Spanish companies exposure to Argentina’s devaluation, near zero

Argentinian peso has been devaluated by 25% in last days, which can affect some Spanish companies’ operating results in 1Q14. The impact will be limited because they know very well Argentina’s situation since year 2001, and not only have been reducing that market importance, but also implementing currency hedging policies. Therefore, this makes the effect on companies profits to be virtually inexistent.

Regarding companies, the estimated exposure to Argentina in 2014 according to Santander’ analysts is as follows:

.Prosegur. It is the Spanish company with major exposure to this LatAm’s country with 18% of revenues coming from it.

.Repsol. The energy firm’s exposure has been reduced by 5% of EBITDA via its 12% stake in YPF.

Furthermore, as reported by Bankia’s experts, Spain’s companies exposure to Argentina is:

.Telefónica: 5.5% of Ebitda, although it is was also  a 10% devaluation. Impact on net profit is almost to zero.

. Dia: Argentina contributes with 5.2% to net profit.

.BBVA: The country’s influence on net margin and profit stands at 4.5%.

. Endesa: company’s Ebitda in 2013 depended on Argentina by 4.5%. Given the relevant number of minority Endesa’s shareholders in LatAm, and also hedging policicies, the  impact is reduced.

.Santander: 4.3% of net margin and profit comes from this market.

.NHH: considering hotel rooms number, around 4% of Ebitda comes from Argentina.

.Gas Natural: near 2.3% of Ebitda and almost zero in net profit.

. Abertis and OHL: First owns a highway generating 1% of Ebitda and second another having very little losses.



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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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