RESULTS FOR FIRST HALF OF August 2015

Transcription

1 RESULTS FOR FIRST HALF OF August 2015

2 Content Keys to the period Main figures Profit & Loss Account Breakdown of Sales Breakdown of EBITDA The Vuelta de Obligado Project Order Intake and Backlog Breakdown of Backlog Pipeline Balance Sheet Net Cash Flow position Relevant Deeds 2

3 Keys to the period Sales in the first six months of 2015 were 392 million Euros, 5.5% above the 371 million in the same period the previous year. Accumulated order intake as of 30 June amounted to 1,162 million Euros, compared to 152 million in the first half of 2014, and more than the 453 million for the whole fiscal year The most significant orders were in Energy, with the signing of two contracts for two gas-fired combined cycle power plants in Brazil for 800 million Euros and a third contract for a cogeneration plant in Chile for 106 million Euros for the Empresa Nacional de Petróleo (ENAP). We could also highlight, this time in Oil & Gas, the signing of the contract for the turnkey delivery of the extension to the liquefied natural gas (LNG) terminal in Zeebrugge (Belgium) for 150 million Euros. Expectations for order intake in the second half of 2015 are positive, with an offer pipeline of roughly 20,000 million Euros, which is very well balanced in terms of geographical and sectoral diversification. The backlog amounts to 2,283 million Euros, one of the highest in the history of Duro Felguera. In terms of visibility this represents a multiple of 2.5x (approx. 29 months) based on sales reported in The contracts signed so far this year, mainly in countries where DF has delivered projects in the past (Chile and Brazil), mean that the proportion of LATAM in the geographical composition of the backlog has grown to 55%, while Africa and the Middle East are at 25%, Europe at 14% and Asia Pacific at 5%. By business division, Energy and Oil & Gas account for 67% and 12%, respectively, while Mining & Handling is at 12%. The PBT is down to 7.2 million Euros (1.8% over sales) and the EBITDA amounts to 13 million Euros (3.3% over sales) because the result from the Vuelta de Obligado project in Argentina was lower than expected and this had a negative impact of 15 million Euros in the period under analysis. The company maintains a prevision for income of 430 million pesos (43 million Euros) for extra costs, which has been claimed for and is currently being negotiated with the client. In any case, the contract includes a clause to solve disputes by arbitration. 3

4 Keys to the period The outstanding amounts to collect from the Termocentro project were 92 million Euros as of 30 June Payments of 35 million Euros were received in the first six months of The Roy Hill project in Australia is still being executed on time in accordance with the calendar. The manufacturing division contributed a positive EBITDA of 2.4 million Euros. The Smart Systems business is evolving favourably and recorded a negative PBT of 2.2 million Euros, a significant improvement in comparison to the 5 million Euro losses from the same period the previous year. In terms of the balance sheet, the group has a gross treasury of 321 million Euros and a net cash flow of 83 million, once we have deducted bank debt. The net cash flow is down in comparison to the first quarter mainly because of the above-mentioned extra costs the company is paying at the Vuelta de Obligado project, and which are currently being claimed from the client. In the month of July, Duro Felguera signed a Memorandum of Understanding (MoU) with Ausenco Limited (Australia) to set up a Strategic Alliance to jointly sell and deliver turnkey (EPC) projects in order to reinforce their position in the mining market. The first fruits of this agreement were seen in the signing of an MoU with Royal Nickel a few weeks ago for one of the largest mining projects in the world, in Canada. Duro Felguera has acquired 14.5% of the Australian company s capital over this time. 4

5 Main figures In thousands of Euros Backlog 2,282,769 M (29 months) Sales 391,908 M Net cash flow 83,165 M EBITDA 13,070 M Net profit 4,770 M 5

6 Profit & Loss Account June 2015 June 2014 % Sales 391, , % EBITDA 13,070 30, % EBITDA Margin 3.3% 8.3% PBT 7,211 26, % PBT Margin 1.8% 7.0% PAT 4,776 21, % Minor shareholders -6-1, % NET PROFIT OF PARENT COMPANY 4,770 19, % In thousands of Euros 6

7 Breakdown of Sales June 2015 June 2014 % Energy 140, , % Mining & Handling 116,654 91, % Oil & Gas 38,547 38,552 0% Services 48,544 33, % Manufacturing 32,539 37, % Other 15,195 6, % TOTAL 391, , % jun-15 8% 4% 12% 10% 30% 36% In thousands of Euros The total group turnover increased due to the intensification of work in the Mining & Handling division, mainly on the Roy Hill Iron Ore project (Australia) Energy Oil & Gas Manufacturing jun-14 2% 10% Mining & Handling Services Other There was a sharp increase in the Services division, as a result of their opening up to contracting with foreign clients over the past year Positive evolution of the Smart Systems division as a result of intensive contracting at the end of % 10% 25% 44% 7

8 Geographical breakdown of Sales June 2015 June 2014 Latam 107, ,046 Spain 43,445 45,435 jun-15 26% 1% 28% Rest of Europe 66,043 76,610 Africa and Middle East 65,437 20,489 Asia Pacific 103,287 67,703 Other 5,891 4,249 TOTAL 391, ,532 17% 17% 11% In thousands of Euros Latam Rest of Europe Asia Pacific Spain Africa & Middle East Other jun-14 Group sales show a balanced geographical diversification. The lower proportion of Latin America was offset by greater sales in Asia Pacific and Africa and the Middle East 6% 18% 1% 42% 21% 12% 8

9 Breakdown of EBITDA EBITDA EBITDA Margin June 2015 June 2014 % Energy -7,964 20, % Mining & Handling 9,797 2, % Oil & Gas 1,522 4, % Services 10,467 6, % Manufacturing 2,435 4, % Other -3,187-7, % TOTAL 13,070 30, % June 2015 June % 12.2% 8.4% 2.3% 3.9% 11.4% 21.6% 20.8% 7.5% 11.6% -21.0% % 3.3% 8.3% In thousands of Euros Energy: the margin was affected by the 15 million Euro negative impact of the Vuelta de Obligado project (Argentina) Mining & Handling: The EBITDA margin improved by 5.2 million Euros from positive foreign exchange differences Oil & Gas: a positive evolution in comparison to the first quarter of 2015 Manufacturing: still on track with the positive margins as started the previous year Other: an improved result in the Smart Systems business and general corporate expenses 9

10 Negative Impact of the Vuelta de Obligado Project The Vuelta de Obligado project, an 800MW combined cycle plant in Argentina, was awarded in October 2012 Negative impact of 15 million Euros on the results for the period caused by: Inflation was higher than expected in the contractual conditions The client made changes to the technical specifications The company has recorded claims in progress quatified at 43 million Euros June 2015 June 2014 % Sales 391, , % EBITDA 13,070 30, % EBITDA Margin 3.3% 8.3% Adjusted EBITDA for negative effect 27,995 30, % Adjusted EBITDA Margin 7.1% 8.3% PBT 7,211 26, % Adjusted PBT 22,136 26, % In thousands of Euros 10

11 Order Intake and Backlog Evolution of order intake 1, , H H H H H 2015 Domestic International Evolution of backlog 2,079 2,283 1,607 1,635 1,530 1,492 1,568 2,026 1,473 2, H 2015 In millions of Euros Domestic International 11

12 Breakdown of Backlog Geographical June 2015 Latam 1,257,677 Spain 51,726 Rest of Europe 271,672 25% 5% 1% Latam Spain Rest of Europe Africa and Middle East 566,415 Africa and Middle East Asia Pacific 127,250 55% Asia Pacific Other 8,029 Total 2,282,769 In thousands of Euros 12% 2% Other By business division June 2015 Energy 1,521,352 Mining & Handling 282,163 12% 4% 2% 3% Energy Mining & Handling Oil & Gas 287,920 Services 61,744 12% Oil & Gas Services Manufacturing 87,315 Other 42,275 Total 2,282,769 In thousands of Euros 67% Manufacturing Other 12

13 Pipeline The pipeline of bids presented and under preparation is the most diversified in all DF s history Canada United Kingdom Mexico USA Morocco Spain Germany Algeria Croatia Egypt Saudi Arabia Kazakhstan Turkmenistan UAE, Kuwait Oman Panama Colombia Senegal Ghana Nigeria Ethiopia Malaysia Energy Brazil Chile UAE Kuwait Mexico Panama United Kingdom Senegal Peru Chile Brazil Mining & Handling Algeria Australia Brazil Canada Chile Spain Ethiopia Indonesia Nigeria Peru South Africa Kenya Mozambique Oil & Gas Saudi Arabia Brazil Chile Colombia Croatia UAE Egypt Morocco Mexico Mozambique Oman Panama Peru United Kingdom Indonesia Australia 13

14 Pipeline In millions of Euros 19,292 8,964 6,130 6,736 2,090 4,362 1,347 4,352 1, ,328 4,040 1,020 3,015 2, Energy Mining & Handling Oil & Gas Services Mannufacturing & Other Total Distribution by geographical area (%) NORTH AMERICA * 10 6 EUROPE 5 6 ASIA PACIFIC Bids presented 10,328 Bids under preparation 8,964 LATAM 51 AFRICA & MIDDLE EAST Total Bids 19, * USA and Canada Bids presented Bids under preparation 14

15 Balance Sheet ASSETS June 2015 December 2014 % Non-current assets 211, , % Fixed assets 111, , % Current assets 824, , % Cash and equivalent 320, , % LIABILITIES June 2015 December 2014 % Net worth 243, , % Distributable income 7,921 8, % Non-current liabilities 187, , % Long term financial debt 167, , % Current liabilities 596, , % Short term financial debt 61,097 57, % TOTAL 1,035,980 1,044, % Financial debt/worth ratio 93.75% 88.35% Working capital 227, , % In thousands of Euros 15

16 Net Cash Flow EBITDA Working Capital (*) Tax & Interest -5.6 Investment (***) Interest received Dividends -6.4 Other & Adjustments Treasury stock (**) 83.2 Free Cash Flow: -27,4 Net Cash Flow 31 Dec 2014 Net Cash Flow 30 June 2015 (*) Changes in working capital: stock, commercial debtors and creditors (**) The value of the treasury stock as of 30 June 2015 amounted to 58.4 million Euros (***) Investment consists mainly of the adaptation and extension of the office building and manufacturing facilities. In millions of Euros 16

17 Relevant deeds On 27 February the company notified the Board of Directors agreement to distribute a third dividend for 2014 for a gross global amount of 0.04 Euros per share to be paid on 17 March On 27 February the company issued information about the results of 2014, the annual corporate report and the annual Board of Directors compensation report. On 1 April the company notified the winning of the contract for the turnkey execution of the extension to the liquefied natural gas (LNG) terminal at Zeebrugge (Belgium). On 29 April the company issued information about the results of the first quarter of On 12 May the company sent out the call for the Annual General Meeting to be held on 25 June On 20 May the company announced the award of the contract to deliver a cogeneration plant in Chile. On 25 May the company announced the award of two contracts to deliver two gas fired power plants in Brazil. 17

18 Relevant deeds On 10 June notification was made of the Board of Directors decision to re-elect the auditors to be transferred to the Annual general Meeting. On 25 June the company sent the agreements adopted by the Annual General Meeting held in Oviedo. On 25 June the decision of the Annual General Meeting was notified, by which the payment of a complementary dividend against the results of 2014 for an amount of 0.04 Euros gross per share was approved, to be paid on 20 July. On 10 July the company notified the acquisition of 5.029% of the Australian company Ausenco Limited. On 21 July the agreement to underwrite a capital increase of 17,808,087 shares in the Australian company Ausenco Limited was announced, which together with the stake already bought would lead to a total shareholding of 14.5% of the company s capital stock. On 29 July the company announced the change in the Presidency of the Auditing Committee. 18

19 Limited responsibility This document has been drawn up by DURO FELGUERA for exclusive use in presentations of the company s results. This document may contain previsions or estimates of the evolution of the company s business and results. These previsions reflect the opinion and future expectations of DURO FELGUERA, and as such are subject to risk and uncertainty which could lead to the real results being significantly different from said previsions and estimates. What is set forth in this document should be taken into account by everybody and all entities who might have to take decisions or draw up and publish opinions about DURO FELGUERA securities, and in particular by analysts who read this document. It is hereby stated that this document may contain summarized or non-audited information. This document does not constitute an offer or an invitation to subscribe or purchase any securities, and neither this document nor its content shall be the basis for any contract or commitment. 19

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