Prysmian Announces Strong Results Driven by Energy Transition and Electrification

Source: www.gulfoilandgas.com 11/9/2023, Location: Europe

BUSINESS HIGHLIGHTS
Strong sales growth and significant profitability increase in the Projects business driven by smooth execution and projects with higher margin. €13BN new orders awarded Year To Date
Vineyard Wind 1, the first utility scale offshore wind farm in the USA, successfully completed
Sound profitability improvement in the Energy Business. Grid hardening keeps driving Power Distribution and Overhead Lines
Positive performance across all cable applications drives margins improvements in the Industrial & NWC Business
Volume slowdown in Telecom, mainly driven by US market

KEY FINANCIAL HIGHLIGHTS
Sales at €11,825M, organic growth at +1.5%
Adjusted EBITDA up to €1,286M (+13.7% vs 9M 2022)
Margins sharply up to 10.9% vs 9.4% in 9M 2022
Group net profit increase to €575M (+33.4%)
Strong cash generation with LTM Free Cash Flow at €729M1

The Board of Directors of Prysmian S.p.A. has approved the Group's consolidated results for the first nine months of 2023.

“The sound margins improvement achieved in the first nine months further proves the Group’s resilience thanks to our complete and balanced business portfolio, well exposed to the secular drivers of the electrification and the energy transition,” commented CEO Valerio Battista. “The road to keep growing and delivering good results is clearly drawn by the high-quality of the order backlog combined with our recognised cost control mindset. This means extended visibility on future performance. Our strong focus on execution is paying back and paves the way to achieving the targeted yearly results,” concluded Battista.

FINANCIAL RESULTS
Group sales amounted to €11,825 million, with a +1.5% organic growth compared to 9M 2022, mainly driven by the Projects Business, which reported a +23.9% organic growth thanks to a flawless execution of interconnection and offshore wind farm projects. The Energy Business recorded a +0.4% organic growth in sales supported by the long-term electrification drivers that increase demand for cables for grid upgrading and development. Telecom volumes declined mainly due to the US market downtrend (-13.7% compared to the same period of 2022).

Adjusted EBITDA rose to €1,286 million (+13.7%), with sharply improving margins; the ratio of Adjusted EBITDA to Sales reached 10.9% compared to 9.4% for 9M 2022. Solid improvement in the Projects Business, thanks to the smooth execution and projects with higher margins (Adjusted EBITDA margin at 11.7% vs 10.4% in 9M 2022). The Energy Business margins improved significantly, driven by the demand for power distribution grid cables and cables for renewable energy (Adjusted EBITDA margin at 10.3% vs 8.2% in 9M 2022). Volume decline, mainly in the US market, penalised Telecom, with Adjusted EBITDA margin at 13.6% compared to 15.7% in 9M 2022.

EBITDA grew to €1,192 million (€1,071 million for 9M 2022), including net expenses for company reorganisation, net non-recurring expenses and other net non-operating expenses totalling €94 million (€60 million for the first nine months of 2022).

Operating income increased to €890 million compared to €684 million in the first nine months of 2022.

Group Net profit sharply improved to €575 million compared to €431 million for the same period of 2022 (+33.4%).

Net Financial Debt decreased to €2,073 million at the end of September 2023 (€2,372 million at 30 September 2022).

The robust Free Cash Flow amounting to €7292 million in the last 12 months was driven by:
€1,591 million operating cash flows before changes in net working capital;
€27 million cash flows due to changes in net working capital;
€505 million capital expenditure;
€326 million taxes paid;
€72 million net finance expense;
€14 million dividends received from associates.


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