Energy business helps Prysmian beat expectations, raise forecasts

  • Fiscal Year Adjustment. EBITDA emerging between EUR 1,425-1,475 million
  • Expected cash flow of 45-500 million euros this year
  • Adjustment. Nine-month EBITDA up 56% to EUR 1,131 million

MILAN, Nov 10 (Reuters) – A strong performance in its energy business helped Prysmian (PRY.MI), the world’s largest cable maker, outperform the first nine months of 2022, driven by rising electricity demand. earnings forecast and raised its forecast for the full year.

The Italian company forecast on Thursday that its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) will rise to 1.425-1.475 billion euros ($142-1.47 billion) this year, compared with a previous forecast of 130-140 million euros.

Cash flow generation this year is expected to be EUR 45-500 million, compared to EUR 40-460 million previously.

Milan-listed Prysmian shares rose 4 percent after the results were announced. They were up 3.5% by 1350 GMT.

The company said the forecasts assumed that global supply chains would remain under pressure in the coming months, but would not see any further tensions or extreme changes in input prices.

CEO Valerio Battista said Prysmian’s performance was supported by strong performance across nearly all of its businesses and regions.

“This result confirms the group’s ability to capitalize on the long-term drivers of energy transition and digitalization, even in uncertain macroeconomic and market conditions,” he said in a statement.

In the January-September period, Prysmian adjusted EBITDA rose 56% to 1.131 billion euros, beating the company’s consensus estimate of 1.067 billion euros.

The energy business, which accounted for nearly 80% of sales in the first nine months of the year, saw record revenue and core profit, the company said. Its adjusted EBITDA rose 80 percent to 761 million euros.

(1 USD = 1.0053 EUR)

Reporting by Giulio Piovaccari Editing by Keith Weir and Mark Potter

Our Standard: The Thomson Reuters Trust Principles.

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