SECTION 2: PROFIT FOR THE YEAR
This section comprises the Notes relating to the profit for the year.
Net profit for the year amounted to EUR 454 million, an improvement of 20.6% on 2016 (EUR 376 million).
This increase is affected by a series of non-recurring results related mainly to divestments, derivatives and taxes, per the following breakdown, and which are explained in more detail in the Notes indicated in the table:
|
BALANCES AT 31/12/17 |
BALANCES AT 31/12/16 |
||
NON-RECURRING IMPACTS |
PROFIT BEFORE TAX |
NET PROFIT |
PROFIT BEFORE TAX |
NET PROFIT |
Impact of financial derivatives (Note 2.6) |
35 |
26 |
-26 |
-18 |
Divestment, exclusion from consolidation and impairment of infrastructure projects (Note 2.5) |
81 |
83 |
324 |
153 |
Non-recurring impacts, HAH (Note 2.7) |
48 |
48 |
-105 |
-105 |
US tax reform (Note 2.8) |
0 |
31 |
0 |
0 |
Other non-recurring tax effects (Note 2.8) |
0 |
-14 |
0 |
20 |
Other impacts |
0 |
0 |
0 |
-11 |
TOTAL |
163 |
173 |
193 |
40 |
Notwithstanding these non-recurring impacts, revenue grew by 13.5%, due mainly to the inclusion of a whole year of Broadspectrum (compared with seven months in 2016). However, profit from operations was down 7.4% on 2016, due mainly to the worsening of the margin of the Construction business. In like-for-like terms (see definition in the section on alternative performance measures), the aforementioned changes were growth of 7.2% and a fall of -8.6%, respectively (see the directors’ report for a detailed explanation of the changes by business division).