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DGAP-News: Befesa S.A.
/ Key word(s): Half Year Results
/ PRESS AND INVESTOR ANNOUNCEMENT First half 2020 results Befesa reports Q2 EBITDA of €22m and confirms Full Year Guidance - Q2 2020 EBITDA at €22m, in line with market expectations, H1 EBITDA at €55m - Confirming full year company guidance of €100m to €135m EBITDA - China: Construction of both plants progressing and expecting completion on schedule, secured long-term financing of the first plant Luxembourg, 31 July 2020 - Befesa S.A. ("Befesa"), the European market leader for steel dust and aluminium salt slags recycling services, performed in line with expectations. The company's reported Q2 EBITDA of €22m, representing a decrease of 41% compared to the previous year mainly as a result of COVID-19 pandemic pressuring metal prices. H1 EBITDA came in at €55m, down 31% compared to the previous year. Main operational highlights in Q2: - Q2 steel dust throughput of 156 kt, up +5% YoY driven by Turkey expansion; Aluminium Salt Slags & SPL volume of 106 kt down 15% YoY due to lower demand from, i.a. the automotive sector - Resilient plant utilization of around 80% in both core businesses, Steel Dust and Salt Slags - Zinc market prices averaged at €1,780/t in Q2 (down 28% YoY) and treatment charges settled at ~$300/t (~$245/t in 2019), resulting in a combined price decrease of 37% YoY - Aluminium alloy prices continue to be affected by lower demand, down 8% YoY to €1,282/t - Continued strong liquidity of ~€185m, including cash of €107m and leverage of x3.1 Befesa's expansion in China is progressing as expected. The construction works of both, the plant in Jiangsu and in Henan, are on track and expected to be completed on schedule by the beginning of 2021 and mid-2021, respectively. The long-term financing for the Jiangsu plant was successfully secured on 30 July and, similarly, Befesa is targeting the financing for Henan next. Javier Molina, CEO of Befesa commented: "We anticipate the second quarter to be the weakest quarter in 2020 as we see signs of a moderate recovery. I'm confident that our strong balance sheet, high liquidity, and resilient business model will help us to navigate through the current environment. We expect our operational performance to improve as the economy starts to recover in the second half of the year. Meanwhile, we are making important progress with our expansion in China, which will set the foundation for accelerated volume and earnings growth in the coming years."
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31.07.2020 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: | 1106845 |
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| End of News | DGAP News Service |
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1106845Â Â 31.07.2020Â
