Prysmian Energy Earnings Rise 12% in H1 2021

Italian cable supplier Prysmian reported adjusted EBITDA in its energy business of €271m in the first half of 2021, up over 12% on the €238m posted in the same period of 2020.

The cable manufacturer said the increase was down to volume increases and cost efficiencies, which allowed to recoup and exceed pre-pandemic levels.

Sales in the energy business amounted to €4551m, up 9.5% on the first half of 2020.

The margin ratio of Adjusted EBITDA to sales was 6% – EBITDA margin at 7.2% of sales valued at the price of metals in 2020 – compared to 6.6% in the same period of 2020.

Energy and Infrastructure sales totalled €3048m in the first half of the year, with a +10% organic change compared to the first half of 2020.

Adjusted EBITDA rose to €169m from €147m.

The power distribution business saw a normalisation in the trend after the strong growth recorded in 2020 in North America, driven by the onshore wind sector, the company said.

In the overhead lines business, the lacklustre organic growth performance was essentially due to the slowdown in the LatAm region and in North America after the strong growth recorded in 2020.

Industrial and network components sales increased to €1349m, with a +9.3% organic change compared with the first half of last year.

Adjusted EBITDA stood at €99m up from €90m last year. in H1 2020.

The specialties, OEM and renewables segments showed a positive performance and confirming resilience to the effects of the pandemic, particularly in wind and solar, railways and infrastructure markets.

Overall, Prysmian saw adjusted EBITDA rise to €470m in H1 2021, up over 12% on the €419m posted in the same period last year, despite a €22m negative impact from exchange rates.

The ratio of adjusted EBITDA to sales stood at 7.8% (8.4% in H1 2020), strongly impacted by the increase in the price of metals.

The EBITDA margin at 9.1% of sales valued at the price of metals in 2020.

Growth in adjusted EBITDA was attributable both to the volume recovery, measures to increase the cost efficiency and the company's price management strategy, which made it possible to offset the effects of the rise in raw material costs.

Chief executive Valerio Battista said: "The signs of recovery recorded at the beginning of the year have been confirmed and gained further pace in the following months, allowing us to close the first half of the year with even better than expected results.

"Sales have been chiefly driven by the strong recovery of telecom and the further acceleration in the construction and infrastructure sectors.

"In profitability terms, margins improved, also thanks to cost efficiencies and price management."

"The continuity of the cash flows assured by businesses linked to the most mature economic sectors such as construction and the energy segment’s industrial sectors enable us to focus both on the opportunities provided by the mega trends of energy transition, electrification and digitalisation, as well as to support the non-organic business expansion strategy, whenever suitable opportunities arise."