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Saturday, September 23, 2023

Trevi, the restart has begun: 700 million orders, under pressure from Saudi Arabia and the Philippines

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The closing of the last capital increase of 51 million euros in mid-January. The financial debt decreased by about 52 million in one month and fell to 201.4 million as of January 31, 2023. The rescheduling of debts with banks at the end of 2026. After the capital raising, the Trevi group looks optimistically to the future. Founded in Cesena in 1957 and listed on the Milan Stock Exchange since 1999, the group is active in 90 countries in the field of underground engineering, builds special foundations for all types of infrastructure and produces and sells machines through the Soilmec division. Thanks to the support of the main shareholders, Cdp Equity with 21.2% and US fund Polaris Capital Management with 20.3%, Trevi has completed the corporate restructuring. “In 2022 – says CEO Giuseppe Caselli – we have laid the foundations for the restart and have succeeded in gaining the trust of shareholders and lending banks”.

Joseph Caselli

What numbers have you reached?
“The 2022 results are improving significantly. Revenue increased by 15% to 569.2 million, recurring EBITDA grew 30% to 64.4 million, EBIT returned largely positive after over 5 million in the red in 2021. The loss was reduced by 70%. The trend is constantly growing».

When do you expect to review earnings?
«The guidance for 2023 indicates sales with an increase from 3 to 6% compared to 2022, the EBITDA is expected to continue as a percentage of sales. In terms of earnings, the 2026 plan presented to the banks foresees 2024, but we will try to anticipate the target, comforted by the signs of recovery.”

What are the signs of recovery?
«The significant increase in acquired orders (+16% to 699.2 million) and in the order book (+29% at the end of 2022 to 587 million). But the most important data is the commercial pipeline and the amount of requests for quotations in the world. There are geographies experiencing an infrastructure business revival that Trevi can take advantage of.”

You have an important project in Saudi Arabia.
«It is The Line (a futuristic city spread over a strip 173 kilometers long, 250 meters wide and 500 meters high, ed.), where Trevi was the first foundation company involved and received the award from the client for the quality of the work carried out . We are currently inventorying and discussing for new work. We have multi-year plans and hope to take on successive contracts. Neom is the world’s largest foundation work ever. A work worth several trillion euros, in which the Crown Prince (MBS) is investing heavily».

Besides Saudi Arabia, where do you look?
“To the entire Middle East: in Kuwait, Oman and the UAE, for example, we expect more jobs, as well as in Nigeria. Then there are the Philippines, where the process of improving the road network is underway. We are working in Australia, in Melbourne, on the large North East Link project, which involves the construction of two three-lane tunnels. We have had a presence in the United States for many years, where we have built a solid relationship with the US Army Corps of Engineers, which oversees all civil engineering infrastructure on US soil. And we want to penetrate Canada and Puerto Rico».

In Italy?
«In Italy, we mainly work for the assigned main contractors. We are finalizing several agreements and we are in the project to capsize the Fincantieri quay in the port of Genoa. In Florence, we are a subcontractor of the Saipem Pizzarotti consortium in the high-speed line for Rfi. And in Milan, in the Santa Giulia complex, we must build the foundations for the bullring».

What do you think of the new purchasing code?
“It’s too early to comment.”

Do you fear an impact on your investments due to rising interest rates?
“Our investments, which amount to between 25 and 30 million per year, are all self-financed. We have updated the business plan to October-November 2022, already now based on the new interest rates».

In the construction industry, one of the main problems is the rise in raw material costs. Are you undergoing it?
“For Trevi, concrete and steel are supplied by customers in 50% of our contracts. The time-to-market between the offer and the award is short, the offers are current and the risk is limited to a short period. For Soilmec, back from a deep industrial and managerial restructuring that has improved its efficiency and performance in the market, we recently changed the price lists to recoup the increases that took place in 2022 in 2023».

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Source: Corriere

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