Vallourec reports fourth quarter
and full year 2020 results
Boulogne-Billancourt (France), February
17th 2021 – Vallourec, a world leader in premium tubular
solutions, today announces its results for the fourth quarter and
full year of 2020. The consolidated financial information was
presented by Vallourec’s Management Board to its Supervisory Board
on February 16th 2021.
FY 2020: Strong impact of O&G market downturn on EBITDA
mitigated by highly resilient margin
- €3,242 million revenue, down 22% year-on-year (-15% at constant
exchange rates)
- €258 million EBITDA versus €347 million in 2019
- EBITDA margin maintained almost stable, at 8.0% of revenue vs
8.3% in 2019
- Free cash flow of (€111) million versus (€41) million in
2019
- Net debt at €2,214 million as of December 31st 2020 versus
€2,031 million as of December 31st 2019
- Cash position at €1,390m as of 31/12/2020
|
Q4 2020: Positive cash
flow generation
- €830 million revenue, down 17% year-on-year (-5% at constant
exchange rates)
- €76 million EBITDA, or 9.2% of revenue versus 9.4% in Q4
2019
- Net income impacted by impairment charges for €409 million
- Positive free cash flow of €112 million, versus €76 million in
Q4 2019 with major achievements in working capital management
|
Major step in the financial restructuring, with an
agreement in principle supported by 92% of creditors as of February
12th
- Deleveraging of €1,800 million
- Residual debt refinanced over 5 years
- Market guarantees committed for 5 years
- Apollo and SVPGlobal to become the largest shareholders of the
Group
|
2020 gross savings at €165 million, largely overachieving
our €130 million target |
2021 Outlook:
- Oil and Gas activity expected to remain
subdued in 2021
- Iron ore mine expected to bring an
increased contribution
- Continuous cost savings and cash management
initiatives along the year
- EBITDA targeted between €250 and €300
million
- Free cash flow targeted between (€380)
and (€300) million
|
Key figures
2020 |
2019 |
Change |
In € million |
Q4 2020 |
Q4 2019 |
Change |
1,599 |
2,291 |
-30.2% |
Production shipped (k tons) |
408 |
520 |
-21.5% |
3,242 |
4,173 |
-22.3% |
Revenue |
830 |
1,004 |
-17.3% |
258 |
347 |
-€89m |
EBITDA |
76 |
94 |
-€18m |
8.0% |
8.3% |
-0.3p.p. |
(as a % of revenue) |
9.2% |
9.4% |
-0.2p.p. |
(1,002) |
(17) |
-€985m |
Operating income (loss) |
(495) |
(9) |
-€486m |
(1,206) |
(338) |
-€868m |
Net income, Group share |
(570) |
(111) |
-€459m |
(111) |
(41) |
-€70m |
Free cash-flow |
112 |
76 |
+€36m |
2,214 |
2,031 |
+€183m |
Net debt |
2,214 |
2,031 |
+€183m |
Edouard Guinotte, Chairman of the
Management Board, declared:
“Although Vallourec's revenue in 2020 was
strongly impacted by the considerable drop of its activity due to
Covid pandemic impact on oil demand and E&P activity worldwide,
the Group has demonstrated its capacity to adapt, achieving an
almost stable EBITDA margin year-on-year.
In addition, two weeks ago, we achieved a key
milestone in the Group’s financial restructuring, by reaching an
agreement in principle with our main creditors. The implementation
of this agreement, which is still subject to customary conditions
precedent, will enable Vallourec to rebalance its capital structure
by reducing its debt and securing the necessary liquidity to roll
out its strategic plan. It will open a new chapter in Vallourec’s
history with our future shareholders, Apollo and SVPGlobal, whose
in-depth knowledge of our markets will support the Group’s value
creation ambition.
Looking ahead, we expect Oil and Gas activity to
globally remain subdued in 2021. While drilling should gradually
restart in North America, and continue growing off-shore Brazil,
EA-MEA should face difficult market conditions with no recovery
visible before 2022. Our Industry markets are expected to slowly
restart in 2021, and Vallourec’s iron ore mine activity should
bring an increased contribution. In this context, we will continue
deploying our cost savings and cash management initiatives along
the year.
I would like to sincerely thank our teams across
the world for their dedication and collective engagement this year.
They can be very proud of the way they adapted to multiple crises
while staying true to our values. I would also like to thank all
our customers, partners and stakeholders who have maintained their
trust in Vallourec despite the challenging context. Together, with
a restructured balance sheet, we will be positioned to seize future
growth opportunities in our markets.”
I - CONSOLIDATED REVENUE BY
MARKET
2020 |
2019 |
Change |
At constant exchange rates |
In € million |
Q4 2020 |
Q4 2019 |
Change |
At constant exchange rates |
2,207 |
3,042 |
-27.4% |
-22.6% |
Oil & Gas, Petrochemicals |
566 |
762 |
-25.7% |
-17.2% |
826 |
939 |
-12.0% |
5.6% |
Industry & Other |
225 |
205 |
9.8% |
39.0% |
210 |
192 |
9.4% |
11.5% |
Power Generation |
39 |
37 |
5.4% |
10.8% |
3,242 |
4,173 |
-22.3% |
-14.7% |
Total |
830 |
1,004 |
-17.3% |
-4.7% |
In 2020, Vallourec recorded revenue of
€3,242 million, down 22% compared with 2019 (-15% at constant
exchange rates) with:
- a volume impact of -30% mainly driven by Oil & Gas in North
America and in EA-MEA
- a positive price/mix effect of +16% including a better
price/mix in Oil & Gas in EA-MEA and South America and lower
prices in North America
- a currency conversion effect of -8% mainly related to
EUR/BRL.
Q4 2020 revenue amounted to €830
million, down 17% compared with Q4 2019 (-5% at constant exchange
rate). Volume effect was -22%, price/mix effect +17% and
currency conversion effect -13%.
Oil & Gas, Petrochemicals
(68% of annual consolidated
revenue)
Oil & Gas revenue reached
€2,007 million in 2020, a (€745) million
decrease or -27% year-on-year (-22% at constant
exchange rates), reflecting lower revenue in North America
and in EA-MEA.
- In North America, Oil & Gas large revenue
decrease was driven by lower deliveries due to the unprecedented
decrease in rig count, as well as by lower prices
- In EA-MEA, Oil & Gas revenue decrease
reflected lower volumes while high alloy products positively
impacted the price/mix
- In South America, Oil & Gas revenue strong
increase reflected, as forecast, the increase in deliveries of
premium OCTG for pre-salt offshore and higher price/mix, partially
offset by an unfavorable currency conversion effect.
In Q4 2020, Oil &
Gas revenue totaled €527
million, a
(€159) million
decrease or -23%
year-on-year (-14% at constant exchange rates).
- In North America, Oil & Gas revenue
decrease was driven by lower deliveries and prices, although rig
count started to recover in Q4.
- In EA-MEA, Oil & Gas revenue decrease
reflected lower volumes while price/mix was still positively
impacted by high alloy products deliveries.
- In South America, Oil & Gas revenue was
stable, with higher deliveries being offset by an unfavorable
currency conversion effect.
In 2020,
Petrochemicals revenue was €200 million,
down 31% year-on-year (-26% at constant
exchange rates) notably due to lower deliveries of line pipes in
North America as well as pressure on prices. In Q4
2020, Petrochemicals revenue totaled €39 million, down 49%
year-on-year (-42% at constant exchange rates).
In 2020, revenue for Oil & Gas and
Petrochemicals amounted to €2,207 million, down 27% compared with
2019 (-23% at constant exchange rates).In Q4 2020,
revenue for Oil & Gas and Petrochemicals totaled €566 million,
down 26% compared with 2019 (- 17%
at constant exchange rates).
Industry & Other (25% of annual consolidated
revenue)
Industry & Other revenue
amounted to €826 million in 2020, down 12% year-on-year (+6% at
constant exchange rates):
- In Europe, Industry revenue was down reflecting lower volumes
and prices.
- In South America, Industry & Other revenue was up, as a
result of higher revenue from the iron ore mine reflecting both
higher volumes, which reached 7.9Mt (up 26% versus 2019), and
prices, and of the overall stability of our sales to the Industry
market before unfavorable currency conversion
effect.
In Q4 2020, Industry & Other revenue
totaled €225 million, up
10% year-on-year
(+39% at constant exchange rates), primarily as a result of higher
revenue from the mine, and despite lower sales to the Industry
market in Europe.
Power Generation (6% of annual consolidated
revenue)
Power Generation revenue
amounted to €210 million in 2020, up 9% year-on-year (+11% at
constant exchange rates), as a result of timing of project
deliveries.
The closure of the Reisholz site in Germany,
dedicated to coal-fired conventional power plants, is effective
since summer 2020.
In Q4 2020, revenue totaled €39
million, up 5% year-on-year (+11% at constant exchange rates) as a
result of timing of project deliveries.
II – CONSOLIDATED RESULTS ANALYSIS
Q4 2020 consolidated results analysis
In Q4 2020, EBITDA reached €76 million
compared with €94 million in Q4 2019, at 9.2% of revenue versus
9.4% in Q4 2019, as a result of:
- An industrial margin of €157 million, compared with €180
million in Q4 2019, at 18.9% of revenue (versus 17.9%), reflecting
the lower activity in Oil & Gas in North America, partially
offset by (i) savings, (ii) a higher mine contribution.
- A 14% decrease in sales, general and administrative costs
(SG&A) at €75 million or 9.0% of revenues, reflecting strong
cost savings.
Operating result was negative at (€495)
million, compared with (€9) million in Q4 2019, impacted
by an impairment charge of €409 million mainly related to tangible
fixed assets in Europe, and higher restructuring provisions (mainly
in France and Germany).
Financial result was negative
at (€48)
million, compared with (€66) million
in Q4 2019, reflecting stable net interest expenses together with
the positive one-off effect of a favorable decision on a litigation
in Brazil for €15 million.
Income tax amounted to (€45)
million mainly related to Brazil, compared to (€36)
million in Q4 2019.
This resulted in a net loss, Group
share, of (€570) million, compared with (€111) million in
Q4 2019.
FY 2020 consolidated results analysis
For the full year 2020, EBITDA reached
€258 million versus €347 million
in 2019, with an EBITDA margin almost stable at
8.0% versus 8.3%, including:
- An industrial margin of €608 million, down €130 million
compared with 2019 and up 1.1p.p. of revenue to 18.8%, reflecting
primarily lower activity in Oil & Gas in North America, and to
a smaller extent in Industry in Europe. This was partially offset
by (i) savings, (ii) a higher mine contribution, and (iii) a
positive contribution of Oil & Gas in South America, while the
impact of lower volumes in O&G EA-MEA was more than offset by
high alloy products deliveries.
- Sales, general and administrative costs (SG&A) down 14% at
€325 million, reflecting strong savings, and representing 10.0% of
revenue.
Operating result decreased by
(€985) million to a loss of
(€1,002) million, reflecting the
impairment charges recorded in Q2 and Q4 for €850 million. These
impairment charges related mainly to the goodwill of the North
American Cash Generating Unit and to tangible fixed assets in the
Europe CGU. They were driven by an increase in discount rates, a
lower long term growth rate and the downward revision of long term
perspectives in North America O&G as well as in EAMEA O&G
and Industry. Restructuring charges increased by (€116) million and
included provisions in Europe (mainly in France and Germany), as
well as adaptation plans in North America and Brazil. A lower
depreciation of industrial assets was recorded.
Financial result was
negative at (€227) million, below 2019 at
(€244) million. It included higher interest expenses more than
offset by other financial income of which notably the settlement in
Q1 of a dispute in Brazil for €22 million and the positive one-off
effect of a favorable decision on a litigation in Brazil in Q4 2020
for €15 million.
Income tax amounted to (€96)
million, mainly related to Brazil, compared with (€75)
million in 2019.
As a result, net loss, Group share,
amounted to (€1,206)
million, compared with (€338) million in 2019.
III - CASH FLOW & FINANCIAL
POSITION
Cash flow from operating
activitiesIn Q4 2020, cash flow from operating
activities reached (€18) million, compared to (€14)
million in Q4 2019, reflecting mainly the lower EBITDA and higher
income taxes paid, partially offset by a favorable change in
provisions. For 2020, cash flow from operating
activities was negative at (€146) million
compared with (€6) million for 2019, mainly due to the lower EBITDA
and to a lesser extent to higher taxes and financial interest
cash-out.
Operating working capital
requirementOperating working capital requirement
decreased by €178 million in Q4 2020, versus a decrease of
€170 million in Q4 2019. Net working capital requirement
decreased to an unprecedented low level of 78 days of sales,
compared to 95 days in Q4 2019, reflecting major achievements in
working capital management.
For 2020, operating working capital
requirement decreased by €173 million
versus a decrease by €124 million for 2019.
CapexCapital
expenditure was (€48) million in Q4 2020,
compared with (€80) million in Q4 2019, and was (€138) million for
2020 compared to (€159) million for 2019, reflecting tight capex
monitoring and industrial footprint rationalization.
Free cash flowAs a result,
in Q4 2020, free cash flow was positive at
€112 million versus €76 million in Q4 2019. Free cash flow
for 2020 was negative at (€111)
million compared with (€41) million for 2019.
Asset disposals & other
items Asset disposals & other items amounted to €3
million in Q4 2020. For 2020, they amounted to (€72) million as a
result mainly of the repayment of leasing debt (IFRS16) for (€31)
million, as well as negative currency effects on net debt and cash
collateral related to bid and performance bonds.
Net debt and liquidityAs at
December 31st 2020, net debt stood at €2,214 million, compared with
€2,329 million as at September 30th 2020.As at December 31st 2020,
lease debt stood at €108 million, compared with €112 million as at
September 30th 2020.As at December 31st 2020, cash amounted to
€1,390 million.
At the same date, long term debt amounted to
€1,751 million and short-term debt to €1,853 million, including
€1,712 million drawn from committed banking facilities.
Assets disposal for saleAs at
December 31st 2020, €107 million of assets were recorded for sale,
and were mainly related to nuclear activities. Vallourec has
initiated discussions in connection with a disposal of Valinox
Nucléaire SAS. This transaction could take place during the first
half of 2021 and is submitted to consultation of the work’s
councils.
IV – €165m GROSS SAVINGS REALIZED AND
ADDITIONAL MEASURES LAUNCHED IN 2020
The €130 million savings target for 2020
was overachieved with €165 million gross savings realized.
As a result, the initial 2016-2020 gross savings target of €400
million was largely surpassed to reach €751 million over the
period.
In 2020, Vallourec launched costs cutting
measures across the Group to face the depressed market
situation:
In North America, the workforce was reduced by
more than 1/3 (more than 900 positions) across all plants.
In Europe, the Group is pursuing its cost saving
initiatives:
- In France, a reduction of c.350 positions in production
facilities as well as in support functions, including the closure
of Déville heat treatment facility, was announced. The
implementation of these measures was submitted to consultation of
the work’s councils in H1 2021.
- In Germany, the Group has launched additional measures
including further headcount reduction with c.200 positions over
2021-2022 and intensive use of short time work before
implementation of working time reduction.
In Brazil, a comprehensive action plan resulted,
in particular, in a reduction of c.500 positions in support
functions in 2020.
V – FINANCIAL
RESTRUCTURING
On February 3rd 2021, the Group announced
that it reached a major step in its financial restructuring, with
an agreement in principle with its main creditors. This agreement
meets the Company’s objectives to rebalance its capital structure
by reducing its debt and to secure the necessary liquidity that
will enable it to implement its strategic plan in a volatile market
environment. The level of cash on balance sheet (€1,390m as of
31/12/2020) will be unaffected by partial debt repayment under the
restructuring.
The agreement in principle contemplates
mainly:
- A major deleveraging of €1,800 million, through:
- €1,331 million capital increase reserved to creditors (other
than commercial banks)
- €300 million rights issue open to existing shareholders, fully
backstopped by creditors (other than commercial banks)
- €169 million debt write-off by commercial banks
- A refinancing of the residual debt over 5-years, through:
- €462 million RCF
- €262 million PGE
- €1,023 million listed bonds
- €178 million market guarantees committed for 5 years
On February, 4th 2021, a safeguard proceeding1
was opened by the Commercial court of Nanterre in respect of
Vallourec SA to allow inter alia the implementation of the
agreement in principle. As of February, 12th 2021, the agreement in
principle is supported by creditors having signed or adhered to a
lock-up agreement and representing 97% of the interest2 in
Vallourec SA’s credit facilities and 86% of the bonds issued by
Vallourec SA, exceeding the 2/3 majority that will be required at
their committees meetings, which are expected to take place in
March (lock-up fee and early bird lock up fees to be paid at
closing).
The implementation of the agreement in principle
should take place at the end of the first semester of 2021, it is
subject to customary conditions precedent and will require the
approval of the shareholders meeting with a 2/3 majority, which is
expected to take place on April, 20th 2021, and of the Commercial
Court of Nanterre.
Vallourec’s supervisory board decided on
February, 16th 2021 to appoint Finexsi as independent expert, on a
voluntary basis pursuant to Article 261-3 of the AMF General
Regulation. The independent expert will assess the financial
conditions of the financial restructuring and issue a report
containing a fairness opinion.
VI –2021 OUTLOOK
Oil & Gas
In North America, the OCTG
market has started a gradual recovery which should continue during
the year and be accompanied by positive price trend, although the
start of the year will be impacted by the strong increase of raw
material cost.In EA-MEA, in addition to an overall
activity still significantly impacted and prices remaining under
pressure, the sharp decline in deliveries of high alloy products
will negatively impact revenue and margin. Nevertheless, 2021
resuming tendering activity should impact favorably 2022
activity.In Brazil, Oil & Gas deliveries are
expected to increase compared with 2020, both to Petrobras and
IOCs.
Industry & Other
In Europe, demand from Industry
will still be impacted by Covid-19 crisis while showing first signs
of recovery. In Brazil, the overall level of
activity is expected to continue its recovery.Volumes of
iron ore produced in Brazil are targeted broadly
stable compared to 2020, as the start-up of the expansion project
is expected at the end of 2021. Prices of iron ore delivered to our
customers are expected to surpass 2020 level, although gradually
decreasing along the year.
Cost savings
Initiatives deployed as part of savings measures
will enable the Group to continue to lower its cost base.A strict
cash control will be maintained, with a capex envelope of c.€160
million.
Therefore, based on current view on
market conditions, Vallourec targets full year 2021 EBITDA between
€250 and 300 million and a Free Cash Flow targeted between (€380)
and (€300) million.
Information and Forward-Looking Statements
This press release contains forward-looking
statements. These statements include financial forecasts and
estimates as well as assumptions on which they are based,
statements related to projects, objectives and expectations
concerning future operations, products and services or future
performance. Although Vallourec’s management believes that these
forward-looking statements are reasonable, Vallourec cannot
guarantee their accuracy or completeness and these forward-looking
statements are subject to numerous risks and uncertainties that are
difficult to foresee and generally beyond Vallourec’s control,
which may mean that the actual results and developments may differ
significantly from those expressed, induced or forecasted in the
statements. These risks include those developed or identified in
the public documents filed by Vallourec with the AMF, including
those listed in the “Risk Factors” section of the Universal
Registration Document filed with the AMF on March 20th 2020.
Cautionary Statement
This press release does not, and shall not, in
any circumstances constitute a public offering or an invitation to
the public in connection with any offer.
No communication and no information in respect
of this transaction may be distributed to the public in any
jurisdiction where a registration or approval is required. No steps
have been or will be taken in any jurisdiction (other than France)
where such steps would be required. The issue, the subscription for
or the purchase of Vallourec’s shares may be subject to
specific legal or regulatory restrictions in certain jurisdictions.
Vallourec assumes no responsibility for any violation of any such
restrictions by any person.
This announcement is not a prospectus within the
meaning of Regulation (EU) 2017/1129 of the European Parliament and
the Council of June 14, 2017 (as amended or superseded, the
“Prospectus Regulation”). No securities offering will be opened to
the public in France before the delivery of the visa on a
prospectus prepared in compliance with the Prospectus Regulation,
as approved by the AMF.
In France, an offer of securities to the public
may only be made pursuant to a prospectus approved by the AMF. With
respect to the member States of the European Economic Area (each, a
“relevant member State”), other than France, no action has been
undertaken or will be undertaken to make an offer to the public of
the shares requiring a publication of a prospectus in any
relevant member State. Consequently, the securities cannot be
offered and will not be offered in any member State (other than
France), except in accordance with the exemptions set out in
Article 1(4) of the Prospectus Regulation, or in the other case
which does not require the publication by Vallourec of a prospectus
pursuant to the Prospectus Regulation and/or applicable regulation
in the member States.
This press release does not constitute an offer
of the securities to the public in the United Kingdom. The
distribution of this press release is not made, and has not been
approved, by an authorized person (“authorized person”) within the
meaning of Article 21(1) of the Financial Services and Markets Act
2000. As a consequence, this press release is directed only at (x)
persons who (i) are outside the United Kingdom, (ii) have
professional experience in matters relating to investments falling
within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005, as amended (the “Order”), or
(iii) are high net worth entities falling within Article 49(2) of
the Order and (y) any other persons to whom it may otherwise
lawfully be communicated (all such persons together being referred
to as “Relevant Persons”). The securities are directed only at
Relevant Persons and no invitation, offer or agreements to
subscribe, purchase or acquire the securities may be proposed or
made other than with Relevant Persons. Any person other than a
Relevant Person may not act or rely on this document or any
provision thereof. This press release is not a prospectus which has
been approved by the Financial Conduct Authority or any other
United Kingdom regulatory authority for the purposes of Section 85
of the Financial Services and Markets Act 2000.
This press release does not constitute or form a
part of any offer or solicitation to purchase or subscribe for
securities in the United States. Vallourec shares may not be sold
in the United States absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as
amended. Vallourec does not intend to register in the United States
any portion of the offering mentioned in this press
release or to conduct a public offering of the shares in the
United States.
The distribution of this press release in
certain countries may constitute a breach of applicable law. The
information contained in this press release does not constitute an
offer of securities for sale in the United States, Canada,
Australia or Japan.
Presentation of Q4 & FY 2020
results
Analyst conference call / audio webcast at 6:30
pm (Paris time) to be held in English.
·To listen
to the audio webcast:
https://channel.royalcast.com/landingpage/vallourec-en/20210217_1/
- To participate in the conference call, please dial (password to
use is “Vallourec”):
- +44 (0) 33 0551 0200 (UK)
- +33 (0) 1 7037 7166 (France)
- +1 212 999
6659
(USA)
- Audio webcast replay and slides will be available on the
website at:
https://www.vallourec.com/en/investors
About Vallourec
Vallourec is a world leader in premium tubular
solutions for the energy markets and for demanding industrial
applications such as oil & gas wells in harsh environments, new
generation power plants, challenging architectural projects, and
high-performance mechanical equipment. Vallourec’s pioneering
spirit and cutting edge R&D open new technological frontiers.
With close to 17,000 dedicated and passionate employees in more
than 20 countries, Vallourec works hand-in-hand with its customers
to offer more than just tubes: Vallourec delivers innovative, safe,
competitive and smart tubular solutions, to make every project
possible.
Listed on Euronext in Paris (ISIN code:
FR0013506730, Ticker VK), Vallourec is part of the SBF 120 index
and is eligible for Deferred Settlement Service Long Only.
In the United States, Vallourec has established
a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN
code: US92023R2094, Ticker: VLOWY). Parity between ADR and a
Vallourec ordinary share has been set at 5:1.
Calendar
April
20th 2021 |
Shareholders’
Annual Meeting |
May 20th 2021 |
Release of first quarter results |
For further information, please
contact:
Investor
relations Jérôme FribouletTel: +33 (0)1 49 09 39
77Investor.relations@vallourec.com |
Press
relations Héloïse Rothenbühler Tel: +33 (0)1 41 03 77
50 heloise.rothenbuhler@vallourec.com |
Individual
shareholdersToll Free Number (from France): 0 805 65 10 10
actionnaires@vallourec.com |
|
Appendices
Due to rounding, numbers presented throughout this and other
documents may not add up precisely to the totals provided and
percentages may not precisely reflect the absolute figures.
Documents accompanying this release:
- Sales volume
- Forex
- Revenue by geographic region
- Revenue by market
- Summary consolidated income statement
- Summary consolidated balance sheet
- Banking covenant
- Free cash flow
- Cash flow statement
- Definitions of non-GAAP financial data
Sales volume
In
thousands of tons |
2020 |
2019 |
Change |
Q1 |
450 |
571 |
-21.2% |
Q2 |
422 |
605 |
- 30.2 % |
Q3 |
319 |
595 |
- 46.4 % |
Q4 |
408 |
520 |
- 21.5 % |
Total |
1,599 |
2,291 |
- 30.2 % |
Forex
Average
exchange rate |
|
2020 |
2019 |
EUR /
USD |
|
1.14 |
1.12 |
EUR /
BRL |
|
5.90 |
4.41 |
USD /
BRL |
|
5.16 |
3.94 |
Revenue by geographic region
In €
million |
2020 |
As % of revenue |
2019 |
As % of revenue |
Change |
Q4 2020 |
As % of revenue |
Q4 2019 |
As % of revenue |
Change |
Europe |
533 |
16.4% |
595 |
14.3% |
-10.4% |
126 |
15.2% |
138 |
13.7% |
-8.7% |
North
America (Nafta) |
719 |
22.2% |
1,215 |
29.1% |
-40.8% |
138 |
16.6% |
234 |
23.3% |
-41.0% |
South
America |
756 |
23.3% |
702 |
16.8% |
7.7% |
225 |
27.1% |
194 |
19.3% |
16.0% |
Asia and
Middle East |
900 |
27.8% |
1,222 |
29.3% |
-26.4% |
236 |
28.4% |
339 |
33.8% |
-30.4% |
Rest of
the world |
334 |
10.3% |
439 |
10.5% |
-23.9% |
106 |
12.8% |
99 |
9.9% |
7.1% |
Total |
3,242 |
100% |
4,173 |
100% |
-22.3% |
830 |
100% |
1,004 |
100% |
-17.3% |
Revenue by market
2020 |
As % of revenue |
2019 |
As % of revenue |
Change |
In € million |
Q4 2020 |
As % of revenue |
Q4 2019 |
As % of revenue |
Variation |
2,007 |
61.9% |
2,752 |
65.9% |
-27.1% |
Oil & Gas |
527 |
63.5% |
686 |
68.3% |
-23.2% |
200 |
6.2% |
290 |
7.0% |
-31.0% |
Petrochemicals |
39 |
4.7% |
76 |
7.6% |
-48.7% |
2,207 |
68.1% |
3,042 |
72.9% |
-27.4% |
Oil & Gas, Petrochemicals |
566 |
68.2% |
762 |
75.9% |
-25.7% |
296 |
9.1% |
368 |
8.8% |
-19.6% |
Mechanicals |
77 |
9.3% |
77 |
7.7% |
- |
59 |
1.8% |
115 |
2.8% |
-48.7% |
Automotive |
19 |
2.3% |
23 |
2.3% |
-17.4% |
471 |
14.5% |
456 |
10.9% |
3.3% |
Construction & Other |
130 |
15.7% |
105 |
10.4% |
23.8% |
826 |
25.5% |
939 |
22.5% |
-12.0% |
Industry & Other |
225 |
27.1% |
205 |
20.4% |
9.8% |
210 |
6.5% |
192 |
4.6% |
9.4% |
Power Generation |
39 |
4.7% |
37 |
3.7% |
5.4% |
3,242 |
100% |
4,173 |
100% |
-22.3% |
Total |
830 |
100% |
1,004 |
100% |
-17.3% |
Summary consolidated income statement
|
|
|
|
|
|
|
2020 |
2019 |
Change |
In € million |
Q4 2020 |
Q4 2019 |
Change |
|
3,242 |
4,173 |
-22.3% |
Revenue |
830 |
1,004 |
-17.3% |
|
(2,635) |
(3,435) |
-23.3% |
Cost of sales |
(674) |
(824) |
-18.2% |
|
608 |
738 |
-17.6% |
Industrial Margin |
157 |
180 |
-12.8% |
|
18.8% |
17.7% |
+1.1p.p. |
(as a % of revenue) |
18.9% |
17.9% |
+1.0p.p. |
|
(325) |
(378) |
-14.0% |
Sales, general and administrative costs |
(75) |
(87) |
-13.8% |
|
(25) |
(13) |
na |
Other |
(6) |
1 |
na |
|
258 |
347 |
-€89m |
EBITDA |
76 |
94 |
-€18m |
|
8.0% |
8.3% |
-0.3p.p. |
(as a % of revenue) |
9.2% |
9.4% |
-0.2p.p. |
|
(213) |
(249) |
-14.5% |
Depreciation of industrial assets |
(55) |
(66) |
-16.7% |
|
(54) |
(58) |
na |
Amortization and other depreciation |
(17) |
(14) |
na |
|
(850) |
(30) |
na |
Impairment of assets |
(409) |
- |
na |
|
(143) |
(27) |
na |
Asset disposals, restructuring costs and non-recurring items |
(90) |
(23) |
na |
|
(1,002) |
(17) |
-€985m |
Operating income (loss) |
(495) |
(9) |
-€486m |
|
(227) |
(244) |
-7.0% |
Financial income/(loss) |
(48) |
(66) |
-27.3% |
|
(1,229) |
(261) |
-€968m |
Pre-tax income (loss) |
(543) |
(75) |
-€468m |
|
(96) |
(75) |
na |
Income tax |
(45) |
(36) |
na |
|
(3) |
(4) |
na |
Share in net income/(loss) of equity affiliates |
(1) |
(2) |
na |
|
(1,328) |
(340) |
-€988m |
Net income |
(589) |
(113) |
-€476m |
|
(122) |
(2) |
na |
Attributable to non-controlling interests |
(19) |
(2) |
na |
|
(1,206) |
(338) |
-€868m |
Net income, Group share |
(570) |
(111) |
-€459m |
|
(105.4) |
(0.7) |
na |
Net earnings per share (in €) * |
(49.8) |
(0.2) |
na |
|
|
|
|
|
|
|
|
na = not applicable* FY 2020 and Q4 2020 figures impacted by the
new number of shares following reverse stock split effective on May
25th 2020.
Summary consolidated balance sheet
In € million |
|
|
|
|
|
Assets |
12/31/2020 |
12/31/2019 |
Liabilities |
12/31/2020 |
12/31/2019 |
|
|
|
Equity -
Group share * |
(187) |
1,467 |
|
|
|
Non-controlling interests |
321 |
513 |
Net
intangible assets |
50 |
63 |
Total equity |
134 |
1,980 |
Goodwill |
25 |
364 |
Shareholder loan |
9 |
21 |
Net
property, plant and equipment |
1,718 |
2,642 |
Bank
loans and other borrowings (A) |
1,751 |
1,747 |
Biological assets |
30 |
62 |
Lease
debt (D) |
84 |
104 |
Equity
affiliates |
42 |
129 |
Employee
benefit commitments |
203 |
228 |
Other
non-current assets |
128 |
132 |
Deferred
taxes |
20 |
9 |
Deferred
taxes |
187 |
249 |
Provisions and other long-term liabilities |
142 |
61 |
Total non-current assets |
2,180 |
3,641 |
Total non-current liabilities |
2,200 |
2,149 |
Inventories |
664 |
988 |
Provisions |
104 |
121 |
Trade and
other receivables |
468 |
638 |
Overdraft
and other short-term borrowings (B) |
1,853 |
2,077 |
Derivatives - assets |
37 |
7 |
Lease
debt (E) |
24 |
30 |
Other
current assets |
203 |
237 |
Trade
payables |
426 |
580 |
Cash and cash
equivalents (C) |
1,390 |
1,794 |
Derivatives - liabilities |
21 |
18 |
Other
current liabilities |
241 |
329 |
Total current assets |
2,762 |
3,664 |
Total current liabilities |
2,669 |
3,155 |
Assets
held for sale and discontinued operations |
107 |
(0) |
Liabilities held for sale and discontinued operations |
37 |
0 |
Total assets |
5,049 |
7,305 |
Total equity and liabilities |
5,049 |
7,305 |
|
|
|
|
|
|
* Net income (loss), Group share |
(1,206) |
(338) |
|
|
|
|
|
|
|
|
|
Net debt (A+B-C) |
2,214 |
2,031 |
|
|
|
|
|
|
|
|
|
Lease debt (D+E) |
108 |
134 |
|
|
|
Free cash flow
2020 |
2019 |
Change |
In € million |
Q4 2020 |
Q4 2019 |
Change |
(146) |
(6) |
-€140m |
Cash flow from operating activities (A) |
(18) |
(14) |
-€4m |
173 |
124 |
+€49m |
Change in operating WCR [+ decrease, (increase)] (B) |
178 |
170 |
+€8m |
(138) |
(159) |
+€21m |
Gross capital expenditure (C) |
(48) |
(80) |
+€32m |
(111) |
(41) |
-€70m |
Free cash flow (A)+(B)+(C) |
112 |
76 |
+€36m |
Cash flow statement
2020 |
2019 |
In € million |
Q4 2020 |
Q4 2019 |
(146) |
(6) |
Cash flow from operating activities |
(18) |
(14) |
173 |
124 |
Change in operating WCR [+ decrease, (increase)] |
178 |
170 |
27 |
118 |
Net cash flow from operating activities |
160 |
156 |
(138) |
(159) |
Gross capital expenditure |
(48) |
(80) |
(72) |
9 |
Asset disposals & other items |
3 |
(3) |
(183) |
(32) |
Change in net debt [+ decrease, (increase)] |
115 |
73 |
2,214 |
2,031 |
Financial net debt (end of period) |
2,214 |
2,031 |
Definitions of non-GAAP financial data
Data at constant exchange
rates: the data presented « at constant exchange
rates » is calculated by eliminating the translation effect
into euros for the revenue of the Group’s entities whose functional
currency is not the euro. The translation effect is eliminated by
applying Year N-1 exchange rates to Year N revenue of the
contemplated entities.
Free cash flow: Free cash-flow
(FCF) is defined as cash flow from operating activities minus gross
capital expenditure and plus/minus change in operating working
capital requirement.
Gross capital expenditure:
gross capital expenditure is defined as the sum of cash outflows
for acquisitions of property, plant and equipment and intangible
assets and cash outflows for acquisitions of biological assets.
Industrial margin: the
industrial margin is defined as the difference between revenue and
cost of sales (i.e. after allocation of industrial variable costs
and industrial fixed costs), before depreciation.
Lease debt: defined as the present value of
unavoidable future lease payments
Net debt: consolidated net debt
is defined as Bank loans and other borrowings plus Overdrafts and
other short-term borrowings minus Cash and cash equivalents. Net
debt excludes lease debt.
Net working capital
requirement: defined as working capital requirement net of
provisions for inventories and trade receivables; net working
capital requirement days are computed on an annualized quarterly
sales basis.
Operating working capital
requirement: includes working capital requirement as well
as other receivables and payables.
Working capital requirement:
defined as trade receivables plus inventories minus trade payables
(excluding provisions).
1 Notably entails a stay of payments under RCF and Bonds
2 Including under sub-participation
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