In the offshore wind market, which raised some concerns at the end of 2023, mainly in the United States where projects have been canceled, Nexans “considers that the fear is behind us”.
Indeed, “the projects announced for cancellation have (finally) been confirmed, such as Ocean Wind and Equinor 2”, indicated general manager Christopher Guérin, during a presentation of the 2023 results to the press.
The Sunrise project to connect wind farms off the coast of Connecticut and Rhode Island in the United States, in which Nexans must supply the cables on behalf of the Norwegian Orsted, was the catalyst last year for the fall in the stock price , because “many thought that the project was going to be canceled”, summarized Mr. Guérin.
"We have no negative +feedback+ from the client" who has paid all his deposits, and is in the process of participating in new auctions with "the State of New York", the results of which are expected at the end of the year. end of the month, he said.
Over the year, the group "advanced in its objective of becoming a pure player in sustainable development and electric cable" said Mr. Guérin.
A sign of the vitality of the energy transition, the order book is "full until 2027", he added, particularly highlighting the rise of "medium voltage", that is to say the modernization of aging electricity networks, “in very strong growth” in Europe and the United States.
Slowdown in Europe, recovery in the United States
The cable manufacturer nevertheless highlights the "very strong slowdown in construction in Germany, particularly in the residential sector", and overall a "very weak start" in Europe in this sector at the start of the year.
He is banking on the resumption of construction in the United States, "with much less residential and many more commercial and industrial infrastructure projects all over the world, such as data centers, and a lot of renovations."
In the La Défense business district, near Paris, the restoration of office towers is generating big markets for cable. Ditto in hospitals, completely rewired with fire-resistant cables, he argues.
Nexans announced in early 2024 the largest acquisition in its history (800 million euros, 700 employees), for a cable factory in Italy, Triveneta Cavi, in the building electrification segment. The acquisition should be completed “during the first half of the year”.
It also signed an agreement at the end of 2023 for the construction of a third cable factory in Morocco, which will employ 200 people. They will be used in particular to connect photovoltaic fields in Morocco. The factory, an investment of 100 million euros, will see the light of day in 2026 in Safi, near Casablanca.
For 2024, the group is aiming for a further improvement in its adjusted gross operating surplus (ebitda) "between 670 and 730 million euros" compared to 665 million euros in 2023 (+8%), after the "strong acceleration" of its operational profitability in 2023.
The 2023 ebitda constitutes a “record”, “ahead” of one year “on the objectives”.
The annual net profit falls by 10% to 221 million euros in 2023, while in 2022, "an exceptional gain following the sale of land in Germany (...)" artificially improved the result 2022", underlined financial director Jean-Christophe Juillard.
2023 turnover falls by almost 7% to 7,8 billion euros. “Growth in volume is not the group’s objective, our objective is to generate profit,” explained Mr. Guérin.
Nexans will propose a record dividend of 2,30 euros per share (+10%). And will present its new objectives to “project the group until 2027”, during an investors day in London in November.
The publication “reflects solid performance”, judged the Oddo BHP firm in a note. On the stock market, the stock gained more than 6% to 92,60 euros mid-morning on a market up 0,87%.