CENERGY HOLDINGS S.A. Brussels, 30 March 2017 - Cenergy Holdings S.A. (Euronext Brussels, Athens Stock Exchange: CENER), hereafter "Cenergy Holdings" or "the Company", today announces its financial results for the year ended 31 December 2016.
Key highlights
Cenergy Holdings S.A. (Cenergy Holdings or the Company) is a Belgium-based holding company founded in 2016 and listed on Euronext Brussels and the Athens Stock Exchange. Cenergy Holdings is a subsidiary of Viohalco S.A (81.93% of voting rights).
Viohalco S.A. (Viohalco) is the Belgium-based holding company of leading metal processing companies across Europe. Viohalco's subsidiaries specialise in the manufacture of aluminium, copper, cables, steel and steel pipes products and technological advancement. They have production facilities in Greece, Bulgaria, Romania, Russia, FYROM, Turkey, Australia, and the United Kingdom.
On 14 December 2016, Cenergy Holdings announced the completion of the cross-border merger by absorption by Cenergy Holdings of the formerly Greek listed companies, Corinth Pipeworks Holdings S.A. and Hellenic Cables S.A. Holdings Société Anonyme. On 21 December 2016, the trading of its shares commenced on Euronext Brussels and the Athens Stock Exchange.
The cross-border merger between Cenergy Holdings, Hellenic Cables, and Corinth Pipeworks has been considered as a common control transaction, since all of the combining entities are ultimately controlled by the same party, namely Viohalco, both before and after the business combination. Due to the above and in order to provide financial information which is relevant, meaningful and reliable, the consolidated financial statements of Cenergy Holdings as of and for the period ended 31 December 2016 are presented as if the cross-border merger had occurred before the start of the earliest period presented (i.e. 1st January 2015).
Financial highlightsConsolidated revenue down by 10.7% to EUR 692 million, compared to EUR 775 million in 2015, mainly due to lower LME prices, lower sales volume in medium voltage and low voltage power cables in the European markets, during the second semester of 2016 and delays in new energy projects as a result of low oil and gas prices;
EBIT* of EUR 34 million, compared to EUR 45 million in 2015;
Adjusted EBITDA* of EUR 60 million, compared to EUR 73 million in 2015;
Restructuring costs amounted to EUR 2.1 million in 2016;
Profit before income tax of EUR 2.8 million, compared to EUR 15.5 million in 2015;
Loss of the year of EUR 3.7 million, compared to a profit of EUR 7.7 million in 2015;
Net debt* up 10.4 % to EUR 376 million as at 31 December 2016.
* For the definitions of the APMs used, refer to Appendix C.
Operational highlightsSteel pipes segment |
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7 for a reeling project in the North Sea. | |
Cables segment |
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During 2016, Cenergy Holdings' operating environment was negatively affected by continuous modest global economic growth, lower prices of copper and aluminium, as well as further delays to steel pipes projects worldwide due to low oil and natural gas prices. However, the execution of significant contracts such as the Trans Adriatic Pipeline ("TAP"), Cyclades interconnection and St. George project partially counterbalanced the above.
Summary consolidated statement of profit or lossFor the year ended 31 December | ||
Amounts in EUR thousand | 2016 | 2015 |
Revenue | 691,775 | 774,788 |
Gross profit | 62,907 | 71,707 |
Gross profit (%) | 9.1% | 9.3% |
Adjusted EBITDA | 59,676 | 73,210 |
Adjusted EBITDA (%) | 8.6% | 9.4% |
EBITDA | 54,019 | 64,034 |
EBITDA (%) | 7.8% | 8.3% |
EBIT | 33,832 | 44,828 |
EBIT (%) | 4.9% | 5.8% |
Net finance costs | (31,012) | (29,292) |
Profit before income tax | 2,821 | 15,536 |
Net margin before income tax (%) | 0.4% | 2.0% |
Profit / (Loss) of the year | (3,772) | 7,741 |
Profit / (Loss) attributable to owners of the Company | (3,741) | 7,741 |
Source: Consolidated statement of profit or loss (Appendix A) and APM (Appendix C)
Consolidated revenue for 2016 amounted to EUR 692 million, a decrease of 10.7% compared to EUR 775 million recorded in 2015, as a result of the decline in metal prices, as reported below, and the reduced demand in European markets noticed mainly during the second half of 2016 in the cables segment.
Average LME metal prices:For the year ended 31 December | % | ||
Amounts in EUR per ton | 2016 | 2015 | Variance |
Aluminium | 1,451 | 1,497 | (3.1)% |
Copper | 4,400 | 4,952 | (11.1)% |
As at 31 December | ||
Amounts in EUR thousand | 2016 | 2015 |
ASSETS | ||
Property, plant and equipment | 384,601 | 386,776 |
Investment property | 6,472 | 872 |
Other non-current assets | 40,432 | 35,847 |
Non-current assets | 431,505 | 423,496 |
Inventories | 200,274 | 155,218 |
Trade and other receivables | 183,923 | 178,891 |
Cash and cash equivalents | 71,329 | 37,672 |
Other current assets | 3,340 | 244 |
Current assets | 458,866 | 372,025 |
TOTAL ASSETS | 890,371 | 795,521 |
EQUITY | 206,462 | 209,099 |
LIABILITIES | ||
Loans and borrowings | 184,396 | 198,403 |
Deferred tax liabilities | 27,220 | 23,999 |
Other non-current liabilities | 28,730 | 30,961 |
Non-current liabilities | 240,345 | 253,363 |
Loans and borrowings | 262,823 | 179,843 |
Trade and other payables | 178,624 | 152,382 |
Other current liabilities | 2,117 | 834 |
Current liabilities | 443,564 | 333,059 |
TOTAL LIABILITIES | 683,909 | 586,422 |
TOTAL EQUITY & LIABILITIES | 890,371 | 795,521 |
Source: Consolidated statement of financial position (Appendix B)
Non-current assets increased from EUR 423 million in 2015 to EUR 432 million in 2016. This increase is mainly due to the acquisition of an investment property from an affiliate of Viohalco, VET S.A., the increase in value of the equity accounted investee AO TMK - CPW mainly as a result of the fluctuation of euro / ruble exchange rate, and the acquisition of shares of the affiliated company, International Trade S.A. Capital expenditure during the year amounted to EUR 12 million for the cables segment and EUR 7 million for the steel pipes segment, whiledepreciation of PP&E for 2016 amounted to EUR 20 million.Cenergy Holdings SA published this content on 30 March 2017 and is solely responsible for the information contained herein.
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