Nexans in Greece is expected to complete this year's financial year with increased volumes, as it is recording increased orders from customers (such as DEDDIE) and other companies, energy, industrial, and telecommunications companies. Already profitability to date has improved, compared to 2023. The largest project, which is also expected to boost the company's figures, is that of the Greece-Cyprus electrical interconnection. The company has undertaken the construction of the cable and the seabed surveys. 

THE DIFFICULTIES WITH TURKEY AND THE PROJECT

However, the project in question faces issues. There was a recent teleconference between ADMIE and the Commission, which did not resolve the regulatory issues that still exist, while the financing of the project and finding the right shareholder structure remain outstanding.

In addition to the above, there is also the risk from Turkey, according to which the seabed surveys are in international waters, where it has a say. The combination of the above creates difficulties and delays, which are expected to be overcome. 

PERFORMANCE IN 2023

2023 closed with an increase in turnover, a trend that is accelerating this year. The reason for this was increased orders from the PPC, while the digital and green transition favours product orders from the company. At the same time, it reported a profit from loss in 2022.

The company currently holds confirmed orders in excess of €27 million, which shows its momentum, as this figure does not include the inventory it supplies to existing projects. 

PRICES OF RAW MATERIALS

The volatility in the price of copper, aluminum, and other raw materials, as well as fuel and energy, could have a negative impact on the company's sales and results.

The cost of copper and aluminum, the most important raw materials used by the company in the manufacture of its products, is subject to significant changes caused by supply and demand conditions on metal exchanges, weather conditions, political and economic variables, and other unknown and unforeseeable conditions.

Further, the fuel and energy required to operate the company's plant are also subject to significant volatility. In order to hedge against the risk of fluctuating metal prices, the company's management makes a corresponding purchase of the metal involved on the same terms for each sale to a customer.