Earnings Release • May 14, 2013
Earnings Release
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| March 31 | % change | ||
|---|---|---|---|
| (in € millions) | 2013 | 2012 | |
| Contracting - Construction |
205.0 148.7 |
202.6 141.7 |
+1.2% +4.9% |
| - Rail-Road - Multitechnics |
15.0 41.3 |
20.3 34.8 |
-26.1% +18.7% |
| Real Estate Development and Management Services |
5.2 | 5.8 | n.s. |
| (*) Dredging and Environment |
262.6 | 216.1 | +21.5% |
| PPP–Concessions | 0.8 | 1.8 | n.s. |
| Adjustments and consolidation |
-0.3 | -2.8 | n.s. |
| Total | 473.3 | 417.5 | +13.4% |
(*) amounts presented in CFE share (50%)
CFE's consolidated revenue at March 31, 2013 was €473 million, up 13.4% on March 31, 2012 (+12.3% on a comparable structure basis).
Contracting's revenue increased with 1.2% (stable on a comparable structure basis) to €205 million, which includes €149 million for the Construction division, €15 million for the Rail-Road division and €41 million for the Multitechnics division.
Revenue for Real Estate Development and Management Service declined slightly, but is not significant.
Dredging and Environment revenue increased with 21.5%, amounting to €262.6 million (CFE share).
| (in € millions) | March 31, 2013 | December 31, 2012 | March 31, 2012 |
|---|---|---|---|
| Contracting | 1,208.6 | 1,195.6 | 1,235.7 |
| - Construction | 961.9 | 964.2 | 999.5 |
| - Rail-Road | 86.5 | 65.8 | 84.1 |
| - Multitechnics | 160.2 | 165.6 | 152.1 |
| Real Estate Development and Management Services |
16.9 | 14.1 | 12.6 |
| Dredging and Environment |
1,593.0 | 1,658.5 | 1,682.5 |
| Total | 2,818.5 | 2,868.2 | 2,930.8 |
Year-to-date order intake at March 31, 2013 totalled €424 million, including €217 million for Contracting and €197 million for Dredging and Environment.
The order book amounted to €2,818.5 million, down slightly on December 31, 2012. The decline is due mainly to Dredging and Environment.
Consolidated net financial debt was €517 million (€400 million at December 31, 2012). This change was due to payments made relating to the last phase of DEME's investment programme and an increase in working capital requirement in the divisions.
The negative impact of the harsh winter weather is expected to be largely offset over the remainder of the year. The forecasted revenue growth announced in February 2013 are therefore confirmed.
| March 31 | % change | ||
|---|---|---|---|
| (in € millions) | 2013 | 2012 | |
| Civil engineering | 30.7 | 36.3 | -15.4% |
| Buildings, Benelux | 99.1 | 92.4 | +7.3% |
| Buildings, international | 18.9 | 13.0 | +45.4% |
| Total | 148.7 | 141.7 | +4.9% |
Major trends observed in 2012 are maintained:
– Decline in civil engineering business
The major projects that featured strongly in 2011 and 2012 have reached or are nearing completion. Meanwhile, replenishment of the order book is slow in a depressed market.
– Growth in international business
Currently, this business is focused mainly on Chad, Nigeria, Algeria and Sri Lanka, as well as Central Europe (Hungary, Poland, Romania).
In the Netherlands, negotiations started with the customer at the beginning of the year with a view to reaching a fair and final solution on a large project in Amsterdam. An agreement has been reached early May. This agreement will be formalized in the upcoming weeks together with the customer and banks financing the project.
| (in € millions) | at March 31, 2013 | at December 31, 2012 | at March 31, 2012 |
|---|---|---|---|
| Civil engineering | 190.1 | 190.6 | 195.3 |
| Building, Benelux | 505.5 | 527.8 | 632.4 |
| Building, international | 266.3 | 245.8 | 171.8 |
| Total | 961.9 | 964.2 | 999.5 |
The trends previously observed continued:
The Rail-Road division generated revenue of €15 million, down 26% from the previous year, the decrease being the result of the harsh winter conditions during the period.
The order book stood at €86.5 million, up 31% compared with December 31, 2012. This growth was attributable mainly to the roads business. The outlook for the division remains favourable, with significant tenders in the rail sector under way.
The Multitechnics division's revenue amounted to €41.3 million, an organic growth up to 19% from the previous year.
The order book held up well, amounting to €160.2 million (€165.6 million at the end of 2012). Most of the orders were booked by VMA, which continued its international growth.
Evolution of the real estate portfolio
| (in € millions) | March 31, 2013 | December 31, 2012 |
|---|---|---|
| Properties at marketing stage |
18 | 19 |
| Properties at construction stage |
44 | 45 |
| Properties at development stage |
120 | 102 |
| Total | 182 | 166 |
Numerous property development projects were launched in Ostend, Uccle, Luxembourg and Poland during the period in a steady, although calmer, market.
Properties at marketing stage remained low (10% of the real estate portfolio).
Properties in development increased following the acquisition (in partnership with other developers) of a substantial property in Luxembourg (Kons Gallery project). The project includes a firm commitment by a well-known bank to rent a significant portion of the office space. Construction works are scheduled to start at the beginning of 2014.
DEME generated revenue of €525.2 million during the first three months of the year, up 21.5% relative to the previous year.
| % | 1st quarter 2013 | 1st quarter 2012 |
|---|---|---|
| Capital dredging | 47% | 52% |
| Maintenance dredging | 11% | 18% |
| Fallpipe & landfalls |
7% | 7% |
| Environment | 7% | 8% |
| Marine works | 28% | 15% |
| Total (in million €) | 525 | 432 |
Evolution by geographical area
| % | 1st quarter 2013 | 1st quarter 2012 |
|---|---|---|
| Europe (EU) | 47% | 45% |
| Europe (non EU) | 2% | 3% |
| Africa | 11% | 16% |
| Americas | 5% | 7% |
| Asia-Pacific | 30% | 16% |
| Middle East | 4% | 9% |
| India and Pakistan |
1% | 4% |
| Total (in million €) | 525 | 432 |
Two major projects (New Doha Port in Qatar and Wheatstone in Australia) started up at the end of the first quarter, which will ensure better utilisation of the fleet.
DEME's order book stood at €3,186 million, down 3.9% against December 31, 2012. GeoSea won two high-profile contracts in April: the installation of foundations for 35 offshore wind turbines in the UK and 77 with scour protection in Germany.
In January 2013 DEME launched successfully a bond for €200 million. This bond issue allows DEME to restructure its debt and to diversify sources of financing.
Rent-A-Port's business continued steadily, but the works on the Bizerte marina in Tunisia have been suspended again.
In Belgium, activities are focused on new studies.
Net financial debt (*) at the end of March 2013 was €517 million, compared with €400 million at December 31, 2012. The debt breaks down into long-term debt of €593 million, consisting mainly of CFE's €100 million bond issue DEME's €200 million bond issue (CFE share: €100 million), credit facilities covering the acquisition of DEME's vessels and net cash of €76 million.
The increase in net financial debt is attributable to:
CFE has €100 million of confirmed long-term credit facilities for its general financing needs. These were unused at March 31, 2013. DEME's investments in dredgers and other marine equipment are subject to separate financing arrangements secured on those assets.
(*) Net financial debt does not include the fair value of derivative instruments.
The Ordinary Shareholders' Meeting held on May 2, 2013 renewed the terms of office of the following directors: Philippe Delusinne and Jan Steyaert (independent Directors); Richard Francioli and Christian Labeyrie (Directors); and Renaud Bentégeat (Managing Director).
* * *
CFE is a multidisciplinary group of companies operating in construction and associated services. It is listed on Euronext Brussels and 47% owned by VINCI. CFE is a major player in Belgium's construction industry, with a presence in the Netherlands, Luxembourg, Central Europe, Africa, Asia and the Middle East. CFE owns 50% of the capital of DEME, one of the world's leading dredging contractors.
This press release is available on www.cfe.be.
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