The year 2018 came to an end. In the natural resource transformation industry, the energy transition is fully underway and business enterprises can play an active role in the new landscape that is forming.
Thanks to the combination of a know-how heritage that comprises decades of Italian engineering tradition and the adaptive spirit that characterizes the Group, Maire Tecnimont is ready to close this year and welcome the new challenges 2019 will bring, keeping Green Chemistry and innovation paramount.
We must embrace the future without forgetting the past, as CEO of Maire Tecnimont Pierroberto Folgiero recently reflected. Here, then, to remember, are the most important milestones reached by the Maire Tecnimont Group in 2018.
We inaugurated the MATS concentrating solar power plant, a project funded by the European Union and brought to fruition by the collaboration between ENEA, the Egyptian Academy for Scientific Research and Technology (ASRT) and KT - Kinetics Technology.
We signed an EPC contract for an important part of the modernization and reconstruction works of the Heydar Aliyev refinery in Baku, Azerbaijan. The aim of the project includes the installation of some new processing units, as well as the related auxiliary and storage facilities, with the aim of increasing the production capacity of the refinery, while guaranteeing the quantitative and qualitative requirements of the final products. The total value of the contract is approximately $800 million.
We took an important initial step for our Group in the Philippines, alongside JG Summit Petrochemical Corporation (JGSPC). Tecnimont SpA, through its subsidiary Tecnimont Philippines Inc., obtained an EPC Lump Sum contract for the implementation of a new high density polyethylene (HDPE) unit and the expansion of a polypropylene (PP) unit. Both will be located 120 km south of Manila, in the city of Batangas.
In March, we also announced the consolidated financial results for 2017: we recorded strong growth in the main indicators with revenues of € 3.5 billion (+ 44.7%), EBITDA of € 193.5 million (+20.9 %) and a net profit of 126.6 million (+ 48.4%).
On 18 April, Maire Tecnimont started an offering of senior unsecured notes due April 30, 2024 in relation to a bond aimed at the partial repayment of the existing medium/long-term bank debt of the Group’s subsidiary Tecnimont S.p.A.. The Bond is part of a project to partly diversify financing sources and align the current debt structure to the changed financial needs of the Group, in order to better seize growth opportunities and boost investments.
During the St. Petersburg International Economic Forum (SPIEF), we signed an agreement for a large construction subcontract, between Tecnimont Russia LLC (a subsidiary of Tecnimont and part of the Maire Tecnimont Group), and the subcontractor Renaissance Heavy Industries (RHI). SPIEF is one of the most important international annual conferences, dedicated to the main economic issues concerning Russia, emerging markets, and the rest of the world.
As a major step towards the future of green chemistry, Stamicarbon partnered with Pursell Agri-Tech LLC (PAT) to open a new commercial fertilizer coating facility in Alabama. The plant will produce a next-generation smart fertilizer coating that contains the nutrients inside the membrane. This innovation will enhance efficiency and increase agricultural productivity while significantly reducing the environmental impact.
The opening of a new polypropylene plant inside the petrochemical complex of Sumgayit in Azerbaijan was the occasion for a visit from the President of the Italian Republic, Sergio Mattarella, and the President of the Republic of Azerbaijan, Ilham Aliyev, who joined the Chairman and Majority shareholder of the Maire Tecnimont Group, Fabrizio Di Amato.
Consolidating a long-standing relationship with LUKOIL NizhegorodNefteorgSyntez, KT – Kinetics Technology was awarded two EPC contracts pertaining to five refinery processing units as part of the oil residue upgrading project for the Kstovo Refinery, in Central Russia.
At the end of the month, the consolidated results for the first half of 2018 were released, showing new growth in the main indicators. Revenues amounted to € 1,830.6 million (+ 10.7%); EBITDA at € 100.3 million (+ 11.3% compared to the 2017 H1 proforma), the order backlog at € 6.9 billion. The new contracts acquired amounted to € 2.2 billion, of which € 1.5 billion in the first half alone.
Confirming our global leadership in polyolefins and our technology-driven footprint in Asia, Tecnimont, in consortium with its Indian affiliate Tecnimont Private Limited, was awarded two EPCC Lump Sum contracts by HPCL-Mittal Energy Limited, for the implementation of a new High-Density polyethylene unit and a new polypropylene unit in northern India.
Tecnimont was provisionally awarded an EPC contract for the execution of the “LPG Train 4 – ZCINA Hassi Messaoud” project by SONATRACH. The project will be implemented inside the existing ZCINA Facility, located in the Hassi Messaoud area, in central Algeria.
In mid-September we reached an important HSE milestone: overall, all Tecnimont construction sites totaled more than 100 Million worked hours with LTI (Lost Time Injury) equal to zero.
We celebrated 60 years of Tecnimont Private Limited, a company that started with two engineers working on small feasibility studies and engineering services jobs, which became an essential part of the Group thanks to its process engineering expertise. The India-based subsidiary has executed more than 350 projects on various contract methodologies for Tecnimont to date.
The Interim Financial Report as at 30 September 2018 was reviewed and approved by the Board of Directors, presenting interesting input on past, present, and future projects, and reporting positive results for the Group.
Tecnimont was granted a reimbursable contract by Exxon Mobil Corporation for the realization of new processing units and the relevant support structures for a Petrochemical complex in the U.S. The project encompasses initial activities related to the execution of a front-end engineering design, including early execution studies and preliminary procurement activities.
In an event held in our Milan headquarters, the Group officially launched NextChem, a company dedicated to green chemistry and new technologies for the energy market transition. Alongside experts and entrepreneurs, we presented the projects and initiatives that represent our technological DNA and leadership in the transformation of natural resources. Through the course of presentations and roundtable discussions, we demonstrated our ability to operate on the cutting edge of innovation with perfect timing as a technological and industrial partner capable of driving the on-going energy transition.
Following its participation in Engineering News-Record’s 2018 worldwide surveys, Maire Tecnimont Group ranked 9th as a Design firm and 11th as a contractor in the Petroleum Sector. Moreover, the Group ranked 7th as a Design firm and 9th as a contractor in Refineries and Petrochemical Plants. Finally, Maire Tecnimont Group ranked 5th among the top contractors in Wind Energy Generation.