cement business in the US) from November 2016 and to the euro's strength against most of the currencies in which the Group operates. Adjusting for both effects, FCC Group revenues have increased by 2.1% year-on-year in the first half of 2017.

FCC Group EBITDA increased by 0.4% year-on-year, to €376 million. Excluding the aforementioned deconsolidation and the adverse currency effect, EBITDA would have increased by 4.8%. This EBITDA performance reflects a policy of focusing on the most profitable operations, reducing structural costs (-23% year-on-year), achieving synergies across the Group, and enhancing productivity. The Environment area reported €194.6 million in the first half, a 7.3% decline year-on-year, mainly because of the depreciation of sterling. The Water area reported €110.1 million, 4.4% more than in the same period of 2016. Construction obtained €33.6 million, 4.4% more than in 2016. And the Cement area's EBITDA declined by 35.7% to €29.6 million, as a result mainly of deconsolidating Giant and, to a lesser extent, of operating performance in Tunisia, where sales declined and the Tunisian dinar depreciated sharply.

EBIT amounted to €187 million in the first half of 2016, a 54% increase with respect to the €121.4 million reported in the same period of 2016. 
After the recent debt restructuring, parent company gross debt has been cut by €1,624 million in the last twelve months, from €3,671 million at the end of June 2016 to €2,046 million at the end of June 2017, a 44% decrease. At the same time, the debt maturity has been extended and interest rates have been cut.

Group net debt amounted to €3,913.3 at 30 June 2017. At the end of the period, the backlog stood at €30,135.2 million, i.e. over five times revenues in the last twelve months.

Net income attributable to the majority shareholders was €56.5 million, 3.1% more than in the first half of 2016. Net income in 2016 included haircuts on the Group's and Realia's debt, the special dividend in the energy business, and the sale of the Malaga Metro stake. Adjusting for those positive effects in 2016, Group net income increased by €92 million year-on-year in the first half of 2017.

The Group booked positive underlying net income in the recent months, accumulating practically 15 consecutive months of profit and consolidating the cycle change at FCC.

Milestones in the first half

Successful novation of the bulk of FCC Group's interest-bearing debt 

The novation of the conditions governing FCC, S.A.'s syndicated loan came into force on 8 June 2017; this is a milestone in the process of optimising the Group's finances and will have a positive impact on free cash flow in the coming months and years. 

The refinancing agreement was completed with the immediate early repayment of 1,110 million of existing borrowings using the funds obtained from two bond issues by FCC Aqualia, S.A. in the international capital market. The bonds, with nominal amounts of €700 million and €650 million, mature in 2022 and 2027 and pay annual coupons of 1.413% and 2.629%, respectively.

FCC Construction is a member of the consortium awarded contracts totalling €1,634 million to upgrade three sections of railway in Romania 

In April 2017, CNFR, Romania's national railway company, adjudicated the contract to upgrade three sections of railway in the Transylvania region to a consortium of which FCC Construction is a member. The contract is worth €1,634 million and will be delivered over 36 months. That amount is not yet reflected in the backlog.

This project establishes Romania as one of the Group's main markets for construction; it is involved in contracts there worth a combined total of €2,106 million, and FCC Construction is now one of the leading companies involved in developing Romania's transport infrastructure.

FCC Construction is a member of the consortium that was awarded the €3,900 million Mexico City Airport contract 

On 6 January, Mexico City's public airport authority awarded a contract to build the terminal building for the New International Airport for Mexico City to a consortium of companies headed by Grupo Carso, in which FCC Construction and other companies in the industry are also members, since its bid was rated the best in economic and technical terms. The €3,900 million contract is to be completed in 44 months. The project will give Mexico City one of the world’s most modern airport, with a capacity for 125 million passengers per year.

FCC Environment lands another waste management contract in Texas, its eighth in the USA

In June, FCC was awarded a $32.5 million contract to collect and treat waste from the city of Rowlett, Texas, for a period of seven years, with the possibility of a three year extension. The contract includes managing the city's residential and commercial waste and will provide about 5,000 tons of waste per year for the Group's recycling plant in Dallas, which was inaugurated this year. Including the contracts obtained in the cities of Garland and Mesquite in the first quarter, the Environment division added over $300 million to its backlog in the US in the first half of 2017.

FCC Environment commissions its ninth energy-from-waste plant

In the first half of the year, the Environmental Services division started up its ninth energy-from-waste plant, to serve Worcestershire and Herefordshire, in the United Kingdom. The complex was designed, developed and built by Mercia Waste Management, a company 50% owned by FCC. The plant will be able to process up to 200,000 tons of waste per year and has 15 MW installed capacity to generate electricity, which will be fed to the grid. 

The Environment division now has nine plants for reusing and obtaining energy from municipal solid waste, making it a world leader in the end-to-end treatment of municipal waste.

FCC Aqualia obtains 20-year extension on the contract to capture water for the Algodor River Group of Municipalities (Toledo)

FCC Aqualia has been serving the Algodor River Group, comprising 45 municipalities, for 30 years, and the renewal is an expression of the client's confidence in FCC. The 20-year contract represents a backlog of €67.4 million.

CPV, S.A. completes a capital increase, resulting in FCC owning 98.5% of this subsidiary

After the period for the equity issue by CPV, S.A. concluded on 23 July, FCC had attained 98.5% of this company, which is the head of the Cement division. The deal was a conversion of subordinated loans granted to the subsidiary in preceding years and was in compliance with the terms of the delisting takeover bid for CPV's shares in February.