Maire Tecnimont reports positive EBITDA and Net Income for the third consecutive quarter as a result of refocusing on the core business and also due to a different project mix characterised by higher profitability and lower volumes.
Milan, 7 November 2013 – The Board of Directors of Maire Tecnimont S.p.A. examined and approved today the Interim Report at 30 September 2013.
KEY CONSOLIDATED FINANCIALS
(Values in Euro millions)
Group Net Result
(Values in Euro millions)
Net Financial Debt
* Business profit means the industrial margin before G&A and R&D cost allocation.
KEY FINANCIALS BY BUSINESS UNIT
(Values in Euro millions)
% on Revenues
% on Revenues
Oil, Gas & Petrochemicals
Infrastructure & Civil Engineering
(Values in Euro millions)
(Values in Euro millions)
Consolidated operating results at September 2013
Maire Tecnimont Group’s Revenues at 30 September 2013 amount to €1,231.6 million, down 25.9%, vs. €1,661.4 million at 30 September 2012. Such change reflects lower volumes in the Power BU in line with the Group’s strategy, the re-planning of operations for some existing projects as well as a slowdown in the award process of new projects by potential clients.
At 30 September 2013, Business profit is equal to€145.6 million, vs. minus €8.4 million at 30 September 2012. Such a change reflects the evolution of the existing projects with higher profitability, with particular reference to Oil, Gas & Petrochemicals BU. The positive result was also impacted by the Infrastructure & Civil Engineering BU mainly due to the sale of the shareholding in the COCIV Consortium. Last year’s results had been negatively impacted by the completion of the Latin American activities in the Power BU.
The Business Margin at 30 September 2013 is equal to 11.8%, vs. minus 0.5% in the same period of 2012.
The G&A costs at 30 September 2013 amount to €59.7million, recording a decrease vs. €69.6 million as of 30 September 2012, mainly as a result of the efficiencies generated in the past few years.
R&D costs amount to about €4.3 million vs. €3.5 million at 30 September 2012.
At 30 September 2013, EBITDA is equal to€81.6 million (6.6% on revenues) vs. minus €81.6 million (-4.9% on revenues) at 30 September 2012. Such change is mainly due to higher overall business margins and lower G&As.
Amortizations/Depreciations and Provisions are equal to €19.6 million, and include the amortization of the goodwill related to the Infrastructure & Civil Engineering BU for about €10 million.
EBIT at 30 September 2013 is equal to €62 milion, vs. minus €186.7 million at 30 September 2012.
Net Financial Income at 30 September 2013 is negative for€30.9 million vs. minus €27.7 million on 30 September 2012. This value has been impacted primarily by an increase in debt; the positive effects of the recently completed financial re-organization are expected to manifest themselves starting from Q4 2013.
Due to the positive results achieved at the operational level, the Group recorded a Pre-Tax Income of €31 million, and a tax provision of €15 million. The actual tax rate in September 2013 is 48.4%, driven by the non-deductibility of the goodwill amortization of the Infrastructure & Civil Engineering BU. Without such non-recurrent effect, the tax rate would be about 36.6%.
The Group Net Income at 30 September 2013 is equal to €15.8 million,vs. a loss of €157.4 million at 30 September 2012.
At 30 September 2013 Net Financial Position (“NFP”), considered as Net Financial Debt, is equal to €247.3 million, slightly higher compared to €226.2 million at 31 December 2012. This value has significantly improved, however, vs. €386 million at 30 June 2013, prior to the capital increase completed in July 2013.
Group Net Equity at 30 September 2013is positive for €37.3 million (minus €120.7million at 31 December 2012). The change is primarily due to the capital increase (net of the transaction costs) and the result for the period.
Operating Performance per Business Unit
Oil, Gas & Petrochemicals BU
At 30 September 2013 revenues of the Oil, Gas & Petrochemicals BU, which represents the Group core business, amount to €948.5 million, recording a decrease vs. €1,354.6 million at 30 September 2012. Such a change is driven by the very advanced stage reached in the major projects, not yet offset by new orders acquired, and by a slowdown in some lower-margin contracts which are expected to accelerate in the upcoming months.
At 30 September 2013, Business profit amounts to €119.1 million vs. €110.5 million at 30 September 2012, up 7.7bps, despite lower production volumes.
At 30 September 2013, Business margin is 12.6% up 4.4bps vs. 8.2% at 30 September 2012 as a result of a higher average profitability of existing projects.
EBITDA margin increases from 3.8% at 30 September 2012 to 7.1% at 30 September 2013; EBITDA has increased to €66.9 million at 30 September 2013 vs. €51.7million at 30 September 2012 as a result of a higher average profitability of projects.
It should be noted that the results of the Power BU are impacted by the Group new strategy of focusing on services and EP activities.
At 30 September 2013, revenues of the Power BU amount to €37.9 million, vs. €161.2 million recorded in the same period of 2012.
The Business Profit is negative for€1.7 million, up from minus €118.9million as of 30 September 2012. The latter number reflected the negative impact of the Latin American projects.
EBITDA at 30 September 2013 is negative for€3.9 million vs. €-125.5 million at 30 September 2012.
Infrastructure & Civil Engineering BU
At 30 September 2013, revenues of the Infrastructure & Civil Engineering BU amount to€245.2 million,vs. €145.6 million at 30 September 2012. Such a change is mainly driven by the proceeds of the sale of the COCIV Consortium, by higher volumes related to the Metro Copenhagen and Etihad Rail projects, partially offset by lower revenues resulting from the slowdown of some projects.
TheBusiness Profit at 30 September 2013 is equal to €28.2 million, vs. minus €0.1 million at 30 September 2012. At 30 September 2013 the Business margin is equal to 11.5% up 11.6bps vs. minus 0.1% at 30 September 2012.
The EBITDA margin is equal to 7.6% vs. minus 5.3% at 30 September 2012.
EBITDA at 30 September 2013 is positive for €18.6 million, vs. minus €7.7 million at 30 September 2012.
The positive results at 30 September 2013 reflect the significant impact related to the disposal of the entire stake held in the COCIV Consortium and of the relevant rights and obligations, partially offset by the revision of the estimates upon completion of some projects and the provision of personnel costs following the restructuring process still underway in this BU.
In the first nine months of 2013, the Group’s commercial activity generated new orders for €457.9million, down vs. €1,510.1 million as of 30 September 2012. This change is driven by the strategy related to a different project mix, focusing on projects that carry higher margins and lower volumes, but also by the slowdown in the award process of new projects by potential clients.
The Backlog of the Maire Tecnimont Group at 30 September 2013 amounts to €3,593.9 million, down vs. €5,244.4 million at 31 December 2012. The latter value included approximately €953 million related to the COCIV project, which has been disposed in September 2013.
The breakdown by BUs of the Backlog at 30 September 2013 is as follows:
- Oil, Gas & Petrochemicals: €2,614.9 million;
- Power: €18.2 million;
- Infrastructure & Civil Engineering: €960.8 million.
Significant events after 30 September 2013
As already announced, on October 10, 2013 the sale to Salini S.p.A. (following to the termination of the contract with Impregilo S.p.A.) of the stake equal to approximately 40% held by the subsidiary Tecnimont Civil Construction S.p.A. in CMT (Copenhagen Metro Team I/S) has been finalized. CMT is the special purpose vehicle for the construction of the Copenhagen Underground. The price of this transaction amounted to nearly €15 million.
On October 29, 2013 awards for engineering, licensing and technology packages services and supplements have been announced for a total value of approximately €118 million, in the core business of Oil & Gas, Petrochemicals and Fertilizers.
The Group confirms positive margins for 2013, in light of the 9M results, and after the negative impact of the effects related to the Power BU in the last two years. Such target is driven by the positive performance of the Oil, Gas & Petrochemicals BU in line with the Group strategic guidelines.
The Group envisages the acquisition of new orders in the last quarter of 2013 in the Oil, Gas & Petrochemicals BU, confirming the industrial re-positioning which has already generated new orders in the first nine months of 2013.
The Infrastructure & Civil Engineering BU is currently implementing its turn-around process started last year and continued in the first nine months of 2013 through the re-organization of its structures in order to both increase its ability to adapt to changing production volumes and enable a more targeted focus with consequent improved ability to respond to the demand for engineering services.
In the Power sector the Group is currently developing a new commercial strategy aimed at enhancing its distinctive competencies while mainly focusing on engineering services and EP projects.
The Group continues to pursue a cost reduction policy in line with the results already achieved in first nine months of 2013.
Therefore, the Group confirms its re-focusing on the Oil, Gas & Petrochemicals core business. The previously announced asset disposal plan continues, and further transactions are expected to be completed within the first semester of 2014.
Dario Michelangeli, in his capacity as executive in charge of drafting the corporate accounting documents, hereby represents – pursuant to paragraph 2, article 154-bis of Legislative Decree n. 58/1998 (“Consolidated Finance Act”) – that the accounting information included herein corresponds to the documented results, books and accounting documents.
The Interim Report at 30 September 2013 will be made available to the public today at the Company’s offices and at Borsa Italiana, as well as on the website atwww.mairetecnimont.com in (http://www.mairetecnimont.com/it/investitori/bilanci).
This press release, and in particular the section headed “Business Outlook”, includes forecast statements. Such forecasts are based on the current estimates and projections of the Group, relatively to future events and, due to their nature, are subject to an inherent component of risk and uncertainty. The actual results may significantly differ from those contained in said forecast statements due to several factors, including continuous volatility and a further deterioration of stock and capital markets, changes in raw material prices, changes in macroeconomic conditions and in economic growth and other variations of the business conditions, in addition to other factors, the majority of which is not under the Group control.
Maire Tecnimont SpA
Maire Tecnimont S.p.A., a company listed on the Milan Stock Exchange, is the parent company of an international industrial group (Maire Tecnimont Group) leader in the sectors of Engineering & Construction (E&C), Technology & Licensing and Energy & Ventureswith specific skills in plant engineering in particular in the hydrocarbon industry (Oil & Gas, Petrochemicals, Fertilizers) and also in Power Generation and Infrastructures. The Maire Tecnimont Group is present in about 30 countries, has about 45 operating companies and about 4,200 employees, half of whom are located abroad. For further information: www.mairetecnimont.com.
Carlo Nicolais email@example.com
Simona Raffaelli, Alfredo Mele, Claudia Arrighini
The consolidated Income Statement, Balance Sheet and Cash Flow Statement are attached hereto.