A summary of the Consolidated Income Statement of Abengoa at the close of 2009, 2008, and 2007 with the main variations per item, is given below:


The following comments are made concerning the main variations in the income statement:

  • A 10.0 % increase in revenues to €4,147.3 M. Significant factors include the start of operations of the PS20 solar power plant, higher Bioenergy volumes from the increase in capacity in Europe (France and Salamanca plants), the construction of high voltage lines in Brazil and Peru, as well as the execution of solar projects for third parties.
  • Operating income rose by 18.8 % to €431.0 M compared to €362.8 M the year before, representing a margin on sales of 10.4 % (9.6 % in 2008). It is important to note that the operating income includes investments made by Abengoa in R&D&I, which was recorded as -€61.5 M in the income statement in 2009 (-€51.2 M in research and innovation expenses and -€10.3 M in the depreciation of development assets).
    Some €17.9 M was recorded as a deduction for export activities, against Other Operating income and expenses (compared to €68 M in 2008), in accordance with IAS 12 (for more details see point 20.2 in the Report, Volume III) as well as income of €11.4 M for the valuation of the company’s management share plan.
    At the end of 2009 provisions for other liabilities and expenses totaling -€16.4 M were recorded against operating income, to provide sufficient coverage for specific risks associated with the evolution of business primarily outside Spain. Furthermore, provisions of €46.3 M (made in previous years) were applied during the year based on the recommendations of IAS 37 due to their classification as remote contingent liabilities or due to the realization of the risk for which the provisions were made.
    Some €121.1 M in revenues were recorded from the sale of a 23.9 % stake of Abengoa’s shareholding in Telvent and from the difference between the acquisition cost and the fair value of the net assets acquired by 50 % of the company Biocarburantes Castilla y León and 100 % of the three salt slags recycling and treatment plants in Germany (see Notes 2.2 and 37 of the Report). Conversely, losses of -€118.4 M were recorded after reducing the book values of certain assets related to the solar and Bioenergy activities after evaluating signs of impairment in the value of these assets (see Notes 5 and 8 of the Report).
  • In conclusion, the net amount of these headings represents €1.0 M in income and therefore does not significantly affect the company’s operating income.
  • Financial income went from -€313.9 M in 2008 to -€181.4 M in 2009. In addition to the effect of the fall in interest rates, it is important to note that the appreciation of the Brazilian Real against the US Dollar during the year generated a lower financial book expense (which was not incoming cash), due to the conversion of US Dollar denominated debts into local currency in the transmission lines business, which led to a positive impact on financial income of €54.4 M. Revenues of €57.3 M have also been recorded from the cancellation of various financial exchange rate derivatives in Brazil. In addition to all of the above, non-cash provisions of -€58.5 M were made against financial income, for the negative valuation of financial derivatives on interest rates, exchange rates and commodity prices (see Notes 11 and 16.3 of the Report). Lastly, impairments have been recorded on certain loans and financial assets totaling -€12.4 M.
9summary of financial income
  • Consolidated income before tax rose by 348.5 % to €260.8 M compared to €58.1 M the year before.
  • Corporation tax in 2009 was a book expense of -€58.1 M compared to income of €107.9 M in 2008. Logically, this result has been impacted by investment and dedication to R&D&I activities, the contribution of income from other countries to Abengoa’s profit as well as prevailing tax legislation.
  • Profit attributed to the parent company grew by 21.3 % in financial year 2009 to €170.3 M, which means earnings per share of €1.88 (a 21.3 % increase on 2008).

For further information, please see the Consolidated Income Statement and the Notes to the Consolidated Annual Accounts in Volume III.