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10 | Prysmian Group
Insight
Quarterly Overview
Sales by the Submarine Cables and
Systems business grew fast, particularly
thanks to the capability to execute the
numerous projects currently in the Group’s
order book. The deepwater cable for the
Western Link project is at an advanced
stage of production, with installation
scheduled to start in the second half of
the year. The implementation of the plan
is delivering positive results, with an
acceleration in the execution schedule.
The market continues to be strong,
driven by projects for the interconnection
of transmission networks in Europe.
Sales by the High Voltage Underground
business were essentially in line with
plan. In Europe, strong performance in
the UK was offset by weak demand in
France, Italy and the Nordic countries.
The award of the new interconnection
project between France and Italy is
nonetheless an encouraging sign of the
real desire to create a single European
electricity market. Sales in China and
the Middle East also performed well.
The order book for Underground and
Submarine power transmission grew
significantly,reachinganewpeakofaround
€3.5billion.Thelatestprojectawardedwas
the North Sea Network, an interconnector
between Britain and Norway worth
more than €550 million. As the longest
HVDC link ever planned, the award
confirms the Group’s market leadership.
The strong sales performance by the
SURF business continued to benefit
from the execution of long term project
and by robust growth of the Down Hole
Technology market in North America.
Sales by the Energy Projects operating
segment
reached €739 million in the first
half of 2015, posting organic growth of
21.7%. Profitability improved significantly
with Adjusted EBITDA of €115 million, up
from €36 million in the first half of 2014,
and a margin on sales of 15.6% versus 6.2%
one year earlier. Excluding the adverse
impact of the Western Link project, sales
wouldhavebeen€797million,withorganic
growth of 17.4%, and Adj. EBITDA would
have been €116 million (€110 million in
the first half of 2014).
Energy
Projects
sales
improved
markedly
This operating segment
also improved profitability
significantly. Submarine,
Umbilical and DHT cables up,
High Voltage Underground
in line with 2014. Record
Transmission orders.