Tubacex has achieved a key milestone with the successful closing of Mubadala Investment’s strategic entry into its OCTG business, resulting in a cash inflow of €182.1 million. This influx, equivalent to €1.44 per share or 43.1% of Tubacex’s market capitalization as of the end of September, strengthens the company’s balance sheet by reducing net financial debt (NFD) to €260.7 million and setting the NFD/EBITDA ratio at 2.4x.
The Group’s debt remains primarily tied to working capital investments, with a substantial inventory valued at over €400 million, largely presold.
In the first nine months of 2024, Tubacex posted consolidated sales of €569.1 million, an EBITDA of €78.1 million with a 13.7% margin, and a net profit of €14.2 million. These figures do not yet reflect anticipated margins from products manufactured under the ADNOC contract or the contribution from the soon-to-be-operational Abu Dhabi plant, expected to provide further financial uplift in 2025.
Stable order backlog and strategic contract growth
Tubacex’s order backlog remains at record 2023 levels, around €1.6 billion, with a strong focus on high value-added products that ensure robust business visibility. In Q3, Tubacex secured a strategic contract worth €64.5 million with Petrobras for CRA OCTG supply, with additional contract awards anticipated in the coming months.
Reaffirming long-term strategic goals
Tubacex remains committed to the financial targets set out in its NT2 Strategic Plan, aiming to achieve between €1.2 billion and €1.4 billion in revenue, an EBITDA exceeding €200 million, and an NFD/EBITDA ratio below 2x by 2027.
Looking ahead to Q4, Tubacex anticipates continued improvement in both results and margins, with 2025 poised to deliver the benefits of its strategic investments and partnerships.
