TUBACEX ‘s sales increase 40.3%

TUBACEX continues to have improvements in profits after the Oil & Gas sector has recovered from the worst crisis in its history. In the first nine months of the year, the Company’s sales have increased by 40.3%, amounting to €519.9M, and EBITDA has stood at €55.3M, up 128.5% on the same period in 2017. These figures highlight the success of the Group’s strategy of betting on Premium high-tech products coupled with operational and commercial improvements. The said strategy has allowed it to obtain a pre-tax profit of €17M from January to September 2018.

In the first nine months of the year, TUBACEX working capital amounted to €231M, meaning an increase of €38M with respect to the end of 2017. This working capital is directly related to multi-annual projects currently at manufacturing stage, mostly tubes for gas extraction and production (OCTG) and Umbilicals.

TUBACEX sales strategy translates into multi-annual large-scale projects involving local production and technological development in collaboration with first-class companies in destination countries. Esmorí­s confirms that “the proof of our success in this strategy is the recent Letter of Intent (LOI) signed with the Egyptian Government to develop nuclear powerâ€?.

The net financial debt ratio over EBITDA continues to be significantly reduced and amounts to 4.5x, compared to 9.8x registered at the close of 2017. The Group expects to maintain this gradual improvement trend and reach a level close to 3x at the year’s end. The Group’s financial structure has a high cash flow – in excess of €100M, which will enable them to face maturities in the next three years, even in the worst scenario.

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