Bilfinger: Stable third quarter 2018 in a favorable economic environment

• Increase in orders received compared to strong prior-year quarter
• Book-to-bill ratio above 1
• Positive revenue development demonstrating company’s growth momentum
• Adjusted EBITA increased slightly, margin at prior-year level
• Net profit improved
• Outlook for 2018 affirmed

In the third quarter of 2018, industrial services provider Bilfinger once again substantially increased the orders received, revenue, and earnings. Adjusted EBITA of €22 million (prior year: €21 million), while net profit improved to €-1 million (prior year: €-21 million). Orders received (+5% / organically +6%) and revenue (+5% / organically +8%) likewise were both up on the prior year.

Bilfinger CEO Tom Blades: “We have delivered a stable third quarter and we are pleased with the performance of our business. We have made further progress in the build-up phase of our Bilfinger 2020 Strategy and are on track towards achieving the growth targets we set for ourselves.”

Orders received by the Group increased compared to a strong prior-year quarter, growing by 5% (organically +6%) to €1,105 million (prior year: €1,054 million). The order backlog increased consequently to €2,828 million (prior year: €2,536 million). Revenue was up by 5% (organically +8%) at €1,052 million (prior year: €1,001 million) as a conversion of the increase in orders received. Accordingly, the book-to-bill ratio has reached 1.1 in the third quarter.

In the Engineering & Technologies (E&T) segment, orders received were up significantly against a weaker prior-year quarter and reached €451 million (prior year: €276million), a major gain of 64% (organically +63%). A number of new contracts awarded for scrubber systems for the shipping industry contributed to this growth. Segment revenue increased by 10% (organically +10%) to €309 million (prior year: €281 million). As expected, the orders received by the segment Maintenance, Modifications and Operations (MMO) remained below those of the strong prior-year quarter. At €614 million (prior year: €727 million), they were lower by 16% (organically -15%). In contrast, revenue rose by 7% (organically +8%) to €712 million (prior year: €664 million).

Adjusted EBITA increased slightly, improved net profit
Adjusted EBITA improved slightly in the third quarter, reaching €22 million (prior year: €21 million). At 2.1%, the adjustedEBITA margin was at the prior-year level. It bears noting in this regard that the adjusted EBITA of the prior-year quarter was influenced by special items: Approved change orders in the prior year for the E&T segment had had a positive impact, returning to a more normal level of €4 million. The MMO business segment saw a significant increase of the adjusted EBITA to €37 million (prior year: €29 million).

Net profit improved primarily as a consequence of fewer special items taking effect, reaching €‑1 million (prior year: €-21 million). As in the prior year, adjusted net profit amounted to €13 million, notwithstanding one-off effects on EBITA or taxes.

Likewise, the operating cash flow saw an improvement and was slightly positive at €2 million (prior year: €-9 million). The adjusted operating cash flow amounted to €11 million (prior year: €17 million). Net liquidity for the Group decreased in the third quarter to €-37 million (June 30^th, 2018: €16 million, September 30^th, 2017: €215 million) first and foremost as a result of the payments made for the share buyback program that has been completed end of October 2018.

Outlook for 2018 confirmed
Bilfinger confirms the outlook for financial year 2018. Organic growth in orders received will be in the mid single-digit percentage range. Revenue development will be organically stable to slightly growing.

Adjusted EBITA will increase significantly (prior year: €3 million). The Group anticipates a figure in the mid to higher double-digit million-euro range, i.e. somewhere between €50 million and €75 million.

Return on capital employed and free cash flow will also improve significantly in the current financial year. Both figures will, however, again be negative as a result of special items. On an adjusted basis, i.e. excluding special items, free cash flow is expected to break even.

Key figures for the Group