Nexans high voltage and projects unit reported €105m in earnings before interest, tax, depreciation and amortisation (EBITDA) in its 2020 financial year results, slightly up by 1.4% on 2019.
Nexans said the business benefitted from its well-balanced and low-risk backlog both in offshore wind farms and interconnection projects.
Sales for the unit reached €699m at standard metal prices, in line with 2019.
Subsea high-voltage project execution was in line with backlog phasing and the activity benefitted from continued execution.
Tendering activity, in both offshore wind and interconnectors, continued to be strong as several projects were secured during the year such as the Seagreen offshore wind project off Scotland and the Crete-Attica cable.
Adjusted backlog reached €1.4bn at the end of December, with a 24-month visibility.
Sales were “resilient year-on-year” thanks to a first semester boosted by four inspection, maintenance and repair projects, compensating lower sales in fourth quarter 2020 compared to strong fourth quarter 2019, as NordLink and East Anglia projects were completed.
In 2002 Nexan’s Charleston plant transformation extension in the US progressed and the first phase of the Seagreen project cable manufacturing was launched.
Nexans also unveiled its operational model focused on the electrification value chain from generation of energy to transmission and distribution up to usage of energy.
As part of its “electrify the future” strategy Nexans will “enhance its positioning” in the offshore wind and interconnection markets, through additional investments totalling €200m, while maintaining a value proposition based on three pillars.
These are risk and project portfolio management, asset management and cutting-edge technology.
Nexans CEO Christopher Guerin said: ” Despite the unprecedented global health and economic crisis, 2020 was a tipping point for Nexans, as we demonstrated our ability to accelerate the company’s transformation, outperforming our financial performance both in ROCE and free cash flow, resulting in a 10-year low net debt.
“Our efforts, in the second semester, were focused on our long-term ambition, defining our new purpose to “Electrify the future”, our new values, our new ESG & Carbon neutrality commitment.
“It’s full steam ahead … Nexans is starting 2021 confident and with ambitious goals.”