How Russia will ballast Maire Tecnimont’s accounts
Maire Tecnimont communicates data on the first quarter of 2022 and announces the suspension of activities in Russia by the end of June. All the details
The engineering-energy company Maire Tecnimont has announced that it intends to proceed with a gradual suspension of its operations in Russia by the end of June, "if" – he specifies – "there are no substantial improvements to the existing situation", namely the war in Ukraine.
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HOW MUCH ARE THE OPERATIONS IN RUSSIA
Maire Tecnimont 's order book for projects under construction in Russia amounts to approximately € 1.1 billion, the equivalent of 12 per cent of the company's overall portfolio. Under normal conditions, the expected development time for the works was between 2022 and 2024. However, the company explained that, at present, "the continuation of activities on these projects beyond the first half of the year is not foreseeable" current, and that "the operational resources involved are progressively redirected to other projects from which greater production is expected in the coming months than planned".
Maire Tecnimont also made it known that "the financial situation relating to the projects in the Russian Federation continues to express a substantial balance and no substantial changes are expected to occur even when the projects are fully suspended".
In its interim management report as of March 31, the company states that since the end of February, that is the beginning of the Russian invasion of Ukraine, "the effects induced by the sanctions […] have begun to express a slowdown in operational activities on projects pending in the Russian Federation. At the same time, commercial activities aimed at pursuing new contracts in the Russian Federation have been suspended ”.
Maire Tecnimont declares that the residual activities in Russia “are almost entirely aimed at an orderly transfer of the existing operations to the various customers, in compliance with strict safety standards for the personnel working on the construction sites and with the penalties in force”.
THE NUMBERS OF MAIRE TECNIMONT
Maire Tecnimont announced that it closed the first quarter of 2022 with revenues of 728.4 million euros, an increase of 16.4 percent compared to the same period last year (625.7 million). EBITD, on the other hand, grew by 15.5 per cent, to 43.7 million, “as a result of higher volumes recorded and a containment of overheads”.
General and administrative costs amounted to 19.2 million euros, a decrease of 5.1 compared to the same period of the previous year (20.3 million).
The adjusted net financial position, on the other hand, shows net cash of € 22 million, an improvement compared to the € 13.1 million of last December 31st, “thanks to the generation of operating cash from the projects in the portfolio”.
As for the guidance , Maire Tecnimont states that it expects a "strong growth in volumes compared to 2021, more concentrated in the second part of this year, and consequently to a confirmation of the economic and financial forecasts communicated to the market on February 25, 2022".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/maire-tecnimont-russia/ on Thu, 12 May 2022 10:04:07 +0000.