De Nora eyes water tech deal, raises profit margin outlook
Industrie De Nora, an Italian electrochemical company, is looking at ways to expand its water-technology business. It may even announce an acquisition before the end of the year.
De Nora's Paolo Dellacha said: "We have concrete M&A projects and hope to announce something before the end of this.
De Nora is a leader in the field of industrial electrodes and also provides equipment and solutions to disinfect and filter water.
The group's adjusted earnings before taxes, depreciation, and amortization, which amounted to 124 million euro ($145 million), increased by 15.9% on an annual basis, mainly due to a strong performance of its water technology division.
The company increased its guidance for the core profit margin of around 19% from an earlier forecast of 17-18%.
De Nora shares rose by more than 19% on the back of a better outlook for profitability. They closed with a gain of 17% on the Milan Stock Exchange.
Dellacha stated that De Nora is confident of receiving payment for the electrolysers it has delivered to Sweden's green steel startup Stegra, which is currently in financial trouble.
He said that for them, the project would be finished, invoiced and paid in one month and a quarter. The payment would come from Germany's Nucera.
De Nora delivered electrolyser parts to the NEOM project in Saudi Arabia in August. Reporting by Laura Contemori, Gdansk. Editing by Milla Nissi-Prussak, Ga Jones.
(source: Reuters)