Prysmian: net profit to 32 million in the first quarter, anticipated in 2016 Adjusted EBITDA at 670 million to 720 million – La Stampa

Prysmian: net profit to 32 million in the first quarter, anticipated in 2016 Adjusted EBITDA at 670 million to 720 million

          

The Board of Directors of Prysmian S.p.A. today approved the Group’s consolidated results for the first quarter of 2016 (not audited).

The FINANCIAL RESULTS Group Sales amounted to € 1,810 million, reporting organic growth of + 2.3% on a comparable basis and net of changes in the price of metals and foreign exchange . The decisive contribution of the Energy Projects segment that follows a jump of + 26.4%, driven by the positive performance in the submarine cables and systems as well as from strong sales in high voltage underground. Essentially unchanged sales of the Energy Products segment (+ 0.1%), with Energy & amp; Infrastructure at the same level of the first quarter 2015, and industrial cables in slight recovery (in particular, Network Components, Elevators and Specialties & amp; OEM). It confirms the trend of sales growth in the Telecom business (+ 3.3%), driven by higher volumes in Australia and North America, the resumption of sales of copper cables in Australia and the positive performance of the Multimedia Solutions. The new segment Oil & amp; Gas is strongly affected by the crisis in the oil sector, reporting revenues in marked decline (-33.9%), but still in line with expectations. Adjusted EBITDA amounted to € 150 million, a sharp increase compared to € 120 million in the first quarter 2015 (+ 25.4%), with a further improvement in margins (ADJ EBITDA ratio of revenues rose 8.3% from 6.8%). This figure reflects the negative impact of exchange rates, and amounts to € 12 million positive contribution from the consolidation of Oman Cables Industry. The EBITDA amounted to € 140 million versus € 106 million in the first quarter 2015 (+ 32.4%), including non-recurring net expenses of € 10 million (€ 14 million in the first quarter 2015). Net non-recurring expenses in the first quarter 2016 mainly include reorganization costs and efficiency improvement. The Group’s operating profit amounted to € 76 million versus € 83 million in the first quarter 2015 (- 8.6%). This decrease is mainly related to changes in fair value of derivatives on commodity prices, the fair value of the stock options linked to the long-term incentive plans and asset impairments related to the new segment Oil & amp; Gas. The balance of Net financial charges for the first three months of 2016 amounted to € 18 million, lower than last year’s value of € 20 million (-10.0%). The reduction of € 2 million was mainly due to lower financial expenses related to the efficiency improvement of the financial structure and the positive effects resulting from the issuance of the bonds during the second quarter of 2015. Net income amounted to € 40 million, compared to € 42 million in the same period 2015. net profit attributable to owners of the parent amounted to € 32 million rather than € 41 million the previous year, again for the effects already commented in relation to operating profit . The net debt amounted to € 1,038 million at 31 March 2016 (€ 1,040 as at 31 March 2015).

“The results of the first quarter of 2016 are characterized by the substantial confirmation of the trend of sales growth accompanied by a marked improvement in profitability”, comments CEO Valerio Battista. “In particular, technological leadership and ability to execute the projects are the basis of excellent performance in submarine cables and systems. Good also the contribution of Telecom especially in terms of profitability, thanks to the reduction of production costs of the optical fiber. The business Oil & amp; Gas affected by the crisis in the sector, however, bringing performance in line with expectations. We are confident that the new organization will allow to better define the strategies of a business with high added value in order to re-launch it. ” “The Group – adds Baptist – finally confirmed its strong commitment to research and development and in recent months has introduced technological innovations that represent milestones in the industry. The new system in P-Laser 525 kV cable offers unique features to environmental sustainability and cost reduction power grids, while the Telecom optical cable Flextube® 2112f reaches a new record for number of fibers into a single optical cable. Even the light of these competitive acceleration, which give added credibility to the Group’s growth strategy, we are confident of being able to achieve the challenging profitability targets we have set ourselves for 2016, with an ADJ EBITDA in the range of € 670- € 720 million. ”

(RV)