Greek Cenergy Holdings announced that after several quarters of weak demand, Corinth Pipeworks, after H1 of 2022, finds itself in a stronger position with a current backlog exceeding EUR 450 million, the highest level since 2018. During H1 2022, the steel pipes segment witnessed a turnaround of the market. More specifically, the war in Ukraine caused further geopolitical turbulence and pushed higher the already high energy prices. As many countries, especially in Europe, had to face in a short notice, urgent energy security issues, a number of gas transfer projects which were on hold for some time, were brought back on track, aided by a more favorable financial environment.In these improving market conditions, revenue for the segment increased considerably to EUR 192 million in H1 2022, 79% higher from its H1 2021 level of EUR 107 million. A less profitable project mix during that period has, however, led to lower gross profit of EUR 4.4 million vs EUR 6.3 million in the corresponding semester of 2021 and adjusted EBITDA at EUR 4.4 million from EUR 5.9 million in H1 2021. Consequently, the segment bore a loss before tax of EUR 4.2 million, slightly higher than the loss of EUR 3.6 million in H1 2021.On the commercial front, Corinth Pipeworks exhibited significant resilience, mainly illustrated by the successful execution of pipeline projects and the significant awards secured during the first semester of the year.Orders ExecutedSuccessful completion of 80km large diameter pipes for GAZ-SYSTEM SA PolandProduction of orders for the Snam high pressure network in ItalySuccessful production of many offshore projects for the North and Norwegian Sea and the Gulf of MexicoOrders AwardedBy Collahuasi for 201km of desalinated water pipeline in Chile, part of which was produced during H1 2022New award for 163km of pipeline in West Macedonia, Greece by DESFA, certified to transport up to 100% of hydrogen.Hydrogen certified pipeline in Australia by Jemena for 13km pipes.76km of gas pipeline in Mozambique by SASOLAs a result of the above awards, current backlog hit the highest level since 2018 exceeding EUR 450 million.Outlook - The steel pipes segment is looking forward to a positive year, as the solid backlog built during the last month’s blends together high-capacity utilization with better profit margins for the rest of the year. The execution of a more favorable projects mix in terms of operational profit is expected in the second half of the year and market conditions are expected to boost order backlog even more.
Greek Cenergy Holdings announced that after several quarters of weak demand, Corinth Pipeworks, after H1 of 2022, finds itself in a stronger position with a current backlog exceeding EUR 450 million, the highest level since 2018. During H1 2022, the steel pipes segment witnessed a turnaround of the market. More specifically, the war in Ukraine caused further geopolitical turbulence and pushed higher the already high energy prices. As many countries, especially in Europe, had to face in a short notice, urgent energy security issues, a number of gas transfer projects which were on hold for some time, were brought back on track, aided by a more favorable financial environment.In these improving market conditions, revenue for the segment increased considerably to EUR 192 million in H1 2022, 79% higher from its H1 2021 level of EUR 107 million. A less profitable project mix during that period has, however, led to lower gross profit of EUR 4.4 million vs EUR 6.3 million in the corresponding semester of 2021 and adjusted EBITDA at EUR 4.4 million from EUR 5.9 million in H1 2021. Consequently, the segment bore a loss before tax of EUR 4.2 million, slightly higher than the loss of EUR 3.6 million in H1 2021.On the commercial front, Corinth Pipeworks exhibited significant resilience, mainly illustrated by the successful execution of pipeline projects and the significant awards secured during the first semester of the year.Orders ExecutedSuccessful completion of 80km large diameter pipes for GAZ-SYSTEM SA PolandProduction of orders for the Snam high pressure network in ItalySuccessful production of many offshore projects for the North and Norwegian Sea and the Gulf of MexicoOrders AwardedBy Collahuasi for 201km of desalinated water pipeline in Chile, part of which was produced during H1 2022New award for 163km of pipeline in West Macedonia, Greece by DESFA, certified to transport up to 100% of hydrogen.Hydrogen certified pipeline in Australia by Jemena for 13km pipes.76km of gas pipeline in Mozambique by SASOLAs a result of the above awards, current backlog hit the highest level since 2018 exceeding EUR 450 million.Outlook - The steel pipes segment is looking forward to a positive year, as the solid backlog built during the last month’s blends together high-capacity utilization with better profit margins for the rest of the year. The execution of a more favorable projects mix in terms of operational profit is expected in the second half of the year and market conditions are expected to boost order backlog even more.
