HAMON & CIE (INTERNATIONAL) S.A. Hamon booked new orders for EUR 325 million during the first 9 months of 2015 (EUR 477 million for the same period of 2014) with strong letters of intent and a good October booking.
Other 12%
Metal
Industry 9%
As of end of September 2015, power producers and the Oil & Gas industry were still the main customers of the Group, but as noticed during the two first quarters of 2015, their share went down from 88% of the new order bookings at the end of Q3 2014 to 79% in 2015 during the same period.
Utility
55%
Oil & Gas
24%
Note that 'Other industries' includes a contract with a phosphate mine company.
Other Americas 19%
Usa -
Canada
26% Asia-
Pacific
Europe 11%
18%
The traditional Hamon markets, Europe and North America, represented 44% of the total new orders (versus 41% as of end of September 2014).
Middle East
& Africa
26%
This trend confirms the importance of the emerging countries for the Hamon Group (56% of new order bookings, with new order bookings close to EUR 182 million), Middle East being the leading area.
The level of the Q3 bookings is traditionally low (holiday period). However, Q4 will be very strong as important letters of intent were received and final negotiations for major projects are taking place (strong October). It is worth reminding that 2014 was exceptionally high due to major bookings.
in EUR million | 2015 YTD | 2014 YTD |
Cooling Systems | 155,4 | 239,2 |
Process Heat Exchangers | 36,0 | 27,3 |
Air Quality Systems | 43,8 | 116,5 |
NAFTA | 89,4 | 93,7 |
Others | 0,0 | 0,0 |
TOTAL | 324,6 | 476,7 |
The new orders in Q3 2015 are mainly driven by contracts for air cooled condensers, for wet cooling towers and by the aftermarket service activities in US and Western Europe.
Hamon has been selected by RWE Power as leader of the consortium for the turnkey contract to provide a Circular Hybrid Cooling Tower for the new 1100 MWe BOAplus lignite power plant. The contract, of a significant value, will proceed in three stages: firstly, the required engineering to support RWE in the development of the documents required to obtain the regulatory permit. The second stage will be for the advanced detailed engineering and the final one for the supply & construction contract. Hamon has only booked the first stage.
The Q3 performance, combined with the major successes of the first half year in both Wet and Dry Cooling Systems, brings the new orders at the end of September to EUR 155 million. The BU is confident on the evolution of new order bookings in the following quarters, which should contribute to a backlog at the end of this year representing more than one year of activity.
The overall market for PHE in 2015 remains commercially active despite the decrease of oil price, the Russian crisis and the tensions in the Middle East. Decisions of purchase have been globally delayed generating up and down cycles in terms of bookings.
At the end of Q3, bookings for the year are 32% higher than last year level at the same period. Q4 looks promising, PHE has been awarded a major contract and expects thus to secure a Q4 good level of contracts.
During the summer, our Asian customers have unfortunately been challenged by the unexpected financial turmoil that affected most Emerging markets. Many potential customers have postponed their decisions of investments and some LOI and projects where the customers had selected Hamon are yet to be confirmed. The Business Unit is expecting that many of them will be released before year-end.
The NAFTA region continued to show good results through Q3 2015, booking approximately EUR 33 million. Despite NAFTA having solid bookings in Q3, the region fell behind Q3 2014 levels. Each market segment had good bookings with large awards well distributed across numerous product lines including convection recuperators, heat exchangers, process boilers, aftermarket contracts, along with a mix of smaller awards across a variety of product lines.
Year to Date bookings of EUR 89 million remain below of Q3 2014.
In view of the general economic environment, Hamon does not release any guidance on its future results.
This presentation contains forward-looking information that involves risks and uncertainties, including statements about Hamon's plans, objectives, expectations and intentions. Readers are cautioned that forward-looking statements include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Hamon. Should one or more of these risks, uncertainties or contingencies materialize, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected. As a result, neither Hamon nor any other person assumes any responsibility for the accuracy of these forward-looking statements.
For all additional information, please contact:
Hamon Investors Relations investorsrelations@hamon.com
Francis Lambilliotte, CEO corporate@hamon.com+32.10.39.04.05 Christian Leclercq, CFOchristian.leclercq@hamon.com +32.10.39.04.22
Publication of the full year 2015 results 29/02/2016
Annual General Shareholders Meeting 2015 26/04/2016
The Hamon Group is a world player in engineering & contracting (design, installation and project management). Its activities include the design, the manufacturing of critical components, the installation and the after-sale services of cooling systems, process heat exchangers, air quality systems (AQS), Heat Recovery Steam Generators (HRSG) and chimneys, used in power generation, oil & gas and other heavy industries like metallurgy, glass, chemicals.
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