Milan - Maire Tecnimont S.p.A.'s Board of Directors has reviewed and approved today the 9-Month Interim Financial Report as of 30 September 2022, which shows a Consolidated Net Income of EUR61.4 million.
Strong growth in the economic and financial KPIs o Revenues: EUR2,516.9 million (+22.6%) o EBITDA: EUR151.5 million (+22.0%); 6.0% margin o Net Income: EUR61.4 million (+7.2%)
Adjusted Net Cash of EUR65.3 million, up EUR56.4 million, thanks to a EUR216.3 million operating cashflow generation
Significant growth of the Green Energy business: the backlog increases more than 4 times to EUR1.2 billion
Total Backlog of EUR8 billion (which no longer includes the Russian pro-jects)
Commercial Pipeline of EUR53.8 billion, of which EUR7.7 billion related to the Green Energy business
NextChem awarded EUR194 million grant for 'IPCEI Hy2Use' for one of the world's first waste-to-hydrogen plants
Annual Guidance confirmed
Consolidated Financial Results as at 30 September 2022
Maire Tecnimont Group Revenues were EUR2,516.9 million, up 22.6%. Higher volumes reflect the expected progress of the projects included in the large backlog thanks both to the progression of existing projects towards phases which can generate higher volumes, and to the start of recently acquired projects.
Business Profit was EUR214.3 million, up 14.2% with a margin of 8.5%.
G&A costs were EUR56.6 million, down 1.4% as result of the efficiency process of the organization, with a cost ratio of 2.2% vs. 2.8%.
EBITDA was EUR151.5 million, up 22.0% thanks to higher revenues and lower G&As. Margin is 6.0% in line with the previous period.
Amortization, Depreciation, Write-downs, and Provisions were EUR37.2 million, up due to the amortization of new assets instrumental to the digitalization process of the Group and due to higher provisions for credits, as a consequence of the Russian-Ukrainian crisis which has impacted on the ratings of some customers.
EBIT was EUR114.3 million, up 22.2%, with a margin of 4.5%.
Net Financial Charges were EUR26.4 million, vs. EUR11.6 million. The None-Month figure was impacted from the negative net valuation of derivative contracts of EUR9.1 million vs. a positive valuation of EUR7.2 million, with a net negative change of approximately EUR16.3 million.
Financial charges, net of the aforementioned effects as of 30 September 2022, slightly increased as a result of interest owed on a higher gross debt, partially compensated by a higher level of deposits.
Pre-tax Income was EUR87.9 million, and the tax provision was EUR26.4 million.
The effective tax rate was approximately 30.1%, in line, mainly due to the various jurisdictions where Group operations have been carried out.
Consolidated Net Income was EUR61.4 million, up 7.2%, as explained above. Group Net Income was EUR61.0 million, up 0.9%.
Adjusted Net Cash (net of the above-mentioned values included in the footnote on page 2) was EUR65.3 million as of 30 September 2022, up EUR56.4 million vs. 31 December 2021, thanks to a cash generation of EUR213.6 million, and taking into account a dividend payment of EUR60.1 million for FY2021, and the negative impact of the mark-to-market valuation of the FX derivative contracts for EUR132.8 million. The latter change is the result of the evolution in exchange rates, mainly of the US Dollar against the Euro during the First Nine Months of 2022 due to the Russian-Ukrainian crisis. The negative mark-to-market will be offset by future increased operating cash inflows for the same amount.
Consolidated Shareholders' Equity was EUR473.4 million, down EUR53.9 million vs. 31 December 2021. Notwithstanding EUR61.4 million Net Income, and a positive variation of the Translation Reserve of the Group's foreign Financial Statements for EUR43.0 million, this item was negatively affected by the changes in the Cash Flow Hedge Reserve for EUR103.3 million, and by the dividend payment of EUR60.1 million for FY2021.
Performance by Business Unit
Hydrocarbons BU
Revenues were EUR2,314.8 million, up 16.1%, due to the same reasons commented above. Business Profit was EUR194.3 million, with a margin of 8.4%. EBITDA was EUR140.5 million with a margin of 6.1%.
Green Energy BU
Revenues were EUR202.0 million, up 240.6%, also thanks to a constant growth in NextChem's activities driven by several partnership agreements signed with various Italian and international counterparties, and to the inclusion of recent projects and initiatives that are characterized by a green component, but which were not previously included in this BU.
Business Profit was EUR20.0 million, with a margin of 9.9%. EBITDA was EUR11.0 million with a margin of 5.4% vs. EUR1.9 million. Such an improvement is due to higher revenues and to a different production mix.
Outlook
The general market context is still significantly impacted by the consequences of international geopolitical tensions, and, as such, it continues to remain critical and uncertain in relation to the overall raw materials price increases and their availability, transport logistics, and procurement.
In a scenario of increases in the price of natural resources, driven by a strong recovery of the energy demand, the willingness to invest in infrastructures for the transformation of natural resources has remained unchanged, thanks to a strong global demand for several commodities. This is also due to the lack of production originating in the countries impacted by the current conflict, which has particularly affected the Western economies.
The drive to reduce the carbon footprint leads the Group to strengthen the integration between the traditional downstream technologies and a wide range of newly green tech solutions, both proprietary and otherwise available to the Group. NextChem continues to pursue the industrialization of new technologies in the areas of circular economy, bioplastics/biofuels, CO2 capture, hydrogen, and green fertilizers.
The technological investments which will allow our Group to remain at the forefront of the energy transition, in addition to an effective commercial strategy, have led to the first contracts in the Green Energy BU with domestic and international clients. A growing commercial pipeline is expected to deliver additional projects in the months ahead, also taking into account the awards of feasibility studies which are expected to evolve into more significant initiatives thanks to the financial backing of European Union and/or national funds for innovation and the energy transition.
Taking into account what was stated above, and assuming that the international context does not worsen, the expectation of a strong growth in volumes this year is confirmed, leading to a confirmation of the guidance communicated to the market throughout the course of 2022.
Update on the Group's Exposure in the Russian Federation
The evolution of the European sanctions' framework, which has continued from the beginning of the Russia-Ukraine crisis until the present, has led to the suspension of all operating activities in the Country at the end of the First Half.
The restart of the activities in the Third Quarter, including those projects previously suspended, has been impossible, also due to the additional sanctions enforced against the Russian Federation. As a consequence, the remaining value of the Russian projects in the backlog has been removed.
These projects' financial position continues to be in equilibrium, and no substantial changes to this situation are expected to occur as a consequence of the final contracts' interruption.
Update on the Euro Commercial Paper Programme
With reference to the Euro Commercial Paper Programme for the issuance of one or more non-convertible notes launched by the Company and announced to the market on 16 December 2021, as of 30 September 2022, the program has been utilized for an amount of EUR13.1 million: EUR10.6 million expiring in October 2022 and EUR2.5 million in December 2022. The weighted average interest rate is approximately 0.977%; in the third quarter 2022 the total emission of notes was EUR15.1 million, and EUR52.1 million in notes were repaid.
Maire Tecnimont S.p.A.
Maire Tecnimont S.p.A., a company listed on the Milan Stock Exchange, heads an international industrial group that is a leader in the transformation of natural resources (plant engineering in downstream oil & gas, with technological and execution competences). Through its subsidiary NextChem, it operates in the field of green chemistry and the technologies to support the energy transition. Maire Tecnimont Group operates in about 45 countries, through approximately 50 operative companies and about 9,100 people.
Contact:
Carlo Nicolais
Tel: +39 02 6313-7603
Email: mediarelations@mairetecnimont.it
MAIRE TECNIMONT S.P.A. 
