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MILAN :Prysmian sees its core profit rising around 34 per cent through 2027 as the world’s largest cable maker seeks to benefit from a global push towards cleaner energy and digital transformation, by building on its existing businesses.
After having grown through acquisitions, with the purchase of Netherlands-based Draka in 2011 and U.S.-based General Cable in 2018, Prysmian said on Thursday it would now focus on “organic growth”, funding capacity expansion through its own cash generation.
Presenting its first-ever strategic plan, the Italian group said cable industry was increasingly strategic amid long-term market trends of increased renewable generation, growing electricity demand, expanding power grids and massive data growth.
This will help it increase its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to around 2 billion euros ($2.1 billion) in 2027, from 1.49 billion euros last year, Prysmian said in a statement.
Milan-listed shares in the company were up 2.6 per cent by 0730 GMT, among the best performers within Italy’s blue chip basket.
“Prysmian is uniquely placed to benefit from the opportunities presented by the structural changes arising from the convergence of the energy transition and digital transformation,” Chief Operating Officer Massimo Battaini said in a statement.
Battaini has been anointed to become chief executive from next spring, inheriting the role from current boss Valerio Battista who has held since 2005, when Prysmian was created through the spin-off and sale of Pirelli’s former cable unit.
Annual cash flow is seen growing to between 0.9 billion and 1 billion euros in 2027 from 559 million euros last year.
“Targets to 2027 are ambitious and above our estimates,” Equita analyst Luigi De Bellis said in a note.
As part of the new strategy, the group also announced a reshape of its business units, to better align with current market structure. Four new segments – renewable transmission, power grid, electrification and digital solutions – will replace the three existing ones.
($1 = 0.9505 euros)
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