Bilfinger with a sound start to 2019


  • Orders received: Book-to-bill ~1
  • Revenue: significant organic growth
  • EBITA adjusted: improved despite weak quarter in Technologies segment
  • Net profit reported: positive
  • Proposed dividend payment for financial year 2018: €1.00
  • Outlook 2019 reaffirmed

Industrial services provider Bilfinger had a sound start to financial year 2019. The Group’s financial performance was in line with first quarter expectations, notably on account of its strong position in core industries, particularly chemicals & petrochemicals and oil & gas.

Orders received were below the prior year level but at a book-to-bill ratio of ~1. Revenue grew significantly by 9 percent to €1,008 million (prior year: €929 million). Organic revenue growth was 11 percent. EBITA adjusted was €-4 million (prior year: €-6 million).

CEO Tom Blades: “We had a robust start to 2019. I’m pleased that we were able to deliver the 7th consecutive quarter of revenue growth. Additional growth drivers included our scrubber technology that cleans emissions from ocean-going vessels. Our current backlog now tops €100 million.”

Segment Technologies
‘Technologies’ delivered positive revenue progression. Revenue increased to €118 million (prior year: €104 million). Project timing led to a reduction of orders received to €113 million (prior year: €173 million).

EBITA adjusted decreased to €-10 million (prior year: €-5 million). This figure declined due to a single entity performing below expectations. All other entities in Technologies segment outperformed expectations.

Specific measures to improve EBITA in the underperforming entity have already been introduced and should begin to take effect as the year progresses. Bilfinger expects 2019 bottom line performance to be challenging for the Technologies. However, Bilfinger is more robust than in the past and the Group forecast remains unchanged.

Segment Engineering & Maintenance Europe
Engineering & Maintenance (E&M) Europe’ delivered a sound performance in the quarter. Orders received decreased to €652 million (prior year: €772 million), but revenue increased to €635 million (prior year: €619 million). EBITA adjusted was stable at €10 million (prior year: €9 million).

Revenue in Northwest Europe was higher than prior-year. The positive performance resulted from the continued upturn in the oil and gas industry, notably offshore.

Revenue in Continental Europe was stable with demand for maintenance engineering and modification services continuing on a high level.

Segment Engineering & Maintenance International
Engineering & Maintenance (E&M) International’ yielded increasing metrics across all performance indicators for both North America and the Middle East. US oil and gas production continues to grow, delivering affordable domestic feedstock which in turn continues to drive additional Chemicals & Petrochemicals green-field and brown-field CAPEX projects.

Orders received increased to €157 million (prior year: €109 million). Revenue increased to €213 million (prior year: €165 million). EBITA adjusted increased to €5 million (prior year: €3 million).

Net profit positive – lower cash flow performance
Net profit reported was positive and achieved €9 million (prior year: €-24 million). Contributing positively to this result were (a) the Apleona Vendor Claim Note repayment agreement, (b) the capital gain on the divestment of Bilfinger Freileitungsbau (Other Operations) and (c) a settlement within discontinued operations.

Negative operating cash flow was as expected after year end payables swing back and increasing DSO. For the full year, Bilfinger targets a positive free cash flow supported by the implemented working capital improvement measures.

Proposed dividend payment for financial year 2018: €1.00
Bilfinger’s solid balance sheet will enable the Executive Board and the Supervisory Board to propose at the Annual General Meeting a dividend payment of €1.00 per share for the 2018 financial year. Relative to the share price at the end of 2018, this represents a dividend yield of about 4 percent.

Outlook 2019
Bilfinger reaffirms the outlook for 2019. Based on the current order backlog for financial year 2019, Bilfinger anticipates organic revenue growth in the mid-single digit percentage range (2018: €4,153 million). For EBITA adjusted (2018: €65 million), the Group expects a significant increase to more than €100 million. In terms of reported free cash flow, Bilfinger expects a positive figure (2018: -€4 million).

Key figures for the Bilfinger Group

in € million
  Q1 FY
  2019 2018 ∆ in % 2018
Orders received 971 1,101 -12
(org.: -10)
Order backlog 2,754 2,690 2
(org.: 3)
Revenue 1,008 929 9
(org.: 9)
EBITA adjusted -4 -6 33 65
EBITA margin adjusted
(in %)
-0.4 -0.6   1.6
EBITA -3 -11 73 -7
Adjusted net profit -6 -7 14 36
Adjusted earnings per share
(in €)
-0.14 -0.16 13 0.87
Net profit 9 -24   -24
Operating cash flow -89 -60 -48 50
Adjusted operating cash flow -70 -45 -56 110
Free cash flow -102 -70 -46 -4
Adjusted free cash flow -83 -55 -51 56
Capital expenditure on P, P & E 15 11 36 66
(number at reporting date)
35,858 35,301 2 35,905