Duro Felguera S A : 1H2021 Results Report

RESULTS

REPORT

RESULTS FIRST SIX MONTHS JANUARY - JUNE 2021

Results First Six Months

January - June 2021

DURO FELGUERA

Results Report

January - June 2021

1. Main figures and milestones in the period

	1H 2021	1H 2020
	(*)
Sales	40,005	70,805
EBITDA	(13,024)	(102,884)
EBIT	(13,786)	(111,091)
Net profit of parent company	(11,133)	(113,887)
Net debt	(96,177)	(23,046)
Order Intake	22,144	52,377
Backlog	234,216	360,351

In thousands of Euros

1. Figures for comparison

The first half of 2021 was defined by progress in vaccination programmes and public support policies to facilitate recovery from the crisis, which has allowed, with a certain delay, a progressive recuperation of economic activity and mobility, although in a very unequal manner in the different countries.

Duro Felguera's activity in the first six months of the year was still affected by Covid- 19, generating delays in the delivery of some of the projects in the backlog due to restrictions on the mobility of people and the supply of materials, both its own and those of its subcontractors, thereby slowing down the pace of the planned delivery. In addition, delays in the completion of the financial restructuring process and in the full disbursement of the temporary public financial aid from the Solvency Support Fund for Strategic Companies (FASEE in Spanish), making it impossible to put up bonds, caused delays in the order intake planned for the first half of the year, which in turn affected the level of activity. However, the Company expects the situation to improve in the second half of 2021, and forecasts a positive evolution in sales and EBITDA, once the financial aid from the FASEE is completed; this will enable it to maintain the same order intake target set for FY 2021.

The global financial restructuring under the terms set out in the feasibility plan, which is expected to be completed very soon, will enable the Company to rebalance its equity and financial position. Based on its experience and strengths in the traditional segments and boosting its progress in the renewables and digitization sectors, Duro Felguera will continue to be a strategic company in the regional productive fabric.

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Results First Six Months

January - June 2021

We could highlight the following significant milestones:

• Reactivation of the Djelfa project in Algeria, a key project in the current backlog, after several months of blockage; it has a favourable present and good expectations in terms of costs, claims management and project management.
• With regard to other aspects of management, favourable progress has been made in the management of litigation with clients, with favourable expectations of positive resolution of cases pending for some time now, in order to obtain good results in the coming months.
• Commercial expectations are optimistic in a growing market of opportunities. The reactivation of the post-Covid economy, the high liquidity in the market and the support of European and international funds, are all allowing industrial projects to be boosted in many parts of the world. Duro Felguera has excellent references in different sectors which, together with the future provisions of the bond line, will allow the Company to take advantage of this market dynamism in a positive way. Significant progress is currently being made for future contracting in the backlog.

Sales for the period amounted to 40 million Euros, 43.5% less than in 1H 2020, because of the Covid effect, the accumulated delay in order intake and the completion of old projects.

The resulting EBITDA was minus 13 million Euros, compared to minus 102.9 million in the same period the previous year, evidencing the impact of Covid.

The net attributable profit was minus 11.1 million Euros, compared to minus 113.9 million in the first half of 2020.

Order intake for the first half of the year amounted to 22.1 million Euros, 58% lower than the order intake for the same period in 2020, due to Covid and the non- availability of the bond line.

The order backlog at the end of the first half of the year amounted to 234.2 million Euros, 91% of which is for international projects.

The Group's average number of employees went from 1,173 employees as of 31 December 2020 to 1,115 employees as of 30 June 2021.

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Results First Six Months

January - June 2021

2. P&L Account

P&L Account	1H 2021	1H 2020
(*)
Total net sales	40,005	70,805
EBITDA	(13,024)	(102,884)
EBIT	(13,786)	(111,091)
Financial result	(1,063)	(1,824)
Participation in (loss)/profit of affiliates	(191)	(147)
Profit before tax	(15,040)	(113,062)
Tax on earnings	404	(568)
Results from projects interrupted	3,536	-
FY profit	(11,100)	(114,048)
Minority interests	34	(161)
	(11,134)	(113,887)

Net profit of the parent company

In thousands of Euros

(*) Figures for comparison

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Results First Six Months

January - June 2021

3. Consolidated Balance Sheet

Balance Sheet	June-2021	Dec-2020
Intangible assets	6,380	30,738
Material assets	29,206	22,233
Investment in assets	22,292	11,718
Rights of use on leased assets	248	835
Investment by equity method	20	20
Long-term financial investment	8,198	5,428
Non-Current Assets	66,344	71,002
Stock	6,056	6,710
Commercial debtors, other accounts receivable	97,783	103,925
Other current assets	36,330	39,940
Cash and other equivalent assets	39,240	24,896
Current Assets	179,409	175,471
TOTAL ASSETS	245,753	246,473
Net worth of parent company	(160,160)	(147,274)
Minority interests	511	477
Net Worth	(159,649)	(146,797)
Deferred income	3,462	3,578
Long-term provisions	6,273	5,196
Long-term debt	43,386	3,770
Other non-current liabilities	2,230	1,388
Non-current liabilities	51,889	10,354
Short-term provisions	95,080	97,249
Short-term debt	93,221	91,553
Commercial creditors & other accounts payable	156,682	184,226
Other current liabilities	5,068	6,310
Current Liabilities	350,051	379,338
TOTAL NET WORTH AND LIABILITIES	245,753	246,473
In thousands of Euros
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