Prysmian closed the first 9 months of the year with a net profit up 2,6% to 139 million. Profitability also improved with adjusted EBITDA excluding the Western Link effect up 11,4% to €488 million (+33,3% to €473 million considering Western Link). Revenues rose 6,9% to $5,6 billion and also in the third quarter they showed a positive trend of +6,6%. The net financial position is negative by 955 million, an improvement from 1,3 billion at the end of September 2014. The company also confirmed the objective of positioning itself above the midpoint of the range of adjusted Ebitda 590-640 million. Following the release of the data, Prysmian lost ground in Piazza Affari dropping -3,72% to 19,40 euros. The decline in Piazza Affari could be attributed to signs of a slowdown in the third quarter of the Telecom segment and the Energy & Infrastructure business compared to the strong growth in the first half.
As for the problems associated with the western link project, Prysmian reports that the recovery plan "is proceeding in line with expectations". Furthermore, the strengthening of the contractual guarantees and the lengthening of the project timing agreed with the customer make it possible to improve the negative impact at the adjusted Ebitda level by 35 million euro compared to the initial estimate, bringing it from 167 million to 132 million. On the 2015 accounts this will translate into an improvement in prospects of 30 million with a negative impact reduced to 26 million.
"The results for the first nine months are overall positive both for the confirmation of the trend of increasing revenues and for the further improvement in profitability", explains the Chief Executive Officer Valerio Battista. “The performance achieved in the Energy Projects segment recorded a further acceleration, particularly in submarine energy cables and systems. The Group's financial structure is further strengthened with the Net Financial Position improving to €955 million thanks to the ability to constantly generate significant cash flows. Finally, with the acquisition of the US company Gulf Coast Downhole Technologies, the Group continues its strategy of strengthening in high tech sectors and markets”.
