Prysmian, the world's leading cable manufacturer, has reported a significant increase in profits for the first quarter of 2023. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 48.3% to €427m, excluding net expenses for company reorganisations, net non-recurring expenses and other net non-operating expenses. The boost in profitability was attributed to the company's projects, energy and industrial cable units.
The projects segment was particularly successful, with sales growth driven by the high voltage submarine power cable and system business. This provides strategic technological solutions for the development of power interconnections and cabling of offshore wind farms for the energy transition. The energy and infrastructure unit also experienced a significant increase, with an adjusted EBITDA margin of 10.9% in Q1 2023 compared to 6.8% in Q1 2022.
See also: TenneT awards contracts to NKT and Prysmian for cable connections in five Dutch offshore wind farms
In the industrial application cable business, profitability rose to 9.8% in Q1 2023 from 6.8% in Q1 2022. This was thanks to a thorough approach in selecting the projects to be acquired, full utilisation of production assets, and executing projects in the order book. Notably, the major German Corridor continued in line with expectations.
Prysmian has recently been awarded an €800m contract for the Biscay Gulf project, a new submarine power interconnection between France and Spain on behalf of INELFE, a joint venture between the Spanish grid operator Red Eléctrica and the French grid operator Réseau de Transport d'Électricité. This project falls under the European Commission's Projects of Common Interest, increasing power supply reliability, further integrating renewable energy into electricity grids and creating a more efficient system.
See also: Sumitomo Electric to Build State-of-the-Art Power Cable Factory in Scotland
The Biscay Gulf project joins two other projects acquired in Q1 2023, IJmuiden Ver Alpha and Nederwiek 1, with a total worth of approximately €1.8bn for the connection of offshore wind farms in the Netherlands. These projects will use the 525 kV HVDC submarine cable, developed to enable the construction of lines with a capacity of 2GW.
Overall, Prysmian's impressive Q1 2023 results indicate continued success in providing technological solutions for energy transition and promoting renewable energy integration in electricity grids.
