|
|
|
|
CORINTH PIPEWORKS S.A.
|
Announcement
|
|
August 6, 2008 Corinth Pipeworks 1st Half 2008 Group turnover amounted to 137 mil.euro, marking a decline of 26.9% in comparison to the respective period of 2007. EBITDA stood at 17.2 mil. euro versus 34 mil. euro last year or 12.5% of the Group's turnover (versus 18.1% margin in the 1st half of 2007). Earnings before tax amounted to 8.68 mil euro, marking a 63.3% decrease versus the 1st half of 2007 (23.7 mil. euro) while net after tax and minorities earnings amounted to 7.2 mil. euro (or euro 0.058 earnings per share) versus 21.3 mil. euro (or euro 0.171 earnings per share) in 2007. Net debt (Debt - Cash) of Corinth Pipeworks amounted to 84.2 mil. euro versus 85.6 mil. euro as on 31/12/2007. Finally, Shareholders Equity was further enhanced and amounted to 131.7 mil. euro for the Company and 130.4 mil. euro for the group. The decline of the group's turnover in comparison to 2007 is mainly attributed to the temporary lower utilization rate of the ERW/HFI plant (medium diameter steel pipes) as well as to the shipment schedule of the orders to the US. It is noted that approx. 19,000 tons of pipes, even though they had been shipped, have not been accounted for in the group's 1st half of 2008 turnover due to the fact that further processing in the U.S.A is required. before the final delivery to the job site. In addition, the weak dollar in relation to the euro and the sustained rising freight rates in the 2nd quarter had a negative impact in the group's profitability as well. It is worth mentioning that as of the beginning of the year, the surge by approximately 60% of steel prices combined with the rising freight rates has delayed the award of certain new projects, mainly in the Middle East and in N. Africa. On the other hand, the news from the hollow sections market are encouraging, since sales have increased by 59% over the respective period last year. This development is the result of intense efforts over the past years for continued quality improvement, broadening of the product range and penetration into new markets. Moreover, the progress of the '?AI TMK-CPW' Joint Venture, 49% of which is controlled by CPW's subsidiary Humbel Ltd, is considered to be positive as well. Being active in a vast and dynamic energy market, it has managed to book several substantial orders so far and in conjunction with the ongoing productivity improvement, has achieved net after tax earnings of approximately 2.2 mil. euro. Last, the increasing utilization of the ERW/HFI plant, the product mix of the orders backlog and the freight agreement covering a substantial part of the group's transportation, are expected to enhance the group's results over the second half. The 1st Half of 2008 Financial Statements will be released in the newspaper 'NAFTEMPORIKI', on August 6, 2008.
|
|
|
|
|
|
|
