* Full-year net loss 1.97 bln euros after writedowns
* Energy reform wipes 1.68 bln euros off renewable assets
* Puts 49 pct of international renewables business up for
* Shares up 4.7 percent, reversing declines
(Recasts, adds details on asset sale)
By Tracy Rucinski and Jose Elías Rodríguez
MADRID, Feb 27 Spain's Acciona has
received multiple offers for a stake in its foreign renewables
business, the company said on Thursday after cuts to green
energy subsidies sent the group to a full-year net loss for the
The infrastructure and renewable energy company, which has
already issued bonds, scrapped a dividend and sold wind farms
after government power reforms, was forced to take a 1.68
billion euro writedown in 2013 results posted on Thursday and
confirmed it is seeking a partner to buy 49 percent of its
renewables operation outside Spain.
"In these circumstances Acciona has no choice but to
reinvent itself," Chairman Jose Manuel Entrecanales said on a
The international renewables assets, with annual revenue of
about 500 million euros from 2,273 megawatts of capacity across
15 countries and 1.4 billion euros of debt, will be removed from
consolidated accounts from 2014.
Acciona has received a number of non-binding offers from
international infrastructure and investment funds and is now
starting due diligence, senior executive director Juan Muro said
on the conference call.
Muro gave gave no indication of the size of the offers,
though analysts have said that a standard valuation would be
about 1 million euros per megawatt of capacity.
Proceeds from the sale would be used to cut debt, which
reached 6.7 billion euros in 2013, the company said.
Lazard has been hired for the sale, a source told Reuters on
Shares in Acciona, which have fallen 26 percent over the
past year because of regulatory uncertainty, rose 4.7 percent on
the sale news, reversing a heavy opening fall.
Spanish government cuts to renewables subsidies have been
particularly harsh on mature wind power assets such as those
owned by Acciona, which made a 189 million euro profit in 2012.
The company said that new regulation had a direct negative
impact of 257 million euros on 2013 accounts and wiped 1.68
billion euros off the value of its renewable energy assets,
sending it to a full-year net loss of 1.97 billion euros.
The reforms have infuriated both traditional and renewable
energy groups. Iberdrola, which combines a range of old
and new power-generation methods, has said it will stop
investing in Spain because the regulatory framework is no longer
Among its restructuring, Acciona plans to group together
other business units to allow infrastructure and water
divisions, for example, to bid jointly for international
Acciona, primarily a builder before diversifying into
energy, has also seen Spain's economic downturn take its toll on
the construction division, prompting the company to try to
strengthen its water treatment operations.
In addition to impairment charges on the energy division,
Acciona wrote off 288 million euros on its infrastructure arm,
100 million euros on its property business and 160 million euros
on its Trasmediterranea shipping fleet.
"They're cleaning out everything, but the key will be how
they value the energy assets and what steps they're going to
take, such as disposals," Intermoney analyst Alvaro Navarro
Earnings before interest, tax, depreciation and amortisation
(EBITDA) fell 14.1 percent year on year to 1.23 billion euros,
mainly because of the decline of its energy division, which
accounts for 80 percent of the total.
The company said it expects Spanish energy reforms to
deliver a recurring annual hit of about 400 million euros on
Other European energy companies have also been hit by the
impact on prices of a subsidised boom in solar and wind energy
that led to overcapacity at a time when demand has been
depressed by the economic crisis and energy efficiency measures.
French gas and power group GDF Suez booked a 14.9
billion euro writedown in 2013 results on Thursday.
($1 = 0.7317 euros)
(Editing by David Goodman)