Corinth Pipeworks FY 2007 Group turnover amounted to 357.5 mil. euro versus 319.4 mil. euro last year, marking a 11.9% increase. Earnings before interest, tax and depreciation (EBITDA) stood at 57.5 mil. euro versus 41.3 mil. euro in 2006, marking an increase of 39.3%. During FY 2007 EBITDA margin formed at 16.1% of the Group's turnover versus 12.9% in 2006. Substantial increase by 106% marked earnings before tax, which amounted to 40.1 mil euro versus 19.4 mil. euro last year (or 11.2% of the Group?s consolidated turnover versus 6.1% last year), while net after tax and minorities earnings amounted to 33.9 mil. euro (0.274 EPS) versus 36.4 mil. euro (0.293 EPS) in FY 2006. It is noted that in FY 2006, net after tax earnings were boosted by an amount of 17.0 mil. euro mainly attributed to the positive impact form deferred taxation accounted for in 2006, as a result of tax credit recognition form previous fiscal years accumulated losses.
The parent Company results also marked a corresponding course during 2007. In specific, turnover in FY 2007 amounted to 340.6 mil. euro versus 304.2 mil. euro in FY 2006. EBITDA amounted to 52.9 mil. euro versus 41.5 mil euro in FY 2006 (or 27.2% increase) while earnings before tax reached 34.9 mil. euro, substantially higher from FY 2006. Net after tax earnings amounted to 29.9 mil. euro (or 0.240 EPS versus 0.301 EPS in 2006).
The increase of sales turnover and the high profitability are mainly attributed to:
-the higher prices achieved by CORINTH PIPEWORKS as a result of its strategic decision to penetrate high value added market segments, the execution of projects with strict technical specifications, as well as the favorable market conditions in the international energy industry
-the ongoing improvement of productivity and operating costs
Net debt (Debt - Cash) of Corinth Pipeworks was further reduced to 85.7 mil. euro versus 110.7 mil. euro as of 31/12/2006. Finally Shareholders Equity was further enhanced and amounted to 123.6 mil. euro for the group and 125 mil. euro for the company.
The Group after a rigorous 3-year restructuring of its production and commercial operations was ready to take advantage of the favourable market conditions and considerably improve its financial position. In 2008, the environment where we operate seems to be more complex, less predictable but still full of opportunities. The US economy mainly, but the European as well as Europe seem to run out of steam and are projected to have significantly lower growth rates, if not recession (at least in USA). The fundamentals of the world energy market (global demand and its geographical breakdown, oil & gas prices, financials of the energy companies, age of current energy infrastructure), lead to the conclusion that the construction activity of new pipelines will continue at a good pace. Consequently, the demand for high quality and technically sophisticated steel pipes will continue to be at increased levels in different parts of the world, mainly in North America, North Africa, Russia and Middle and Far East. On the other hand, the considerable increase of raw materials prices and freight costs, the appreciation of EUR against USD and the increased concentration rate in the steel industry, are expected to differentiate the competitive position of the pipes manufacturers. Access to high quality raw materials and operational (production and logistics) cost discipline will be the success factors for the award of new projects. In such an environment, Corinth Pipeworks has to tap all its competitive advantages (long-term relationships with premium steel makers, know-how, state-of-the-art equipment, flexibility in the production process, geographical location, both in Greece and Russia, quality of human capital), in order to continue the positive trend.
The Financial Statements will be published in the newspapers ''KATHIMERINI'' and ''NAFTEMPORIKI'' on March 19, 2008.