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23/03/2008
IBERDROLA engineering unit fortifies power grid in mexican states of Chihuahua and Sonora for $78.6 million

  • Work began in October, 2006
  • The project, led by the IBERDROLA unit, entailed the construction and commissioning of five 230 and 115 kilovolt (kV) substations and 209 kilometres of power lines at this voltage

IBERDROLA Ingeniería y Construcción, the engineering and construction arm of Spain’s IBERDROLA utility group, as leader of a consortium also including Elecnor, completed a project for fortifying the electrical power grid in the northern Mexican states of Chihuahua and Sonora, which entailed the building and commissioning of five new 230 and 115 kilovolt (kV) substations and 209 kilometres of power lines at the same voltage.

The $78.6 million contract was awarded to IBERINCO by Mexico’s Federal Electricity Commission (CFE) in open international bidding, in which the Spanish firm competed against Techint, Siemens, and Areva T&D/Isolux.

Works began in October, 2006, and 13 months later the CFE provisionally took delivery of the new power transmission infrastructures, which were completed ahead of schedule.

In recent years IBERINCO has won several contracts to strengthen Mexico’s power grid –power lines and substations– worth a total of some $500 million, and has become the CFE’s main contractor in the power distribution area.

Last year IBERINCO posted net earnings of €54.7 million, a gain of 64.3% for the year, consolidating its position as Spain’s largest energy engineering firm.

The Ebitda of the IBERDROLA unit grew by 80.1% in year-on-year terms to €77.8 million, as sales rose by 80.5% to €1.171 billion. In 2007 IBERINCO’s orderbooks swelled by 141% to a total of €2.444 billion.

Last year the engineering firm made substantial progress towards its strategic goals of increasing its international business and its work for clients outside the IBERDROLA group.

Contracts outside Spain accounted for 88% of the company’s’ contract awards in 2007 (€2.135 billion), and contracts for clients outside the IBERDROLA group represented 88% of the total, as compared with 66% in the previous year. Total new contract awards in the year reached €2.669 billion, triple the €890 million figure posted in 2006.

The IBERDROLA subsidiary closed 2007 with a staff of nearly 2,000, projects underway in more than 25 countries, and local subsidiaries in Mexico, Brazil, Venezuela, the United States, the United Kingdom, Germany, Poland, Russia, Bulgaria, and Greece. It also has offices in Qatar, Kenya, the United Arab Emirates, Latvia, Slovakia, Tunisia and Bulgaria.

IMPORTANT INFORMATION

This information does not constitute an offer to buy, sell or exchange, nor does it constitute the solicitation of an offer to buy, sell or exchange securities. Iberdrola, S.A. shares may not be offered for sale or sold in the United States except through a statement of effective notification in conformity with the provisions of the Securities Act or when a valid exemption from the obligation to provide such notification has been granted.

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