Press Release n. 05 - 10.03.2021

MAIRE TECNIMONT ANNOUNCES ITS 2020 CONSOLIDATED

FINANCIAL RESULTS

  • Revenues: €2.6 billion; EBITDA: €172.2 million; Net Income:54.2 million

  • Adjusted Net Financial Position of (116.9 million), driven by a strong cash generation

  • Order intake of2.7 billion, despite Covid-19

  • Backlog of €6.0 billion, of which 87% in Gas Monetization and Energy Transition

  • Commercial pipeline of59.3 billion, of which over 70% in Gas Monetization and Energy Transition

  • The Green Energy business continues to grow

  • Approved the proposals for the allocation of 2020 profit and the distribution of dividends for €38.1 million from reserves

The pandemic due to the worldwide diffusion on the Covid-19 virus that took place in 2020 has had significant negative impacts on operations and in the supply chain in every single country. Such activities have suffered important slowdowns and interruptions. These phenomena were the consequence of the important limitations implemented by the Governments around the world in order to contain the pandemic. Such limitations took place in the course of 2020 and are still in existence.

These events have obviously had a negative impact on the Group's activities, both at an economic and financial level. For this reason, any comparison between 2020 and 2019 has to take into consideration the unprecedented situation that took place in 2020.

At the same time, the Group activities' resilience, and its rapid reaction and cost control capacity, as well as the ability to adapt to the new normal, also thanks to the technological infrastructure which has been in place for some time, has allowed the Group to face this unprecedented situation in an excellent manner, as tangibly demonstrated by the performance achieved particularly in the last quarter of the year.

Milan, 10 March 2021 - Maire Tecnimont S.p.A.'s Board of Directors today has reviewed and approved the 2020 Draft Statutory and the Group's Consolidated Financial Statements as of 31 December 2020, which report a Net Loss of13.2 million and a Consolidated Net Income of €54.2 million.

Maire Tecnimont SpA

REGISTERED OFFICE

Share Capital € 19.920.679,32, fully paid-up

Viale Castello della Magliana, 27, 00148 Rome, Italy

Tax Code, VAT number and Rome

T +39 06 412235300 F +39 06412235610

Company register number: 07673571001

Operative Headquarters

www.mairetecnimont.com

Via Gaetano de Castillia 6a, 20124 Milan, Italy

T +39 02 63131 F +39 02 63139777

CONSOLIDATED HIGHLIGHTS

(in Euro millions)

2020

2019

Change %

Revenues

2,630.8

3,338.4

-21.2%

Contract Gross Profit (1)

312.0

389.7

-19.9%

Contract Gross Margin

11.9%

11.7%

+20bp

EBITDA

172.2

235.6

-26.9%

EBITDA Margin

6.5%

7.1%

-60bp

Pre-Tax Income

78.8

167.0

-52.8%

Tax Rate

31.2%

31.3%

-10bps

Consolidated Net Income

54.2

114.7

-52.7%

Group Net Income

57.8

113.0

-48.8%

(1) "Contract Gross Profit" is the industrial margin before the allocation of commercial, general and administrative costs, and research and development expenses.

(in Euro millions)

31.12.2020

31.12.2019

Change

Adjusted (Net Debt)/Net Cash*

(116.9)

78.9

(195.8)

* Net of €9.6 million (€59.4 million at 31/12/19) of Non-Recourse Debt for the MyReplast acquisition, (and the one related to the Alba-Bra hospital at 31/12/2019, deconsolidated at the end of June 2020), and15.2 million to be recovered in India (€16.6 million at 31/12/19), excluding trade receivables equivalent to financial credits for €38.3 million at 31 December 2019, and excluding the IFRS 16 impacts at 31 December 2019 and 2020.

ORDER INTAKE AND BACKLOG

(in Euro millions)

2020

2019

Change

Order Intake

2,731.6

3,209.9

(478.3)

(in Euro millions)

31.12.2020

31.12.2019

Change

Backlog

6,001.9

6,373.4

(371.5)

FINANCIAL HIGHLIGHTS BY BUSINESS UNIT

(in Euro millions)

Hydrocarbons

Revenues

2,556.5

3,219.3

Contract Gross Profit EBITDA

308.0 173.4

12.0% 6.8%

379.2 234.1

11.8% 7.3%

Green Energy

Revenues

74.3

119.0

Contract Gross Profit EBITDA

4.0

5.4%

10.5

8.8%

(1.1)

(1.5%)

1.5

1.3%

ORDER INTAKE BY BUSINESS UNIT

(in Euro millions)

2020

2019

Change

Hydrocarbons

2,684.4

3,066.4

(382.0)

Green Energy

47.2

143.5

(96.3)

BACKLOG BY BUSINESS UNIT

(in Euro millions)

31.12.2020

31.12.2019

Change

Hydrocarbons

5,784.4

5,999.2

(214.8)

Green Energy

217.5

374.2

(156.7)

The changes reported refer to 2020 versus 2019, unless otherwise stated.

Consolidated Financial Results as of December 31, 2020

Maire Tecnimont Group Revenues were €2,630.8 million. Volumes show the Group activities' resilience and its rapid reaction and ability to adapt, also thanks to its digital platform implemented a few years ago, as well as the acquisitions of new projects that took place during the year.

Contract Gross Profit was312.0 million with a margin of 11.9% up vs. 11.7% thanks to what has just been explained.

G&A costs were €71.3 million, down 4.7% thanks to the implementation of the cost saving initiatives launched in response to the current situation.

Savings achieved in 2020 more than compensated the increased costs due to the strengthening of the organization in certain geographies, as well as NextChem's.

EBITDA was172.2 million. This result was achieved also thanks to the above-mentioned cost saving initiatives. Margin was 6.5%, higher than the first three quarters.

Amortization, Depreciation, Write-downs and Provisions were48.5 million, up mainly due to an increase in provisions for credit risks, as a result of the implementation of the IFRS 9 accounting principles.

EBIT was €123.7 million.

Net Financial Charges were €44.9 million, up by €23.0 million. The result is mainly due to a temporary negative net valuation of certain derivative contracts for €9.5 million vs. a positive value of €2.4 million in 2019, leading to a negative change of €11.9 million in 2020. This change was mainly negatively impacted both by an unfavorable exchange rate performance of the Russian Ruble/Euro and the US Dollar/Euro, due to the pandemic's impact on the FX markets, and by the price trend of some raw materials, which are linked to some derivative hedging.

Also impacting the 2020 Financial Charges are the ones related to the €365 million loan agreement which is 80% backed by SACE's "Garanzia Italia" (Italy Guarantee), signed in July 2020, lower financial income due to lower cash and cash equivalents invested in the period and a non-recurring charge of €5 million related to transactions aimed at optimizing the net working capital.

Pre-tax Income was €78.8 million. The tax provision was €24.6 million.

The effective tax rate was approx. 31.2%, substantially unchanged over the last few quarters, considering that the various jurisdictions where Group operations have been carried out have substantially been the same.

Consolidated Net Income was €54.2 million, as a consequence of what has been stated above.

Adjusted Net Debt (net of the above-mentioned values in the footnote on page 2) as of December 31, 2020 was €116.9 million, down compared to an Adjusted Net Cash of €78.9 million as of December 31, 2019. The As commented in previous press releases, the Adjusted Net Financial Position significantly worsened in the First Quarter, due to the effects of the pandemic. The situation constantly improved starting from the Second Quarter of 2020, thanks to the advance payments of recently acquired projects, as well as the cash generation from projects in our portfolio (equal to €541 million), especially in the Fourth Quarter, in spite of a

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Maire Tecnimont S.p.A. published this content on 10 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 March 2021 13:40:06 UTC.