2005 - 2006 - Pinsent Masons Water Yearbook 2012

SPAIN PART 3 (ii): COMPANY ANALYSIS: LOCAL/REGIONAL PLAYERS
Aguas de Valencia SA
Aguas de Valencia SA (AgVal) was founded in 1890. Operations commenced in 1904 and in 1967 the
operational mandate to supply the city of Valencia was renewed to 2002. AgVal controls 80% of the
new contract and was paid €26 million by the municipality to accept the new contract. The company
was privatised in 1976 via a partial flotation. SAUR is the principal shareholder with a 33.0% stake.
Other significant shareholders are; Banco de Valencia (19.1%), Lubasa (9.8%), Gruppo Boluda
(11.5%) and Facsa (13.9%). While Banco de Valencia is seeking to acquire SAUR’s stake, SAUR in
turn wishes to acquire Mr Boluda’s corporate stake.
The company serves a total of 2,040,000 people with water and 700,000 with sewerage in Spain.
Contract gains for 15,000 people in L’Ampolla and 15,000 for Masalfassar were made in 1994. In both
cases, these were 10 year water/wastewater tenders. Further gains for a total of 60,000 people were
made in 1995. The company serves 407,000 people for water in Valencia and has stakes in various
contracts covering 1,600,000 people in the rest of Spain. AgVal has also gained local concessions in
San Jose (Costa Rica) and Escobar (Argentina, water supply for 150,000 people).
Aguas de Valencia, profit and loss account
Y/E 31/12 (€ million) 2000 2001 2002 2003 2004
Water supply 45.4 48.2 51.0 54.2 N/A
Group turnover 67.9 81.2 100.0 103.5 114.2
Operating profit 8.7 N/A 8.4 10.6 14.7
Net profit 5.1 8.8 29.3 5.4 7.9
Earnings per share (€) 3.05 5.23 17.41 3.21 4.69
AgVal is diversifying from the Valencia contract, gaining contracts in Spain and internationally in water
provision, wastewater and waste management. Aguas de Chinas, a 50:50 JV, was formed between
Union Fenosa Accion Exterior (Acex) and Aguas de Valencia in July 1998. The JV seeks to bid for
water contracts in China, Macao and Taiwan. Acex already has a promotion agreement with the
Government of Hubei for power projects. Although AgVal aimed to see its turnover increase to €240
million by 2003, it is evident that international contracts have not developed according to plan to date.
AgVal, operational performance
2001 2002 2003
Customer connections 710,998 731,047 751,931
Water provision (million m 3 ) 157.3 159.7 169.0
Wastewater (million m 3 ) 111.5 109.8 119.5
Aguas de Valencia, numbers served
Country Water Sewerage Total
Spain 2,040,000 700,000 2,040,000
Argentina 150,000 0 150,000
Global Total 2,190,000 700,000 2,190,000
Contact Details
Name: Aguas de Valencia SA
Address: Gran Via Marques del Turia 19,
46005 Valencia, Spain
Tel: +34 96 386 0507
Fax: +34 96 386 0567
Web: www.aguasdevalencia.es
Vicente Boluda Fos (Chairman)
Jose Manuel Calderero (First Vice Chairman)
Alberto Alonso Pozas (General Director)
320 Pinsent Masons Water Yearbook 2005 – 2006