2017 Yearly Overview | Prysmian Group

MARGINS IMPROVED IN OUR STRATEGIC BUSINESSES PRYSMIAN GROUP 2017 YEARLY OVERVIEW O&G sales decreased 9% organically but onshore project demand sustained a recovery in the Core Cables business. Adj. EBITDA rose to €9 million from €8 million in 2016. O&G sales increased organically by 10.8% in 2017 to €273 million, as the performance of the segment continued to be negatively affected by the drop in oil prices, which in turn affected investment decisions by the industry's major players. In particular, the SURF business experienced a contraction in the umbilicals market in Brazil, linked to a downturn in activity by Petrobras, partly offset by North American volumes linked to shale oil production and by commercial synergies arising from the integration of Gulf Coast Downhole Technologies. Nevertheless, the Core Cables business witnessed a recovery in onshore project demand. The business's overall profitability continued to be affected by the drop in higher-margin maintenance repair and operations (MRO) and offshore volumes. Adjusted EBITDA for 2017 was €9 million, up from €8 million in 2016, despite the contraction in turnover for the Brazilian SURF business. The Core Cables business witnessed a recovery Sales of the segment continued to ease but the Core Cables business witnessed a recovery in onshore project demand. Adj. EBITDA rose to €9 million. The segment includes Downhole Technology (DHT), Subsea Umbilical, Riser and Flowline (SURF), and Core Cables for applications in the businesses of Exploration & Production, Pipeline & LNG and Refineries & Petrochemicals. The DHT business delivers tech-driven products for oil, geothermal and gas wells, serving as integral components of downhole control, injection, flow assurance and monitoring systems. The Oil & Gas (O&G) segment also offers products and services known as ‘SURF’, for offshore oil and gas exploration and production activities. The Core Cables product line includes power, instrumentation, control and communication cable solutions specifically designed for applications in the fields of oil and gas. Completing the range is a series of specific solutions for drilling rigs, including cables for electrical submersible pumps. The oil and gas market crisis has oriented all Core Cables’ development activities towards design and production cost optimisation, and towards introducing alternative products to the market. Thus, the Group added a new technology in 2017 to produce steel tube umbilicals for dynamic applications. OIL&GAS “The decline in demand for DHT products was partly offset by North American volumes linked to shale oil production and by commercial synergies arising from the integration of the Gulf Coast Downhole Technologies company”. Cristiano Tortelli Senior Vice President Oil & Gas Business and New Markets 2016 300 273 2017 -10.8% SALES 2017