With a dynamic increase in sales volume by 17.2%, turnover by 38.8% and with Organic Profitability (a-EBITDA) to 130.4 million euros, increased by 25.7% compared to 9M’20, it closed in the nine months of the current year ElvalHalcor.
The upward trend of the works that started in the last quarter of 2020, was maintained in the third quarter of 2021 with a particularly strong recovery of the markets of the construction sector, the automotive industry and the transport, which had lagged in the previous year, mainly affecting the sector. aluminum. Thus, sales volumes in the nine months increased by 17.2%, driven mainly by rolled products of aluminum, copper and alloys, while for the third quarter of 2021 they increased by 18.5% compared to the corresponding quarter of 2020.
Optimism in the markets and high demand led to a rapid rise in metal prices in the LME, with the average price of copper reaching 7,684 euros per ton (an increase of 48.1% compared to 9M’20) and the average price of aluminum to be set at 1,995 euros per ton (increase of 37.5% compared to 9MD20). The combination of upward sales volume and metal prices set the turnover at historically high at 2,082.5 million euros for the 9M’21, increased by 38.8% from the 1,500.4 million euros of the 9M’20.
The increase in sales volumes and the positive effect of increased scrap consumption halted the negative effects of the increase in gas prices, resulting in the adjusted consolidated earnings of ElvalHalcor before taxes, interest, depreciation, metal result and other expenses -EBITDA), which better reflect the organic and cash profitability of the Company, to increase by 25.7% in the nine months to 130.4 million euros compared to 103.8 million euros in the previous corresponding period, while for the third quarter in a-EBITDA amounted to 45.2 million euros compared to 35.9 million euros for the quarterly period last year.
The rise in metal prices resulted in metal accounting profits, which reached 50.0 million euros for 9M’21 against a loss of 8.7 million euros for 9M’20, with the quarterly figures for the result earnings of € 8.6 million for the third quarter of ’21 compared to profits of € 4 million for the third quarter of ’20. The result of the metal had a positive effect on gross profits amounting to 187.4 million euros compared to 99.8 million euros in the first nine months of 2020. In addition, it is noted that all actions to protect the health and safety of employees and associates of the Company from the pandemic, with the consolidated results including related expenses of 3.1 million euros compared to 2.8 million euros for the nine months of 2020. In this environment, the consolidated profits before taxes, interest and depreciation (EBITDA) amounted to 175.7 million euros compared to 90.9 million euros for the corresponding period of 2020.
On the other hand, the increased prices of metals increased the working capital of the Group, a fact that led to an increase in net debt by 107 million euros compared to the closing of 31.12.2020, with the negative impact of the latter causing an increase in financial costs , with the Net Financial result amounting to 22.1 million euros for the nine months compared to 18.7 million euros in the corresponding period of 2020, despite the gradually decreasing borrowing costs achieved by the Group.
Finally, profit after tax amounted to 117.9 million euros (including the positive effect of valuation of 22 million euros of shares of Cenergy Holdings accounted for in the first half of ’21) against earnings of 25.0 million euros of 9M ‘ 20, with earnings after taxes and minority interests amounting to 115.4 million euros for 9M’21 or 0.3075 euros per share from 24.1 million euros for 9M’20 or 0.0642 euros per share.
Aluminum branch
During the first nine months of 2021, the aluminum sector achieved an increase in sales volumes by 23.6%, with a turnover of 33.6% to 964.9 million euros. The industry was positively affected by the recovery of the automotive and transport industries as well as the construction industry, while it managed to gradually take advantage of the increased capacity from the integration of the new hot roller in production. Profit before taxes amounted to 54.3 million euros compared to 19.7 million euros in the corresponding period of 2020, while a-EBITDA amounted to 85.5 million euros in 9M’21 against 63.5 million for the corresponding period last year.
Regarding the investment program after the operation of the new quadruple hot roller, the second phase of the investment program has already started, with the new investments amounting to 83 million euros for fixed equipment, of which 62.2 million euros concern the production facilities of the aluminum rolling of the parent Company in Inofyta.
Copper industry
At the end of the nine months of 2021, the copper sector showed an increase in sales volume by 6.8%, with the upward trend being fueled by the double-digit increase in sales of rolled copper and copper alloy products, but also the full recovery of alloy extruded products copper that surpassed the corresponding pre-pandemic sales.
Turnover, strongly strengthened by rising copper prices in international markets, amounted to 1,117.5 million euros, showing an increase of 43.7%. The results before taxes amounted to a profit of 71.3 million euros, compared to 10.7 million euros in the corresponding period of 2020, influenced by both the positive metal result and the positive valuation effect of the shares of Cenergy Holdings, while a -EBITDA improved and amounted to 44.9 million euros in the first half of 2021 compared to 40.2 million euros for the corresponding period last year.
Regarding the investments, in 9M’21, about 11.1 million euros were allocated for the completion of the investment programs, with the amount of 5.3 million euros being directed to the parent company’s facilities in Inofyta, while investments of 3.7 million Euros were made by the subsidiary Sofia Med for the implementation of upgrades aimed at expanding its product range in rolled products.
Prospects for the rest of 2021
For the rest of the year, and despite the fact that there is still uncertainty about the evolution of the pandemic, ElvalHalcor is in a good position to take advantage of its diversified product portfolio, as well as its strategic advantages, such as customer-centric philosophy, and international Orientation with sales outside Greece over 91% of turnover, which enable it to take advantage of any future opportunities. Significant investments, which have either recently been completed or are in progress, make a key contribution to this.
These investments, focused on sectors and products with prospects for dynamic growth in the context of the circular economy and sustainable development, further increase production capacity and the potential for utilization, allowing ElvalHalcor to maintain its upward trend.
Rising energy prices are expected to make their impact more visible in the last quarter, when historically high prices were recorded, especially in the price of TTF gas, but demand conditions remain positive, allowing the effects to be minimized.
Tomorrow the information of analysts and investors
ElvalHalcor announces to the investing public that the briefing on the Basic Financial Figures of the Third Quarter 2021 of the Company will take place on Wednesday, December 1, 2021 at 17:00 local time in Greece via video conference:
Time: 17:00 Greek time
16:00 Central European Time
15:00 UK time
10:00 United States time (New York)
Duration: The video conference will last approximately 30 minutes. Questions will be available after the short presentation.
Participation: To participate in the conference call, please dial one of the following numbers:
• Greece: +30 213 009 6000 or +30 210 94 60 800
• United Kingdom: +44 (0) 800 368 1063
• United Kingdom and other countries: +44 (0) 203 059 5872
• United States of America: +1 516 447 5632
Participants from any other country can call any of the above numbers to log in (5-10 minutes before the scheduled start of the conference call).
Webcast: The conference will be broadcast live at the following link:
https://87399.themediaframe.eu/links/elvalhalcor3Q21.html
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Source From: Capital
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