Abengoa SA (ABG), the Spanish engineering corporation that builds solar power projects and ethanol refineries, increased profit eight.four % in the initial quarter as 3 sun- powered plants went into operation.

Net revenue rose to 56.four million euros ($81.2 million) from 52.1 million euros a year earlier, although sales jumped 43 % to 1.7 billion euros, the Seville-based corporation stated nowadays inside a regulatory filing. Earnings just before interest, tax, depreciation and amortization gained 30 % to 254 million euros.

Abengoa is expanding its international enterprise as the Spanish government cuts subsidies for renewable energy and curbs infrastructure investment inside a bid to rein in its spending budget deficit. Much more than half the company’s sales came from North and South America within the quarter.

“This represents a exceptional diversification,” Chief Executive Officer Manuel Sanchez Ortega said on a conference call right now. “It is challenging to hide that factors are going well in Q1 and looks like they will continue going properly in Q2.”

Abengoa mentioned income will boost within the “mid teens” this year, compared with an earlier forecast of development inside the “low teens.” It maintained its aim of reaching 1.five billion euros of Ebitda by 2013 because surging commodities prices are squeezing profit margins in its ethanol enterprise.
The corporation rose three.six percent to 21.76 euros in Madrid trading.
Power Production

Solar-power production in the quarter rose far more than sixfold to 49.two gigawatt hours as 3 solar-thermal plants went into operation. Abengoa plans to invest one more 1.9 billion euros via 2013 to expand its producing capacity, and expects to build 14 solar-thermal plants with 1.3 gigawatts of capacity over the period.