Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on PRYSMIAN SPA. We currently have 7 research reports from 1 professional analysts.
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The recovery is taking shape despite Oil & Gas
03 Mar 17
Prysmian reported Q4 16 results which are roughly in line with our expectations (AV EBITDA at €716m versus €711m reported). - The group’s sales amounted to €7,567m with organic growth of 1.0%. - Adjusted EBITDA was €711m, the highest level since Prysmian’s IPO, driven by the Energy Projects and Telecom businesses. The margin is at 9.4% with margin expansion in all businesses (except Oil & Gas). - EBITDA reached €645m (up 3.6% compared to 2015). - EBIT came to €447m (+11.5% on 2015). - Net financial position stood at €537m and the FY2016 free cash flow excluding acquisitions was €331m. - Net profit amounted to €262m (improvement of 22.4% on 2015).
Margin expansion driven by Telecoms and the Energy project
10 Nov 16
Prysmian reported 9M16 revenue of €5,660m with Q3 16 organic growth in line with H1 16 at +1.8% yoy. Like for Nexans, activity was marked by continued negative pressure on O&G with a 31.6% yoy organic decrease in the first 9M16 (and -20% in Q3 16) offset by strong Energy project sales (+20.9% in 9M16 and +16% in Q3 16) and, in particular, sales of submarine cables and systems. Telecom was also strong with +8.4% organic growth (of which +9.7% in Q3). Adjusted EBITDA climbed to €527m in 9M16, with the margin at 9.3% (8.5% at 30/09/2015). For the Q3 16 alone, the adjusted EBITDA margin reached 9.6%. FY16 guidance confirmed, with the target now at the upper end of the adjusted EBITDA range of €670-720m.
Solid H1 margins but disappointing free cash flow generation
29 Jul 16
Prysmian reported H1 16 results. Main facts: H1 16 revenue reached €3,785m, corresponding to a 1.8% organic change (but only 1.5% in Q2 16 alone) supported by Energy projects (+22.7%) and Telecoms (+5.8%). Adjusted EBITDA reached €347m, corresponding to a 9.2% margin (versus 8.4% in H1 15), slightly above expectations. The net profit increased by 59% to €124m (versus €78m). FCF excluding acquisitions was disappointing at €-176m versus €-97m last year due to WC variation. Prysmian confirmed guidance of adjusted EBITDA for FY16 in the range of €670-720m.
Q1 16 growth driven by Energy projects and telecoms
12 May 16
Prysmian reported its Q1 16 figures. Main facts: Revenue reached €1,810m in Q1 16, corresponding to a +2.3% organic increase including a strong contribution from Energy Projects (+26.4%) thanks to a positive performance by submarine cables and systems and strong high voltage underground sales. The telecoms business was up +3.3%, while the O&G segment was off 33.9% yoy. Adj. EBITDA at €150m corresponding to an 8.3% margin, sharply up from €120m (6.8% of sales) in Q1 15. The operating profit was €76m (versus €83m in Q1 15) due to the fair value change in metal derivatives, the fair value of stock options serving long-term incentive plans and impairment losses recognised against the assets of the new Oil & Gas segment. As a consequence, the net profit was also down from €42m last year to €40m in Q1 16. The net financial position was mostly unchanged at €1,038m (vs €1,040m at the end of 03/15). Adj. EBITDA guidance for 2016 is between €670m and €720m (AlphaValue’s current estimate is €684m) and in line with market expectations. All in all, a positive start to the year driven by Energy projects.
Progressive recovery is taking shape
25 Feb 16
Prysmian reported FY15 results perfectly in line with expectations, including an improved balance sheet situation. Revenue at €7,361m, corresponding to +5.3% organic growth, +5.9% excluding WL impact (+3.2% in Q4 15) thanks to sound execution in Energy projects (+18.2% organic growth ex. WL) and Telecoms (+9.9% organic growth yoy). The company reported adjusted EBITDA at €623m, above the mid-point of the guidance range (€590-640m), while net profit came in at €214m (+86% yoy) and net debt at €750m (vs €802m last year), without acquisitions the net financial debt would have been €529m. As usual, the company will provide an EBITDA guidance at the end of Q1 16, but stated that FX will have a negative impact, as well as Oil&Gas and Mining segments. Prysmian expects that demand in the cyclical businesses of medium voltage cables for utilities and building wires will record a slight volume recovery, an improving trend with growth in the Submarine business, while the Telecom business is expected to see continued growth in demand for optical fibre cables in 2016, albeit at a slower pace than in 2015.
EBITDA guidance lowered amid FX and cyclical weakness
06 Nov 15
Reasonable Q3 15 figures but the FY15 EBITDA guidance is slightly lowered. Prysmian posted 9M15 sales of €5,663m, corresponding to +6.9% organic growth with an adj. EBITDA of €473m (€488m ex WL) corresponding to an 8.5% margin. Prysmian reported strong growth in Energy projects (+19.6% yoy organically ex. WL for 9M15) and the award of the first submarine project in China. There was also a solid trend in Telecoms (+10.3% yoy for the 9M15) while the industrial segment stabilised. For Q3 15 alone, organic growth was +6.6% with €1,926m of revenue, while EBITDA was 8.2%. Energy projects grew 23.9% in Q3 15, accelerating again (+17.4% in H1 15), while Telecoms growth declined to 5.1% yoy (vs 13.1% in H1 15), E&I was also weaker in Q3 15 at +1.6% yoy (vs +5.3% in H1 15) but Industrial & Network components was up 1.4% yoy in Q3 15 a sequential improvement (-2.0% yoy in H1 15). The net financial position improved significantly to €955m (from €1,292m in Q3 14), reflecting a sharp reduction in working capital. FY 2015 guidance now targets "above mid-point" of the adjusted EBITDA range of €590–640m (€616–666m excluding WL) while the prior guidance was pointing at the top of the range (consensus €633m). The slightly lowered guidance is due to the softening of telecom and cyclical businesses in some countries, while Q4 is expected to be negatively impacted by the recent weakening of several currencies (mainly BRL, TRY, NOK, AUD).
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
accesso Technology (ACSO LN) Full year results in line, but key trading months still ahead | Augean (AUG LN) Double digit growth in ’16, good start to ‘17 | Earthport (EPO LN) Interims show continued top line strength | Goals Soccer Centres (GOAL LN) Good momentum under new team. It’s now all about delivery | IQE (IQE LN) FY’16 results prompt further upgrades | Microsaic Systems (MSYS LN) Challenges in 2016, strategy remains in place | mporium Group (MPM LN) Funds raised to help execute strategy | RhythmOne (RTHM LN) Dawn of the independents | ScS Group (SCS LN) Strong progress on key growth initiatives albeit comps now toughen | Sinclair Pharma (SPH LN) FY results: EBITDA ahead, Instalift™ gaining pace | Vectura Group (VEC LN) FY (9-month) results
N+1 Singer - N1S Trend spotting - Strategy update
08 Mar 17
In this new product we present some strategy theme updates arising out of our latest analysis of macro trends and economic data and our innovative Quant work. We also look at upcoming events and suggest topping up on some of our Best Ideas for 2017.
N+1 Singer - Augean - Double digit growth in ’16, good start to ‘17
21 Mar 17
Augean reported another year of double digit growth for 2016, with profits in line with our forecasts. Sales grew by 21% excluding landfill tax, while adjusted PBT grew by 18% to £7.1m before amortisation of acquired intangibles. DPS was increased by 54% to 1.0p, 25% ahead of our estimate. The business units made further strategic progress, with revenues from their top 20 customers increasing from 42% to 43% of the total, of which 88% was under contract or a framework agreement, increasing forward visibility. There has been an encouraging start to 2017 and management is confident of delivering another year of profits growth. The shares trade on undemanding single digit multiples, offering good value.
Scott deal puts spotlight back on corporate strategy and valuation
17 Mar 17
The acquisition of Scott Safety by 3M announced yesterday is not a huge surprise but it puts the spotlight back on (1) Avon’s corporate strategy as two strong competitors merge and (2) Avon’s break-up valuation given the rich multiple (12.9x EBITDA) being paid by 3M. Avon and other competitors, particularly MSA Safety, cannot ignore the fact that Scott, which is the leader in SCBA (self-contained breathing apparatus) market and 3M, which derives the bulk of sales from industrial hard hats and masks, would together have the most comprehensive portfolio of products in the PPE (Personal Protective Equipment) market. The good news for investors is that if we were to apply similar EBITDA multiple, then Avon’s Protection & Defence business alone would account for the entire market cap. In effect, at the current share price, investors are getting the Dairy business for free. Our sum-of-the parts model now values the shares at 1,279p, up 7% compared with 1,200p previously.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017