Isolux Corsán Reorganises its Concessions Business as a New Company: Isolux Infrastructure

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Jul 14, 2011, 05:00 ET

MADRID, July 14, 2011 /PRNewswire/ --

The Investment in Isolux Infrastructure Projects Amounts to Some €7.5 bn.

Isolux Corsán is a major corporation in the concessions business world-wide, operating in over 30 countries. Today it has announced a reorganisation, concentrating this business in one new company. Isolux Infrastructure thus starts operation with the mission of further increasing the volume of business in this area. Over the last five years its EBITDA has shown a compound annual growth of 70%, turning it into a mainstay of Isolux Corsán's global performance.

The new Isolux Infrastructure will have a total capex for all the projects in which it is involved, of approximately €7.5 bn. It is a truly global platform for the management and operation of the Isolux Corsán group's infrastructure projects in three key sectors:

Toll road concession. Isolux Corsán has over 1,600 kilometres under concession agreements in countries such as India (710 km in four concessions), Brazil (680 km), Mexico (155 km in two concessions) and Spain (64 km).

T&D lines. The group operates and manages over 5,200 km of power lines for transmission and distribution in Brazil (3,090 km in five concessions), India (1,600 km) and the USA (605 km).

Photovoltaic solar power. The Group ranks as a leader in the solar PV power-generation market. It has 42 PV power plants in operation with an installed capacity of 168 MW and a generation capacity over 250 GW/h per year of clean energy. The company also has a further 60 MW under construction and a pipeline of 900 MW in southern Europe, Latin America, India and the USA.

Isolux Infrastructure's geographical diversification enables it to operate efficiently in emerging economies (India, Brazil, Mexico and Peru) and in consolidated economies (USA, Italy, Spain). This combination between developing and mature markets endows the new company with enormous versatility, so that it can respond immediately to the latest market conditions wherever they impact.

Its core businesses (power generation, power transport & distribution, overland-road infrastructures) have exciting upside in both emerging and consolidated economies. In the emerging economies, growth is essential to bridge a long-standing accumulated gap against modern-day requirements. And in the consolidated economies, growth is imperative in response to demand for constant renewal of existing infrastructure.

Thus, the company's diversification over different kinds of economies and different areas of business minimizes the risks that beset many projects at times of crisis: firstly, because it is unlikely that the macroeconomic factors will be the same in emerging and in developed economies, and secondly, because business diversification give greater visibility for the company's cash flows, especially when 70% of its revenues come from power lines and PV generation, which are not subject to demand risk.

About Isolux Corsán

Isolux Corsán is a global benchmark in the construction, power, concessions and industrial services industries. Operates in over 30 countries on four continents. Its core growth businesses are energy, toll road and car park concessions, plus the construction of major infrastructure projects. Isolux Corsán has 5,000 km of power lines in Brazil and the USA. It operates and manages 42 solar PV plants. These have a total installed capacity of 168 MW, and in 2010 generated 223 GWh of clean energy. The company has 60 MW under construction, and a 900-MW pipeline in southern Europe, Latin America, India and the USA. The groupo has 1,690 kilometers of toll roads under concession in Brazil, India, Mexico and Spain, plus 21,000 parking spaces operated under its concessions in Spain. It also has long-standing experience in the construction and maintenance of major infrastructure projects: toll roads; railways; airports, civil-engineering, hydraulic and maritime engineering works and residential and non-residential buildings. In the power industry, Isolux Corsán is one of the largest construction companies world-wide for EPC (engineering, procurement & construction) projects in the photovoltaic sector, with over 267 MW under operation in 2010. It is a key player amongst the largest companies involved in building EPC power plants, with 1,500 MW under construction. It is also involved in industrial processes, with turnkey projects in the oil & gas industry and biofuel plants. In 2010, the company reported over €3.24 bn in revenues, an EBITDA of €311m and a backlog of €30.18 billion.