• The early achievement of the set objectives in its current plan has led to an update, resulting in the NT2 plan, centered on energy transition and the company’s transformation, with a horizon set for 2027.
  • The Low Carbon business unit emerges as a future growth platform, hand in hand with existing clients, offering industrial solutions for carbon capture, storage, utilization (CCS), and hydrogen technologies.
  • EBITDA is expected to exceed 200 million euros by 2027.
  • Group sales for the first nine months of 2023 amounted to 642 million euros, and expectations are set between 1,200 and 1,400 million euros by 2027.
  • The Net Financial Debt (NFD) / EBITDA ratio is projected to be below 2 times by the end of 2027.
  • The transformation plan aims to reduce business cyclicality and lower exposure to the Oil & Gas sector to below one-third of total activity while establishing the company as a leader in sustainability and energy transition.
  • Tubacex will maintain an attractive shareholder remuneration policy with a payout ratio between 30% and 40%.
  • The new Tubacex aims to become a global leader in advanced solutions for energy and mobility, with all business units contributing satisfactorily to the Group’s growth and performance.

Madrid, November 21st, 2023. Tubacex Group, a global leader in advanced industrial solutions for the energy and mobility sectors, held its first Capital Markets Day (CMD) in Madrid today, attended by analysts and investors. During the event, the company unveiled an update of its Strategic Plan for the 2024-2027 period, including estimated results upon completion. Having achieved most of its 2025 objectives two years ahead of schedule in the current plan, the company has announced its goal to reach revenues of between 1,200 and 1,400 million euros and an EBITDA surpassing 200 million euros by 2027.

This will accelerate Tubacex’s growth expectations for the next four years while maintaining financial strength and a healthy balance sheet. Tubacex will continue its progressive deleveraging trend over the period, which, combined with strengthened cash flow, will reduce the Net Financial Debt (NFD) / EBITDA ratio to below 2 times by the end of 2027 (from the current 2.5 times). The company aims to consolidate the achievement of this strategic goal, anticipating year-on-year debt reduction, even as various inorganic growth operations are undertaken.

In this context, with the growth expectations already outlined in terms of results, Tubacex Group will maintain an attractive shareholder remuneration policy, aiming to maintain a payout ratio between 30% and 40%.

Growth Drivers

In recent years, the company has undergone a significant transformation based on a Strategic Plan built on five pillars, which are preserved in the new plan: leadership in sustainability, debt reduction, income stability, improved competitiveness, and increased diversification. As a result of the plan’s implementation, Tubacex has achieved excellent results, with income stability supported by a solid and consolidated order backlog. The company has also demonstrated a robust track record of transformation and adaptation to the market’s evolving trends, anticipating industry shifts.

Tubacex is fully prepared to address the energy transition and reduce its current contribution to Oil & Gas business revenues, aiming to lower exposure to these sectors to below one-third of sales by the end of 2027. The new plan responds to emerging macro-trends in energy, mobility, and economic growth, with applications in low carbon, aerospace, industrial, nuclear, and other businesses. These efforts align with broader society’s decarbonization goals, acknowledging the likely coexistence of conventional and renewable energy sources.

Regarding sustainability, Tubacex’s purpose is to contribute to human progress by driving responsible business activities. This commitment is supported by four pillars: advancing toward energy neutrality and promoting business circularity, developing innovative solutions in energy transition, caring for local people and ecosystems in the areas where the company operates, and promoting transparency. In summary, Tubacex is fully committed to progress and current trends through consistent sustainability objectives. The Group prioritizes its commitment to the energy transition, benefiting from better-than-initially-expected market outlooks and growing demand in new markets.

A significant part of the company’s business transition will come through the newly created Low Carbon unit, which will support existing clients in their energy transition processes and serve as a platform for business growth. As outlined in the presented Strategic Plan, this unit could become one of the company’s most important businesses in the future. To strengthen this activity and meet its objectives, the Group has been developing advanced materials for years, resulting in multiple tailored solutions for various energy mix technologies, primarily focusing on carbon capture, storage and utilization (CCS), and hydrogen. This positions Tubacex at the forefront of this field, holding a prominent position on the international stage. CCS has become a crucial ally in the energy transition, allowing for zero-emission goals through CO2 reduction.

The company already has a portfolio of projects in this technology, which currently focuses on CO2 injection processes. This technology demonstrates significant growth prospects in markets such as the United States (where tax incentives under the Biden administration’s IRA plan have driven its proliferation), the United Kingdom, Norway, and others.

In terms of business stability, Tubacex aims to mitigate fluctuations and cyclicality. This is achieved through business mix diversification, geographic diversification, commodity and energy hedges, and, most importantly, through long-term contracts with top-tier clients, providing high revenue visibility (with over 30 such contracts already signed). Recent examples include two OCTG contracts signed by the company in Abu Dhabi (with ADNOC) and Brazil (with Petrobras), as well as contracts for umbilical tubes in Norway (with Aker Solutions).

Tubacex Group currently boasts a fully integrated production model to capture long-term growth derived from the mentioned macro-trends, offering clients comprehensive services.