Results 2017. CLH Group made a profit after tax of €233.6 million in 2017
- Investments surpassed €104 million, of which over €45 million was invested in improving infrastructure in Spain
CLH Group made a profit after tax of €233.6 million in 2017, which represents a 7.3% increase compared to the previous tax year.
The EBITDA reached €400.4 million, 3.2% greater than in 2016. This growth was mainly due to the increase in the activity of the Spanish logistical network, greater storage income due to the favourable structure of the oil market and to the increase in aviation fuel supply in both Spain and Ireland, where the Group operates in Dublin Airport via CLH Aviation Ireland. The efficiency improvements incorporated over the last few years also contributed to this increase.
Operating income rose by 2.3% compared to 2016 and surpassed €727 million, while operating expenses were €416.3 million, 1.7% greater than the previous year.
Investments
CLH Group invested €104.2 million in 2017 to continue improving its infrastructure and services, both in Spain and in its international companies.
The company designated €45.3 million to maintenance and improvement projects involving the company’s infrastructure in Spain. More specifically, 36.9% of this amount was invested in renovation, extension and modernisation of its equipment, 28% in environmental projects, 16.4% in safety, 15% in business growth and improvements in productivity and 3.7% in various acquisitions.
In terms of international projects in the United Kingdom, Ireland and Oman, investments increased to €58.9 million.
Activity in Spain
Deliveries of oil products from CLH facilities in Spain during 2017 increased to 46 million m3, 4.2% more than the previous year. This was due to the increase in demand due to the economic growth registered for this period.
By product, deliveries of gasolines and diesels increased by 3.5%, reaching 36.8 million m3, aviation fuels increased by 7.7% with deliveries of 6.8 million m3 and fuels and IFOs (intermediate fuel oils) increased by 0.8%.
The volume of oil products transported by pipelines reached 22.1 million tonnes, 6.6% more than in 2016. The company also transported 2.7 million tonnes by boat, representing a decrease of 7.9% compared to the previous year.
Furthermore, during 2017 CLH maintained the average price of its logistical services and of storage in Spain at 0.83 cents per litre, essentially less than 1 cent per litre. This in turn represents 0.7% of the final prices that consumers pay for automotive diesel (GOA) and regular/95-octane gasoline.
Other significant events
During 2017, CLH underwent an important renewal in its shareholding structure with the incorporation of three new shareholders into its capital: CVC, Macquarie and APG. In addition, the shareholder Crédit Agricole increased its participation in the capital of the company.
The company also presented its new Strategic Plan 2017-2021, which predicts investments of €829 million. It aims to drive international expansion and maintain excellence in operations, reinforcing the focus on satisfying clients’ new requirements and developing new services.
Within its international expansion plan, CLH Aviation was chosen from the competition organised by the Government of Panama in 2017 to supply fuel to five airports and manage their respective airport facilities as part of a concession scheme over 10 years.
OLC, joint venture of CLH in Oman, also began operating a new pipeline and a new storage facility with a capacity of over 170,000m3.
CLH-PS continued modernising its infrastructure in the United Kingdom with initiatives such as the implementation of the demanding API 570 standard in its pipeline network.
Furthermore, during 2017 CLH Group continued promoting the improvement of its operations and the development of new services to attend to its clients’ needs. Noteworthy among these are the new segregated storage model and the services complementary to storage such as component mixing services, which allow creating products with higher value specifications than their components.
The various CLH Group companies also gained important recognitions during 2017. CLH renewed the European Excellence Seal 500+, the maximum recognition of quality awarded by the Excellence in Management Club (Club de Excelencia en Gestión), as well as the EFR (Empresa Familiarmente Responsable) certificate for family-responsible companies with a B+ Proactive qualification. CLH and CLH-PS renewed the ISO 9001 certificate and CLH Aviation Ireland obtained it for the first time.