| |
Latest News
|
PRESS RELEASE
Group net debt decreased by 75 million euros in the period
TUBACEX OBTAINS POSITIVE EBITDA OF 0.35 MILLION EUROS TO SEPTEMBER
Llodio, 30 October 2009
TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, obtained positive gross operating profits (EBITDA) of 0.35 million euros between January and September 2009, according to the information sent by the company to the Spanish National Stock Market Commission (Comisión Nacional del Mercado de Valores - CNMV).
The acute international economic crisis and the deterioration of activity levels in most industrial sectors have seriously affected demand for tube and tube prices, with the resulting effect on the activity of the Group, whose sales in the first nine months of the year decreased by 39.3% to 303.43 million euros. Like the other companies in the seamless stainless steel tube sector, the Company has recorded net losses of 15.74 million euros between January and September.
TUBACEX is making an important effort by applying measures to mitigate the effects of the crisis, with the continual implementation of competitiveness schemes, cost improvements and expenditure reductions in the different units in the Group, while also working to reduce stocks and optimise the use of working capital. As a result of these actions, cash generation stood at 75 million euros between January and September, while net debt was reduced to 140.7 million euros, making it 35% lower than at the close of financial year 2008.
With the start of a slight recovery in other nearby industrial sectors, TUBACEX is confident that this market recovery will also reach the seamless stainless steel sector in coming months, influenced by the increase in the oil price, the advent of recovery in many Western economies, the improvement in business confidence and in investment prospects, especially in the United States of America and Asia.
TUBACEX is still working intensively on developing its business project, committed to manufacturing very high value added products, for which it has already successfully commissioned a new rolling facility in Amurrio, specialising in oil and gas extraction tube (OCTG) in special alloys, and will have a new umbilical (offshore) tube production plant in Austria that will become operational in late 2009. In the same way, development of the strategic alliance with the Vallourec & Mannesmann Group will strongly increase the Group’s portfolio in coming months, especially in the oil, gas and power generation sectors, so we are fully convinced that the Company shall emerge from this crisis stronger and more competitive.
The Company is making all the investments foreseen in its strategic plan and, even being aware that the difficult market situation will continue to have a negative effect on results for the current year, maintains absolute confidence in its international position and in recovery of final demand for high value added products destined for the energy, oil and gas sectors.
EVOLUTION OF CONSOLIDATED RESULTS: JANUARY-SEPTEMBER
|
2009 |
2008 |
%2009/2008 |
|
SALES |
303.43 |
500.26 |
-39.3% |
|
GROSS OPERATING PROFIT(EBITDA) |
0.35 |
71.14 |
-99.5% |
|
OPERATING PROFIT (EBIT) |
-12.90 |
58.78 |
n.a. |
|
NET PROFIT |
-15.74 |
37.16 |
n.a. | Figures in millions of euros. n.a.: not applicable.
|
|
PRESS RELEASE
Net debt decreased by 59 million euros in the period
TUBACEX OBTAINS 3.2 MILLION EUROS OF POSITIVE EBITDA IN THE FIRST HALF OF 2009
Llodio, 4 August 2009
TUBACEX, the world’s second largest seamless stainless steeltube manufacturer, obtained Earnings Before Interests, Taxes, Depreciation and Amortization (EBITDA) of 3.2 million euros during the first half of 2009, according to the information sent by the company to the Spanish National Stock Market Commission (Comisión Nacional del Mercado de Valores - CNMV).
Group activity during these first six months of the year were deeply affected by the serious international economic crisis and stagnation of activity levels in most industrial sectors leading to very low demand for tubes. In this situation, the company attained sales of 239.3 million euros to June, 32.8% lower than in the same period of 2008, and recorded losses, like all companies in the seamless stainless steel tube manufacturing sector, that amounted to 9.7 million euros in the half.
Faced with this situation, in 2008 TUBACEX launched a set of measures intended to mitigate the effects of the crisis, and has continued to apply them since, for which it is making a great effort to reduce stock levels, to optimize its working capital and to continuously apply competitiveness and cost reduction schemes in the Group’s different business units. These actions have enabled a cash generation of 58.8 million euros in the first half, thus reducing the Group’s net debt to 157 million euros, 27% less than at the end of financial year 2008. Moreover, the Company has applied the labour temporal adjustment approved by Acerálava and Tubacex Tubos Inoxidables in a limited manner, allowing the underactivity of Group plants to be cut as much as possible.
Nonetheless, a recovery in volumes of order intake took place in July, backed by some positive factors such as the stabilisation, with an upward trend, of the prices of raw materials used by the Group in its production process, the recovery in oil prices and the improvement in business confidence and in investment prospects in Asia and the U.S.A., among others.
In addition, TUBACEX is working intensively on developing its business project, committed to manufacturing very high value added products, for which it has already successfully commissioned a new rolling facility in Amurrio, specialising in oil and gas extraction tube (OCTG) in high alloys, and will have a new umbilical (offshore) tube production plant in Austria that will become operational in the last quarter of 2009. In the same way, development of the strategic alliance with the Vallourec & Mannesmann Group will strongly increase the Group’s product portfolio in coming months, especially in the oil, gas and power generation sectors.
The Company is making all the investments foreseen in its strategic plan and, even being aware that the difficult market situation will continue to have a negative effect on results for the current year, maintains absolute confidence in its international position and in the recovery of final demand for high added value products destined for the energy, oil and gas sectors.
EVOLUTION OF CONSOLIDATED RESULTS: JANUARY-JUNE
|
2009 |
2008 |
%2009/2008 |
|
SALES |
239.31 |
355.86 |
-32.8% |
|
GROSS OPERATING PROFIT(EBITDA) |
3.24 |
54.23 |
-94.0% |
|
OPERATING PROFIT (EBIT) |
-6.40 |
45.19 |
n.a. |
|
NET PROFIT |
-9.68 |
27.97 |
n.a. | Figures in millions of euros. n.a.: not applicable.
|
|
PRESS RELEASE
Ordinary General Meeting of Shareholders for financial year 2008
TUBACEX EXPECTS TO EMERGE STRONGER
FROM THE CURRENT SITUATION
*The AGM approves a dividend of 0.1013 euros per share
*Total dividend amounts to 13.15 million euros and represents a pay-out of 35%
*Tubacex Innovación, which will manage the Group’s innovation, R&D and quality policy, as well as collaboration with other companies, technology centres and universities, has been incorporated
*Tubacex Innovación will play an important role in developing the R&D&I alliance with Vallourec & Mannesmann
*Consuelo Crespo and Xabier de Irala, new independent board members
*Caja de Ahorros de Navarra and Cartera Industrial REA, new proprietary directors
*TUBACEX invested 23.2 million euros in 2008 and continues with its strategic investment plan in 2009
Llodio, 28 May 2009
The Ordinary General Meeting of Shareholders of TUBACEX, meeting today at the Company headquarters in the locality of Llodio, Álava, Spain, has approved the distribution of a dividend for an amount of 0.1013 euros gross per share, to be paid out of the profits of financial year 2008.
TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, will allocate a total of 13.15 million euros to paying out this dividend, a payout of 35% of net profits for 2008, which totalled 37.58 million euros.
This is the second highest dividend ever distributed by TUBACEX to its shareholders.
The AGM also accepted the appointment of Grupo Corporativo Empresarial de la Caja de Ahorros de Navarra and of Antonio González-Adalid, representing Cartera Industrial REA, as new proprietary directors and of Consuelo Crespo and Xabier de Irala as new independent board members.
In the same way, the AGM re-elected board members Juan Garteizgogeascoa and Juan Ramón Guevara.
José Antonio Ardanza, Pedro Luis Uriarte and Alejandro Echevarría stepped down from the Board of Directors on reaching the age established in the Company’s governing rules.
Moreover, the AGM agreed to re-appoint KPMG Auditores S.L. as approved auditor of TUBACEX S.A. and its consolidated Group.
Tubacex Innovación incorporated
The President of TUBACEX, Álvaro Videgain, pointed out to the AGM that one of the fields in which the Company is intensifying its efforts is innovation, “which is essential for our future development and is going to enable us to maintain and even improve our competitive position in a sustainable manner”.
“Together with technological innovation, which the Company has already been carrying out through its R&D and Quality departments, TUBACEX is working on an innovation concept that mobilises our entire organisation and includes the development of new ideas, processes, products, services and management practices, with the aim of contributing towards increasing productivity and greater business efficiency”, he added. “In short, to achieve transversal innovation, which involves the Company as a whole”.
Videgain informed the AGM about the creation of Tubacex Innovación, a subsidiary in which the Group’s endeavours in this field are to be concentrated, including the development of production processes and new products, quality, technical sales attention, knowledge management, etc. In the same way, this subsidiary will promote collaboration with other companies and also with technology centres and universities as regards R&D&I.
To this effect, the President of TUBACEX reminded the shareholders of the long-term R&D&I and sales collaboration agreement signed last February with Vallourec & Mannesmann, with the aim of boosting the supply of seamless stainless steel tubes for the oil, gas and power generation sectors.
“As regards R&D&I”, stated Videgain, “both companies have already created joint teams to develop new products. In the oil and gas markets, this is going to mean the development of high alloy seamless stainless steel tubes for extreme and highly corrosive environments.
In the power generation segment, our two companies are already working together to develop new materials capable of withstanding extreme pressure and temperature conditions for new power generation plants”.
In the opinion of the President of TUBACEX, “this agreement not only means an important boost for our Innovation policy but also enables us to make considerable progress towards the targets set in our Strategic Plan 2012”.
Tubacex Innovación will play an important role in developing the R&D&I alliance with Vallourec & Mannesmann.
During 2008 TUBACEX approved and began to apply a new Strategic Plan with a 2012 time horizon, to complement the targets set in the 2010 Plan. The aim of this new Strategic Plan is to consolidate the Company’s leading position in the seamless stainless steel tubes sector and convert TUBACEX into the leading manufacturer worldwide.
To achieve this, the Company is developing production capabilities in the most specialised and value-added segments within the oil, gas and energy sectors in which highest growth is expected, such as in oil and gas exploration and extraction in difficult conditions (offshore and deep water), the new generation pf power plants and nuclear energy.
The company is working intensively on developing the Strategic Plan 2012 and is making all the investments foreseen in the Plan during the current financial year.
Financial year 2008
With regard to financial year 2008, whose annual accounts were approved today at the AGM, Álvaro Videgain pointed out that good results were achieved, the second highest in the history of the Company, in spite of the international economic crisis.
Consequently, consolidated sales amounted to 671.80 million euros, a figure 3.6% lower than in the preceding financial period, which was the Group’s all-time record year.
Although sales decreased in Europe, they increased in other markets, especially in the U.S.A. (by 32.5%) and in the Far East (by 47.4%). In 2008, 59% of TUBACEX revenues came from the European Union, almost 23% from the U.S.A. and Canada and 11% from the Far East.
The gross operating profit (EBITDA) stood at 72.38 million euros, recording a decrease of 31.8%, while the consolidated net profit amounted to 37.58 million euros, down by 33.7%.
Investments for the year amounted to 23.2 million euros
During financial year 2008, TUBACEX invested a total of 23.2 million euros in technical installations and machinery at its different subsidiaries, chiefly assigned to implementation of the Strategic Plan and Competitiveness Plan. Investment in the year meant an increase of 26.3% over the amount undertaken in 2007, when it totalled 18.37 million euros, and represents the highest annual investment figure in the Company’s recent history.
Among the investments carried out in 2008, we have to highlight the start of construction on the new facility at the Group plant in the Austrian locality of Ternitz to manufacture umbilicals tubes, a product used in oil and gas exploration and extraction support activities in critical pressure, temperature and corrosion conditions.
At TTI we must highlight the installation of a new cold-rolling mill for high value added products, especially to produce tubes for oil extraction in extreme conditions. In the same way, the tube pickling facility has been extended and modernised, and a new straightening line, non-destructive controls and cutting systems have been installed, and the cold mother tubes depot has been extended, among other activities.
In the 1998-2008 period, TUBACEX has invested a total of 148.15 million euros in extending and improving its factory facilities, which means an average annual investment of 13.46 million euros.
Forecasts for 2009
As regards the current financial year, Álvaro Videgain declared to the AGM that in 2009 “our market is experiencing difficult conditions, seriously affected by an unprecedented economic crisis”. This situation is causing delays in new investment projects for the oil, gas and energy sectors, bringing with it a decrease in the order intake and, therefore, in the Company’s activity.
In view of the deteriorating situation, TUBACEX has implemented a set of measures with the aim of adapting production capacity to the true market situation, reducing costs, improving working capital, as well as starting temporary employment regulation measures, which affect the plants in Llodio, Amurrio and Austria.
The months of the financial year which have already lapsed are confirming this difficult market situation. In the first quarter, sales have decreased by 15.2% to reach 151 million euros, while net profit amounted to 3.22 million euros, making it 77% lower than in the first quarter of 2008.
In spite of the difficulties in the environment, the company was able to generate cash and therefore reduce its net debt by 24.3 million euros in this period, thereby strengthening its financial position even more in comparison to the previous year.
TUBACEX expects a gradual recovery in activity in the later part of the year, mainly in the U.S.A., motivated by the measures which are being taken there and by the initial indicators of recovery in business confidence with direct effects on raw material markets and on investments in the energy and oil sectors.
The President of TUBACEX told the AGM that “we were one of the last sectors to be affected by the crisis and we are convinced that we are going to be one of the first to emerge from it” and added that “we are confident that the Company will emerge stronger from the current situation”.
KEY FIGURES FOR THE CONSOLIDATED TUBACEX GROUP
|
2008 |
2007 |
2006 |
2005 |
2004 |
|
SALES |
671.80 |
696.73 |
539.07 |
430.50 |
347.45 |
|
GROSS OPERATING PROFIT(EBITDA) |
72.38 |
106.17 |
64.03 |
52.65 |
40.14 |
|
OPERATING PROFIT (EBIT) |
55.71 |
89.47 |
47.29 |
37.00 |
25.06 |
|
NET PROFIT |
37.58 |
56.66 |
30.95 |
25.42 |
15.38 |
|
NET CASH FLOW |
54.25 |
73.35 |
47.69 |
41.06 |
30.46 |
|
TOTAL ASSETS |
674.96 |
603.08 |
539.62 |
456.93 |
388.87 |
|
NET WORTH |
279.96 |
265.85 |
225.22 |
206.02 |
186.82 |
|
NET WORTH / LIABILITIES (%) |
41.48 |
44.08 |
41.74 |
45.09 |
48.04 |
|
FINANCIAL DEBTS |
254.29 |
202.79 |
197.35 |
147.33 |
115.63 |
|
FINANCIAL PROFIT / (LOSS) |
(14.36) |
(12.26) |
(6.11) |
(3.82) |
(5.30) |
|
SHARE CAPITAL |
59.84 |
59.84 |
59.84 |
59.84 |
59.84 |
|
EBITDA / SALES (%) |
10.77 |
15.24 |
11.88 |
12.23 |
11.55 |
|
OPERATING PROFIT / SALES (%) |
8.29 |
12.84 |
8.77 |
8.59 |
7.21 |
|
NET PROFIT / SALES (%) |
5.59 |
8.13 |
5.74 |
5.90 |
4.43 |
|
PROFIT / EQUITY (ROE) (%) |
13.42 |
21.31 |
13.74 |
12.34 |
8.23 |
|
PROFIT / ASSETS (ROA) (%) |
5.57 |
9.40 |
5.74 |
5.56 |
3.96 |
|
PROFITS PER SHARE (PPS) in euros |
0.283 |
0.426 |
0.233 |
0.191 |
0.116 |
|
CASH FLOW / SHARE (CFPS) in euros |
0.408 |
0.552 |
0.359 |
0.309 |
0.229 |
|
BOOK VALUE /SHARE in euros |
2.11 |
2.00 |
1.69 |
1.55 |
1.40 |
|
DIVIDEND in euros per share |
0.151 |
0.094 |
0.078 |
0.052 |
0.018 |
|
MARKET CAPITALISATION |
312.50 |
888.30 |
656.92 |
476.06 |
251.33 |
|
PRICE / BOOK VALUE times |
1.12 |
3.34 |
2.92 |
2.31 |
1.35 |
|
PER times |
8.31 |
15.68 |
21.23 |
18.73 |
16.34 |
|
EV/EBITDA (times) (1) |
7.29 |
10.03 |
12.93 |
11.44 |
8.85 |
|
AVERAGE WORKFORCE |
1,970 |
1,909 |
1,771 |
1,628 |
1,517 |
|
EMPLOYEES IN SPAIN |
1,226 |
1,206 |
1,093 |
963 |
904 |
|
EMPLOYEES ABROAD |
744 |
703 |
678 |
665 |
613 | Figures in millions of euros. ( ) Negative balances and figures. (1) (Market
capitalisation plus net financial debt) / EBITDA.
|
|
PRESS RELEASE
Cash generation for the period amounted to 24.3 million euros
TUBACEX ACHIEVES 11.3 MILLION EUROS IN FIRST QUARTER EBITDA
Llodio, 11 May 2009
TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, obtained consolidated net profits of 3.2 million euros during the first quarter of 2009, according to the information sent by the company to the Spanish National Stock Market Commission (Comisión Nacional del Mercado de Valores - CNMV). This figure represents a decrease of 76.8% with regard to the net profit obtained in the same period of 2008, when the figure was 13.89 million euros.
The gross operating profit (EBITDA) to March stood at 11.3 million euros, 59% lower than in 2008, while the operating profit (EBIT) decreased by 71.9% to 6.5 million euros.
These results reflect the difficult conditions of the world market, very seriously affected by an unprecedented international economic crisis. This situation has caused an important slowdown in distribution and maintenance activities, as well as delays in foreseen new investment projects in the oil, gas and energy sectors.
In spite of the difficult environment, the company was able to generate cash and therefore reduce its net debt by 24.3 million euros in this period, thereby strengthening its financial position even more in comparison to the previous year.
Consolidated sales between January and March amounted to 151 million euros, representing a decrease of 15.2% on the preceding year, when the figure achieved was 178.10 million euros.
The first half of 2009 is showing an important contraction in activity and investment levels in all industrial sectors worldwide. Nonetheless, TUBACEX expects a gradual recovery in activity in the later part of the year, chiefly in the U.S.A., brought about by the measures being adopted there and by the first signs of recovery of business confidence, with direct effects on raw materials markets and on investment in the energy and oil sectors.
The company is going ahead with all the investments included in its strategic plan and retains its absolute confidence in its international position and in that recovery of final demand for high value-added products, intended for the energy and petrochemical sectors, will take place much sooner than in other sectors of industrial activity.
EVOLUTION OF CONSOLIDATED RESULTS: JANUARY-MARCH
|
|
2009 |
2008 |
% 2009/2008 |
|
SALES |
151.00 |
178.10 |
-15.2% |
|
GROSS OPERATING PROFIT (EBITDA) |
11.30 |
27.55 |
-59.0% |
|
OPERATING PROFIT (EBIT) |
6.47 |
23.01 |
-71.9% |
|
NET PROFIT |
3.22 |
13.89 |
-76.8% | Figures in millions of euros.
|
|
PRESS RELEASE
The company has made full provision for application of substitution contracts through to 2012
TUBACEX OBTAINS CONSOLIDATED NET PROFITS OF 37.58 MILLION EUROS
Llodio, 27 February 2009
TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, obtained gross operating profit (EBITDA) of 72.38 million euros, operating profit (EBIT) of 55.71 million euros and consolidated net profits, after tax, of 37.58 million euros in 2008, which is 33.7% lower than the 56.66 million euros obtained in 2007.
The gross operating profit (EBITDA) for financial year 2008 includes the provisions made in the last quarter to fully cover the labour liabilities related with application of the substitution contract formula until 2012 and to reflect the effect of the drop in raw materials prices in the valuation of stocks for a joint amount of over 15 million euros. If this adjustment were not taken into account, the gross operating profit (EBITDA) would have stood at 88 million euros (17% less than in 2007).
Sales in the financial year reached 671.80 million euros, which is 3.6% lower than the figure recorded in 2007, when sales totalled 696.73 million euros.
These profits have been achieved in a situation of unprecedented global crisis, characterised by the brusque contraction in activity levels and industrial investment worldwide, the slump in reference raw material prices, especially nickel and molybdenum, the weakness of the euro, the sharp drop in oil prices and by the difficulties and delays in projects financing and its consequent effect on final demand in the energy and petrochemical sectors.
During 2009, TUBACEX expects to conclude the majority of the strategic investments foreseen in its 2012 Plan, oriented towards innovation, specialization and the development of new very high value added products for the oil, gas, power generation and nuclear energy sectors, so as to guarantee a strongly reinforced competitive position once the international crisis has been overcome. The long-term cooperation agreement signed with Vallourec on 18 February last, covering R&D, technological development and commercial strategy, is a key factor in implementing the said strategic lines.
EVOLUTION OF CONSOLIDATED RESULTS FOR THE FINANCIAL YEAR
|
|
2008 |
2007 |
% 2008/2007 |
|
SALES |
671.80 |
696.73 |
-3.6% |
|
GROSS OPERATING PROFIT (EBITDA) |
72.38 |
106.17 |
-31.8% |
|
OPERATING PROFIT (EBIT) |
55.71 |
89.47 |
-37.7% |
|
NET PROFIT |
37.58 |
56.66 |
-33.7% |
|
NET CASH FLOW |
54.25 |
73.35 |
-26.0% |
|
PROFITS PER SHARE (PPS) (in euros) |
0.283 |
0.426 |
-33.7% | Figures in millions of euros.
|
|
PRESS RELEASE
TUBACEX AND VALLOUREC SIGN A LONG TERM COOPERATION AGREEMENT TO OFFER SEAMLESS STAINLESS STEEL TUBE SOLUTIONS FOR THE ENERGY MARKETS
Llodio, 18 February 2009
TUBACEX, Tubacex, world leader in the manufacture of seamless stainless steel tubes, and Vallourec, world leader in the production of seamless steel tubes, today announced an important long term cooperation agreement covering R&D and sales development to reinforce the offer of seamless stainless steel tubes for the Oil & Gas and Power Generation markets.
Regarding R&D, Tubacex and Vallourec will set up joint project teams to co-develop new products. For the Oil & Gas market, this will cover the development of stainless steel tubular solutions for extremely corrosive environments. In the field of Power Generation, Tubacex and Vallourec will work together to develop new materials capable of withstanding higher temperature and pressure conditions for future power plants.
Commercially, the agreement aims at offering combined product solutions for both the Oil & Gas and Power Generation markets. Tubacex’s expertise in the manufacture of high-value stainless steel tubes will complement Vallourec’s premium product offer. Vallourec’s leading market position in the energy markets will open up new prospects for Tubacex. Both Tubacex and Vallourec will be better positioned to grow their respective activity in these markets and to provide their clients with a new competitive source for high-value stainless steel tubes.
Álvaro Videgain, Chaiman and CEO of Tubacex stated “This is an excellent cooperation agreement between leaders to better serve the needs of the energy market. We have a very good relationship with Vallourec, our businesses are fully complementary and we look forward to working together to develop new premium solutions as outlined in our strategic plan.”
Pierre Verluca, Chairman of the Management Board of Vallourec added “I am extremely pleased with this cooperation agreement which is fully in line with our strategy in the premium energy markets. Tubacex, recognised in the market for its high-value stainless steel tubes, and Vallourec share the common goal of delivering better value to customers”.
About Tubacex
TUBACEX, S.A. is dedicated to the manufacture and sale of special seamless stainless steel tubes, exporting to over 60 countries all over the world. Total sales have converted TUBACEX into the second producer worldwide, a leadership where total integration of the production processes has demonstrated being a key factor in success.
The Head Office located in Llodio (Alava), Spain has branches in Austria and USA with delegations in Italy, France, Holland, Germany, Poland, Czech Republic, Hungary, Canada, China, Brasil, UAE and CIS. The actual workforce in the companies that form the TUBACEX Group total 2,016.
TUBACEX is a traditional security on the Spanish Stock Market and is included in the IBEX MEDIUM CAP Index.
About Vallourec
Vallourec is world leader in the production of seamless steel tubes designed primarily for the Oil & Gas and Power generation sectors, and for other industrial applications.
Vallourec is listed on the Euronext Paris Eurolist (ISIN code: FR0000120354), is eligible for the deferred settlement system and is included in the following indices: MSCI World Index, Euronext 100 and CAC 40. FTSE classification: engineering and machinery.
|
|
