Heurtey Petrochem: Full-Year 2017 Current Operating Income: Profit Warning

RUEIL, France--(BUSINESS WIRE)-- Regulatory News:

Heurtey Petrochem (Paris:ALHPC):

In a highly competitive market environment and in light of the additional costs recently incurred in the equipment assembly activities and modular units delivered to client sites in 2017 and the allocation of additional provisions as a result, the Group is anticipating a more substantial reduction in current operating income than reported to the market on November 18, 2017 (-8% of consolidated revenue).

As such, the Group estimates its consolidated revenue at close to €250 million, with current operating income at -14% of consolidated revenue.

As previously announced and in order to strengthen its project management expertise and improve its competitiveness, the Group, is pursuing the operational merger of its engineering activities of refining furnaces and modular units for gas processing in collaboration with its shareholder Axens.This change will equip the Group, from 2018, with a more concentrated and more efficient resource for the execution of its projects.

About Heurtey Petrochem (www.heurtey.com)
Heurtey Petrochem is a global oil and gas engineering group operating across two market segments:

  • Process furnaces for refining, petrochemicals and hydrogen production. Petrochem is one of the global leaders in this segment.
  • Natural gas processing via its Prosernat subsidiary. In this sector, the Group operates in both EPC engineering and as a technology licensor.

Heurtey Petrochem operates via a large international subsidiary network, with a presence in Brazil, China, India, South Korea, Malaysia, Romania, Russia and the United States. The group generated revenue of €319 million in 2016. Heurtey Petrochem is listed on the Euronext Paris Alternext market. (ISIN: FR0010343186, Ticker: ALHPC). Heurtey Petrochem is a subsidiary of Axens, which holds a 92.4% stake.

Forward-looking statements and information concerning the activities of Heurtey Petrochem are included in the press release above. They notably include information relative to the financial situation, results and activities of Heurtey Petrochem. They are based on the expectations and estimates of the management of Heurtey Petrochem.
These forward-looking statements and information are associated with a certain degree of risk and uncertainty and are likely to be affected by known or unknown factors, many of which cannot be controlled by Heurtey Petrochem and cannot be easily anticipated. They may yield results that are substantially different from those expected or suggested by these statements. These risks include: uncertainty about changes in relationships with the clientele, suppliers and strategic partners; and generally any unfavourable change in the economic situation, the intensification of competition or modification of the regulatory environment which could affect the activities of Heurtey Petrochem. This list of factors should not be considered as exhaustive.

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Heurtey Petrochem SA
Jean Sentenac
Jacques Moulin
Chief Executive Officer
Gregory Matouskoff, +33 (0) 1 47 14 80 73
Group CFO

Source: Heurtey Petrochem