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DGAP-News: Befesa S.A.
/ Key word(s): Annual Results/Quarter Results
/ PRESS AND INVESTOR ANNOUNCEMENT Preliminary full year 2020 results Befesa delivers strongest quarter of the year - returning to 2019 levels - Q4 strongest quarter in 2020 with adjusted EBITDA of €42.4m, recovered back to 2019 level - FY 2020 adjusted EBITDA at €127.0m, 20% decrease yoy (FY 2019: €159.6m) - Operating cash flow at €92.5m, down 10% yoy; Closing with solid €154.6m of cash, up 23% yoy - Capacity utilization and volumes resilient in 2020 - China expansion on track: Completing first plant construction in Q1; second plant after the summer Luxembourg, 23 February 2021 - Befesa S.A. ("Befesa"), the leading provider of hazardous waste recycling services enabling the circular economy within the steel and aluminium industries, has delivered its strongest quarter in 2020, with Q4 EBITDA of €42.4m, at the same level as Q4 2019. Befesa continued its quarter-on-quarter recovery following the COVID-19 induced low in Q2 (Q1 €33.6m, Q2 €21.7m, Q3 €29.3m, Q4 €42.4m). This brings FY 2020 adjusted EBITDA up to €127.0m, within the upper third of FY 2020 EBITDA guidance range of €100m to €135m. Compared to FY 2019, earnings decreased by 20%, or €33m, primarily driven by lower blended zinc prices (down €144/t yoy to €2,136/t) as well as unfavourable higher treatment charges (TCs) at $300/t (vs. $245/t in 2019). Net profit in 2020 decreased from €82.7m in 2019 to €47.6m, corresponding to earnings per share (EPS) of €1.40. In 2020, Befesa distributed a total dividend of €25m (€0.73 per share), equal to 30% of €82.7m net profit in 2019. Operating cash flow decreased 10% to €92.5m. Befesa's rigorous cash management resulted in total cash flow of €29.1m, improving cash on hand by 23% to €154.6m (€125.5m at year-end 2019). Together with the entirely undrawn Revolving Credit Facility (RCF) of €75.0m, Befesa has a strong financial position of €230m liquidity. Net debt improved to €393.6m compared to €416.9m at the end of 2019 (leverage x3.10 vs. x2.61 at 2019 year-end). Over the financial year 2020, Befesa demonstrated resilient capacity utilisation and volumes. EAF steel dust throughput increased by 3% yoy to 687kt at 83% average capacity utilisation. This was mainly driven by the completed expansion of the plant in Turkey. Salt slags and SPL recycled volumes decreased by 10% yoy to 445kt (84% average capacity utilisation), while secondary aluminium production volumes remained stable at 174kt (85% average capacity utilisation). Befesa's expansion in China continued to progress on schedule and on budget in Q4 2020. The construction of the first state-of-the-art EAF steel dust recycling plant in the Jiangsu province is expected to be completed in Q1, with cold and hot commissioning in March/April. The second plant in the province of Henan is also expected to be completed this year, after the summer. Javier Molina, CEO of Befesa, said: "As a vital player within the circular economy, this year we again contributed significantly to increasing efficiency and sustainability of raw material use in the metals industry. Our unique expertise and services drive the continued development of recycling solutions that support the transition towards a more sustainable economy. Despite the impact of the COVID-19 pandemic in 2020, we continued to deliver against our promises and serve our customers by maintaining high plant utilisation levels. Quarter after quarter we demonstrated our resilience, having recovered quickly from the Q2 low and now delivering the strongest quarter of the year at a €42m EBITDA in Q4. At the same time, we have continued setting the path for organic growth in the coming years and look forward to ramping up our new plants in China in 2021." Key figures
1) Adjusted for €3.5m for the UK Salt Slags plant closure in Q4 2020 Webcast About Befesa Investor Relations Media Relations
23.02.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
| Language: | English |
| Company: | Befesa S.A. |
| 46 Boulevard Grande-Duchesse Charlotte | |
| 1330 Luxembourg | |
| Luxemburg | |
| E-mail: | |
| Internet: | |
| ISIN: | LU1704650164 |
| WKN: | A2H5Z1 |
| Indices: | SDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London |
| EQS News ID: | 1170265 |
| End of News | DGAP News Service |
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1170265 23.02.2021
