Nexans revenues slip close to 10 per cent
Cabling specialist Nexans has generated third-quarter 2020 revenues of €1.4 billion, down 9.8 per cent versus prior-year comparable period.
In the first nine months, Nexans sales came to €4.3 billion, also down 9.8 per cent year-on-year.
Nevertheless, revenues were up close to 6 per cent quarter-on-quarter.
Subsea high-voltage activity continued to remain steady during the quarter with a €1.5 billion adjusted backlog.
In line with the backlog phasing, with a higher portion of cable manufacturing in the third quarter versus previous periods, sales were down 28.4 per cent year-on-year and 21 per cent sequentially.
Specifically, both comparable periods benefitted from high cable-laying activity, with the final installation phases of both the NordLink and the East Anglia offshore wind farm projects in Q3 2019 and two IMR projects in the Mediterranean Sea region in Q2 2020.
Q3 2020 focused more on cable manufacturing in view of substantial installation phasing in 2021.
Compared to third quarter 2019, total sales in third quarter 2020 were down -19.5 per cent at € 158 million.
Nexans reported liquidity position is in excess of €1.6 billion as of September 30, 2020. This includes a €600 million undrawn revolving credit facility.
The company has updated its full-year 2020 guidance: EBITDA between 320 and 360 million euro (previously between 310 and 370 million
euro), ROCE between 7 per cent and 10 per cent, and FCF positive.