Basque pipe manufacturer Tubacex foresees the objectives of its current strategic plan (2022-2025) after meeting most of them and achieving a “robust” order book of 1,600 million. The company proposes to bill between 1,200 and 1,400 million in 2027 and reach an EBITDA of over 200 millionAs announced by the group at the first Capital Markets Day held in Madrid this Tuesday. In addition, the company, which wants to focus its strategy on energy and mobility, foresees sales of 100 million by the end of 2027 with its ‘Low Carbon’ unit, with the aim of becoming one of the most important business lines in the future. They also plan to reduce the net financial debt/EBITDA ratio below double by 2027.
The plan in place so far predicts sales of 1,000 or 1,200 million by 2025 The new prediction is to reach a turnover of between 1,200 and 1,400 million in 2027, after closing the first nine months of this year with 642 million, and to finish 2023 with a figure close to 900 million.
On the other hand, Tubacex CEO Jesús Esmorís said, He noted that the group’s share value still had “a long way to go” and emphasized that the dividend payout was planned to be increased from 30% to 40% in the review of the strategic plan.. The company’s shares have gained up to 50% so far this year, approaching three euros. The capital of the company is 379 million. Regarding the possibility of share repurchase, the company stated that this is something that cannot be ignored, but that the path will be done “on foot” and will be evaluated at any time, and that this is “the most appropriate way to go back.” shareholder” without permission “no roads were closed.”
Esmorís also pointed out that this transformation of the company will be accompanied by: “The change of image is that they named the Strategic Plan review, which will cover the years 2024-2027, as ‘NT2’ It is a company that maintains its axis leadership in sustainability, debt reduction, income stability, increasing competitiveness and increasing diversification.
alliance with the Arab Emirates
Specializing in the production of seamless alloy tubes, the company has factories in Austria and the United States and more than 4,500 employees worldwide. In recent years, the company has focused on Latin America and Asia and diversified its customer portfolio. Llodio’s company recently signed a ten-year contract worth 1,000 million for the construction of a new facility in Abu Dhabi It includes the construction of a new pipe and thread production facility for oil company Adnoc in Abu Dhabi, which employs 150 people and has an annual turnover of between 150 and 200 million. Tubacex CEO stated that they are also committed to seeking financial partners who will “co-invest” with them and help them “grow faster” to “complement” their strategy.
The group emphasized that they already had Premium products and that cost control was “in the company’s DNA”; therefore, they are confident that the sum of both factors “will always lead to improved margins.” Within the scope of this transition of the company, By the end of the plan, they aim for the Oil&Gas sector to account for no more than a third of their jobs and are determined to be the “reference in sustainability”..
Reduce emissions
Becoming a more sustainable company is also among the company’s plans. Esmorís announced that they aim to be a “leader” in the ‘Low carbon’ business and stated that they hope to reach a turnover of 100 million in 2027 in the newly created unit, but that this is a figure that should reach “much more”. More.” In this sense, he added that Tubacex should be “the strongest” in 10-15 years.
“We believe that if it is fulfilled, and I believe it will be fulfilled, it needs time, it is a A department that can invoice 1,000, 1,500 million in a time period that is difficult to predict. Let’s say 15 or 20 years“he stated.
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With this division, they aim to accompany their customers in the energy transition and will serve as a platform for business growth through already established industrial solutions for carbon capture, storage and utilization (CCS) and hydrogen technologies, respectively.
Esmorís energy transition “Although the speed is not very clear” “it will happen”. According to him, this will depend, first of all, on how technologies that “need time” will progress, and also on the regulatory system.