4C Offshore Empowering Intelligence

Q1 Group Sales €3,992 million, with High Voltage Submarine Power Cable up 29.5%

4C Offshore | Chris Anderson
By: Chris Anderson 11/05/2023 Press release
Prysmian group released their Q1 results today. In it they identified that Group Sales amounted to €3,992 million, Profits rising by nearly 50% with a +9.0% organic growth This was a better-than-expected performance in almost all businesses and geographical areas.  
Their report highlighted strong acceleration of the sales organic growth (+29.5%) from their Projects segment, in the main  attributable to submarine cables and systems, which are used both for developing interconnections and for connecting offshore wind farms that are strategic to the energy transition.
“The first quarter of 2023 closed with better-than-expected results, further confirming the solid and long-term nature of the drivers that had fuelled our extraordinary growth in 2022,” stated CEO Valerio Battista. “All the businesses and geographical areas performed well, particularly the sectors that play a strategic role in the energy transition and electrification processes — from submarine cable systems for large interconnections and offshore wind farms to cable for grid hardening, and applications for wind and solar renewable energy generation. Worth of mention is our ability to translate business results into cash generation, thus contributing to improving our net financial debt. In short, after having reported our best ever results in 2022, this excellent start to the year confirms the competitiveness of our product range and our technology innovation capacity, the quality and reliability of our supply chain and customer service, as well as our execution capabilities for the important projects in the order book,” concluded Battista.

The Energy segment’s sales recorded a +6.6% organic growth, mainly driven by long-term drivers, such as electrification, grid hardening and wind and solar energy generation. Medium-voltage cables and overhead lines recorded a +12.2% organic growth. Sales of the renewables segment also improved. Telecom recorded a +5.7% organic growth, chiefly thanks to the demand for optical cables for the development of broadband networks.
Projects revenues amounted to €563 million, with a +29.5% organic growth compared to Q1 2022. Adjusted EBITDA rose to €56 million (€32 million in Q1 2022), with a  Sales improvement of 10.0% compared to 7.8% for Q1 2022.

High Voltage

The sales growth of the Projects segment was driven in particular by the High Voltage Submarine Power Cable
and System business, which provides strategic technological solutions for the development of power interconnections and cabling of offshore wind farms for the energy transition.

Prysmian stated this is an  industry which went from an average of approximately €3 billion of projects
assigned a year until 2019 to approximately €13 billion of projects expected for 2023 and the coming years.

Prysmians profitability improvement was in their view attributable to both a thorough approach in the selection of the projects to be acquired, thanks to the full utilisation of the production assets, and the execution of the projects in the order book. In particular, the execution of the major German Corridor continued in line with expectations.

The Group has recently been awarded a new contract worth €800 million for the Biscay Gulf project relating to a
new submarine power interconnection between France and Spain on behalf of INELFE, a 50:50 joint venture between the Spanish grid operator Red Eléctrica and the French grid operator Réseau de Transport d’Électricité
(RTE). The project falls within the European Commission’s Projects of Common Interest, as it increases power
supply reliability, enables the further integration of renewable energy into electricity grids and contributes to creating a more efficient system.

This latter contract adds to two projects IJmuiden Ver Alpha and Nederwiek 1 of a total worth of approximately
€1.8 billion, for the connection of offshore wind farms in the Netherlands, acquired in the first quarter of the year. IJmuiden Ver Alpha and Nederwiek 1 are the first projects in which the Prysmian Group uses the 525 kV HVDC
submarine cable, an extremely innovative technology, developed to enable the construction of lines with capacity

of 2 GW.


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