Acciona SA

MAD:ANA

Earnings Call Transcript 2018-Q1

[Juan Antonio Muro-Lara Girod]

Good morning, ladies and gentlemen. Welcome to the ACCIONA's 2018 First Quarter Results, and thank you for joining us this morning. Let me start with a high-level summary of the evolution of the business during the first 3 months of the year. At the operating level, we would like to highlight the good performance of the Energy division relative to last year, mainly as a result of higher production in both the Spanish and international generation portfolios, with volumes up 15%. This is mostly due to better resource but also to the new commission capacity. Over the last 12 months, we have installed 235 megawatts of new net capacity.In Infrastructure, revenues remain in line with last year's very high levels. I remind you that in Q1 2017 the increase was 45% year-on-year.At the EBITDA level, the Infra division increased its contribution by 4%, with better Construction margins, mostly driven by the weight of international projects, which are, as you know, more capital intensive.Below EBITDA, we would like to highlight that our average interest cost continues to decline and so does the net financial charge for the quarter.In terms of CapEx, there is a significant reduction relative to last year. And as you know, in Q1 2017, we closed the Geotech acquisition in Australia for EUR 139 million.Working capital has increased relative to last year. On the one hand, there is the first quarter seasonal effect and also the fluctuations inherent in the execution of large international civil construction projects.Working capital volatility is in the nature of these contracts, and we are currently working in 5 very large projects simultaneously in 5 different countries.Managing working capital and maintaining financial leverage ratios within our target is, as you well know, key priority for ACCIONA's management team.Finally, I would like to mention 2 significant developments that are not reflected in these Q1 results, which are the closing of the Spanish CSP plant disposal, which was executed yesterday, with its cash proceeds today in our bank account; and the signing, also yesterday, of a new 5-year syndicated loan facility to refinance short-term maturities and fix a higher portion of our interest rate exposure.We also remind you that we are still waiting for the CNMC approval to close the disposal of Trasmediterránea. Both transaction imply cash proceeds for the company in excess of EUR 1 billion and, again, are not reflected in Q1 results.Moving into Slide 4. We summarize the main financial figures for the quarter, which you are by now already familiar with. EBITDA grew by more than 6.4% to EUR 320 million. Net profit increased by close to 3%, due to the growth at the operating level and the decline in financial charges, despite much lower contribution from our equity accounted investment in this quarter.Gross CapEx at EUR 102 million is much lower than the previous year, which included the acquisition, as I said before, of Geotech in Q1 2017. 85% of this CapEx has been devoted to the Energy division, where we currently have 589 megawatts under construction. Net debt is lower than a year ago, and it stands just below EUR 5.4 billion.Let me now hand over to Raimundo Fernandez-Cuesta that will take you through the results presentation.

[Raimundo Fernández-Cuesta]

Thank you, Juan. In this next slide, we provide the breakdown of capital expenditure during the quarter, which amounted to just over EUR 100 million, most of it related, as usual, to the Energy division. We currently have under construction a large amount of megawatts in Mexico, Australia, Chile and Egypt, some of which are equity accounted, as well as a small repowering in Spain. In total, projects under construction that we consolidate amount to 309 megawatts, and our share of the equity accounted is up to 280 megawatts.In Infrastructure, we're back to more normal investment levels, as the acquisition of Geotech in Australia last year was obviously nonrecurring. Also, the equipment needs are less intense at the moment, given that the CapEx-intensive projects that we are currently delivering are well underway, and the investment usually takes place in the early phases of the projects. We also provide in this slide the net investment cash flow, which is basically CapEx net of divestments, adjusted for the timing of CapEx payments. And now we have included here the investment of real estate development activity for presentational purposes. As you know from an accounting perspective, this is treated as an increase in inventories, but we put it here. Net investment cash flow therefore amounted to EUR 145 million, roughly half of what it was during the same quarter last year.Moving on to Slide 6. We can see here the evolution of cash flow and net debt between December 2017 and the end of the first quarter of the current year. Consistent with the previous years, net debt has increased slightly during the first quarter, although it remains at lower levels than a year ago. Let me note that these figures do not reflect the cash proceeds from the closing of the CSP transaction yesterday, as Juan mentioned, and the proceeds from Trasmediterránea, which we hope to close the transaction later this year once it's approved by the CNMC. The combined incremental reduction of net debt of these 2 transactions will be around EUR 1 billion.With respect to the cash flow chart, I would highlight the higher EBITDA, the lower CapEx and lower financial charges relative to a year ago and, on the other hand, the higher working capital. Working capital increased during the quarter by EUR 291 million, relative to EUR 238 million increase in the same period last year. After the EUR 291 million, 25% of this is related to the normal process of advancing collections before year-end, where we typically see payments from public clients and some corporates, as they ensure they deplete their budgets within the year and tidy up their payables, getting everything out the door.In the slide, we have broken down the proportion -- or the portion of working capital that is related to the construction activity and the part related to the rest of the group. The Construction business saw EUR 199 million of investment in working capital. In this, there is a normal course of business component of EUR 125 million that represents the usual variability in the profile of the underlying contracts and some of the advanced collection before year-end dynamics that we have just explained before. There is also EUR 74 million related to a specific large international project, basically the Sydney Light Rail contract. Our outlook for working capital remains unchanged for the full year. However, this outlook might be somewhat negatively impacted by the specific timing of the collections coming from the Sydney project in particular, in which we have a significant commercial dispute with respect to entering into this contract with a client transport for New South Wales.In Slide 7, you can see the usual debt allocation by division and the main characteristics of a stock of debt. There is no changes relative to the full year results that are worth mentioning, so let's move to Slide 8.In this slide, you can see our debt maturity profile. We will talk in a minute about a new facility we signed yesterday which will change significantly the profile of our maturities. In the meantime, let me mention that we have continued to see a reduction in our average cost of debt. Relative to the average for last year, we have reduced the average cost marginally by around 15 basis points to 3.6% during the first quarter, but the reduction is more significant if we compare to 3.9% in the same period a year ago and 5.2% 2 years ago.In terms of liquidity, our position remains very comfortable, as you would expect, and stands at EUR 2.8 billion. Relative to the full year, you will notice that the available credit lines are lower. And the reason for this is that in anticipation of the receipt of proceeds from the CSP transaction closed yesterday, we have been canceling certain more expensive facilities using our available credit lines in the meantime.Slide 9. As we mentioned, we signed this new credit facility yesterday, which we are very pleased about. It is basically a EUR 1.3 billion 5-year loan with an attractive all-in cost fixed at 1.56%, which we believe demonstrates the solid credit position of ACCIONA. This is a very significant transaction for us as it will allow us to refinance short-term maturities, pushing them back 5 years at very advantageous rates. This deal alone represents all the funding we were targeting for 2018. We will continue to do things during the year -- the rest of the year but only opportunistically, with no pressure whatsoever.This deal will have a significant impact on our debt maturity profile and the fixing of our interest rate exposure, but this will only be evident in the next results presentation. In any case, we estimate that the average life of our corporate debt will increase from 3 to 4 years, and the weight of fixed rate exposure in terms of total debt of ACCIONA will increase from just over 40% to 60%.I would like now to move to the divisional operating performance, starting with the Energy division in Slide 10. Energy EBITDA grew by almost 6%, driven by the increase in contribution from the Spanish business but also the international portfolio. This is mostly due to the increase in output. You will recall that 2017 was a particularly bad year in terms of production volumes for the division. So far, we're doing better than normal year -- than a normal year in Spain, and we're slightly below in the international business. Spanish full prices were 48.1% -- sorry, EUR 48.1 per megawatt hour on average during the quarter relative to EUR 55.6 per megawatt hour during Q1 last year. Taking into account the hedging activities and the regulatory banding mechanism, price has not been a relevant factor with respect to EBITDA growth.We note that the CSP business was still part of the perimeter during Q1, and we will continue to consolidate it until 30th of April. With respect to the international generation business, we would only mention that despite the significant improvement in output and the contribution of new assets in operation, EBITDA has grown by only 3% as a result of foreign exchange.In terms of capacity, our consolidated capacity stands at just over 7.6 gigas. And on the slide, you can see the main changes relative to a year ago, which you are well familiar with.Moving on to Slide 11 and -- these are the 2 slides, 11 and 12, where we look at the Infrastructure division. In Slide 11, we can see the overall operating performance and evolution of the backlog. We would highlight here the flattish revenues and the 4% increase in EBITDA, driven by Construction margins, as we will see in the next slide. Construction backlog has decreased, reflecting the very high levels of production we're currently delivering. I remind you that revenues in the Construction division, when you look at it at full year 2017, grew by almost 60%, as we're simultaneously delivering very large contracts such as the Föllo Line in Norway, Dubai Metro, Quito Metro, Sydney Light Rail and Site C in Canada.Moving to Slide 12. Here's the individual operating performance of the businesses within Infrastructure, and we would highlight the following points. Firstly, EBITDA of the Construction activity increases mainly due to higher margins. This is explained mainly by the mix of contracts, with higher weight of the international business relative to Spain. And in Spain, the volumes continued to decline. The international projects we are carrying out at the moment are high margin, partly due to the high investment that was required in the initial phases.In terms of concessions, I would like to mention the decline in EBITDA is explained by the sale of Ruta 160 concession last year, partly offset by a consolidation of the autopista de los Viñedos tollway in Spain. With respect to water, the completion of a major project, namely the Qatar desalination plants, mostly explains the EUR 3 million decline in EBITDA.Slide 13. We quickly review the performance of the Other Activities. Trasmediterránea is still within our consolidation perimeter while we await for the closing of a transaction, which we hope will come before the year-end of the -- sorry, before the end of the quarter, following what has been a lengthy competition authority review. The first quarter results have improved in the meantime.With respect to the real estate division, the business is now focused exclusively on residential development. And the bulk of the rental income we generated through the residential rental portfolio is no longer reflected in our consolidated EBITDA following the contribution of this business to Testa last year. We account for our 20% stake in Testa, as you know, via the equity method. As for Bestinver, it is slightly up in terms of contribution, continues to perform well. And average funds under management are up. Total assets under management stood at almost EUR 6.1 billion.Okay. Sorry. Anyway, I like to hand over to Juan Muro to conclude the presentation. Thank you.

[Juan Antonio Muro-Lara Girod]

Thank you, Raimundo. To conclude the presentation, let me stress that we view the Q1 results as a good start of the year from an operating perspective. From a funding perspective, we continued to see falling interest costs, and the refinancing transaction we signed yesterday is another material step in our constant credit strengthening.As already mentioned, we are very pleased with the completion of the disposal of the Spanish CSP plants, which is also a major strategic and financial development for the group, and expect to complete as well the disposal of Trasmed once the CNMC clears the transaction. As mentioned before, both deals imply cash proceeds for the group in excess of EUR 1 billion and are not reflected in these Q1 results.In terms of our full year outlook, it remains unchanged. Leverage target and working capital is a particular area of focus for the group, and we will work on the flexibility tools that we have to mitigate any potential negative developments in this respect.Thank you very much for your attention, and let me turn to Pilar Sanchez Ibargüen, our Head of Investor Relation, who will moderate the Q&A session.

[Pilar Sanchez de Ibargüen]

Thank you, Juan. Now we'll start the Q&A session, so we are happy to take any question you may have.

[Operator]

[Operator Instructions] The first question we have comes from Oscar Nájar of Santander.

[Oscar Nájar Ríos, Equity Analyst]

I will just ask one -- several questions from Sydney, if I may. First of all, thank you for more details in here. Those are needed. The first question is the claim is around AUD 1.2 billion. I think it's around EUR 700 million. What is the amount that has not been accounted yet in 2017 or 2018? The second question is, when are you expecting this claim, the decision, and it's the final one, or could you appeal or Sydney may co-appeal? The third one is, how are you accounting for it? I saw that in the equity in the balance sheet it decreased by more than EUR 400 million. How much is it to Sydney? And what is the total versus 2016 balance sheet? Because in 2017, the equity decreased by more than EUR 100 million as well. Sydney, regarding the EUR 74 million that you mentioned in the working capital, maybe I didn't understand correctly. You said that the target is the same, EUR 200 million to EUR 250 million, but that is still at risk into Sydney. Is that correct? And how much will be that risk? And the last one, I promise, is do you have any problem, obviously, not at this size, in any other big contract like, for example, in Norway or anything?

[Pilar Sanchez de Ibargüen]

Okay. Thank you, Oscar. Just to be sure that I have all your question, you have asked for the claim for Sydney Light Rail; for the possibility of appealing the legal outcome; the accounting, the target, is this -- the risk is linked to Sydney projects; and if we have any other problem in other infrastructure projects. Please, could you confirm, that is all?

[Operator]

Oscar's line is now closed.

[Pilar Sanchez de Ibargüen]

So let me pass -- let me -- this question is going to be answered by Carlos Arilla, that is the CFO of the group.

[Carlos Maria Arilla de Juana]

Well, I will summarize the 3 questions asked. They are all related: the Sydney working capital, the Sydney claim and the working capital evolution of the group over the first quarter. So first of all, let me state that as a matter of policy we do not generally provide a specific figure about individual contracts. And also, you will understand that in the current context, where we are involved in claim proceedings as well as litigation, we will not be able to disclose detailed info. But in any case, let me explain that. ACCIONA together with Trasmed and Alstom was awarded the Sydney Light Rail PPA contract as at the end of 2014. ACCIONA's share of the project was approximately AUD 900 million. Once the project was awarded and signed, it became apparent that the scope of work relating to the utilities infrastructure was very different than what we have initially understood from Transport for New South Wales, the primary client. So the dispute is completely unrelated to the technical delivery of the project but rather about an increase and different scope of work given the complexity of the utility infrastructure along the route of the new rail lines that we are required to perform. The claims mechanism under the contract and negotiations have not produced a commercial output that is acceptable to us. This is the reason we have launched legal proceedings that you have referred in your question against Transport for New South Wales, notwithstanding usual order available contract [ mechanist ] to accelerate recognition of additional costs and related cash collections. We pursue all of our right and claims to the fullest extent, and the evidence so far from third-parties utility of our claims such as security of payment asked, SOPA claims, is providing to be very encouraging, which gives us reason to believe that we will reach a satisfactory outcome for ACCIONA. In the meantime, ACCIONA is purposely fulfilling its obligations under the contract, delivering the works to the highest technical and safety standards that we are required and in particular, in a highly sophisticated market like Australia. In summary, seems that all we have here is a commercial dispute relating to the unexpected additional and very different work we have been asked to deliver and not a problem with the delivery of the project itself. And I would say, and Juan has stated during his presentation, based on the evolution during April and May, our outlook for working capital remains unchanged for the full year. However, this outlook might be somehow negatively impacted for the timing of the collections coming from this project. Thank you very much.

[Operator]

The next question we have coming from...

[Carlos Maria Arilla de Juana]

Yes. For your information, the Sydney amounts rather 50% of the total [NIE] 15 that we have figures, IFRS 15. No, no. There is no any other problem that we may consider material or substantial in any other contract. Thank you very much.

[Operator]

The next question we have comes from Jorge Guimarães of Haitong.

[Jorge Guimarães, Equity Research Analyst]

I had 3 questions. Firstly, if you can give us an update on the situation of ATLL concession and when -- if and when you will stop consolidating its EBITDA and what will be the trigger for that decision? Secondly, apparently, the OpEx per megawatt installed in Spain was up year-on-year. And if that -- if you can confirm my view, can you elaborate on that? I mean, OpEx excluding the Spanish generation tax. And finally, can you -- I don't know if it's possible or not, but can you elaborate on the reduction in the associates number year-on-year?

[Carlos Maria Arilla de Juana]

Okay, well, Carlos Arilla speaking. In relation with the ATLL concession, there is no any news or nothing to be stating that hasn't happened over the last months. So there is nothing in particular to be said. And we will keep consolidating ATLL, and we will keep for this year keeping the consolidation of ATLL, and the EBITDA figure will be almost identical to the figure that we reported last year. And now I hand over to [ Jorge Paso ], CFO of the Energy division, to answer your question.

[Unknown Executive]

Regarding the CapEx, the CapEx -- sorry, the OpEx remained stable the year before. But during the first quarter, we have carried out some operations as overhauls in [ Nebar ] solar 1. And some of the projects has finished the warranty period, and we have provided the operations from the company. And that is the reason for the increase -- or the minor increase in the OpEx for this quarter.

[Juan Antonio Muro-Lara Girod]

Regarding your last question, as you well know, a material minority accounting is a listed company which has not disclosed results, so we are not providing full details of that line at this point in time.

[Operator]

The next question comes from Fernando Lafuente of Alantra Equities.

[Fernando Lafuente Seseña, Research Analyst]

One quick one on the evolution -- expected evolution of net debt for this year. You guided at the beginning of the year for a CapEx, if I'm not wrong, gross CapEx of around EUR 900 million. Then you announced the buyback. You have this issue of the working capital. So I was wondering if you could give us an update of all the strategies/guidance for your debt? Where should end -- where should it end the year and the expected leverage by year-end?

[Pilar Sanchez de Ibargüen]

This question is going to be answered by Carlos Arilla again, CFO.

[Carlos Maria Arilla de Juana]

Okay. Thank you for your question. In relation with the net debt, as we have stated in our closing remarks, I mean, our key priority is to maintain our leverage target. And in this regard, I mean, we keep the guidance that we provide you at the end of February during our year-end 2017 results presentation. And we have to stay that first. Our guidance for EUR 900 million overall CapEx investment, we'll keep the guidance. Within that figure, we are including the buyback amount of money that we have acquired during the first quarter. And the working capital as well, as I have previously mentioned in the first question of this session, we keep the working capital guidance that we provided, around EUR 200 million at year-end. Thank you very much.

[Pilar Sanchez de Ibargüen]

And I want to add. As we have already said, we -- the -- our intention and our efforts is going to have this ratio of net debt-EBITDA of around 4x. Thank you.

[Operator]

The next question is Isidoro del Álamo of BBVA.

[Isidoro Antonio del Álamo Molina, Research Analyst]

Sorry to insist on the working capital deterioration. But just to clarify, did you already included any impact from the Sydney Light Rail project in your initial guidance of EUR 200 million, EUR 250 million? Or in other words, could you separate the Sydney Light project from your normal evolution of working capital? The second would be on the net debt targets over the full year. You said you could use flexibility measures in the case you have any problem like the Sydney Light project. What kind of measures are you thinking about? And finally, on the disposal of Trasmed, is there any issue delaying the approval from the CNMC?

[Pilar Sanchez de Ibargüen]

Okay, thank you. And let me hand over to Carlos again.

[Carlos Maria Arilla de Juana]

Yes. When we were providing the guidance where we were -- for a sale potential, the duration of our working capital, around EUR 200 million, yes, we were considering the potential guidance coming from the Sydney Light Rail project. That's clear. And when you are asking us about which measures that we can manage in order to mitigate the working capital deterioration from these projects, we are not just referring the litigation. But I have been talking about other mechanism that in accordance with the Australian law they are able -- in our favor, as it is the Security of Payment Act, which is commonly understood as SOPA. And, okay, on the other hand, although we are keeping our guidance for EUR 900 million for the year-end, this is our guidance -- I mean, this is the figure that we can monitor in order to accomplish that figure to keep, which is our main priority, to fix our leverage ratio in accordance with our expectation.

[Juan Antonio Muro-Lara Girod]

Regarding your last question on the CNMC approval, there is no particular problem or issue. It's been taking longer than expected because of the nature of the sector, the consolidation within the sector that implies the transaction. But it's taking more time than expected, but there is no issue that should concern us at this respect.

[Operator]

The next question comes from Pinaki Das of Bank of America Merrill Lynch.

[Pinaki Das, Vice President and Analyst]

I've got a couple of them. The first one is relating to the Sydney Light Rail issue. I'm not completely familiar with this. It seems somewhat relatively new. There was some news flow out in April, but it was not very clear. But could you give us a simplified version of what exactly has happened in Sydney? And also this AUD 1.1 billion claim or the EUR 700 million claim, is it something relating to costs that you've already incurred? And therefore you are claiming them back? Or is it something that actually the costs will have to be paid over the next few quarters, years, similar to what you have done in Q1. You've had a EUR 74 million provision working capital relating to Sydney. So is this EUR 700 million something that you will have to pay in the future and then hope to recover it through your legal processes? So I just wanted to get a feeling on what's happening there. And also, related to Sydney also, I wanted to understand, during the last year or so or maybe in your guidance for 2018 or '19 -- 2018, how much is the Sydney Light Railway project in terms of revenues or profit margins? If you can give some sort of indication there. I understand profit margin might be more difficult, but at least on the revenue side, if you could give us some idea of how big this project is in the context of your annual construction revenues? That's my first question. It's a long one. The second one is just relating to your various moving parts. At some point, could you give us some guidance around what are the different things that might change by the end of the year? You've obviously sold the CSP, [indiscernible] happen soon. And then you've got the Barcelona contract as well that could potentially have an impact and then, finally, the Sydney Light Rail project. So considering all of this, will you be able to give us at some point sort of bridge in terms of EBITDA -- for EBITDA and sort of other items for the full year?

[Pilar Sanchez de Ibargüen]

Thank you, Pinaki. The background about the Sydney Light Railway has already been explained by Carlos. But anyway, he's going to take some of your questions. Thank you.

[Carlos Maria Arilla de Juana]

Okay, thank you very much for your questions. We're going through the Sydney Light Rail train question. As I have stated, what we are seeing here is that the project which was awarded to us, I mean, later on the scope of works of that project has been changed due to additional works which has been required to be performed. As you know, this is a light rail train which is going through the central business district of Sydney. So the amount of utilities which has been discovered and were unknown at the signing of the project and as well the modifications which has been required for the client out of -- coming after the signing of the project is the basis of our litigation because we wanted to see that the modifications and the new unknown utilities they are recognized. And we have not reached an agreement which we feel that's comfortable for us, and that's the reason. When you are asking about the working capital impact that this project has in our Q&A resource, as I previously mentioned it, the working capital increase, as you can see in our Slide 6 of our presentation, the Construction division is EUR 199 million. And we have said that the normal cost of business is EUR 125 million, leaving the remaining amount, EUR 75 million, for the working capital, which is coming from Sydney. But as this is not a problem that we can say is related with the delivery of our project, which is not the case, it's just a commercial dispute. We think that as well the litigation, together with the SOPA, we will be able to reduce the working capital impact. This is our guidance, and that's why we feel comfortable providing the guidance or keeping the guidance that we provided at the end of February. Thank you.

[Pinaki Das, Vice President and Analyst]

Sir, can I follow up on that? You said...

[Pilar Sanchez de Ibargüen]

Thank you, Carlos. And in relation to your last question about EBITDA, we -- in full year results presentation, we forecast our growth in EBITDA of a mid-single digit. We're sticking to it like-for-like because you have to take into account we will not consolidate for the full year CSP, Ruta 160 and Trasmediterránea. So CSP last year was -- amounted to -- EBITDA amounted to EUR 105 million; Ruta 160, EUR 11 million; and Trasmediterránea, EUR 45 million. So with that, you can do your numbers. And ATLL, we don't have. We don't consider any impact, as Carlos Arilla said before. Thank you.

[Pinaki Das, Vice President and Analyst]

Sorry, can I follow up, please?

[Pilar Sanchez de Ibargüen]

I think we have lost Pinaki.

[Pinaki Das, Vice President and Analyst]

I'm still here.

[Operator]

Okay, the next question comes from Manuel Losa of Goldman Sachs.

[Manuel Jesus Fernandez Losa, Equity Analyst]

Three questions from me, if I may. The first one related to working capital again, sorry. Just in terms of working capital and regarding the Construction business, could you tell us how much you have received in terms of million euros in advanced payments year-to-date? And how much was the order intake in Q1 '18? How were these numbers for the full year in 2017? So how much were the advanced payments in 2017 overall and the order intake in the Construction business as well? Second question, it was -- it is basically can you remind as the impact that you see in terms of net debt from the disposals announced? Just wanted to check out what Pilar was saying in terms of EBITDA, EUR 105 million from CSP, EUR 11 million from Ruta and EUR 45 million from Trasmed. But I would like to have the net debt impact of these disposals individually. And as well -- and if it's possible as well, which will be the impact in terms of EBITDA and net debt if you were to lose the ATLL concession? Last question from me, very quick one. How much unconsolidated debt do you guarantee in your JVs, if any?

[Juan Antonio Muro-Lara Girod]

Okay, thank you for your questions. Give us a couple of minutes to gather all the info you have requested.

[Pilar Sanchez de Ibargüen]

So thank you. We will start for the last question. It will -- we don't warrantee any unconsolidated debt for joint ventures, so the answer is 0. Second question, I will detail the net debt effect plus the EBITDA of each of the project that you mentioned. So Trasmediterránea, net debt effect is EUR 387 million, EBITDA, EUR 45 million; CSP, EUR 764 million, EBITDA, EUR 105 million; ATLL is something difficult to say because it's something that will depend of the legal outcome, but we have estimated as -- okay, we will go for it later. And the EBITDA amounted to EUR 92 million. For Ruta, the net debt effect will be -- was last year or 2017 was EUR 185 million, EBITDA, EUR 11 million. So for the third question, it will be answered by Carlos.

[Carlos Maria Arilla de Juana]

Okay. Answering your question, the order intake that has been awarded during the first quarter of this year in the Construction business is EUR 405 million. And the advanced payments of that we have collected from our contract during the first quarter is an amount of EUR 44 million.

[Juan Antonio Muro-Lara Girod]

Let me clarify on a couple of questions we had so far on the ATLL concession that we -- ACCIONA will only leave and hand over the concession once the canon and the CapEx invested in the concession has been paid to us and not before that particular point in time, as that is the current position of the Generalitat. On top of that, we shall pursue our interest and claims in terms of loss of profit and damages as a result of the outcome of this concession, just to be clear. And we will consolidate the concession until that particular time. Thank you.

[Operator]

The next question we have comes from Manuel Palomo of Exane.

[Manuel Palomo, Analyst of Utilities]

I just have a couple of questions. One is a more general question, and it's about the Infra segment. Could you please remind us how the revenue recognition works for the Infrastructure business? And the second question is also about the debt, but this time about the debt associated to assets held for sale that, if I'm not wrong into this report, amounts to EUR 471 million. Given that this debt is deconsolidated, so it's held for sale, but you still consolidate the EBITDA associated to this debt or to the assets that account for this debt. Could you please explain us or tell us what is the EBITDA amount for these assets, for the assets held for sale?

[Raimundo Fernández-Cuesta]

Okay. Manuel, let me try to answer the second in terms of the debt held for sale. Basically, the CSP transaction it had around EUR 170 million held for sale as of December and therefore as of the first quarter. The transaction was closed yesterday. Yesterday, we had the proceeds coming in, and the incremental impact from this transaction will be around EUR 760 million of additional debt reduction. In terms of the EBITDA contribution of this activity, during the first quarter of the year was around 20 -- was basically EUR 20 million. So that tells you first quarter of CSP. In terms of Trasmediterránea, which is the other asset, that is -- basically that is -- is basically pending completion. The EBITDA contribution during the first quarter, I believe, was 0, EUR 45 million during last year. And in terms of debt held for sale is EUR 70 million. And then we will get cash proceeds that will take us together with the CSP to the EUR 1 billion that we've been talking about. Am I forgetting anything else?

[Pilar Sanchez de Ibargüen]

Yes. For first question would be Carlos.

[Carlos Maria Arilla de Juana]

So answering your first questions in relation of how we recognize our revenues in the Construction business. What we are applying is the percentage of completion method. And so we recognize the remedy and the profit in accordance with the percentage of the job that we have worked during the performance of the job. And I have to say that depending on the contract, then you are collecting just what you have achieved during the completion of your job. Or you are paid, you have achieved a certain milestone, and this is just dependent on the contract.

[Operator]

The final question comes from Oscar Nájar. There's a follow-up question from him, and he's from Santander.

[Oscar Nájar Ríos, Equity Analyst]

Just a couple of questions regarding very specific things. The first one in ATLL. Do you have any clue about the calendar? Because now we don't have a government in Catalonia, but maybe we'll have it soon, let's see. But do you have any clue on the calendar? Will it happen this year, the option? Will it be next year on that? The second one is regarding Sydney, if you can answer. Is if you receive -- or if you win the claim, will be that a positive impact on your working capital going forward and more or less the amount of that? Well, I guess, that depend on the result. And the third one, I don't know if you answered before. I think you didn't. Why the equity decreased for EUR 400 million in this quarter versus the full year 2017?

[Juan Antonio Muro-Lara Girod]

Okay. We don't have any visibility on the timetable as the execution of the court decision is on the Generalitat side, and we don't have any visibility on timing. In terms of your last question, yes, the impact you mentioned is 100% due to the new IFRS 15 rule. Thank you. I'm sorry. I missed your question on the claim. For sure, it will improve the working capital if that would be the case.

[Operator]

The next question we have comes from Pinaki Das of Bank of America Merrill Lynch.

[Pinaki Das, Vice President and Analyst]

I think we lost connection earlier. I just wanted to follow up on this EUR 700 million Sydney claim. Is that an amount that you've already spent? Or is that something you will have to spend over the coming quarters and years?

[Carlos Maria Arilla de Juana]

Both. It's part is what we have already done in the job, and as well it's part of we are expecting to be performed over the last months due to the new modifications and new utilities which has been discovered during the work in the job.

[Pinaki Das, Vice President and Analyst]

So you basically -- these amounts have been spent in the results that you've already reported in the last years as well?

[Pilar Sanchez de Ibargüen]

Thank you. Any more questions?

[Operator]

There are currently no further questions.

[Pilar Sanchez de Ibargüen]

So thank you.

[Juan Antonio Muro-Lara Girod]

So we end up here the Q1 conference call for the results of the group. Thank you very much for attending, and thank you for your questions.