•    Growth in the economic and financial KPIs
     o    Revenues: €728.4 million (+16.4%) 
     o    EBITDA: €43.7 million (+15.5%); 6.0% margin
     o    Group Net Income: €18.4 million (+1.5%)
•    Adjusted Net Cash of €22.0 million, up €13.1 million, thanks to a €32.8 million operating cashflow generation
•    Backlog of €9.3 billion (78% in Gas Monetization and Energy Transition)
•    Commercial Pipeline of €51.9 billion, of which €7.1 billion related to the Green Energy business  
•    The Green Energy business growth continues, thanks to the acquisition and execution of new projects
•    Fabio Fritelli new Group Chief Financial Officer appointed Manager in charge of preparing the corporate accounting documents  

Milan, 11 May 2022 - As already reported, the effects induced by the sanctions introduced at the end of February following the Russia-Ukraine crisis  began to cause a slowdown in the projects’ operating activities underway in the Russian Federation. At the same time, commercial activities aimed at pursuing new contracts in the Russian Federation were suspended. The evolution of European sanctions since the beginning of the crisis has made it increasingly difficult to carry out activities on ongoing projects, so much so that, if the existing situation does not substantially improve, all operating activities are expected to be gradually suspended by the first half of the current year. The remaining activities are almost entirely aimed at an orderly transfer of existing operations to various clients, in compliance with strict safety standards for the personnel working on the sites, and in full compliance with the sanctions in force. 
As of April 30, 2022, the order backlog related to projects under completion in the Russian Federation amounts to approximately €1.1 billion, equal to about 12% of the total backlog, which would be carried out over the 2022-2024 time period under normal operating conditions if sanctions were not in effect.  
At present, it is not foreseeable that activities on these projects will continue beyond the first half of this year and, consequently, the operating resources involved are gradually being redirected to the other numerous projects in the backlog, from which greater production is expected in the coming months than originally planned.
The financial position regarding the projects in the Russian Federation continues to be substantially balanced and no substantial changes to this situation are expected even after the projects are fully suspended.
Maire Tecnimont S.p.A.’s Board of Directors has reviewed and approved today the Interim Financial Report as of 31 March 2022, which shows a Consolidated Net Income of €17.9 million.

Table 1


Table 2


Table 3


Consolidated Financial Results as at 31 March 2022
Maire Tecnimont Group Revenues were €728.4 million, up 16.4%. Volumes reflect the progress of projects in the backlog and show a continuous upward trend thanks to a progressive normalization of the existing projects’ activities, and the initial stages of new orders.

Business Profit was €64.9 million, up 7.6% with a margin of 8.9%.

G&A costs were €19.2 million, down 5.1% as result of the efficiency process of the structure.

EBITDA was €43.7 million, up 15.5% thanks to higher revenues and costs containment measures. Margin was 6.0% in line with the previous period.

Amortization, Depreciation, Write-downs, and Provisions were €11.8 million, up due to the amortization of new assets and higher provisions for credits, as a consequence of the Russian-Ukrainian crisis which has impacted on the ratings of some customers. 

EBIT was €31.9 million, up 14.3%, with a margin of 4.4%. 

Net Financial Charges were €6.3 million, vs. €2.2 million. The First Quarter figure benefited from the positive net valuation of derivative contracts of €0.4 million vs. a positive valuation of €4.0 million, showing a negative change of approximately €3.6 million. The Q1 2022 item was affected by the unfavorable trend in exchange rates and equity valuations due to market tensions caused by the Russian-Ukrainian crisis.

Financial charges, net of the aforementioned effects, slightly increased as a result of a higher gross debt essentially due to the new Euro Commercial Paper program, which was implemented in December 2021.

Pre-tax Income was €25.5 million, and the tax provision was €7.7 million. 

The effective tax rate was approximately 30.0%, down 110bps mainly due to the various jurisdictions where Group operations have been carried out.

Consolidated Net Income was €17.9 million, up 0.8%, as explained above. Group Net Income was €18.4 million, up 1.5%.

Adjusted Net Cash (net of the above-mentioned values included in the footnote on page 2) was €22.0 million as of March 31, 2022, up €13.1 million vs. December 31, 2021, thanks to a cash generation of €32.8 million, and notwithstanding the negative impact of the mark-to-market valuation of the FX derivative contracts for €34.2 million. Such a negative change is the result of the evolution in exchange rates, mainly of the US Dollar and the Russian Ruble against the Euro during the First Quarter of 2022 due to the Russian-Ukrainian crisis. The negative mark to market will be offset by future operating cash inflows for the same amount.

Consolidated Shareholders’ Equity was €513.5 million, down €13.9 million vs. December 31, 2021. Notwithstanding €17.9 million Net Income, this item was negatively affected by the changes in the Cash Flow Hedge Reserve for €27.1 million, and by the Translation Reserve of the Group’s foreign Financial Statements for €7.6 million.

Performance by Business Unit
Hydrocarbons BU
Revenues were €701.6 million, up 15.2%, due to the same reasons commented above. Business Profit was €62.3million, with a margin of 8.9%. EBITDA was €43.2 million with a margin of 6.2%.

Green Energy BU 
Revenues were €26.9 million, up 63.1%, also thanks to a constant growth in NextChem’s activities driven by several partnership agreements signed with various Italian and international counterparties. The increase in revenues is also due to the restart of some activities in the energy efficiency services that had previously slowed down by the pandemic.

Business Profit was €2.7 million, with a margin of 9.9%. EBITDA was €0.5 million with a margin of 1.9% vs. -€0.8 million. Such an improvement is due to higher revenues and to a higher contribution from NextChem.

Development of the Green Energy BU

Maire Tecnimont confirms its commitment to supporting the Energy Transition, thanks to new projects and technological partnerships in Italy and abroad. In particular, during the First Quarter of 2022, Maire Tecnimont was awarded a project on an EPCM basis by a leading global chemicals producer for the implementation of a Blue Ammonia plant in the United States for approximately USD230 million.

Order Intake and Backlog
Thanks to €632.6 million of new orders generated in the First Quarter of 2022, the Group’s Backlog on March 31, 2022, was €9,281.8 million, of which around 78% is represented by gas monetization and Energy Transition projects.

In particular, the main projects awarded to the Group include the following:
•    An EPC contract with Covestro, for a new aniline plant in Antwerp, Bel-gium, worth approximately €250 million;
•    The above-mentioned EPCM contract for the realization of a Blue Ammo-nia plant in the United States for approximately USD230 million;
•    New awards and change orders for a total amount of approximately USD200 million for licensing, engineering and procurement services as well as engineering, procurement and construction activities in Europe, North Africa, the Middle East, Asia and North America.

Subsequent Events
•    On April 11, 2022, Maire Tecnimont was awarded a new urea Diesel Exhaust Fluid (DEF) project in the United States worth approximately USD185 million, by the same leading global chemicals producer that recently awarded to Maire Tecnimont the above-mentioned Blue Ammonia project;
•    On April 21, 2022, Maire Tecnimont’s Board acknowledged Pierroberto Folgiero’s resignation from his position of Director, Chief Executive Officer and Chief Operating Officer of the Company, effective May 15, 2022, and has nominated the Company’s Chief Financial Officer, Alessandro Bernini, as the Company’s new Chief Executive Officer and Chief Operating Officer; 
•    On April 28, 2022, Maire Tecnimont announced that its main subsidiaries KT-Kinetics Technology, NextChem and Stamicarbon have been granted new awards for a total amount of approximately €155 million for licensing as well as EPC activities, mainly in Europe and the Middle East.

Lastly, Maire Tecnimont S.p.A.’s Annual Shareholders Meeting was held on April 8, 2022, in first call. The following items were approved, among others:

- the Company's Financial Statements for the year ended 31 December 2021;
- the Board of Directors’ proposal to distribute a dividend equal to €60,105,084.74;
- the appointments of the new Board of Directors and the new Board of Statutory Auditors, both for the 2022-2024 period and confirming Fabrizio Di Amato as Chairman of the Board;
- the 2022 Remuneration Policy and Section Two of “Report Remuneration Policy and Compensation”;
- the 2022-2024 Maire Tecnimont’s Long-Term Incentive Plan;
- the authorization to purchase and use Treasury Shares

The general market context is still significantly impacted by the consequences of international geopolitical tensions and, to a lesser extent, by the Covid-19 pandemic. As such, it continues to remain critical and uncertain in relation to the overall raw materials price increases and their availability, transport logistics, and procurement.

In a scenario of increases in the price of natural resources, driven by a strong recovery of the energy demand, the willingness to invest in infrastructures for the transformation of natural resources has remained unchanged, thanks to a strong global demand for several commodities which has maintained prices at levels never seen before. This is also due to the lack of production originating in the countries impacted by the current conflict, which has particularly affected the Western economies.

This is confirmed by the projects awarded to the Group in the First Quarter 2022 and beyond, which led to some of the highest backlog levels ever and characterized by a greater geographical diversification than in the past.

The drive to reduce the carbon footprint leads the Group to strengthen the integration between the traditional downstream technologies and a wide range of newly green tech solutions, both proprietary and jointly developed with leading worldwide partners. Thanks to the strengthening of its proprietary technological skills, NextChem continues to pursue the industrialization of new technologies in the areas of circular economy, bioplastics/biofuels, CO2 capture, hydrogen, and green fertilizers. 

The technological investments which will allow our Group to remain at the forefront of the energy transition, in addition to an effective commercial strategy, have led to the first contracts in the Green Energy BU with domestic and international clients. A growing commercial pipeline is expected to deliver additional projects in the months ahead, also taking into account the awards of feasibility studies which are expected to evolve into more significant initiatives thanks to the financial backing of EU Innovation funds or under the National Recovery and Resilience Plan (“PNRR”).

Taking into account the First Quarter 2022 Financial Results, and what was stated above, in particular about the Russian projects to be completed, and assuming that the pandemic does not worsen, it is expected that the other significant projects in the backlog located in areas not impacted by the current conflict show higher production volumes than originally forecast. Such an expected increase will take place in the projects’ initial phases of engineering and procurement of critical equipment. Therefore, even though the new projects have a different phasing than the more advanced Russian ones subject to suspension, which would have generated higher volumes, a strong growth in volumes this year is expected, albeit more concentrated in the second half, leaving unchanged the economic and financial guidance communicated to the market on February 25, 2022.

Fabio Fritelli new Group Chief Financial Officer appointed Manager in charge of preparing the corporate accounting documents  
Following Alessandro Bernini’s resignation from the position of Manager in charge of preparing the corporate accounting documents on April 21, 2022, effective from May 15, 2022, the Board of Directors, with the favorable opinion of the Board of Statutory Auditors, also appointed until revocation, effective from May 15, 2022, Fabio Fritelli, as new Manager in charge of preparing the corporate accounting documents, granting him with the powers provided under the applicable provisions and the Company By-laws. Fabio Fritelli, currently Group Finance Vice President of the company, a position he has held since July 1, 2014, will hold the position starting May 15, 2022, of Group Chief Financial Officer of Marie Tecnimont.  

Please note that as of May 15, 2022, Alessandro Bernini will hold the office of non-independent Director, Chief Executive Officer, and Chief Operating Officer of Maire Tecnimont.

As of today, Alessandro Bernini and Fabio Fritelli hold respectively 208,654 (all related to the Company’s Incentive Plans) and 11,953 ordinary shares, no par value, of Maire Tecnimont. Out of the 11,953 shares held by Fabio Fritelli, 1,953 are related to the company’s long-term incentive plan.  

The curriculum vitae of Fabio Fritelli is available on Company’s website, in the “Governance” - “Governance System” – “Manager Responsible for the Preparation of Company’s Financial Reports” section. 

Webcast Conference Call
The Q1 2022 Financial Results will be presented today at 5:30pm CEST during an audio-webcast conference call held by the Chief Financial Officer.  

The conference call may be followed as a webcast by connecting to the website (www.mairetecnimont.com) and clicking on the “Q12022 Financial Results” banner on the Home Page or through the following url:  

Alternatively, you may participate in the conference call by calling one of the following numbers: 
Italy: +39 02 805-8811
UK: +44 121 281-8003
USA: +1 718 705-8794

The presentation given by the top management will be available at the start of the conference call in the “Investors/Results and Presentations/Financial Results” section of Maire Tecnimont’s website (www.mairetecnimont.com/en/investors/results-and" class="redactor-autoparser-object">https://www.mairetecnimont.com... presentations/financial-results). The presentation shall also be made available on the “1info” storage mechanism (www.1info.it).


Alessandro Bernini, as Executive for Financial Reporting, declares - in accordance with paragraph 2, Article 154-bis of Legislative Decree No. 58/1998 (“Consolidated Finance Act”) - that the accounting information included in this press release corresponds to the underlying accounting records.
The Interim Financial Report as of 31 March 2022 will be available to the public at the registered office in Rome, at the operative office in Milan, on the Company’s website www.mairetecnimont.com (in the “Investors/Results and Presentations/Financial Results” section, and on the authorized storage device “1info” (www.1info.it), according to the timing allowed by law.

This press release, and the “Outlook” section in particular, contains forecasts. The declarations are based on current estimates and projections of the Group concerning future events and, by their nature, are subject to risk and uncertainty. Actual results may differ significantly than the estimates made in such declarations due to a wide range of factors, including the continued volatility and further decline of the capital and finance markets, raw material price changes, altered economic conditions and growth trends and other changes in business conditions, in addition to other factors, the majority of which outside the control of the Group.

Maire Tecnimont S.p.A.
Maire Tecnimont S.p.A., a company listed on the Milan Stock Exchange, heads an international industrial group that is a leader in the transformation of natural resources (plant engineering in downstream oil & gas, with technological and execution competences). Through its subsidiary NextChem, it operates in the field of green chemistry and the technologies to support the energy transition. Maire Tecnimont Group operates in about 45 countries, through approximately 50 operative companies and about 9,100 people. For more information: www.mairetecnimont.com.

Group Media Relations
Carlo Nicolais, Tommaso Verani,
Tel +39 02 6313-7603 

Investor Relations
Riccardo Guglielmetti
Tel +39 02 6313-7823

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