‘Make cables, not pipelines’: Prysmian aims to cash in on green and digital revolutions

The cable-making kingpin laid out its plan for taking advantage of key drivers in the market, including renewables

Prysmian's Leonardo da Vinci vessel recently finished what is billed as the world’s longest power interconnector over land and sea between Denmark and the UK
Prysmian's Leonardo da Vinci vessel recently finished what is billed as the world’s longest power interconnector over land and sea between Denmark and the UKFoto: Prysmian

Italian cable making giant Prysmian has said it is planning to drive up profits a third in the next five years off the back of the energy transition and digital revolution.

Prysmian told investors on Thursday that it is targeting €2bn ($2.1bn) in profits by 2027, from €1.5bn last year.

It plans to invest €2.7bn up until 2027, a 70% jump from the last five years.

“Cables are going to be laid as opposed to gas pipes,” chief operating officer Massimo Battaini is quoted by Reuters as saying during a presentation in Naples.

Battaini will take over from Valerio Battista as Prysmian CEO next year, leading a company that employs 30,000 people in 50 countries.

Battaini said the company is “uniquely placed to benefit from the opportunities presented by the structural changes arising from the convergence of the energy transition and digital transformation.”

He said factors including Prysmian’s market-leading position, loyal customer base, geographical footprint and breadth of products make it “well-placed to grow our markets and become a global cable solution provider”.

Prysmian said that the cable industry is “increasingly strategic due to long-term market trends which require resilient, high-performing, sustainable and innovative cable solutions.”

It cited increased renewable energy generation, growing electricity demand, enhanced power grids and massive data growth as the four key growth drivers.

Prysmian said that in light of market trends it will “reshape its business” into four new segments: renewable transmission, power grid, electrification and digital solutions.

Following earlier purchases of Netherlands-based Draka and US-based General Cable, Prysmian said it will now focus on internal growth – but did not discount moving for “bolt-on” opportunities where they present themselves.

In July, Prysmian’s Leonardo da Vinci vessel completed work on what is billed as the world’s longest power interconnector over land and sea – the 764km Viking Link between renewables-rich Denmark and the UK.
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Published 6 October 2023, 06:46Updated 6 October 2023, 06:46
PrysmianItalyEurope