Abengoa S.A. (ABGOF)

Description:

Abengoa SA was incorporated in Seville, Spain on January 4, 1941 as a Limited Liability Company and was subsequently transformed into a Limited Liability Corporation on March 20, 1952. The Company is engaged in applying technology solutions for sustainability in the energy and environment sectors, generating electricity from renewable resources, converting biomass into biofuels and producing drinking water from sea water. The Company supplies engineering projects under the 'turnkey' contract modality and operates assets that generate renewable energy, produce biofuel, manage water resources, desalinate sea water and treat sewage. The Company's activity and the internal and external management information are organized under the following three activities; Engineering and construction, Concession-type infrastructures, and Industrial production. The Company's engineering and construction includes its traditional engineering activities in the energy and water sector market as well as the development of solar technology. The Engineering and construction comprises two segments; Engineering and construction in which company specializes in carrying out complex turn-key projects for thermo-solar plants, solar-gas hybrid plants, conventional generation plants, biofuels plants and water infrastructures, as well as large-scale desalination plants and transmission lines, among others; and Technology and other includes those activities related to the development of thermo-solar technology, water management technology and innovative technology businesses such as hydrogen energy or the management of energy crops. The Company's Concession-type infrastructures group together the company's proprietary concession assets that generate revenues governed by long-term sales agreements, such as take-or-pay contracts or power purchase agreements. It includes the operation of electric energy generation plants, desalination plants and transmission lines. This comprises four operating segments; Solar engaged in operation and maintenance of solar energy plants, mainly using thermo-solar technology; Transmission engaged in operation and maintenance of high-voltage transmission power line infrastructures; Water engaged in operation and maintenance of facilities aimed at generating, transporting, treating and managing water, including desalination and water treatment and purification plants; and Cogeneration & other engaged in operation and maintenance of conventional cogeneration electricity plants. The Company's Industrial production covers Company's businesses with a commodity component, such as biofuels. Biofuels engaged in Production and development of biofuels, mainly bioethanol for transport, which uses cereals, sugar cane and oil seeds and raw materials. The Company faces competition from other renewable energy providers. Its competitors in the global biofuel market are The Archer Daniels Midland Company, Cosan Limited, CropEnergies AG, Green Plains Renewable Energy, Grupo São Martinho, The Andersons Inc., Verbio, Ensus, Poet Bio Refining and Valero. The Company's operations within the Biofuels segment of its Industrial Production activity and the solar segment of its Concession-Type Infrastructures activity are subject to significant regulation in the United States.