TUBACEX reduces debt and generates benefits

Due to unfavourable market environment, TUBACEX has turned in the sales balance for the first half of 2016 amounted to 261.5 million Euros, which is down 13.5% with respect to the same period in 2015. Likewise, the gross operating profit (EBITDA) has reached EUR 19.9M, which is 40.9% lower, and the net profit stood at EUR 1.7M.

As regards the second quarter of the year, the results have responded to the company’s expectations, with an EBITDA of EUR 12.2M, 56.7% higher than the first quarter of 2016. This enhancement is a result of the operational improvements implemented in the Group.

Meanwhile, the net Financial Debt over EBITDA ratio remains temporarily at 6.1x. This ratio is expected to be normalized and reduced throughout the year until it reaches 4x, in order to return to the strategic goal of 3x by 2017. TUBACEX maintains a sound financial position that allows it to face the crisis in the sector with the confidence of being able to meet debt maturity dates within the next 3-4 years, even in the worst-case scenarios.

In the coming months, TUBACEX seeks to maintain a gradual improvement in results based on Premium products and enhanced efficiency, but the market remains in a weak situation that doubtlessly affects global results.

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