The Agbar Group obtains a profit of 352.5 million euros in the financial year 2007- entry into China and Algeria

The Agbar Group achieved, in the financial year 2007, a net profit attributable to the parent of 352.5 million euros. This profit reflects the sale of the Applus+ Group which, net of tax, contributes gains of 217 million euros. On deducting these extraordinary results, the recurrent profit is 147 million euros, 6% more than in 2006.

The financial year 2007 was a good year in the economic evolution of the Agbar Group, as shown by the increases in the main magnitudes of the income statement. The consolidated operating income reaches 2,861 million euros and rises 10.9% (2,579 million in 2006); the profit from operations is 371 million euros and rises 12.5% (329.6 million in 2006); and, finally, the profit attributable to the parent reaches 352.5 million euros, with a 110.8% increase which includes the 217 million euro gain arising from the sale of Applus+ (the profit in 2006 was 167.3 million euros).

The positive evolution of the Water and Health sectors is reflected in the organic growth, of 8% in operating income, and of 10% in profit from operations. The recurrent profit is 147 million euros, 6% more than the previous financial year.

Water: entry into China and Algeria

The Water and Wastewater sector, which includes the corporate holding, obtained operating income of 1,563.2 million euros, with a 9.5% increase (1,427.1 million in 2006). The profit from operations increases by 5.9% and reaches 264.7 million euros (250 in 2006).

The increase in operating income is due to the good both national and international organic evolution, and to the incorporation, for the whole year, of the Bristol Water Group. On the contrary, the 6.9% depreciation of the Chilean peso had a negative effect on this figure. The profit from operations was also affected by these variations.

The year 2007 represented the Water sector’s entry into two new international markets: China and Algeria. In China, the Agbar Group will manage drinking water supply and wastewater treatment projects in the province of Jiangsu, through a joint venture with the Golden State Water Group Corporation, made up of Chinese capital and in which Merrill Lynch has an interest. The joint venture will be in charge of three 30-year contracts: the management of a wastewater treatment plant in Nanjing, the construction and management of a drinking water treatment plant in Taizhou, and the management of another drinking water treatment plant and of the distribution network in Xuyi.

In Algeria, the Agbar Group signed an agreement last November with the Algerian Ministry of Water Resources for the delegated management of the water supply and wastewater in the province of Oran, in northeast Algeria, through the company Société des Eaux Oran, SPA. It should be highlighted that this contract involves a new management formula for the transmission of knowledge, procedures, technology and methodology.