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Compagnie d'Entreprises CFE SA
Earnings Release • Nov 22, 2019
3929_10-q_2019-11-22_98519b0e-1064-49c3-bc55-862302cd598f.pdf
Earnings Release
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Friday 22 November 2019 – 7h00 CET regulated information
Quarterly information at 30 September 2019
Quarterly information at 30 September 2019
- • High stable revenue
- • € 5.24 billion order book
- • 2019 outlook confirmed for DEME
1. Key figures
| Revenue In million € |
30/09/2019 | 30/09/2018 | Variation |
|---|---|---|---|
| Dredging, Environmental, Offshore and Infra division |
2,021.5 | 2,016.1 | + 0.3% |
| Contracting | 734.3 | 671.7 | + 9.3% |
| Other divisions and eliminations |
-0.2 | 64.1 | n.s. |
| Total | 2,755.6 | 2,751.9 | + 0.1% |
| Order book In million € |
30/09/2019 | 31/12/2018 | 30/09/2018 |
|---|---|---|---|
| Dredging, Environmental, Offshore and Infra division |
3,875.0 | 4,010.0 | 2,780.0 |
| Contracting | 1,315.0 | 1,320.3 | 1,237.4 |
| Other divisions | 48.1 | 55.6 | 51.6 |
| Total | 5,238.1 | 5,385.9 | 4,069.0 |
| Net financial debt In million € |
30/09/2019 (*) | 31/12/2018 | 30/09/2018 |
|---|---|---|---|
| Dredging, Environmental, Offshore and Infra division including restatements |
782.1 | 556.0 | 546.5 |
| Other divisions | 147.3 | 92.3 | 99.7 |
| Total | 929.4 | 648.3 | 646.2 |
(*) Including the impact of the implementation of IFRS 16 - Leases
2. Analysis by division
Dredging, Environmental, Offshore and Infra division
KEY FIGURES
| In million € | 30/09/2019 (**) | 31/12/2018 | 30/09/2018 |
|---|---|---|---|
| Revenue | 2,021.5 | 2,645.8 | 2,016.1 |
| Net financial debt (*) | 782.1 | 555,8 | 545.8 |
| Order book | 3,875.0 | 4,010.0 | 2,780.0 |
(*) Excluding amounts restated to take account of the recognition at fair value of the identifiable assets and liabilities of DEME following the acquisition of an additional 50% of the DEME shares on 24 December 2013.
(**) Including the impact of the implementation of IFRS 16 - Leases
REVENUE
DEME reported € 2,021.5 million consolidated revenue over the first nine months of 2019.
Revenue for DEME Offshore amounted to € 895.5 million, or 44.3% of total revenue. The main projects in progress are situated in Belgium (SeaMade and MOG) and the United Kingdom (Moray East).
Business was buoyant for the Dredging segment (€ 832.9 million), primarily in Singapore, Western Europe, Africa, India and Qatar.
The Infra segment (DIMCO) continued work on three major civil engineering projects in the Netherlands (Terneuzen lock, Blankenburg connection, and RijnlandRoute).
ORDER BOOK
The order book amounted to € 3,875.0 million at 30 September 2019.
In the third quarter of 2019, DEME Offshore won the EPCI contract, in joint venture, for the design, procurement and installation of 80 steel foundations for the Saint-Nazaire offshore wind farm in France. The installation of the foundations is scheduled for the spring of 2021.
In Taiwan, DEME Offshore and its partner CSBC landed two major commercial successes in October and November 2019:
- Preferred Bidder Agreement (PBA) for the construction of the Hai Long 2 and Hai Long 3 wind farms situated off the east coast of Taiwan. It is a BoP (Balance of Plant) type contract that encompasses the design, procurement, transport and installation of the foundations, the transport and installation of the wind turbines, and the installation of the inter array cables and the export cable. The works are scheduled for 2023 with an execution time of two years.
- Signing of two contracts with China Steel Corporation for the offshore wind farm project Zhong Neng with a capacity of 300 MW, due for completion in 2024. The first contract covers the transport and installation of the foundations, while the second contract formalizes the Preferred Bidder Agreement (PBA) for the transport and installation of the wind turbines.
Like the Fehmarnbelt link between Denmark and Germany, these two contracts will be included in the order book once the works will start.
INVESTMENTS AND NET FINANCIAL DEBT
Investments in the first nine months of 2019 amounted to € 379.5 million. Apart from the capitalized major repair costs (more particularly those connected with the docking of the jack-up vessel 'Innovation'), the investments essentially consist of down payments on the vessels 'Bonny River', 'Orion', 'Spartacus' and 'Meuse River'.
The net financial debt is slightly down compared to 30 June 2019 and stands at € 782.1 million.
Contracting division
KEY FIGURES
| In million € | 30/09/2019 | 31/12/2018 | 30/09/2018 |
|---|---|---|---|
| Revenue | 734.3 | 934.6 | 671.7 |
| Order book | 1,315.0 | 1,320.3 | 1,237.4 |
REVENUE
CFE Contracting reported € 734.3 million consolidated revenue over the first nine months of 2019, up 9.3%.
The substantial growth of business is driven by the construction activities in Flanders where several major projects are in progress, such as the ZNA hospital in Antwerp and the interior modules of the Gare Maritime (Tour & Taxis site). Also in Poland, business was particularly buoyant thanks to the construction of several logistics centres. Conversely, a marked downturn in business is reported in Brussels and Wallonia, where market conditions remain difficult.
ORDER BOOK
The order book amounted to € 1,315 million at 30 September 2019. The stability of the order book is the result of a vigorous increase in order intake in the Rail & Utilities and Multitechnics segments, offset by a marked slowdown in Construction (-13% compared to 31 December 2018).
In the Construction segment in Belgium, the objective is clearly not to boost revenue but to improve margins through, among other things, a greater selectivity in order intake.
Real Estate division
EVOLUTION OF REAL ESTATE PROJECTS
| In million € | 30/09/2019 | 31/12/2018 |
|---|---|---|
| Properties being marketed | 2 | 4 |
| Properties under construction | 68 | 70 |
| Properties in development | 70 | 65 |
| Total | 140 | 139 |
BREAKDOWN BY COUNTRY
| In million € | 30/09/2019 | 31/12/2018 |
|---|---|---|
| Belgium | 97 | 89 |
| Luxembourg | 20 | 23 |
| Poland | 23 | 27 |
| Total | 140 | 139 |
The commercialisation of the residential projects remains highly satisfactory in the three countries where BPI is active.
The capital employed remained stable at € 140 million at 30 September 2019.
In Luxembourg, BPI sold off-plan the residential tower block (8,900 m²) which is part of the Gravity project in Differdange. Planning permission has been obtained and construction work will begin shortly.
In Poland, BPI won the bid for the acquisition of a building plot in Gdynia on the outskirts of Gdansk. Approximately 9,400 m² of residential units can be developed on that site.
Holding, Non-transferred activities and Inter division eliminations
Very little progress has been made in the negotiations with the Afrexim Bank over the past few months. The status of the receivables on the Chadian government will be reassessed at the year-end. The exposure remains unchanged compared to 31 December 2018.
Outlook 2019
For the full year 2019, DEME expects a slight increase in turnover and an EBITDA on the same level as in 2018.
Contracting will realize a limited turnover increase in 2019. The operating income will, however, be lower than in 2018 due to the continued difficult market conditions for Construction in Brussels and Wallonia.
The operating income and net result of the real estate development are expected to be higher than in the previous year.
3. Shareholders' agenda
| Publication of financial statements 2019 | 28 February 2020 (before opening of the stock market) | |
|---|---|---|
| Ordinary shareholders meeting | 7 May 2020 | |
| Publication of interim statements 2020 | 20 May 2020 (before opening of the stock market) | |
| Publication of half-year financial statements 2020 | 28 August 2020 (before opening of the stock market) | |
| Publication of interim statements 2020 | 23 November 2020 (before opening of the stock market) |
About CFE
CFE, founded in 1880 is a Belgian industrial group active in three different divisions. The first, Dredging, Environment, Offshore and Infra, is carried out by its wholly owned subsidiary DEME, one of the world leaders in the field. DEME has a modern fleet of multipurpose vessels equipped with the latest technologies. The second, Contracting, encompasses the group's construction, multitechnics and rail activities in Belgium, Luxembourg and Poland. The third, Real Estate Development, covers the real estate projects developed by BPI in Belgium, Luxembourg and Poland.
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The CFE group currently employs more than 8,000 people and is active on every continent. CFE is listed on Euronext Brussels and is 60,85% owned by Ackermans & van Haaren.
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This press release is available on our website at www.cfe.be.
Note to editors
For further information, please contact, at CFE:
- Piet Dejonghe, Chief Executive Officer - tel.: +32 2 661 13 19 - mail : [email protected] or - Fabien De Jonge, Chief Financial Officer - tel. +32 2 661 13 12 - mail : [email protected]