Duro Felguera through its subsidiary DF Calderería Pesada (DFCP)has signed a new contract with British Petroleum (BP) for the manufacture of a dozen process equipment for the extraction of gas and oil in the BP deposits in Azerbaijan.
The works to be developed by Duro Felguera Calderería Pesada include the design and manufacture of pressure vessels. These equipment, which will be manufactured within highly demanding mechanical features (nickel-based stainless carbon steel, laminated) as well as special alloys, in addition to the mechanical design, incorporate the process design and the supply of special internals as part of the scope.
The platform to which the equipment will be allocated will have a processing capacity of 100,000 barrels of crude oil and 9 million cubic meters of gas per day
The equipment will be installed on an off-shore platform located in the Caspian Sea, from where the hydrocarbons will be extracted at a depth of 140 meters. The platform, which will be operational by 2023, will have a processing capacity of 100,000 barrels of crude oil and 9 million cubic meters of gas per day.
This contract falls within the collaboration framework that Duro Felguera Calderería Pesada (DFCP) and BP have continuously maintained for more than 25 years for BP projects in Azerbaijan.
Low activity of Duro Felguera in 2018
The company ´s turnover was 421 million euros in 2018, which is 32% less compared to the year 2017 when revenues amounted to 624 million euros. This reduction in the company’s activity is due to the problems arising from the financial situation prior to the capital increase, which has caused difficulties in the contracting of new projects and a decrease in the production level.
Ebitda shows a negative amount of 155 million euros in 2018, 10% higher than in 2017 when it recorded 173 million euros
Ebitda shows a negative amount of 155 million euros in 2018, 10% higher than in 2017 when it recorded 173 million euros. This result is the outcome of the decrease in activity, the additional provisions detected in certain projects, the restructuring costs and the extraordinary provisions corresponding mainly to the deterioration of balances receivable in Argentina and Venezuela.
The result before taxes amounts to 41 million euros compared to the negative 218 million euros in 2017. The company has reduced its net financial debt by more than 98%, moving from 272 million euros in 2017 to 3 million euros in 2018.
The company’s current backlog accounts for more than 779 million euros as recorded at the end of 2018, which adds workload for a longer period of more than one year. In this regard, the hiring of the year amounted to 78.8 million euros, impacted by the company’s financial situation during 2018. However, during the first two months of 2019, Duro Felguera has signed contracts with relevant clients, which is a positive change in the trend.
