Athens, Tuesday, March 10, 2015

CORINTH PIPEWORKS S.A.

ANNOUNCEMENT

FISCAL YEAR 2014 FINANCIAL RESULTS

During 2014, there was a significant slow-down and delay in energy projects worldwide, particularly during the first half of the year. This led to decreased demand for pipes as well as intensified competition, which ultimately put pressure on the GroupΆs profitability. However, the change in sentiment during the second half of the year, especially in the USA where the demand for high caliber pipes increased, led to the marketΆs partial recovery.  Taking advantage of the above situation, the Group signed three new contracts of 163.000 tones in total, for the supply and internal and external coating of steel pipes in the USA. It must be noted that the two of the three contracts were signed with the same customer and are considered the biggest projects ever assumed by the Group in the USA.

Within this context, Corinth PipeworksΆ consolidated turnover reached EUR 188.2 mil. during FY 2014, compared to EUR 165.4 mil. during FY 2013, marking an increase of 13.8%. The GroupΆs gross margin stood at EUR 19.2 mil. versus EUR 16.3 mil. during the previous year, an increase of 18.1%. Consolidated earnings before taxes amounted to a loss of EUR 4.9 mil. versus a loss of EUR 3.4 mil. during FY 2013, while the GroupΆs earnings after taxes and minority rights during FY 2014 amounted to a loss of EUR 5.6 mil. (losses EUR 0.0447 per share), versus losses of EUR 6.1 mil. (losses EUR 0.0494 per share) during FY 2013. Consolidated EBITDA amounted to EUR 3.6 mil. versus EUR 4.6 mil. in 2013.The GroupΆs net debt on December 31, 2014 totaled EUR 107.7 mil. from EUR 32.5 mil. on December 31, 2013, mainly due to the implementation of the GroupΆs investment program, as well as the increased working capital needs from the new projects assumed by the Group in the USA.  The GroupΆs consolidated equity in 2014 amounted to EUR 139.8 mil.

The GroupΆs management closely monitors developments in the global pipelinesΆ market and maintains its optimism for 2015, which is supported by the strong backlog of projects that the Group had at the end of 2014. However, the reduction in the oil price may have a negative effect on the market and could lead the demand for oil and gas projects to lower levels.  On the other hand, the strong US Dollar makes the GroupΆs products very competitive. In addition to the above, Corinth Pipeworks will proceed with the execution of its investment program and the pipe production unit using the LSAW method will be placed in operation, while new investments in the production of 24 meters pipes and the upgrade of the pipesΆ internal coating unit have already commenced.   

The basic pillar of the GroupΆs strategy still focuses on the penetration of new geographical markets, where the Group seeks to participate in important energy and infrastructure projects which are planned to be realized during the coming years. Markets like North America, the Mediterranean, the Mexican Gulf, Western and Eastern Africa, the North Sea and the Middle East are expected to play a primary role in these efforts.

Published on Tuesday March 10, 2015 after the end of trading day at the Athens Exchange.

The Data and Information of the period 1.1.2014 – 31.12.2014 will be published together with the Annual Financial Report for the same period and will be posted on the companyΆs website, www.cpw.gr, as well as on the ATHEX website www.athex.gr, on March 10, 2015, following the end of Athens ExchangeΆs trading session.