Throughout the first half of 2023, Cenergy Holdings took advantage of the improving demand in the energy sector: on the one hand, demand for cables products stayed strong, driven by grid expansions and increased construction activity, on the other, energy projects in both the cables and the steel pipes segments were executed smoothly and laid the foundation for operational profitability for the period.
Both Hellenic Cables and Corinth Pipeworks preserved their strong commercial momentum and kept on succeeding in new project tenders, leading total backlog to EUR 2.5 billion. Recent awards include the 118km deep water Leviathan field project in the eastern Mediterranean run by Chevron, the contract with RWE for both export and inter-array cables for the Thor offshore wind farm, the largest in Denmark, the supply of approx. 155km of 20” longitudinally submerged arc welded steel pipes for the Tamar gas field optimization development near the Israeli coast as well as several awards for inter-array cables for wind farms in North Europe and the USA.
In the cables segment, the efficient execution of high-profile submarine projects combined with a high-capacity utilization of all production lines fostered growth and advanced performance. As noted above, low voltage and medium voltage power cables met strong demand during the first semester of 2023 and secured better profitability margins. The latter plus an improved product mix combined with timely and efficient project execution, resulting in a significant improvement in adjusted EBITDA (+26% y-o-y) that reached EUR 59.4 million. Along came several awards of new projects that further advanced the segment’s backlog to a new record of EUR 1.85 billion. Such a solid project pipeline in both the interconnection and the offshore wind farm (OFW) markets confirm Hellenic Cables’ key role in the energy transition fast-growing market. Given the growing demand for submarine cables already depicted in this rising backlog, the segment proceeded with a total capital expenditure of EUR 54.7 million during the first half of 2023, largely spent on the expansion of Hellenic Cables offshore cables plant in Corinth.
Following two years of deep disruption in oil and gas markets, 2022 ended as a turnaround year for the steel pipes segment and 2023 started with very strong dynamics from early on. Adjusted EBITDA for first half of the year surpassed 2019 levels and reached EUR 27 million, almost as much as the entire previous year. Such superior profitability was the result of high-capacity utilization as well as major new project awards. Together with all initiatives taken during the previous years, including (but not limited to) a thorough cost optimization plan and a Manufacturing Excellence and extensive RDI programme, Corinth Pipeworks solidified its competitive position and succeeded in increasing market share in the global market, taking a leadership position in energy transition technologies, such as hydrogen and Carbon Capture & Storage (CCS) pipelines. The significant recovery of the energy market and a series of important projects assigned, resulted in a backlog of EUR 0.63 billion. At the same time, the subsidiary committed to sustainability principles, set ambitious medium and long-term goals for carbon emissions of its overall supply chain, while securing certifications under the Environmental Product Declaration (EPD) for its steel products.
