CORINTH PIPEWORKS S.A. consolidated turnover in 1st quarter of 2009 marked a 47% increase over the respective period of 2008 and stood at 124 mil. euro versus 84.4 mil. euro in 2008. Accordingly, ΕΒΙΤDΑ amounted to 10.5 mil. euro versus 8.7 mil. euro in 2008, marking a 21.1% increase over the 1st quarter of 2008, while EBITDA margin stood at 8.5% of the consolidated turnover, versus 10.3% in the respective period of 2008. Consolidated earnings before tax amounted to 6.5 mil. euro, versus 4.2 mil. euro the respective period the year before, while earnings after tax and minority rights marked a 81.8% increase and stood at 6.5 mil. euro (0.052 euro per share) versus 3.6 mil. euro (0.029 euro per share) in the 1st quarter of 2008.
Regarding the parent Company results, turnover marked a 46.4% accordingly and amounted to 108 mil. euro versus 73.9 mil. euro in the 1st quarter of 2008. EBITDA eased by 21% and formed at 6.7 mil. euro versus 8.5 mil euro in the respective period of 2008 while earnings before tax stood at 3.1 mil. euro versus 5.7 mil. euro the year before. Finally, net after tax earnings amounted to 3.6 mil. euro versus 5.2 mil. euro (or 0.029 euro per share versus 0.041 euro per share in the 1st quarter of 2008).
Net debt (Debt - Cash) of CORINTH PIPEWORKS on a consolidated level amounted to 78.1 mil. euro versus 57.0 mil. euro as at 31/12/2008, while Shareholders Equity amounted to 129.4 mil. euro for the group and 126.9 mil. euro for the company, respectively.
The increase of sales and profitability over 2008 is attributed on the one hand to the completion of several significant projects, mainly in the US and West Europe and on the other hand to the lower utilization rates of the ERW/HFI plant last year. The financial results of the 1st quarter of 2009 were achieved in spite of the group's inventory impairment amounting to 5.2 mil. Euro, due to the sharp drop of steel prices, and the drop of the construction activity in Europe. Finally, the global financial crisis has negatively influenced the results of the Russian joint venture ''ZAO TMK-CPW'' in Russia, which reported net after tax earnings at 0.6 mil. euro (versus 1.3 mil. euro in the 1st quarter of 2008).
The global recession and the fall both of energy prices and demand for energy have resulted to a slowdown of the oil & gas extraction and transmission projects. As it was already foreseen, the crisis in all big economies (excluding China) has triggered increasing protectionism, negatively affecting international trade, hence the exporting economies and companies. Amid such an adverse economic environment however, opportunities do emerge. The sharp drop of steel prices, as well as the stabilization of freight cost at levels, that better reflect the prevailing international trade conditions, are expected to have a positive impact on the Group's financial figures, hence partly alleviating the consequences of the global recession. Moreover the conservative capex policy of CORINTH PIPEWORKS SA, the continuous improvement of operations and its establishment as one of the most significant and lean pipeworks worldwide, provide the company with the ability to face the current situation with the least possible casualties.
The Data and Information of the period 1.1.2009 - 31.03.2009 will be published at the May 27, 2009 edition of newspaper 'NAYTEMPORIKI' and together with the Interim Financial Report of the same period will be posted on the company's website, www.cpw.gr as well as on the ATHEX website www.athex.gr.