HALF-YEAR RESULTS INCREASE

Business growth (+7%)
Current operating income (+22%)
Net income, Group share (+11%)

 Vincennes, 17 September 2014 - Heurtey Petrochem (ISIN FR0010343186) announces its consolidated results for the first half of 2014

Audited figures, in € million 
(IFRS) 		H1 2014* H1 2013 Change
Revenues 217.1 203.1 +7%
Cost of sales (185.2) (176.8) +5%
Gross margin 31.9 26.3 +21%
Administrative and commercial expenses (22.4) (18.6) +21%
EBITDA** 12.6 9.3 +35%
Current operating income
% of revenues		 9.5
4.4%		 7.8
3.8%		 +22%
Other operating income and expenses (0.1) (0.1)
Operating income 9.4 7.7 +22%
Share of equity-accounted companies
Financial profit (loss)
Tax 		(0.1)
(2.9)
(2.5) 		0.1
(1.8)
(2.4)
Consolidated net income 3.9 3.6 +6%
Net income, Group share 3.4*** 3.1 +11%


*Heurtey Petrochem's Board of Directors met on 17 September 2014 and approved the half-year financial statements, which were audited by the Statutory Auditors.
**EBITDA: Current operating income before net amortisation, depreciation and provisions.
***Prosernat fully consolidated from 1 June 2014.

Revenues: €217 million (+7%)

The Group's revenues in the first half of 2014 reached €217.1 million, i.e. organic growth of 7% (8.5% at constant exchange rates). The furnaces and gas branches accounted for 86% and 14% of the Group's business, respectively.

The regional breakdown of the Group's revenues was: Americas 38%, Europe/Russia 37%, Asia/Oceania 21% and Middle East/Africa 4%.

Operating profitability up markedly

Current operating income reached €9.5 million (up 22%) and the margin therefore stood at 4.4% of revenues versus 3.8% over the same period last year.

All businesses contributed to this increase: €7.7 million for the furnace business (margin of 4.1%) and €1.8 million for the gas business (margin of 5.8%).

The Group's operating income increased at the same rate and came out to €9.4 million.

After taking into account financial income for an amount of -€2.9 million (cost of financial debt and foreign exchange impact), consolidated net income came out to €3.9 million, up 6% compared with the first half-year 2014.

Net income, Group share grew 11% to €3.4 million.

Highlights from the first half: capital increase of €35 million and acquisition of the remaining 40% of capital in Prosernat

In May 2014, the Group launched a capital increase with preferential subscription rights maintained. The deal was oversold (1.5 times) and led to the creation of 1,356,834 new shares priced at €26 and generated €35.5 million in gross income.

At the conclusion of this transaction, the Group proceeded to acquire, for a sum of €13.3 million, the remaining 40% of shares held by IFP Investissements in Prosernat, the Group's subsidiary specialised in natural gas processing.

Given the size of the Group's market capitalisation, the "Innovative Business" certification delivered by BPI France will not be renewed at its upcoming renewal date of 3 October 2014.

A solid and strengthened financial situation

The Group's business generated positive operating cash flow of €4.8 million over the course of the first half. After accounting for the capital increase, the acquisition of the remaining 40% in Prosernat and the cash flow linked to the finance activities, the net cash position increased €18.9 million and stood at €49.5 million at 30 June 2014.

With €75.7 million in shareholders' equity and €39.2 million in financial debt, Heurtey Petrochem is in a solid financial situation from which to continue its development.

2014 outlook 

In line with its strategy, the Group is strengthening its gas business.

Amid a market that has become difficult due to launch delays for certain projects and geopolitical uncertainties, the Group was able to maintain a satisfactory level of new orders (€176 million) as a result of the excellent performance of the gas business.

The Group's order book stood at €502 million at 30 June and is broken down as follows: 37% in gas and 63% in furnaces (of which 40% in petrochemicals, 18% in refining and 5% in hydrogen). The regional breakdown was as follows: Americas 67%, Europe/Russia 15%, Asia/Oceania 13% and Middle East/Africa 5%. The order book is expected come out to between €175 million and €190 million in the second half of 2014, and to between €312 million and €327 million in 2015 and beyond.

Subsequent to the 30 June closing of the order book, the Group inked a total of €65 million in contracts in July and August, including a gas contract totalling €57 million in Venezuela. Heurtey Petrochem remains confident in the positive direction of its markets.

The Group has confirmed its target of generating revenues of between €420 million and €440 million and has set a current operating income target of between €19 million and €20.5 million.

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