• A refocus on core business and high-margin projects ensures strong growth in both EBITDA and net income, driven by the Oil, Gas & Petrochemicals BU
  • Order intake and backlog also increase

Milan, 14 May 2014 - Today, Maire Tecnimont S.p.A.’s Board of Directors has examined and approved the First Quarter 2014 Consolidated Results.





% difference





Business Profit*




Business Margin












Group Net Income








Net Financial Debt




* The term “Business Profit” means the industrial margin before the allocation of general and administrative costs and research and development expenses.




% on revenues


% on revenues

Oil, Gas & Petrochemicals




Business Profit














Business Profit










Infrastructures & Civil Engineering




Business Profit






















Order Intake




All comparisons are Q1 2014 versus Q1 2013, unless otherwise specified.

Consolidated Financial Results as at 31 March 2014

Maire Tecnimont Group’s revenues were €372.1 million, down 9.7% from €411.9 million. This change mainly reflects a reduction of volumes in the Infrastructures & Civil Engineering BU, in line with the Group’s refocus on its core business, Oil, Gas & Petrochemicals. Furthermore, revenues for Q1 2013 included €24.1 million relating to the Cociv and Metro Copenhagen projects that were disposed of in 2013. Net of these revenues, the reduction would have been just 4%. Moreover, this change reflects the different mix of existing contracts that mainly consist of engineering and procurement services, benefiting from higher margins but lower volumes and low risks and, to a small extent, of Engineering, Procurement and Construction (“EPC”) contracts.

Business Profitwas €45.2 million, up 17.7% due to the evolution of the higher-profit projects in the backlog, driven by the Oil, Gas & Petrochemicals BU.

The Business Margin was 12.1%, up 2.8pp.

G&A costs were unchanged at €18.5 million.

Research & Development costs were approximately €0.6 million. The Group is focusing its R&D activities on initiatives in high-technology sectors, which are expected to bear positive returns over the next few years.

EBITDA was €26.1 million (7.0% on revenues), up 39.9% vs. €18.7 million (4.5% on revenues). This increase is mainly due to higher overall business margins, particularly in the Oil, Gas & Petrochemicals BU.

Amortisation, depreciation, impairment and provisions were down considerably to €1.8 million.

EBIT was €24.3 million, up 74.9%.

Net financial income is negative for €9.9 million, showing a slight improvement of €0.3 million.

Pre-tax income was €14.4 million and tax provisions were €4.9 million. The effective tax rate is approximately 34.2%.

The Group’s net profit was €9.5 million, up 72.4%.

Net Financial Position (“NFP”), i.e. the net financial debt, was €361.7 million, up €56.7 million on 31 December 2013. This change was mainly driven by the physiological reduction of the available cash held in the joint ventures, according to the progress of the projects.

Consolidated shareholders’ equity was positive for €53.2 million (up €18.0 million on 31 December 2013). The change is mainly a consequence of the Q1 2014 net income and the booking of the equity component relating to the recent convertible bonds issue.

Performance by Business Unit

Oil, Gas & Petrochemicals

Revenues in the OG&P BU, which is the Group’s core business, were €321.3 million, down 2.9%.

Business Profit was €41.7 million, up 19.2%, leading to a Business Margin of 13.0%, up 2.4 percentage points as a consequence of the higher average profitability of existing projects.

EBITDA was €25.5 million (7.9% on revenues), up 32.0% vs. €19.3 million (5.8% on revenues).


The Energy BU revenues were €12.0 million, down 1.6%.

Business Profitwas €1.0 million, up €0.9 million, leading to a Business Marginof 8.6%, up 8.1 percentage points.

EBITDA was €0.6 million (5.2% on revenues) versus a negative figure of €0.5 million.

Infrastructures & Civil Engineering

Revenues of the ICE BU were €38.8 million, down 43.5%. As mentioned above, revenues for Q1 2013 included €24.1 million related to the Cociv and Metro Copenhagen projects that were disposed of in 2013. Net of these revenues, the reduction would have been 13.0%.

Business Profitwas €2.4 million, down 27.6%, but up +27.1% net of the Cociv and Metro Copenhagen projects.

EBITDA was €39 thousand versus a slightly negative €0.1 million as at 31 March 2013 (-€1.5m net of the Cociv and Metro Copenhagen projects).


During Q1 2014, the Group’s commercial activity generated new awards worth €600.3 million, up €390.2 million due to the renewed commercial efforts made possible also thanks to the improved Group equity position. In particular, new awards in Q1 2014 include the important Sonara refinery Phase II Expansion project in Cameroon, worth approximately €456 million.  As at 31 March 2014, Maire Tecnimont Group’s backlog was €3,723.6 million, up €241.6 million on 31 December 2013, mainly due to the strong growth in awards.

As at 31 March 2014, backlog by BU was as follows:

-      Oil, Gas & Petrochemicals: €2,744 million;

-      Energy: €511 million;

-      Infrastructures & Civil Engineering: €468 million.

Both new awards and backlog do not include the Tahrir petrochemical project in Egypt, for an expected value between USD1.7 billion and USD1.95 billion, out of which 50 per cent pertaining to the Maire Tecnimont Group. The Group will book its stake of the project upon financial closing.

As a reminder, the Group announced right after the end of Q1 2014 the award of the ROG project at the Total refinery in Antwerp, worth €190 million, as described hereafter.

Update on the disposal plan

As envisaged in the disposal plan, on 31 March 2014, the subsidiary Tecnimont S.p.A. finalized the valuation of the assets of the French company Sofregaz S.A.. The transaction includes the sale of the Sofregaz BU (name, organisation and various contracts in progress) to a French newco incorporated by the buyer for €5 million. Assets worth approximately €13 million, mainly comprising receivables, remain within the Group together with the rights attached to them.

Subsequent Events

On 3 April 2014, Maire Tecnimont announced the award, through its subsidiary KT - Kinetics Technology S.p.A. - of two contracts by Total Olefins Antwerpen (Total Group). These involve the implementation of the Refinery Off Gas (ROG) project at the Total refinery in Antwerp, Belgium, worth a total of €190 million.

On 30 April 2014, Maire Tecnimont’s ordinary and extraordinary shareholders’ meetings were held on their first call. They approved the financial statements as at 31 December 2013, approved the first section of the Remuneration Report and integrated the Board of Auditors with the appointment of Marco Pardi as alternate auditor.In the extraordinary session, shareholders approved the proposed divisible share capital increase in exchange for cash payment, worth a total of €80 million to be used for the potential conversion of the equity-linked bond issued last February


The Group confirms positive margins for 2014, in light of the results for the first few months of the year. This objective will be driven by the positive performance of the OG&P BU in line with the Group strategic guidelines.

Specifically, the Group expects new awards in the next few quarters in the core business of the OG&P BU, as confirmation of the industrial repositioning which has already generated new orders in 2013 and the early months of 2014.

In the Licensing area the business is expected to grow, which will lead to registration requests for several new patents throughout the year, and in parallel a broader marketing of proprietary technologies.

In the Energy BU, the Group is currently developing a new commercial strategy aimed at enhancing its core competencies while mainly focusing on engineering services and EP projects, as confirmed by the latest award, focused on technological alliances with solid partners in the construction industry. Economic benefits will be seen as from the next few months of 2014.

The Group also continues to pursue a cost containment policy in line with the positive results already achieved in 2013.

The announced asset disposal plan continues, and further transactions are expected to be completed within the first half of 2014, including the Biomass Plant in Olevano di Lomellina.

Corporate Governance

Maire Tecnimont S.p.A.’s Board of Directors has acknowledged the resignation tendered by Mr. Paolo Tanoni from his position as Director. The Board of Directors thanks Paolo Tanoni for his work and professionalism as member of the Board.

The Board has resolved to co-opt his replacement in accordance with paragraph 1 of Art. 2386 of the Italian Civil Code in the forthcoming Board meeting, once the procedures laid down by Art. 13 of the By-Laws have been completed.

Conference Call by Audio Webcast

A conference call and webcast will be hosted by the top management today at 6pm CEST (5pm BST, 12noon EDT).

This conference call can be followed through the webcast on www.mairetecnimont.com by clicking on the “First Quarter 2014 Results” banner in the home page of the website, or through the following URL: http://services.choruscall.eu/links/mairetecnimont140514.html

As an alternative to the webcast, it will be possible to participate in the conference call by dialing one of the following numbers:

Italy: +39 02 805-8811

UK: +44 1212 818-003

USA: +1 718 705-8794

The presentation given by the top management is available since the beginning of the conference call and webcast in the the ‘Investors / Presentations’ section of the Maire Tecnimont’s website



In his capacity as manager responsible for preparing corporate accounting documents, Dario Michelangeli hereby declares - in accordance with paragraph 2 of Art. 154-bis of Italian Legislative Decree no. 58/1998 (the “Consolidated Law on Finance”) - that the accounting information given in this press release coincides with the documented results, books and accounting entries.

The Interim Management Report as at 31 March 2014 will be published within the legal terms at the Company’s offices and with Borsa Italiana, as well as in the Investors/Financial Statements section of the website www.mairetecnimont.com.

This press release, and in particular the section entitled “Outlook” contains forecasts. These declarations are based on current estimates and forecasts for the Group in relation to future events; by nature, these entail a certain amount of risk and uncertainty. For various reasons, the actual results may differ significantly from those contained in such declarations; such reasons include continued volatility or a further worsening of the capital and financial markets, changes in the prices of commodities, changes in macroeconomic conditions and economic growth and other changes in business conditions, in addition to other factors, the majority of which are beyond the Group’s control.

Maire Tecnimont S.p.A.

Maire Tecnimont S.p.A. is a company listed with the Milan stock exchange. It heads an industrial group (the Maire Tecnimont Group) that leads the international Engineering & Construction (E&C), Technology & Licensing and Energy & Ventures markets, with specific competences in plants, particularly in the hydrocarbons segment (Oil & Gas, Petrochemicals and Fertilisers), as well as in Power Generation and Infrastructures. The Maire Tecnimont Group operates in approximately 30 different countries, numbering around 45 operative companies and a workforce of about 4,300 employees, of whom over half work abroad. For more information: www.mairetecnimont.com.

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Below are the consolidated Income Statement, Balance Sheet and Cash Flow Statement.