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Investment Case

The Group believes that its success is primarily attributable to the following key strengths:

 

• Strong Competitive Position and Leadership in our Core Markets

The Group is one of the world’s leaders in the design and construction of manufacturing plants for the production of polyethylene (PE) and polypropylene (PP). We have a 30% global market share in polyolefins and a 40% global market share in Low Density Polyethylene plants (data based on corporate analysis), having completed more than 185 PE and PP plants worldwide since 1970. We are also the biggest licensor of urea technology, with a 54% market share. Finally, we are a leading player in hydrogen technology, and Sulphur Recovery and Tail Gas treatment technologies, having implemented more than 230 Hydrogen Production and Sulphur Recovery projects worldwide.

• Comprehensive Service Provider with a Strong Technology Offering

The Group provides an integrated and comprehensive range of services, spanning the entire EPC value chain, from early involvement (Project Development) to Engineering, Procurement, and Construction, to Life Cycle support. Unlike other competitors, the Group provides most of these services in connection with activities which are technology-driven, based on the Group’s extensive technology portfolio of over 1,200 patents. The Group has over 60 years of experience in the development and licensing of urea technology, and over 40 years of experience in production processes related to hydrogen, Sulphur Recovery and Tail Gas treatment technologies. The Group keeps on developing innovative technologies adjacent to its core business in order to maintain its technological edge.

• Proven Execution Capability of Large and Complex Projects

Thanks to its unparalleled expertise and distinct competencies, the Group has a long and proven track record of delivering large and complex projects around the world. Recent examples include the Habshan 5 Gas Treatment plant in the UAE ($4.7 billion), the Amursky Gas Processing plant in Russia (€3.9 billion), the 3 packages concerning the Borouge petrochemical complex in Abu Dhabi ($3.9 billion), the Al Dabbi’Ya Oil Center in the UAE ($2.3 billion), and the Tobolsk PDH complex in Russia (EUR660 million).

• Extensive International Presence with Strong Growth Prospects

The Group operates worldwide and is present in about 40 countries. Over the last 50 years, the Group has increased its expertise to operate in its core sectors globally, and it has achieved a significant presence in core markets such as the CIS, Europe and the Middle East. In addition, the Group operates in geographies with solid growth prospects in the oil, gas and petrochemicals industry, such as South East Asia and North America.

• Primary Long-Standing Customers

The Group has strong and long-standing relationships with several of the world’s largest companies in the oil and gas, petrochemicals and fertilizer industries. Our main customers include ADNOC, GASCO, and Borouge (UAE), Sadara (Saudi Arabia), Orpic (Oman), Gazprom, Lukoil, and Eurochem (Russia), SOCAR (Azerbaijan), Petronas (Malaysia), Sinopec (China), Exxon Mobil (USA), Pemex (Mexico), Total, Yara, and MOL (Europe), and Orascom (Egypt).

• Significant Backlog Providing Good Revenues Visibility

The Group has a strong backlog of approximately €6.6 billion as of December 31, 2018. With a book-to-bill ratio of almost 2 times, and since the majority of the contracts are multi-year, its backlog provides good visibility on its revenues in the years ahead.

• Strong Financial Position Leading to Healthy Dividend Payments

The Group’s solid financial position is based on a current Net Worth of €393.8 million (the highest since 2010), an adjusted Net Cash position of €93.8 million (as of December 31, 2018), and a Net Income of €117.4 million in FY2018. Such a solid position has led to cumulative dividend payments of €124 million between 2016 and 2019.

 

• Experienced Management Team with Proven Track Record.

The Group’s experienced and committed senior management is a key factor in the continuing success of the business. In addition, the senior Engineering and Operations management teams have a strong background in providing engineering and construction services to a broad range of customers worldwide, coupled with a deep knowledge and understanding of the geographies they operate in.

Last update: 04/04/2020 00:17