Tubacex, S.a. · BME:TUB

Tubacex — H1 2024 Earnings Presentation

23 slides from Tubacex's earnings presentation, July 2024

  1. Slide 1: Results Release First Half 2024

    RESULTS RELEASE First Half 2024 JULY 2024 H1 2024 RESULTS / PAG. 1

  2. Slide 2: Main Considerations

    MAIN CONSIDERATIONS FOUNDATIONS FOR GROWTH HAVE BEEN LAID MANUFACTURE OF THE ADNOC ORDER HAS  The first half of 2024 closed with sales of €398.0M, an EBITDA of €50.1M, and a margin of 12.6% COMMENCED ($1B)  First-half results were impacted by extraordinary factors as a result of the kick-off of th

  3. Slide 3: Main Financial Figures

    MAIN FINANCIAL FIGURES H1 2023 H1 2024 % Var. Q2 2023 Q2 2024 % Var. (€M) Sales 434.8 398.0 -8.5% 202.5 211.4 4.4% EBITDA 64.3 50.1 -22.2% 33.9 25.1 -25.9% EBITDA Margin 14.8% 12.6% 16.7% 11.9% EBIT 41.0 27.4 -33.1% 22.3 13.9 -37.6% EBIT Margin 9.4% 6.9% 11.0% 6.6% Earnings Before Taxes 27.9 9.2 -67

  4. Slide 4: Main Figures from the Income Statement

    MAIN FIGURES FROM THE INCOME STATEMENT SALES First-half sales stood at €398.0M, below the figure reached in the same 434.8 period of the previous year €M 398.0 - Declining trend in nickel prices: turnover of the most commodity 211.4 products is being negatively affected 202.5 - The average nickel pr

  5. Slide 5: Main Figures from the Balance Sheet: Working Capital

    MAIN FIGURES FROM THE BALANCE SHEET: WORKING CAPITAL WORKING CAPITAL OVER SALES: INCREASED TURNOVER IS FORESEEN INCREASE IN WORKING CAPITAL DUE TO THE FORESEEABLE RISE IN TURNOVER The working capital amounts to €321.0M, up €86.5M on the 2023 year-end The prospects of increased turnover in the coming

  6. Slide 6: Main Figures from the Balance Sheet: Net Financial Debt

    MAIN FIGURES FROM THE BALANCE SHEET: NET FINANCIAL DEBT Net Financial Debt  TUBACEX is building a new OCTG tube finishing and threading plant in Abu Dhabi, as part of the major $1,000M project, whereby operations will commence later this year €M - Investment to date in this plant amounts to €38.5M

  7. Slide 7: Revenues Breakdown

    REVENUES BREAKDOWN New businesess E&P Gas PREMIUM PRODUCTS 18.0% Very good figures in intake of high value-added products, with a clearly better 25.0% performance than traditional products Significant pipeline of project awards expected for the second half of the year, which could give new impetus t

  8. Slide 8: Backlog Evolution

    BACKLOG EVOLUTION ROBUST SITUATION OF THE BACKLOG Book-to-bill ratio TOTAL BACKLOG INCLUDING ADNOC’S PROJECT 1,600M€ H1 2024 1.0x Backlog remains stable compared to the 2023 year-end This figure is concentrated in projects with high added value Book-to-bill ratio for the year is 1.0x, slightly highe

  9. Slide 9: Commercial Remarks (I) E&P Oil&Gas

    COMMERCIAL REMARKS (I) E&P OIL&GAS UPSTREAM  OCTG - Tubacex commences first orders for the Abu Dhabi OCTG long term frame agreement with ADNOC - Tender activity in the Middle East remains buoyant, complimented by steady demand in Brazil - Tubacex continues to strengthen its positioning as leading p

  10. Slide 10: Commercial Remarks (II) Industrial & PowerGen

    COMMERCIAL REMARKS (II) INDUSTRIAL & POWERGEN  The industrial sector continues to account for a major part of Tubacex’s sales INDUSTRIAL  In the first quarter of 2024, order intake for refinery and petrochemical pipelines and furnaces in China, mainly Ethylene, can be highlighted Tubacex’s positio

  11. Slide 11: Commercial Remarks (III) Low Carbon & New Businesses

    COMMERCIAL REMARKS (III) LOW CARBON & NEW BUSINESESS LOW CARBON  Carbon Capture - Some slowdown in bidding activity in the USA (the most dynamic region to date) due to delays in the execution of operators' projects as a result of delays in approvals - Good positioning in various projects in the USA

  12. Slide 12: Main ESG KPIs

    MAIN ESG KPIs Indicator Ud. 2019* H1 2024 Goal 2030 ENVIRONMENT Mwh/ Energy Intensity(1) 2.85 1.64 2.13 GAV ENERGY & Ton CO2/ CLIMATE Scope 1 y 2 Emissions intensity(2) 0.70 0.26 0.28 GAV % total % Renewable Energy 0% 32.8% 40% energy CIRCULAR Waste recycled % total 60.5% 82.7% 95% ECONOMY generated

  13. Slide 13: Stock Information

    STOCK INFORMATION GROWTH POTENTIAL Stock Evolution Key Data €/share # shares outsanding 126,549,251 3,8 3.64€ 3,6 3.24€ 3,4 €/share (06.30.24) 3.24€ 3,2 3,0 3.035€ Market Cap. (M€) 410.0M€ 2,8 2,6 2,4 % evolution -7.4% 2,2 2,0 Maximun 3.64€ (Jan. 5) 31/12/2023 07/01/2024 14/01/2024 21/01/2024 28/01/

  14. Slide 14: Strategic Agreement

    STRATEGIC AGREEMENT TUBACEX BOOSTS ITS GROWTH WITH THE ENTRY OF MUBADALA IN ITS OCTG BUSINESS SETTING UP OF A JOINT VENTURE IN WHICH TUBACEX HOLDS THE MAJORITY STAKE The operation is structured as a Joint Venture in which TUBACEX holds 51% and Mubadala Investment Company enters with 49% STRUCTURAL C

  15. Slide 15: Conclusions: Growth Prospects Over the Coming Quarters

    CONCLUSIONS GROWTH PROSPECTS OVER THE COMING QUARTERS ACTIVATION OF THE ADNOC ORDER BACKLOG PROJECT Order backlog remains at historical levels and is Manufacture of materials for the ADNOC concentrated in high value-added products project has commenced NEW OCTG PLANT Construction of the new OCTG fin

  16. Slide 16: New Strategic Plan NT2

    NEW STRATEGIC PLAN NT2: NEW TUBACEX NEXT TRANSITION NT2 2027 TARGETS DRIVING SUSTAINABLE VALUE AND TO REDUCE OIL MARKET & GAS LEADERS IN ENTERING INTO A NEW PHASE OF VALUE EXPOSURE TO LOW CARBON CREATION FOR OUR SHAREHOLDERS 1/3 OF THE BUSINESS BUSINESS TO BE A POINT REVENUE REASONS TO INVEST IN TUB

  17. Slide 17: Appendix

    APPENDIX H1 2024 RESULTS / PAG. 17

  18. Slide 18: Consolidated Income Statement Detail

    CONSOLIDATED INCOME STATEMENT DETAIL (€M) H1 2023 H1 2024 % var. Q2 2023 Q2 2024 % var. Sales 434.8 398.0 -8.5% 202.5 211.4 4.4% Change in inventories 37.6 31.0 -17.5% 24.5 6.3 -74.3% Other income 7.8 7.3 -6.5% 4.1 2.1 -48.1% Cost of materials (210.1) (187.2) -10.9% (96.4) (93.9) -2.5% Personnel exp

  19. Slide 19: Consolidated Balance Sheet Detail

    CONSOLIDATED BALANCE SHEET DETAIL (€M) 31/12/23 30/06/24 %var. (€M) 31/12/23 30/06/24 %var. Intangible assets 112.6 112.6 0.1% Equity, Group Share 240.0 237.4 -1.1% Tangible assests 306.7 318.4 3.8% Minority interests 53.6 54.4 1.4% Financial assets 99.1 100.0 0.9% Equity 293.6 291.7 -0.6% Non-curre

  20. Slide 20: Historical Quarterly Evolution: Sales & EBITDA

    HISTORICAL QUARTERLY EVOLUTION: SALES & EBITDA Sales €M 202.5 211.4 195.7 180.0 128.3 73.5 Q2 2019 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 EBITDA 33.9 €M 25.1 23.4 19.0 16.7% 12.0% 11.9% 7.4 10.6% 5.8% 0.2 0.3% Q2 2019 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 % EBITDA Margin H1 2024 RESULTS / PAG. 20

  21. Slide 21: Alternative Performance Measures – APM I

    ALTERNATIVE PERFOMANCE MEASURES – APM I Tubacex presents its results in accordance with the generally accepted accounting principles (IFRS). Furthermore, this report provides other non- IFRS financial measures, called Alternative Performance Measures (APM), which are used by management to assess the

  22. Slide 22: Alternative Performance Measures – APM II

    ALTERNATIVE PERFOMANCE MEASURES – APM II PROFIT BEFORE TAXES Tubacex presents the calculation of the Profit before tax margin as the ratio between the Profit before tax and the sales figure MARGIN NET FINANCIAL DEBT Tubacex presents the calculation of Net Financial Debt as the difference between the

  23. Slide 23: H1 2024 RESULTS / PAG. 23

    H1 2024 RESULTS / PAG. 23

Tubacex — H1 2024 Earnings Presentation on 6ix