- WKN: A2H5Z1
- ISIN: LU1704650164
- Land: Luxembourg
Nachricht vom 29.07.2021 | 07:30
Befesa S.A.: Befesa reports record H1 EBITDA of €94m, up 70% versus 2020
DGAP-News: Befesa S.A.
/ Key word(s): Half Year Results
PRESS AND INVESTOR ANNOUNCEMENT
First half 2021 results
Befesa reports record H1 EBITDA of €94m, up 70% versus 2020
Luxembourg, 29 July 2021 - Befesa S.A. ("Befesa"), the global market leader for steel dust and aluminium salt slags recycling services, reported another set of record-breaking financial results for H1, with expansion plans progressing well in China and the US. The Company reported H1 EBITDA of €94m, representing an increase of 70% compared to the previous year as well as 18% or €14m up vs. H1 2019; this underlines the sustained recovery since the COVID-19 induced lows of last year. Q2 stands at EBITDA of €45.3m, more than double at 109% or up €23.6m compared to Q2 2020. The outlook for 2021 remains very positive, annualised H1 and expected strong H2 indicate full year numbers should be at the upper end of the guidance range. Furthermore, Befesa intends to update its guidance after closing and consolidating the AZR acquisition, as part of its Q3 reporting cycle.
Plant utilisation levels continued in Q2 at solid pre-COVID levels at >= 90%, especially considering that multiple of the scheduled annual plant maintenance overhauls were conducted in Q2 2021. Metal prices for both zinc and aluminium continued in Q2 approximately at the favorable Q1 levels (Zinc LME prices averaged at €2,418/t in Q2 and aluminum alloy FMB prices at €1,945/t).
Operating cash flow grew by more than six times yoy to €70m in H1 2021. Befesa closed the period at a record €197m cash on hand, supporting enhanced credit ratings from Moody's, now at "Ba2 stable", and S&P, upgraded to "BB+ stable". This reinforces Befesa's financial strength and highlights the success of management's prudent cash management and discipline through the cycle. Leverage improved from x3.10 at year-end 2020 to x2.24 at Q2 close, triggering the next ratchet, reducing Befesa's term loan B (TLB) interest rate from 2% to 1.75%.
Befesa's expansion in China has continued to progress on schedule and budget. The state-of-the-art electric arc furnace steel dust (EAFD) recycling plant in the Jiangsu province is now complete and in trial production mode, whilst the plant in Henan is progressing on budget and time for completion in Q4 2021.
In the US, as announced on 16 June, Befesa has agreed to acquire 100% of AZR's recycling assets for a purchase price of $450m and a minority stake in its zinc refining business for $10m, with an option to acquire the remaining business once certain operational and financial performance milestones are fulfilled. This is a significant milestone for Befesa as AZR is a US market leader in providing EAFD recycling services, and the transaction represents a great step forward in accelerating Befesa's growth globally. The deal is expected to close in August 2021 and is financed through a capital increase of new ordinary shares from the existing authorised capital of €332m and a TLB add-on of €100m, maintaining Befesa's leverage ratio at similar levels post acquisition.
Javier Molina, CEO of Befesa, commented: "We have built on the success of Q1 and delivered our strongest first half results on record. In the past six months, we have made significant progress operationally and financially, with targeted expansion and financial prudence paving the way for future growth in new and existing markets. Our focus remains on rigorous cash management while investing in growth, organically and inorganically. I am confident that our approach will continue to allow Befesa to play a significant role in protecting the environment and improving the sustainability of the steel and aluminium industry, while also delivering accelerated earnings growth to our shareholders. Our outlook for the remainder of the year remains very positive and after the closing and consolidation of the AZR acquisition we will update our full year guidance for 2021."
|46 Boulevard Grande-Duchesse Charlotte|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London|
|EQS News ID:||1222497|
|End of News||DGAP News Service|
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