Third-quarter financial report Documentation relating to the press release on operating performance for the nine months ended September 30, 5
Comments on operations Sales volumes and internal transfers Q3* Cement and clinker (millions of metric tons) Historic Like-for-like basis Aggregates** (millions of metric tons) Historic Like-for-like basis Ready mixed concrete (millions of m³) Historic Like-for-like basis Europe 3.6 (5.1) (5.1) 6.8 (3.2) (5.5) 1.6 (12.6) (12.6) North America 1.4 0.2 0.2 0.4 2.2 2.2 0.2 (0.2) (0.2) North Africa and Middle East 2.7 (8.1) (8.1) 0.5 21.6 21.0 0.6 12.2 12.2 Asia 2.6 (4.0) (4.0) 0.3 >100.0 >100.0 0.3 8.4 8.4 Cement and clinker trading 0.7 (26.8) (26.8) - - - n.s. n.s. n.s. Eliminations (0.6) n.s. n.s. - - - - - - Total 10.4 (4.1) (4.1) 8.0 2.5 0.3 2.7 (5.0) (5.0) Europe: Italy, France, Belgium, Spain, Bulgaria, Greece - North America: U.S.A., Canada, Puerto Rico - North Africa and Middle East: Egypt, Morocco, Kuwait, Saudi Arabia - Asia: India, Thailand, Kazakhstan * Amounts refer almost entirely to fully consolidated companies; the pro-quota contribution of proportionately consolidated companies was marginal ** excluding decreases for processing Sales volumes declined in cement and clinker, reflecting the general slowdown in the main areas of activity, with the exception of North America, which reported some progress. In aggregates, the healthy trend in North America, North Africa and Middle East, and Asia outweighed the downturn in Europe caused by a negative trend in sales volumes in Italy and France-Belgium. The decrease in sales volumes in ready mixed concrete was due to the slowdown in Europe, which, with substantially stable volumes in North America, was offset only in part by the progress in North Africa and Middle East and Asia. 6
Nine months ended September 30* Cement and clinker (millions of metric tons) Historic Like-for-like basis Aggregates** (millions of metric tons) Historic Like-for-like basis Ready mixed concrete (millions of m³) Historic Like-for-like basis Europe 11.2 (3.2) (3.2) 21.3 0.4 (1.6) 5.0 (6.7) (6.7) North America 3.4 1.8 1.8 1.1 18.5 18.5 0.6 (0.3) (0.3) North Africa and Middle East 9.0 (3.8) (3.8) 1.4 26.2 24.6 2.1 12.4 12.4 Asia 8.3 (0.1) (0.1) 0.7 >100.0 >100.0 0.8 0.7 0.7 Cement and clinker trading 2.3 (16.7) (16.7) - - - n.s. n.s. n.s. Eliminations (2.1) n.s. n.s. - - - - - - Total 32.1 (1.4) (1.4) 24.5 5.3 3.3 8.5 (1.5) (1.5) * Amounts refer almost entirely to fully consolidated companies; the pro-quota contribution of proportionately consolidated companies was marginal ** excluding decreases for processing Cement and clinker sales volumes were slightly down on the first nine months of 2014. Progress in North America and overall stability in Asia were countered by a slackening in the other main areas. Europe reported a general slowdown in the various countries, with the sole exception of Bulgaria, which made strong progress. In North Africa and Middle East, sales volumes fell in both Egypt and Morocco. In aggregates, the rise in sales volumes reflected very positive performance on the emerging markets and in North America, which more than offset the fall in Europe. In ready mixed concrete, the reduction in sales volumes was chiefly due to the contraction in Europe, where the Group has a larger presence. The downturn was mitigated in part by healthy performance in Morocco, Egypt and Kazakhstan. Revenue and operating results (sub-consolidated by area) Q3 Europe 488.7 (9.4) 53.4 (18.9) 48.0 (29.1) (7.7) n.s. North America 182.5 28.6 34.5 33.8 34.4 33.2 29.5 >100.0 North Africa and Middle East 213.9 (8.7) 40.9 (18.1) 40.9 (18.2) 17.4 (33.7) Asia 150.0 7.0 30.2 6.6 30.0 6.4 18.6 7.7 Cement and clinker trading 34.4 (33.9) 1.8 (17.8) 1.8 (18.0) 1.1 n.s. Others 75.4 (0.8) (2.4) 57.9 (4.7) 17.0 (6.4) 12.0 Eliminations for inter-area trading (95.4) n.s. - - - - - - Total 1,049.5 (1.7) 158.4 (4.8) 150.4 (10.6) 52.6 (16.7) 7
Revenue, at 1,049.5 million euro (1,067.3 million euro in the third quarter of 2014), fell by 1.7% from the year-earlier period, due to slower business performance (-7.2%), net of a positive exchange-rate effect (+5.4%) and marginally positive consolidation effect (+0.1%). As noted above, the revenue trend reflected the fall in sales volumes and average sales prices. At constant exchange rates and on a like-for-like basis, the strongest revenue improvements in absolute terms were reported in North America and Bulgaria, while the largest downturns were in France-Belgium and Egypt. The positive exchange-rate effect referred mainly to the US dollar and, to a lesser extent, to the Egyptian pound and Indian rupee. Recurring EBITDA was 158.4 million euro, down 4.8% from the third quarter of 2014. As noted earlier, this was due to the revenue decrease, whose impact was offset to a large extent by the reduction in costs and the positive exchange-rate effect. Looking at the individual countries, the most significant progress in recurring EBITDA, in local currency, compared with the third quarter of 2014, was in Bulgaria, India and North America; larger reductions emerged in France-Belgium and Egypt. EBITDA was 150.4 million euro (168.3 million euro in the third quarter of 2014), reflecting the impact of net non-recurring expense of 8.0 million euro (net income of 1.8 million euro in the year-earlier period). EBIT was 52.6 million euro (63.1 million euro in the third quarter of 2014) after amortization and depreciation of 104.9 million euro (100.8 million euro in the year-earlier period) and impairment reversals of 7.1 million euro (losses of 4.4 million euro in the year-earlier period). Nine months ended September 30 Europe 1,515.7 (6.8) 186.6 (9.3) 182.1 (12.9) 35.4 (41.7) North America 425.0 30.0 36.5 85.2 35.8 81.1 (5.4) 81.9 North Africa and Middle East 733.0 1.9 157.0 (13.8) 157.1 (13.8) 85.9 (24.5) Asia 485.8 21.5 92.8 40.2 97.9 48.0 64.3 87.2 Cement and clinker trading 125.1 (18.6) 13.5 75.7 13.3 72.3 9.9 >100.0 Others 249.1 4.1 (3.6) 53.8 (19.7) (>100.0) (24.5) (97.4) Eliminations for inter-area trading (316.8) n.s. - n.s. - n.s. - n.s. Total 3,217.0 3.2 482.9 1.7 466.4 (1.7) 165.6 (0.4) Revenue was 3,217.0 million euro (3,115.7 million euro in the first nine months of 2014), an improvement of 3.2% from the year-earlier period, reflecting the positive exchange-rate effect (+7.0%) and positive consolidation effect (+0.1%), set against slower business performance (-3.9%). The revenue trend was affected by the reduction in average prices and sales volumes. At constant exchange rates and on a like-for-like basis, the largest increases in absolute terms 8
were in North America, India and Morocco, while the largest decreases were in France- Belgium and Egypt. The positive exchange-rate effect reflected the generalized appreciation of currencies against the euro (in particular the US dollar) among the Group companies. Recurring EBITDA, at 482.9 million euro, was up 1.7% from the year-earlier period. The result reflected the decline in sales volumes and sales prices, but benefited from the containment of costs, greater industrial efficiency, higher income from carbon emission rights and a positive exchange-rate effect. At constant exchange rates, the strongest progress in recurring EBITDA was in India, Italy (thanks to carbon emission rights), Morocco, Bulgaria and Trading; the largest reductions were in France-Belgium, Egypt and Spain. After net non-recurring expense of 16.5 million euro (net expense of 0.1 million euro in 2014), EBITDA was 466.4 million euro, a decrease of 1.7% from the first nine months of 2014. EBIT, at 165.6 million euro, was down 0.4% from the year-earlier period (166.3 million euro). Higher amortization and depreciation (306.0 million euro compared with 299.3 million euro) was outweighed by impairment reversals of 5.2 million euro in the period under review, against impairment losses of 9.0 million euro in the first nine months of 2014. Finance costs and other items Finance costs net of finance income amounted to 111.7 million euro, an increase of 8.5% from the year-earlier period (102.9 million euro). Net expense on net debt and available committed lines of credit was steady at 90.6 million euro, compared with 90.4 million euro in the first nine months of 2014. Increases were recorded in net finance costs relating to exchange-rate differences net of hedges (from 1.4 to 20.3 million euro, reflecting the depreciation of the Kazakh tenge) and in fair value losses on some interest-rate derivatives (from 1.6 to 6.4 million euro, due in particular to the fall in interest rates on the US dollar). These negative effects were offset in part by net income from financial investments, which rose from 1.0 to 14.8 million euro thanks to the sale of the equity investment in West China Cement. The share of profit (loss) of equity-accounted investees reflected profit of 7.0 million euro (9.6 million euro in the first nine months of 2014). Loss for the period In the nine months ended September 30, profit before tax was 60.9 million euro (46.2 million euro in the year-earlier period). Income tax expense was 69.0 million euro, down by 37.2% from the year-earlier period (109.9 million euro). The loss for the period was 8.1 million euro (a loss of 63.8 million euro in 2014). The loss attributable to owners of the parent was 55.3 million euro (a loss of 112.6 million euro); profit attributable to non-controlling interests was 47.1 million euro (profit of 48.9 million euro). 9
Total comprehensive income In the nine months ended September 30,, the Group posted other comprehensive income of 27.6 million euro (income of 148.2 million euro in the year-earlier period). This arose largely from translation gains of 35.9 million euro, net of fair value losses (9.9 million euro) on cash flow hedges and available-for-sale financial assets. Considering the loss for the period of 8.1 million euro illustrated in the previous section, the Group posted total comprehensive income of 19.5 million euro (expense of 22.0 million euro attributable to owners of the parent and income of 41.5 million euro attributable to non-controlling interests). This compared with total comprehensive income of 84.4 million euro in the first nine months of 2014 (expense of 2.7 million euro attributable to owners of the parent and income of 87.1 million euro attributable to non-controlling interests). Amounts and comparative data are provided in the Statement of comprehensive income in the section Financial statements. Net debt Net debt at September 30,, was 2,297.8 million euro, an increase of 141.1 million euro from December 31, 2014 (2,156.7 million euro) and 60.2 million euro from June 30, (2,237.6 million euro). Total cash flows from operations in the nine months to September 30, (231.7 million euro) almost completely covered capital expenditure (281.7 million euro) net of proceeds from the sale of assets (45.4 million euro). The increase in net debt was chiefly due to the impact of dividends paid (94.4 million euro), translation losses (13.9 million euro) and other items (increase in non-current assets and derivatives) for a total of 31.5 million euro. Of total capital expenditure, 277.5 million euro related to property, plant and equipment, investment property and intangible assets (387.6 million euro in the first nine months of 2014), mainly in France-Belgium, Italy, Kazakhstan and India. Financial ratios (absolute amounts in millions of euro) Sept. 30, June 30, Dec. 31, 2014 Net debt 2,297.8 2,237.6 2,156.7 Consolidated equity 3,802.2 3,926.2 3,891.0 "Gearing"% 60.4 57.0 55.4 Net debt 2,297.8 2,237.6 2,156.7 Recurring EBITDA 664.7 672.7 656.4 "Leverage" 3.5 3.3 3.3 Recurring EBITDA 664.7 672.7 656.4 Net finance costs* 120.1 120.0 119.9 "Coverage" 5.5 5.6 5.5 * Net finance costs relating to net debt: "Core financial expenses" Leverage and Coverage have been computed on 12-month rolling-year income statement data. 10
Performance by geographical area Europe Q3 Italy 141.3 (8.0) 0.3 (85.7) (3.0) n.s. (29.7) (95.6) France / Belgium 304.3 (11.0) 46.9 (20.9) 46.4 (21.7) 24.5 (33.2) Spain 23.8 (12.7) 0.1 (96.8) (1.1) n.s. (3.7) (>100.0) Others (1) 24.5 10.6 6.1 >100.0 5.7 >100.0 1.3 >100.0 Eliminations (5.2) n.s. - - - - - - Total 488.7 (9.4) 53.4 (18.9) 48.0 (29.1) (7.7) n.s. (1) Bulgaria, Greece Nine months ended September 30 Italy 426.1 (5.7) 34.6 >100.0 34.3 63.9 (29.7) 14.4 France / Belgium 960.5 (8.1) 127.3 (25.0) 124.8 (26.7) 58.8 (42.1) Spain 75.3 (7.0) 0.9 (89.5) (0.2) n.s. (8.2) (>100.0) Others (1) 69.9 7.8 23.8 >100.0 23.3 >100.0 14.5 n.s. Eliminations (16.1) n.s. - - - - - - Total 1,515.7 (6.8) 186.6 (9.3) 182.1 (12.9) 35.4 (41.7) (1) Bulgaria, Greece In Italy, according to our estimates, cement consumption continued to decline in the third quarter, with a worsening in the trend compared with the first half of the year. Consequently, third-quarter performance did not meet the expectations of an easing in the market decline expressed in the first half. The improvement in the economic and financial climate has not been matched to date by an upturn in investments in construction and cement consumption. Our overall cement and clinker sales volumes in the third quarter were down 11.1% on the year-earlier period, generating a reduction of 5% for the nine months to the end of September. Sales prices in the third quarter improved compared with the first half and the year-earlier period, although the average value for the first nine months was lower than in the first nine months of 2014. In ready mixed concrete too, our estimates indicate a sharp decline in demand in the third quarter compared with the previous months and with the year-earlier period. The downturn was largely due to the completion of a number of major works, without the start-up of new projects, and to the continued weakness of the open market; furthermore, credit-related 11
difficulties worsened, especially for companies engaged in public works. In the third quarter, Group ready mixed concrete sales fell by 12.7% from the year-earlier period, with a decrease of 6.3% in the first nine months, arising from the decline in infrastructure works, whereas sales volumes on the open market improved. Aggregates sales volumes also fell (by 25.5%), generating a reduction of 2.8% for the first nine months. Despite the negative impact of sales volumes and sales prices, recurring EBITDA in the first nine months showed a significant improvement from the year-earlier period, thanks to an important contribution from the sale of carbon emission rights (40 million euro, compared with approximately 6 million euro in the year-earlier period). In addition, savings were reported on overheads, due to the re-organization implemented under the Progetto program, and on variable costs, as a result of the start-up of the new kiln at the Rezzato cement plant. In France-Belgium, cement demand in the third quarter of differed in the two countries. France reported a general downturn across all segments of the construction sector, confirming the negative trend of the first half, whereas cement demand increased in Belgium according to our estimates. Compared with the third quarter of 2014, Group cement and clinker sales volumes in France (including marginal export volumes) were down 7.6% (down 6.7% in the first nine months); in Belgium the slowdown was more contained (-4.6% in the third quarter and -2.6% in the first nine months). Ready mixed concrete sales volumes declined in France (-14.7% in the third quarter and -7.0% in the nine months), but improved in Belgium (+4.6% in the third quarter and +2.9% in the nine months). Overall recurring EBITDA in the third quarter and first nine months was penalized by the fall in sales volumes in the three operating segments and by sharper competitive pressure, which had negative repercussions on sales prices, offset only in part by the measures taken to contain operating expense. In Spain, cement consumption slowed in the third quarter largely due to the reduction in public infrastructure investments, but improved in the first nine months of compared with the year-earlier period. In this context, the decrease in Group domestic cement sales volumes was kept at 2.6% (increase of 1.1% in the nine months), while overall cement and clinker sales volumes, reflecting the impact of lower export sales, were down 12.2% in the third quarter and 6.9% in the nine months. Ready mixed concrete and aggregates sales volumes improved by, respectively, 24.9% (14.0% in the nine months) and 18.2% (14.4% in the nine months). Recurring EBITDA declined in the third quarter and nine months, mainly as a result of the decrease in export volumes, sales prices and the rise in the cost of electricity. In the Other Countries, in Bulgaria, Group domestic cement sales volumes rose 8.8% in the third quarter and 5.2% in the nine months. Overall cement and clinker sales volumes improved by 53.8% (third quarter) and 34.5% (nine months), thanks to exports. Recurring EBITDA showed a significant increase from 2014, due to the positive impact on variable costs of the new Devnya line in terms of fuel efficiency, to healthy performance in sales volumes, slightly offset by an unfavorable sales price effect in exports, and, in the nine months, to the positive impact of higher income from carbon emission rights. 12
In Greece, the severe economic crisis continued. Cement and clinker sales fell by 21.8% in the third quarter, due above all to the slowdown on the domestic market, and by 14.1% in the first nine months. A sharp decline (-79.6% in the third quarter and -70.9% in the nine months) was also reported in ready mixed concrete sales, whereas sales of aggregates improved significantly (+55.2% in the third quarter and +33.2% in the nine months), in connection with projects relating to the privatization of the port of Piraeus. Despite the containment of overheads, recurring EBITDA was down on 2014 (in the third quarter and nine months) due to the overall fall in sales volumes and the absence of income on carbon emission rights, after income was reported in 2014. North America Q3 Total 182.5 28.6 34.5 33.8 34.4 33.2 29.5 >100.0 Nine months ended September 30 Total 425.0 30.0 36.5 85.2 35.8 81.1 (5.4) 81.9 Cement consumption on the Group markets in the USA rose slightly in the third quarter of, despite the continuing weakness of the market in Puerto Rico. In this context, Group cement and clinker sales volumes in the third quarter were up 0.2% (+1.8% in the nine months), with average revenue per unit showing an increase on the year-earlier period. Ready mixed concrete sales volumes fell by 0.2% in the third quarter (-0.3% in the nine months), while aggregates sales increased by 2.2% (+18.5% in the nine months). Recurring EBITDA in the third quarter and first nine months of improved from 2014, chiefly thanks to the rise in average sales prices and sales volumes (in the nine months to September 30). The appreciation of the US dollar contributed to the improvement in results when expressed in euro. 13
North Africa and Middle East Q3 Egypt 120.7 (16.3) 0.7 (94.4) 0.7 (94.3) (11.5) n.s. Morocco 77.4 1.8 39.4 7.6 39.4 7.6 29.9 10.0 Others (1) 15.9 12.5 0.8 >100.0 0.8 >100.0 (1.0) 46.8 Eliminations - - - - - - - - Total 213.9 (8.7) 40.9 (18.1) 40.9 (18.2) 17.4 (33.7) (1) Kuwait, Saudi Arabia Nine months ended September 30 Egypt 418.7 (4.1) 40.7 (47.0) 40.7 (47.0) 3.0 (92.6) Morocco 256.2 8.3 113.3 9.6 113.3 9.6 85.2 13.6 Others (1) 58.0 26.2 3.1 43.8 3.1 37.9 (2.3) (26.3) Eliminations - - - - - - - - Total 733.0 1.9 157.0 (13.8) 157.1 (13.8) 85.9 (24.5) (1) Kuwait, Saudi Arabia In Egypt, grey cement consumption rose slightly in the first nine months, driven by the start-up of important new projects in the residential sector managed mainly by the army, and by the public works sector. Group overall cement and clinker sales volumes were down 5.7% in the third quarter from 2014 (-5.5% since the beginning of the year). A decline of 8.4% was reported on the domestic market (-4.5% in the nine months). The trend arose in a highly competitive and volatile market situation stemming from the increased availability of clinker, as a result of the presence of large import stocks and continuity in fuel procurement. This generated full activity in a segment that had already built up large stocks in anticipation of limits on production, which in the event did not occur. The sales volumes trend in ready mixed concrete improved by 10.8% in the third quarter and by 12.4% in the nine months. In the third quarter, recurring EBITDA reflected a sharp decline compared with the yearearlier period. Improvements in efficiency and containment of costs were offset by the significant fall in revenue caused largely by domestic sales prices. In the nine months, recurring EBITDA reflected the impact of the third-quarter downturn, to show a significant decrease. The presentation of results in euro benefited from a positive exchange-rate effect driven by the appreciation of the Egyptian pound. In Morocco, despite the slight progress reported in the first quarter, cement consumption in the first nine months of was down on the year-earlier period, due to the slowdown in public works and in private investment in social building. 14
In this context, Group overall cement and clinker sales volumes were down on the yearearlier periods (-15.8% in the third quarter and -4.2% in the nine months); this was also due to the export trend and to public holidays, which took place in October in 2014. Ready mixed concrete and aggregates sales volumes improved by 39.4% and 21.1% respectively in the third quarter (+30.7% and +25% in the first nine months). Recurring EBITDA was up on 2014, in both the third quarter and the first nine months, reflecting the positive trend in cement sales prices, improved efficiency on variable costs and, in the presentation in euro, the appreciation of the local currency. Looking at the Other Countries, in Kuwait cement consumption increased in the first nine months, sustained by investment in infrastructure and by the residential sector, thanks to the new five-year growth plan (-2020), which envisages public-private partnership projects. Group cement sales volumes increased by 29.3% (+7.7% in the third quarter) from 2014, after a 2014 first quarter penalized by the suspension of operations for dry dock maintenance work. Ready mixed concrete sales volumes fell by 2% (-8.6% in the third quarter). Recurring EBITDA was up on 2014, in both the third quarter and the first nine months. Asia Q3 Thailand 69.4 2.4 17.8 6.8 17.7 5.9 11.9 3.7 India 67.1 13.9 12.2 71.3 12.1 70.7 7.0 >100.0 Others (1) 13.4 (0.2) 0.2 (95.2) 0.2 (95.0) (0.3) n.s. Eliminations - - - - - - - - Total 150.0 7.0 30.2 6.6 30.0 6.4 18.6 7.7 (1) Kazakhstan Nine months ended September 30 Thailand 232.4 15.6 56.8 15.9 62.0 26.3 44.4 30.3 India 217.8 28.1 38.9 >100.0 38.9 >100.0 24.5 >100.0 Others (1) 35.7 24.2 (2.9) n.s. (2.9) n.s. (4.6) (>100.0) Eliminations - - - - - - - - Total 485.8 21.5 92.8 40.2 97.9 48.0 64.3 87.2 (1) Kazakhstan In Thailand, the economic upturn was weaker than expected and the Bank of Thailand revised down its full-year GDP growth projections. On a market our estimates show declined in the third quarter and the first nine months, Group domestic cement sales 15
volumes were down 1.7%, but improved slightly in the first nine months (+0.6%). Thanks to the healthy export trend, cement and clinker sales rose overall by 5.7% in the first nine months from the year-earlier period, despite a decline of 2.8% in the third quarter. Ready mixed concrete sales volumes rose slightly in the third quarter (+1.0%), but were down 8.4% in the first nine months. In the third quarter, recurring EBITDA in local currency was substantially unchanged from 2014. In the first nine months too, recurring EBITDA was not substantially different to the year-earlier period, but when presented in euro benefited from the significant appreciation of the baht. The negative impact from pressure on prices was offset by a positive sales volume effect and savings on operating expense. In India, cement consumption continued to fall in the third quarter in the south of the country, the Group s key market. Group domestic cement sales volumes were down 8.4% in the quarter and 13.1% in the nine months compared with the year-earlier periods. The increase in cement exports and clinker sales mitigated the reduction in overall sales volumes, which were down 6.8% in the third quarter and 9.8% in the nine months. After two very positive quarters, sales prices continued to grow in the third quarter, albeit at a slower rate. Recurring EBITDA, also expressed in local currency, made significant progress compared with the previous year, in both the quarter and the nine months, thanks to the positive price trend. In June, production tests began at the new grinding center in Solapur in the state of Maharashtra, which has a capacity of approximately 1 million mt/year, and marketing began in September. In the Other Countries, cement consumption continued to grow in the third quarter in Kazakhstan, thanks above all to residential building and public works. In this context, Group domestic cement sales volumes were up on the previous year, by 6.6% in the quarter and 22.5% in the nine months (+1.3% and +16.9% overall including exports). Strong growth continued in sales volumes of ready mixed concrete, which almost doubled compared with the first nine months of 2014. Despite the rise in sales volumes, recurring EBITDA fell in the third quarter and nine months due to the rise in operating expense and the fall in prices. Work continued on the new dry clinker production line, scheduled to begin operations in the first quarter of 2016. Trading Q3 Total 34.4 (33.9) 1.8 (17.8) 1.8 (18.0) 1.1 n.s. 16
Nine months ended September 30 Total 125.1 (18.6) 13.5 75.7 13.3 72.3 9.9 >100.0 Intragroup and third-party cement and clinker sales volumes decreased by 26.8% in the third quarter (-16.7% in the nine months) compared with the year-earlier period. While Trading activities slowed, the terminals reported positive performance. Recurring EBITDA was down in the third quarter but rose in the first nine months, thanks to insurance compensation received for political risk damages, which led to the abandonment of the terminal being built in Libya. 17