TUBACEX, the second global manufacturer of seamless stainless steel tubes, obtained consolidated net profits of 10.69 million Euros between January and June 2013, representing an increase of 74.7% with respect to the same period in 2012, according to the information sent by the company to the Spanish Securities Exchange Commission (CNMV).
The gross operating profit (EBITDA) for the first half has risen to 31.26 million Euros, up 19.9% on the first six months of 2012. The profitability levels have also increased, with a six-month EBITDA on sales of 10.5%, compared with the 9.2% for the same period of 2012 and 8.6% for the whole of 2012. The EBITDA on sales for the second quarter has risen to 11.1%.
The Group’s consolidated sales stood at 297.90 million Euros between January and June, which represents an increase of 5.2% with respect to 283.13 million Euros for the first half of 2012, with a significant increase in the sale of high value-added products, especially for oil and gas exploration and extraction. It is worth mentioning that this increase takes place in a scenario in which the prices of raw materials are falling, especially nickel, the average price of which has fallen by 12% in the first half of 2013, with respect to the same period in 2012.
The company’s efforts to reduce the working capital have enabled the net financial debt to be reduced by 31.58 million Euros, falling from 262.30 million Euros at the close of 2012 to 230,72 million Euros at the end of June. The ratio of net financial debt over EBITDA is 4.5x, compared to 5.7x at the close of 2012, hence making progress in one of the company’s strategic objectives, which aims to place financial debt below 3 times the EBITDA in 2014.
Comments by Jesús Esmorís
The CEO of TUBACEX, Jesús Esmorís, has pointed out that during the first half of the year, TUBACEX “has begun to move forward in its two strategic pillars: the change of the product mix towards higher added value products and operational excellence”.
Esmorís added that “the evolution in these two directions has enabled TUBACEX to present results that reflect growth and operational improvement, in spite of operating in an unfavorable market environment, in which Europe continues to show signs of economic weakness and the downward tendency in the price of raw materials”.
The company’s CEO has indicated that “in spite of this macroeconomic uncertainty, the Group’s efforts in the commercial and operational areas enable us to be optimistic and we hope to close the year with results along the same lines as those presented today”
Visit by the Basque President Urkullu
On the other hand, the President of the Basque Government, Iñigo Urkullu, will visit TUBACEX this afternoon as part of the events that are being organized to celebrate the 50th anniversary of the company’s founding.
Urkullu will meet the Board of Directors and will later visit the company’s plant in Llodio.