Earnings Release • May 20, 2016
Earnings Release
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| Revenue In million € |
31/03/2016 | 31/03/2015 |
|---|---|---|
| Dredging and Environment | 401.3 | 608.9 |
| Contracting | 196.2 | 156.7 (*) |
| Other divisions and eliminations | 12.2 | 51.9 (*) |
| Total | 609.7 | 817.5 |
(*) Pro forma figures according to the new definition of the segment as of 1 January, 2016
| Order book In million € |
31/03/2016 | 31/12/2015 |
|---|---|---|
| Dredging and Environment | 3,098.0 | 3,185.0 |
| Contracting | 749.8 | 836.3 (*) |
| Other divisions | 122.6 | 139.0 (*) |
| Total | 3,970.4 | 4,160.3 |
(*) Pro forma figures according to the new definition of the segment as of 1 January, 2016
| Net financial debt In million € |
31/03/2016 | 31/12/2015 |
|---|---|---|
| Dredging and Environment including restatements |
326.1 | 275.0 |
| Other divisions & Holding | 47.6 | 47.7 |
| Total | 373.7 | 322.7 |
Key figures
| In million € | 31/03/2016 | 31/12/2015 | 31/03/2015 |
|---|---|---|---|
| Revenue | 401.3 | 2,286.1 | 608.9 |
| Economic revenue (*) | 402.2 | 2,351.0 | 641.5 |
| Net financial debt (**) | 321.0 | 269.5 | 107.9 |
| Net economical financial debt (*) | 334.9 | 266.7 | 179.9 |
| Order book | 3,098.0 | 3,185.0 | 3,530.0 |
(*) The economic approach consists in proportionally consolidating the jointly controlled companies (accounting rules applicable before 1 January 2014).
(**) Net financial debt excluding restatements linked to the valuation of the identifiable assets and liabilities at their fair value.
DEME's revenue amounted to €402.2 million down on the first quarter of 2015, which was marked by an exceptional activity in Egypt (widening and deepening of the Suez Canal) and Qatar (new port of Doha).
In Singapore, work on the TTP1 project is gathering momentum with the start of production of the 122 caissons needed for the construction of the quay walls.
GeoSea, a subsidiary of DEME, launched the Galloper project in the United Kingdom and continued work on the Nordsee One project in the North Sea, off the German coast.
In the first quarter, GeoSea concluded an EPCI contract for the foundations of 71 wind turbines of the Hohe See offshore wind farm, located approximately 90 km north of Borkum Island in the North Sea. This order will only be included in the order book when the project is financially closed. This also applies to several other projects such as Merkur and Rentel.
In Belgium, DEC, the environmental subsidiary of the DEME group, was awarded, in joint venture, the PPP for the remediation and redevelopment of 63 hectares of polluted land along the river Scheldt in the south of Antwerp (the Blue Gate Antwerp site).
CFE, DEME and their partners have been selected for 3 of the 4 contracts of the Fehmarnbelt Fixed Link project. The project consists of the construction of an 18 km long immersed tunnel (the longest tunnel in the world) connecting Denmark with Germany as well as connecting the tunnel to existing infrastructures on shore. With a total value of 3.4 billion euros, these contracts represent for CFE and DEME a revenue of €750 million (not included in the order book at 31 March 2016).
The works will commence after the contracts are signed with the Danish authorities and the necessary permissions are obtained for the completion of the work.
In February 2016, DEME commissioned the 'Bonny River', a trailing suction hopper dredger with a capacity of 15,000 m³, capable of dredging to a depth of more than 100 metres. There are currently six vessels under construction for DEME, which are due for completion in 2017 and 2018.
The net financial debt increased by €68 million in the first quarter (economic approach). The operating cash flow of the first quarter was more than outweighed by the investments of the period and by the increased working capital requirement.
Despite a well filled order book but taking into account the delay of certain projects, the revenue of DEME should slightly decrease in 2016. After the record realised in 2015, the EBITDA (expressed in percentage of the revenue) should come back to its historical average.
| In million € | 31/03/2016 | 31/12/2015 (*) | 31/03/2015 (*) |
|---|---|---|---|
| Revenue | 196,2 | 718,9 | 156,7 |
| Order book | 749,8 | 836,3 | 892,9 |
(*) Pro forma figures according to the new definition of the segment as of 1 January, 2016
| In million € | 31/03/2016 | 31/03/2015 (*) |
|---|---|---|
| Construction | 146.4 | 109.6 |
| Buildings, Benelux | 117.6 | 87.0 |
| Buildings, International (**) | 28.8 | 22.6 |
| Multitechnics and Rail infra | 49.8 | 47.1 |
| Total Contracting | 196.2 | 156.7 |
(*) Pro forma figures according to the new definition of the segment as of 1 January, 2016
(**)Luxembourg, Poland and Tunisia only
Revenue in the Contracting division was substantially higher than in the first quarter of 2015. Business was particularly buoyant for the Buildings divisions in Belgium. The main projects in progress are the 'Docks' shopping centre (Brussels), AZ Sint-Maarten hospital (Mechelen), the Exxon industrial site (Antwerp), and the 'Les Grands Prés' shopping centre (Mons).
| In million € | 31/03/2016 | 31/12/2015 |
|---|---|---|
| Construction | 581.7 | 671.2 |
| Buildings, Benelux | 406.2 | 494.6 |
| Buildings, International (*) | 175.5 | 176.6 |
| Multitechnics and Rail infra | 168.1 | 165.1 |
| Total Contracting | 749.8 | 836.3 |
(*) Luxembourg, Poland and Tunisia only
The order book of Buildings in Belgium shrank by 17.9%, with difficult market conditions and a greater selectivity of projects weighing on order intake. In May 2016, however, a CFE Contracting subsidiary won the order, in joint venture, for the new ZNA hospital in Antwerp. The contract is worth around €65 million (CFE share), and will be included in the order book during the second quarter 2016.
Evolution of real estate projects
| In million € | 31/03/2016 | 31/12/2015 |
|---|---|---|
| Properties being marketed | 19 | 14 |
| Properties under construction | 29 | 34 |
| Properties in development | 70 | 71 |
| Total | 118 | 119 |
During the period under review, BPI continued the construction and marketing of residential units at the sites of 'Erasmus Gardens' (Anderlecht), 'Oosteroever' (Ostend), 'Ernest' (Ixelles), 'Ocean's Four' (Gdansk) and 'Wola Libre' (Warsaw).
In Wroclaw, in western Poland, BPI Polska recently obtained planning permission for the first phase of a mixed-use real estate project (175 apartments and 1,900 m² retail space). Construction and marketing will begin in the second quarter of the year.
| In million € | 31/03/2016 | 31/03/2015 (*) |
|---|---|---|
| Revenue | 10.6 | 46.4 |
(*) Pro forma figures according to the new definition of the segment as of 1 January, 2016
With the transfer of the marine civil engineering operations to DEME, the revenue of the nontransferred operations has become fairly modest.
The order book at 31 March 2016 amounted to €112.6 million, which is down €19.7 million compared with 1 January 2016.
As regards Chad, no payments came in during the first quarter. Serious solutions to refinance these accounts payable are currently being examined in close cooperation with the Chadian authorities. The exposure on this country remains unchanged at €60 million.
Despite the recognition of additional losses on the project of the wastewater treatment plant of Brussels-South, CFE confirms that the activities excluding DEME should contribute positively to the result of the Group in 2016.
The annual general meeting renewed the director's mandate of Philippe Delusinne for a period of four years, ending after the annual general meeting of May 2020. Philippe Delusinne meets the independence criteria defined in Article 526c of the Companies Code and in the 2009 Belgian Corporate Governance Code.
The annual general meeting renewed the director's mandate of Christian Labeyrie for a period of four years, ending after the annual general meeting of May 2020. Christian Labeyrie does not meet the independence criteria defined in Article 526c of the Companies Code and in the 2009 Belgian
Corporate Governance Code.
The general meeting appointed Leen Geirnaerdt as director for a period of four years, ending after the general meeting of May 2020. Leen Geirnaerdt meets the independence criteria defined in Article 526c of the Companies Code and in the 2009 Belgian Corporate Governance Code.
The general meeting renewed the auditor's mandate of Deloitte, Reviseurs d'Entreprises, SC s.f.d. SCRL, represented by Michel Denayer and Rik Neckebroeck, for a period of three years, ending after the annual general meeting of 2019.
Luc Bertrand was appointed chairman of the board of directors of CFE with effect from 5 May 2016.
Publication of interim statements: 22 November 2016 (before opening of the stock market)
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CFE is an industrial Belgian Group active in 3 different activities : Dredging and Offshore Solutions, Contracting and Real Estate Development.
The group is worldwide active, mainly across its dredging and marine activities executed by DEME, a 100% subsidiary, one of the world's leading dredging contractors. CFE is listed on Euronext Brussels and is 60.40% owned by Ackermans & van Haaren.
This press release is available on our website at www.cfe.be
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For further information, please contact, at CFE:
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