Earnings Release • May 15, 2015
Earnings Release
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2015 First Quarter Results
Ended 31st March 2015
CONFERENCE CALL
Cesena 15 May 2015
Special foundation services
Oil drilling rigs
€79,8m
Special foundation rigs
€55,1m
Oil drilling services
€34,3m
Special foundation services
1Q15 Revenues
Large Diameter Piles Hydromills & Grabs
Microdrilling & Attachments Cranes
Special foundation rigs
Mud Pumps
Modular Offshore AHEAD Rigs
Drawworks Top Drives Conventional Packages
Oil drilling services
2. 1Q 2015 Financial Results
Revenues increased in almost all division signaling good opportunities in key markets
The order backlog has registered good growth within key strategic geographical areas
• Over €300 million of new orders in the first quarter
Orders acquired both in the Foundations and Oil & Gas divisions
Yearly business operations and large international footprint benefitted Group's performance
First quarter order intake well above budgeted values
Revenues
€297m
Ebit
€5m
Backlog
€1.121m
Ebitda
€21m
Net Profit
€2m
Net Financial Position
Very strong order intake in areas such as the Middle East and North Africa
New contracts ramping up in the quarter expected increased growth in the following quarters
Delays in the delivery of the offshore rigs in Central America
First offshore rig delivered in April, second rig to be delivered. Timing yet to be defined due to rescheduling of delivery by client
Recently acquired contracts embrace better and predictable payment terms
A fewer number of rigs are currently operating
| Euro | 1Q15 | % | 1Q14 | % |
|---|---|---|---|---|
| VALUE OF PRODUCTION | 309.7 | 267.5 | ||
| REVENUES | 297.0 | 100.0% | 265.7 | 100.0% |
| EBITDA | 21.3 | 7.2% | 31.1 | 11.7% |
| EBIT | 5.0 | 1.7% | 17.0 | 6.4% |
| FINANCIAL COSTS | (5.6) | -1.9% | (7.6) | -2.8% |
| TAXES | 0.7 | 0.2% | 1.7 | 0.6% |
| NET PROFIT | 1.9 | 0.6% | (0.3) | -0.1% |
| Euro | 1Q15 | 1Q14 | ||
| NET CAPITAL EMPLOYED | 1,216.3 | 1,004.1 | ||
| EQUITY | 716.2 | 428.9 | ||
| NET FINANCIAL POSITION | 499.7 | 574.1 | ||
| BACKLOG | 1,216 | 1,091.8 | ||
| 1Q15 | 1Q14 | |||
| NFP / EBITDA | 4.30X | 4.22X | ||
| NFP / EQUITY | 0.70X | 1.34X | ||
| 1Q15 | 1Q14 | |||
| EMPLOYEES | 7,653 | 7,187 |
| Eur mln | 1Q15 | 1Q14 | D% |
|---|---|---|---|
| Drilling Rigs (DRILLMEC) | 79.8 | 84.2 | -5.3% |
| Drilling Services (PETREVEN) | 34.3 | 29.3 | 17.2% |
| Interdivisional Adjustments and Eliminations | (0.5) | (1.6) | |
| Sub-Total Oil & Gas Sector | 113.6 | 111.9 | 1.5% |
| Special Foundation Services (TREVI) | 137.2 | 115.6 | 18.6% |
| Machines for Special Foundations (SOILMEC) | 55.1 | 44.5 | 23.9% |
| Interdivisional Adjustments and Eliminations | (4.0) | (2.7) | |
| Sub-Total Foundation Sector | 188.3 | 157.4 | 19.6% |
| Parent Company | 6.0 | 4.1 | |
| Interdivisional Eliminations | (10.9) | (7.7) | |
| TOTAL CONSOLIDATED REVENUES | 297.0 | 265.7 | 11.8% |
307,8 308,5
Middle East: Contribution from this area has significantly improved with respect to the previous years. Infrastructural & Residential projects are key and drive the growth
USA: Attractive North American market with major indicators proving for sustainable growth.
Latin America: High degree of business is being brought forward both in the construction and oil & gas fields. Significant opportunities for growth.
| 2015 | |
|---|---|
| REVENUES | €1,25-1,30BN |
| EBIT | €70m |
| NFP | €420 -€440m |
Trevi is working at the "Darsena di Levante" eastern dock in the port of Naples to the design and realization of a new container terminal, a wide area created by filling the body of water between the two piers. From an operational point of view, the project has to face major environmental and construction challenges, due both to the position on the sea and the environmental requirements to be met.
TREVI is carrying out works for ground improvement and the realization of slurry walls
TREVI is executing the works for the metro C in Rome. Shown are the micro piling drilling activities in the station of S. Giovanni.
Ground improvement works carried out in Mexico with a Soilmec SR-40 in action.
The new Soilmec SR-45 rig opens new perspectives on the hydraulic drills market. The basic rig has been completely redesigned in order to offer greater comfort and safety on site. Casing are entirely covered with sound damping and absorbing material. The engine Cummins QSB6.7 Tier 4 is capable of delivering high power (201 kW @2000rpm) while maintaining effiiciency and flexibility.
Drillmec signed a contract for the supply of an automatic hydraulic model HH300 offshore with SOCAR-AQS.
The rig will be installed on a fixed platform in the offshore region of Absheron West.
This contract is for Drillmec the opening of a new market of great interest when considering the abundance of resources and the wide availability of investments.
Five 2000hp AC rigs and two 3000HP rigs with ENAFOR, an Algerian leading drilling services company and acting on behalf of SONATRACH, the national oil company and largest African operator.
Two rigs of 2000hp AC HSL (Hydraulic Swing Lift) with one of the largest drilling contractors operating in Saudi Arabia. The Saudi company has operated for more than 50 years in the industry and has an important role in the expansion program of Saudi Aramco, the leading oil company in the country and world leader in proven reserves.
Petreven Chile has set yet another record with its HH110 drilling plant (with a Drillmec HH-102 rig) reaching a depth of 2,560 meters in a drilled well.
The well was drilled in two phases. The first section reached 609 meters and was drilled using a 13 ½ tricone bit , lined with 9 5/8 casing and then cemented.
3. Q&A
| Eur 000 | 1Q15 | 1Q14 | D% |
|---|---|---|---|
| TOTAL REVENUES | 297,009 | 265,716 | 11.8% |
| Changes in inventories of finished and semi-finished products | 7,385 | (2,333) | |
| Increase in fixed assets for internal use | 5,311 | 4,151 | |
| Other non-ordinary operating revenues | 0 | 0 | |
| VALUE OF PRODUCTION | 309,704 | 267,534 | 15.8% |
| Raw materials and external services | 222,484 | 177,946 | |
| Other operating costs | 3,114 | 2,996 | |
| VALUE ADDED | 84,106 | 86,592 | -2.9% |
| Personnel expenses | 62,771 | 55,527 | |
| EBITDA | 21,336 | 31,066 | -31.3% |
| % Total Revenues | 7.2% | 11.7% | |
| Depreciation | 15,205 | 13,822 | |
| Provisions and write-downs | 1,122 | 248 | |
| EBIT | 5,009 | 16,996 | -70.5% |
| % Total Revenues | 1.7% | 6.4% | |
| Financial revenues/(expenses) | (5,638) | (7,565) | |
| Gains/(Losses) on exchange rates | 3,567 | (3,403) | |
| Other Gains/(Losses) | 0 | 594 | |
| EBT | 2,937 | 6,622 | -55.6% |
| Tax | 734 | 1,655 | |
| Minorities | 320 | 5,217 | |
| GROUP NET PROFIT | 1,883 | (250) | N/A |
| Eur 000 | 1Q15 | 1Q14 | D% |
|---|---|---|---|
| Fixed assets | |||
| - Tangible fixed assets |
406,533 | 352,822 | |
| - Intangible fixed assets |
86,116 | 49,094 | |
| - Financial fixed assets |
9,157 | 5,553 | |
| Net working capital | |||
| - Inventories |
809,424 | 568,971 | |
| - Trade receivables |
458,906 | 392,570 | |
| - Trade payables (-) |
(289,937) | (250,341) | |
| - Pre-payments (-) |
(309,827) | (139,383) | |
| - Other assets (liabilities) |
67,163 | 45,475 | |
| Fixed assets plus net working capital | 1,237,535 | 1,024,760 | 20.8% |
| Post-employment benefits (-) | (21,271) | (20,664) | |
| NET INVESTED CAPITAL | 1,216,264 | 1,004,097 | 21.1% |
| Financed by: | |||
| Group net shareholders' funds | 699,705 | 405,193 | |
| Minorities' share of net shareholders' funds | 16,456 | 23,722 | |
| Total financial indebtedness | 500,103 | 575,182 | |
| TOTAL SOURCES OF FINANCING | 1,216,264 | 1,004,097 | 21.1% |
4. Appendix
172
Dams worldwide
1st
Oil & Gas Rig manufacturer in Europe
50
Metros in world
12%
EBITDA margin 14 year average
6 Main projects US Army Corps
62 Marine Projects in the world
| 52 Companies | Divisions: Special |
Synergies |
|---|---|---|
| 38 Countries | Foundations | Innovation |
| 69 Business Units | Oil & Gas |
Advantage |
| FY 2014 Results | FY 2014 KPI | |
| Added Value €1,283m |
Employees 7,493 | |
| Revenues €1,251m Ebitda €126m Ebit €63m |
Backlog €1,107m NFP/Ebitda 3.0x |
NFP/Equity 0.57x |
| NFP €379m | Dividends €0.07 |
Revenues
EBITDA % margin & 14 year average = 12%
EBIT % margin & 14 year average = 6.5%
The Executive in charge of the preparation of accounting documents "Daniele Forti" declares, pursuant to paragraph 2 of article 154-bis of the consolidated law on finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records.
This presentation, prepared by TREVI – Finanziaria Industriale SpA, contains forward looking information and statements about the group and in no case may it be interpreted as an offer or an invitation to sell or purchase any security issued by the company or its subsidiaries.
These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations to future operations, products and services, and statements regarding future performance.
Forward looking statements involve inherent risks and uncertainties are current only at the date they are made.
However, the management of TREVI – Finanziaria Industriale SpA believes that the expectations are reasonable, but, at the same time, points out to holders and investors that all the information and all the statements are subject to various risk and many of which are very difficult to predict and to control.
TREVI – Finanziaria Industriale SpA does not undertake any obligation to update forward looking statements to reflect any changes in own expectations with regard thereto or any changes in events.
Investor Relations Team:
Stefano Campana Josef Mastragostino
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