A year of strong rebound supported by a robust Q4
- Full-year revenue of €3,921 million, up 11% at constant exchange rates, driven by Oil & Gas (+14% at constant exchange rates), notably in North America, and in Q4 in EA-MEA region
- Significant improvement in EBITDA at €150 million compared to €2 million in 2017
- Cumulative gross savings of €445 million since 2016, two years ahead of plan
- Strong Q4 performance
- EA-MEA revenue in Oil & Gas up 68% QoQ
- Positive free cash flow at €76 million
- EBITDA rebound at €89 million, up €78 million year-on-year and up €46 million QoQ
- Net debt of €2,058 million as at 31 December 2018 and banking covenant at 72%
- On 19 February 2019, extension up to February 2021 of €600m bank facilities maturing originally in 2020
Commenting on these results, Philippe Crouzet, Chairman of the Management Board, said:
"The rebound in profitability continued in 2018 supported by improved Oil and Gas activities in North America and recent restart of EA-MEA. We had a strong Q4, closing out the year with robust revenue and EBITDA growth, as well as a positive free cash flow for the first time since 2015. Our ability to achieve a cumulative amount of €445m of gross cost savings since 2016, two years ahead of schedule, evidences the progress accomplished in implementing our 4-year Transformation Plan.
In 2019, we expect further growth in our Oil and Gas activity. We will continue to take advantage of the North American Oil and Gas market while leveraging the ongoing rebound in EA-MEA, supported by our reshaped manufacturing routes allowing us to transfer part of our production to more competitive countries.
Looking ahead, the Group is also well positioned to capture volumes in the offshore Brazilian market, where we hold strong positions thanks to both our renewed long term agreement with Petrobras and our comprehensive offer, which will also support international oil companies launching E&P projects in this country.
These essential steps are encouraging but need to be further developed. We are pursuing our efforts to improve our cost competitiveness in identified areas. We will focus particularly on Germany, where an ambitious plan is being launched, as well as on Brazil. These new initiatives are planned to add at least €200m to our 2020 objective of gross savings, now at €650 million, with a significant part achievable as soon as 2019. We have in addition initiated the divestiture of our assets dedicated to coal-fired conventional power plants.
These elements will contribute to a targeted strong increase of our EBITDA in 2019. Free cash flow generation remains our top priority, with a renewed strong commitment to cash discipline. Based on current macroeconomic and market trends and the objectives outlined above, we would respect our banking covenant at the end of 2019."