Bilbao, July 24, 2024.

The Tubacex Group has closed the first half of 2024 with consolidated sales of €398 million, marking a period of significant investments in CAPEX and working capital related to strategic clients and projects, while solidifying its annual results. These efforts are positioning Tubacex to achieve its targets for 2025 and 2026 and fulfill the NT2 Strategic Plan (New Tubacex in the Next Transition) by 2027.

Key Highlights:

• ADNOC Project Initiation: In the first half of 2024, Tubacex commenced its mega contract with ADNOC, receiving initial orders and beginning product manufacturing in its Spanish plants.
• New Abu Dhabi Plant: Tubacex is finalizing the startup of a new finishing and threading plant for CRA OCTG in Abu Dhabi, set to begin operations by the end of 2024 to execute the ADNOC contract.
• Strategic Agreement with Mubadala: The company signed a historic agreement with Mubadala Investment to enhance its OCTG business. This agreement will result in a cash inflow of €180 million in the last quarter of 2024.
• Order Book: The order book remains robust at around €1.6 billion, consistent with the record levels at the end of 2023, with a high concentration of high-value-added products and an increasing emphasis on Low Carbon solutions.
• Financial Performance: The first half of 2024 closed with sales of €398 million, an EBITDA of €50.1 million, and a margin of 12.6%. These results were influenced by extraordinary factors from the ADNOC project startup and the Abu Dhabi plant launch.
• Strategic Plan Goals: Tubacex reaffirms its NT2 Strategic Plan goals announced last November, aiming for sales between €1.2 billion and €1.4 billion and an EBITDA exceeding €200 million by 2027.

Financial Highlights:

• EBITDA and Profit: As of June 30, 2024, Tubacex’s accumulated EBITDA reached €50.1 million, with a margin of 12.6%. The pre-tax profit and minority interest stood at €9.2 million.
• Debt and Liquidity: The Net Financial Debt (NFD) at the end of the first half of 2024 was €395.3 million, which includes a €38.5 million investment in the Abu Dhabi plant and an €86.5 million increase in working capital. A cash inflow of €180 million is expected in Q4 2024 from the Mubadala agreement, reducing the proforma NFD to approximately €215 million, with a debt-to-EBITDA ratio slightly below 2 times, aligning with the NT2 Plan objectives. The Group’s liquidity position is strong, with €222 million in liquidity and €141.4 million in cash.

Outlook:

Despite a complex macroeconomic and geopolitical environment, all business segments have contributed positively to the Group’s results, reinforcing Tubacex’s role in the energy transition and energy supply security. Expectations for the full year 2024 remain positive, anticipating a stronger second half in terms of revenue, EBITDA, and margin, and a highly expansive 2025. The order intake remains high in volume and margin, ensuring a stable order book of €1.6 billion, with a significant focus on high-value-added products and Low Carbon solutions.

Jesús Esmorís, CEO of Tubacex, stated: “With the results we presented to the investor community today, the Group closes the first half with a historically strong order book. We remain cautious yet optimistic for the full year, confirming 2024 as a year of consolidation for our new market positioning, with notable growth prospects for the next two years. Importantly, the first order within the ADNOC mega contract, received early in 2024, marks a pivotal milestone for the project’s initiation.”

Strategic Partnerships:

In mid-May, Tubacex announced the incorporation of Mubadala Investment Company as a new strategic partner in its OCTG business, with Mubadala holding a 49% minority stake valued at $195 million. This investment will enhance Tubacex’s positioning and commercial capabilities in the CRA OCTG business in the Middle East, the fastest-growing market for this technology.

The CRA OCTG segment is one of the fastest-growing globally, crucial for gas extraction solutions, supporting energy transition, and positioning Abu Dhabi as a global gas export hub.