• A refocus on core business and high-margin projects with smaller volumes take EBITDA and Net Income back to black
  • Operational and financial strengthening continues in 2014

Milan, 13 March 2014 - Today Maire Tecnimont S.p.A.’s Board of Directors has examined and approved the 2013 draft statutory and the Group’s consolidated financial statements.



FY 2013

FY 2012

% difference





Business Profit*




Business Margin












Group Net Income







Net Financial Debt



* The term "Business Profit" means the industrial margin before the allocation of general and administrative costs (“G&As”) and research and development expenses.



FY 2013

% revenues

FY 2012

% revenues

Oil, Gas and Petrochemicals




Business Profit














Business Profit










Infrastructures and Civil Engineering




Business Profit











(millions of euros)







- 1,762.6*

(millions of euros)

FY 2013

FY 2012




- 1,427.6

* It includes €1,398 million related to the COCIV and Metro Copenhagen projects, deconsolidated in 2013.

** The 2012 awards include €894 million related to the COCIV and Metro Copenhagen projects.

All comparisons are Full Year 2013 versus Full Year 2012, unless otherwise specified.

Consolidated Financial Results as at 31 December 2013

Maire Tecnimont Group’s revenues were €1,656.2 million, down 24.3%. This change reflects the different mix of existing contracts that mainly consist of engineering and procurement services, benefiting from higher margins but lower volumes and low risks and, to a small extent, of Engineering, Procurement and Construction (“EPC”) contracts. Revenues have also been affected by the longer award time by potential clients.

Business profit was €199.1 million, versus negative €68.0 million in 2012. The change reflects the evolution of the higher-profit projects held in the portfolio, driven by the Oil, Gas & Petrochemicals (“OG&P”) BU. The Infrastructures and Civil Engineering (“ICE”) BU also contributed towards the positive result, mainly through the disposal of the stake held in the COCIV Consortium.

The Business Margin is 12.0% versus negative 3.1% in 2012.

G&A costs were €78.7 million, down 13.5%; this is mainly due to the benefits stemming from the ongoing reorganizations.

Research & Development costs were approximately €4.3 million, up €4.1 million. The Group focused its R&D activities on initiatives in high-technology sectors, which are expected to bear positive returns over the next few years.

EBITDA was €116.1 million (7.9% on revenues) versus a negative figure of €159.2 million (-7.3% on revenues) in 2012. This change is mainly due to higher overall business margins and lower G&As.

Amortisation, depreciation, impairment and provisions were €26.1 million and include the write down of about €10 million of the goodwill allocated to the ICE BU.

EBIT was €90.0 million, versus negative €187.4 million as at 31 December 2012.

Net financial income is negative for €40.6 million, showing an improvement of €4.5 million, thanks to the benefits of the refinancing, which has affected the last two quarters of 2013.

Pre-tax income was €50.1 million, and tax provisions were €32.8 million. The effective tax rate as at December 2013 is approximately 65.4% of the pre-tax income; this is influenced by the fact that certain costs and the impairment of the ICE BU goodwill. Net of this one-off effect, the tax rate would have been about 36%. Such a provision has not resulted in a cash outflow, due to the utilization of tax-loss carry forwards.

Group's net profit was €17.3 million, versus a €207.6 million loss as at 31 December 2012.

Net Financial Position ("NFP"), i.e. the net financial debt, was €305.0 million, up €78.8 million. This change was mainly driven by the deconsolidation of the available cash held in the two consortia disposed of in 2013 (COCIV and Metro Copenhagen), together with the physiological reduction of the available cash held in the joint ventures, according to the progress of the projects.

Consolidated shareholders' equity is positive for €35.2 million (negative for €121.8 million as at 31 December 2012). The change is mainly a consequence of the net income of the year, and the capital increase, net of the related accessory charges.

Performance by Business Unit

Oil, Gas and Petrochemicals

Revenues in the OG&P BU, which is the Group's core business, were €1,306.7 million, down 27.8%. This change is due to the different mix of projects held in the portfolio executed during the year.

Business profit was €171.9 million, up 4.2%, leading to a Business margin of 13.2%, up 4.1 percentage points as a consequence of the higher average profitability of existing projects.

EBITDA was €100.7 million, up 10.5%, while EBITDA margin was 7.7%, up 2.7 percentage points.


The Energy BU revenues were €48.2 million, down €129.3 million. This trend is mainly due to the new strategy of refocusing the business on engineering and procurement services. Consistently,EBITDA was negative for €5.6 million, with a strong improvement compared to the negative €216.5 million in 2012.

Infrastructures and Civil Engineering BU

Revenues of the ICE BU were €301.3 million, up €102.1 million. This change is mainly due to the proceeds from the sale of the stakes held in the COCIV and Metro Copenhagen Consortia, in addition to the greater volumes generated by the Etihad Rail project.

For the same reasons Business profit was €30.5 million, an improvement on 31 December 2012, when it was negative for €24.3 million. The business margin was 10.1%, versus minus 12.2% in 2012.

EBITDA was €21.1 million, (a 7.0% margin) versus minus €33.8 million in 2012 (-17.0% margin). Contributing factors were the sale of the entire stake held in the COCIV and Metro Copenhagen Consortia, together with all related rights and obligations, partially offset by the revision of the completion estimates of some projects, and by provisions for personnel in connection with the reorganisation process still underway.


During FY 2013, the Group’s commercial activity generated new awards worth €1,174.1 million,downversus 2012 due to the strategy related to a change in the mix of projects, characterized by higher margins and smaller volumes, in addition to the deferral of awards of certain important projects by some potential clients. However, the Group has already acquired some important projects in the first few months of 2014 (see "Subsequent Events"). It has to be noted that the 2012 awards include €894 million related to the COCIV and Copenhagen Metro projects, which were already under disposal. As at 31 December 2013, the Maire Tecnimont Group’s Backlog was €3,481.8 million, down €1,762.6 million, mainly due to the deconsolidation of the backlog related to the COCIV and Metro Copenhagen projects, for €1,398 million.

As at 31 December 2013, backlog by BU was as follows:

-      OG&P: €2,464.3 million;

-      Energy: €515.2 million;

-      ICE: €502.3 million.

Subsequent Events

On 20 January 2014, Tecnimont S.p.A. signed agreements in connection with the development of engineering works for two fertiliser plants in the Russian Federation, in addition to an agreement for the direct negotiation of the EPC contract for one of the two plants. Both plants are owned by EuroChem Mineral and Chemical Company.

On 30 January 2014, the Group, through the subsidiaries Tecnimont S.p.A., KT - Kinetics Technology S.p.A. and Stamicarbon BV, was awarded, new service contracts and additions for EP, licensing and technology packages for a total value of approximately €96 million.

On 10 February 2014, the Consortium established by some of the Group's subsidiaries (86%) and the Turkish company Ustay A.S. (14%) has been awarded stage II of the Sonara complex expansion project in Cameroon. The total value of the contract amounts to about USD 715 million, of which about USD 612 million pertains to the Maire Tecnimont Group.

On 13 February 2014, the Group launched a placement of an equity linked bond with a term of 5 years, reserved to qualified Italian and foreign investors, for a total nominal amount of €70 million. The placement was successfully completed that same day. On 17 February 2014, the transaction's joint bookrunners exercised their over-allotment option in full. Consequently, the total nominal value of the bonds was increased from €70 million to €80 million. The bonds were issued at par, for a unit nominal value of €100,000; they have a term of 5 years and a fixed annual coupon of 5.75%, payable six-monthly in arrears. The conversion price has been fixed at €2.1898.

On 18 February 2014, Tecnimont USA Inc. and Foster Wheeler USA Corporation signed a collaboration agreement in relation to Front-End Engineering Design (FEED) and EPC activities for the development of petrochemical, chemical and fertiliser plants in the United States of America, Canada and Mexico.


For 2014, the Group expects to maintain positive margins. This result is expected to be mainly driven by the positive trend enjoyed by the OG&P BU, for which new orders are expected, as confirmation of the industrial repositioning and in line with the strategic approach aimed at pursuing lower-risk projects.

In the Energy BU, the Group is currently developing a new commercial strategy aimed at enhancing its core competencies while mainly focusing on engineering services and EP projects, as confirmed by the latest award in the Dominican Republic.

The new strategy of the Group is essentially based on consolidating the traditional EPC business, paying greater attention to the E and EP components, and developing licensing and service activities by exploiting its core competencies. The Group also continues to pursue a cost containment policy consistent with the values already achieved during the year.

Therefore, the Group confirms its re-focusing on the core business.  The previously announced asset disposal plan continues, and further transactions are expected to be completed within the first semester of 2014.


Corporate Governance

The Board of Directors has approved the Report on Corporate Governance and Ownership Structure for the year 2013 and the 2014 Remuneration Policy Report. The Board of Directors has also examined  the requirements of independence of the Directors Gabriella Chersicla, Nicholas Dubini, Victoria Giustiniani, Patrizia and Paolo Riva Tanoni, pursuant to the Code of Conduct and the Legislative Decree 58 / 1998 ("TUF").

The Board of Directors has also approved, subject to the approval of the Committee for the Transactions with Related Parties, the updated version of the Procedure for the Transactions with Related Parties. The procedure in force will be available on the Company's website, in "Governance – Corporate Documents".

Ordinary and Extraordinary Shareholders’ Meeting

The Board of Directors has resolved to call an ordinary and extraordinary shareholders' meeting to be held on 30 April 2014, on first call, and, if required, on 2 May 2014 on second call, in order for the shareholders (i) at the ordinary meeting, to approve the financial statements for the year ended 31 December 2013, the Compensation Report and the nomination of members of the Board of Statutory Auditors, and (ii) at the extraordinary meeting, to authorize the convertibility, pursuant to Article 2420-bis, paragraph 1, of the Italian Civil Code, of the €80 million 5.75 per cent. Unsecured Equity-Linked Bonds due 2019, issued by the Company, and approve a cash capital increase, up to an equivalent amount, excluding shareholders’ pre-emption rights pursuant to Article 2441, paragraph 5, of the Italian Civil Code, to be reserved solely for the purposes of the conversion of the Bonds.

In accordance with applicable laws, the call notice of the shareholders' meeting and the reports of the directors will be made available on the Company's website (www.mairetecnimont.com) at the Section Governance/Shareholders' Meeting Documents (http://www.mairetecnimont.com/en/governance/documentazione-assemblee-degli-azionisti).


In his capacity as executive in charge of preparing the corporate accounting documents, Dario Michelangeli hereby declares - in accordance with paragraph 2 of Article 154-bis of Italian Legislative Decree no. 58/1998 (the "Consolidated Finance Act") - that the accounting information given in this press release coincides with the documented results, books and accounting entries.

The Draft Statutory and the Group’s Consolidated Financial Statements as at 31 December 2013 will be made available to the public at the company's offices and with Borsa Italiana, as well as in the Investors/Reports section of the Group’s website www.mairetecnimont.com.

This press release, and in particular the section entitled "Outlook" contains forecasts. These declarations are based on current estimates and forecasts for the Group in relation to future events; by nature, these entail a certain amount of risk and uncertainty. For various reasons, the actual results may differ significantly from those contained in such declarations; such reasons include continued volatility or a further worsening of the capital and financial markets, changes in the prices of commodities, changes in macroeconomic conditions and economic growth and other changes in business conditions, in addition to other factors, the majority of which are beyond the Group's control.

Maire Tecnimont SpA

Maire Tecnimont S.p.A. is a company listed with the Milan stock exchange. It heads an industrial group (the Maire Tecnimont Group) that leads the international Engineering & Construction (E&C), Technology & Licensing and Energy & Ventures markets, with specific competences in plants, particularly in the hydrocarbons segment (Oil & Gas, Petrochemicals and Fertilisers), as well as in Power Generation and Infrastructures. The Maire Tecnimont Group operates in approximately 30 different countries, numbering around 45 operative companies and a workforce of about 4,300 employees, of whom over half work abroad. For more information: www.mairetecnimont.com.

Public Affairs

Carlo Nicolais                              public.affairs@mairetecnimont.it

Media Relations

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Tel. +39 02 89011300


Investor Relations

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Tel. +39 02 6313-7823


Below are the consolidated Income Statement, Balance Sheet and Cash Flow Statement.