Nexuns H1 Net Earning Takes Dive
The French cable specialist, Nexans, has reported a net loss of EUR 58 million (profit of EUR 25 million) after taking into account 38 million euros in net cost of debt and a 10 million euro income tax expense.
On the other hand, EBITDA came to EUR 167 million, up from EUR 147 million in the first six months of 2014, primarily reflecting the improved product mix and lower fixed costs.
Arnaud PoupartLafarge, Nexans’ Chief Executive Officer, said: “During the period, we continued to roll out our strategic initiatives at a steady pace. The more than 20% increase in our operating margin despite negative organic sales growth proves how effective these initiatives have been and encourages us to step up their implementation. Our first-half performance therefore gives us confidence.”
During first-half 2015, Nexans recorded a significant number of contracts in the Group’s key sectors, including energy infrastructure, resources, transport and telecommunications.
After winning the contract for the NordLink project (around 500 million euros) Nexans was recently awarded a 340 million euros contract by Statnett and National Grid to supply and install the Norwegian section of the NSN Link subsea high-voltage power link between the Norwegian and UK electricity grids. The Group’s other commercial successes in the energy infrastructure sector during the period included contracts with ENERGINET.DK, which chose to work with Nexans again on its project to reinforce the Danish electricity grid, as well as with AXPO, which has commissioned Nexans to provide engineering services and cables as part of its “Linthal 2015” project aimed at securing the power supply for the Swiss electricity grid via the construction of a new underground pumped-storage plant.