Prysmian in Brazil, a leading global company in cables and systems for the energy and telecommunications sectors, earned R $ 1.3 billion in the country in 2016 and obtained a net profit, before extraordinary effects, of R $ 61.7 million in year.
Although sales volume fell by around 15% from one fiscal year to the next, with R $ 1.5 billion in 2015, influenced mainly by the reduction in the oil and gas sectors and in the infrastructure and civil construction markets, the profit , On the other hand, showed a strong improvement, before extraordinary effects of impairment and increase in delinquency, with an amount 80% higher compared to the previous year.
The main reason for these results, according to Prysmian South America CEO Marcello Del Brenna, is related to the adequacy of structure and processes within the current market situation. “Expectations for 2017 are of a slight resumption in the telecommunications and energy distribution markets, offsetting a stagnation in construction and a reduction in the oil and gas sector,” Del Brenna comments.
The Prysmian Group’s profitability note in 2016 was the highest in the company’s history, with adjusted EBITDA at 711 million euros, an increase of 16.4% compared to the previous year, when it reached 584 million euros. Sales volume also increased from year to year and reached 7.5 billion euros, compared to 7.3 billion euros in 2015.
“The excellent performance in sales in higher value-added companies was reflected in a significant improvement in profitability, also fostered by the focus on operational efficiency and optimization of the manufacturing system,” said Valerio Battista, CEO of Prysmian Group. “Technological innovations developed, for example, for power projects such as the new 600 kV P-Laser cable and the 700 kV PPL cable represent today’s major milestones for the entire industry,” he adds.
The executive also notes that the Group has made significant progress in the development of engineering and project execution capabilities, with the goal of providing a turn-key service to customers. “We also invested in the expansion of our fleet of cable launchers, which meant a high performance and profitability gain,” says Battista.
According to the CEO of the Prysmian Group, the organization’s outlook remains positive for both submarine cables and systems. “We intend to conquer new energy interconnection projects and offshore wind farms, in addition to expanding the Telecom business, where demand for optical cable remains high. Strong sales performance and improved profitability helped further strengthen the Group’s financial structure, with better-than-expected liquidity, “concludes Battista.