Profits rose by nearly 50% in the first quarter of 2023 at cables producer Prysmian.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), excluding net expenses for company reorganisations, net non-recurring expenses and other net non-operating expenses, increased by 48.3% to €427m.
Overall results were partly driven by improved profitability in Prysmian’s projects, energy and industrial cable units.
In projects the adjusted EBITDA margin was 10% in Q1 2023 compared to 7.8% in Q1 2022.
In the energy and infrastructure unit where adjusted EBITDA margin at rose to 10.9% in Q1 2023 compared to 6.8% in Q1 2022.
In the industrial application cable business (wind and solar energy in particular), the adjusted EBITDA margin rose to 9.8% in Q1 2023 from 6.8% in Q1 2022.
The sales growth of the projects segment was driven in particular by the high voltage submarine power cable and system business, which provides strategic technological solutions for the development of power interconnections and cabling of offshore wind farms for the energy transition.
Profitability improvement was attributable to both a thorough approach in the selection of the projects to be acquired, thanks to the full utilisation of the production assets, and the execution of the projects in the order book.
In particular, the execution of the major German Corridor continued in line with expectations.
Prysmian has recently been awarded a new contract worth €800m for the Biscay Gulf project relating to a new submarine power interconnection between France and Spain on behalf of INELFE, a 50:50 joint venture between the Spanish grid operator Red Eléctrica and the French grid operator Réseau de Transport d’Électricité (RTE).
The project falls within the European Commission’s Projects of Common Interest, as it increases power supply reliability, enables the further integration of renewable energy into electricity grids and contributes to creating a more efficient system.
This latter contract adds to two projects, IJmuiden Ver Alpha and Nederwiek 1 of a total worth of approximately €1.8bn, for the connection of offshore wind farms in the Netherlands, acquired in the first quarter of the year.
IJmuiden Ver Alpha and Nederwiek 1 are the first projects in which the Prysmian Group is to use the 525 kV HVDC submarine cable, developed to enable the construction of lines with capacity of 2GW.