UBACEX has presented its results for the first nine months of 2022 to the CNMV today, in which the company’s recovery is consolidated. At the start of the year, TUBACEX set out to exceed the results obtained in 2018 and 2019, and it has already fulfilled its objective in the first nine months of the year, confirming that it will close the year better than initially foreseen. Thus, EBITDA stands at €67.3M, with profit before tax of €20.3M. These figures clearly reflect the company’s competitiveness in the current environment, marked by high inflation. It must be pointed out that the quarterly EBITDA has amounted to €24.8M, the highest since the last quarter of 2007, with a margin of 14.3% over sales.
Sales between January and September 2022 have amounted to €527.1M, doubling those for the same period last year. It is also noteworthy that the positive rate of order intake has continued, which keeps the backlog above €1,500M, the highest ever.
Jesús Esmorís, CEO of TUBACEX, has stated that “it is undeniable that the current macroeconomic environment is extremely complicated, but our target sectors are now expanding after many years of under investment.” He also added that “’these results reflect the progressive recovery of all the business units of the Group, thanks to the cost reduction plan carried out at a global level”.
The inflationary situation that we are experiencing is causing a general increase in all costs, the effects of which TUBACEX is at least managing to transfer to the market.
The working capital amounts to €242.3M, up €19.9M on the 2021 year-end and at a similar level to that reported in June. Nevertheless, the percentage of working capital over sales has improved, moving from 60.9% at the close of 2021 to 37.5% today.
Organic growth
Net Financial Debt stands at €333.4 M, down €2.9M with respect to the 2021 year-end, despite the increase in stock levels. The Net Financial Debt over EBITDA ratio continues its upward trend, as it has gone from 19.2x at the close of 2021 to 5.6x in June, and now stands at 4.2x and is expected to maintain this tendency and close the year below 4x. When manufacturing to order, the number of stocks is mostly already sold, hence the importance of stocks being higher than the net financial debt by 56.5 million euros.
TUBACEX has carried out different organic growth projects in key products that have been launched in 2022. One of the world’s main hubs for the production of Oil&Gas will be Guyana, so TUBACEX has a new production plant up and running in this country through its NTS subsidiary, with projects aimed at major clients, such as Exxon or Schlumberger. It also has operational presence in Kazakhstan, with an initial order from KPO – the joint venture between Royal Dutch Shell, Eni, Chevron, Lukoil and KazMunaiGas- that has been received and invoiced. It also has a local service and repair center in Brazil for the supply of OCTG to Petrobas, with the aim of improving the global value proposition in the country. These projects, along with the newly built plant in Durant (USA), have been launched over the past two years and enable the company to be closer to the end-users and diversify its global presence.