MILAN (Reuters) – Prysmian said on Thursday its core profit rose 35% in the first quarter thanks to a solid performance at its energy and telecoms businesses, with the company guiding for a full year result at the higher end of its forecast.
“Our well-balanced business portfolio, diversified geographical footprint and efficient supply chain management continued to be strong drivers of resilience and growth,” Chief Executive Valerio Battista said in a statement.
The world’s largest cable maker said its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at 288 million euros ($299 million) in the January to March period.
The result, which topped a company-provided consensus of 249 million euros, was also helped by 15 million euros of gains from exchange rates.
Prysmian said that, despite considerable inflationary pressure triggered mainly by energy and commodity prices and supply chains disruptions, exacerbated by the war in Ukraine, it was being supported by the global energy transition. This spurred an increase in the value of interconnection projects it won to 8 billion euros last year from 3 billion euros in 2020.
“This trend is expected to continue over time,” Battista said.
Global digitalisation projects are also supporting the business, the company said.
Prysmian said it expected its 2022 adjusted EBITDA would come in towards the higher end of the 1.01-1.08 billion euros forecast range it provided in March.
The forecast is based on assumptions including no further deterioration of the geopolitical crisis in Ukraine and a supply chain still under pressure in the coming months but with no further tensions and extreme dynamics in the prices of factors of production.
Milan-listed shares trimmed losses after results were published and were down 1% at 1245 GMT.
Prysmian also guided in March for a free cash flow of around 400 million euros this year, plus or minus 15%.
($1 = 0.9616 euros)
(Reporting by Giulio Piovaccari Editing by Maria Pia Quaglia and Mark Potter)
