Sif interim 2022 results
Full-year outlook confirmed, Satisfying margin development, Sound order book, Bright tender funnel
Operational Highlights Year to Date:
- Safety first:
- Increased Lost Time Injury score of five, resulting in LTIF of 8.97 (one LTI and LTIF of 2.63 in first half 2021), indicating higher safety risk of bigger products and increased personnel safety training demand;
- Sickness leaves in line with industry trend. Down to 7.2% from 8.2% in Q1 2022 (4.4% and 4.5% in Q1 2021 and first half 2021 respectively);
- Gas explosion on 7 August 2022: traumatic experience, no physical personal injuries, damage to equipment and inventories, limited down-time.
- Strategic developments:
- Strategic partnership agreement with GS Entec at Ulsan, Republic of Korea, signed July 2022, to develop monopile foundation production in the Asian region;
- Regarding the plans to expand manufacturing capabilities and production capacity, discussions with clients concerning launching capacity and those with other relevant parties, in combination with the uncertainties caused by the global economic and geopolitical situation, require more time before a final investment decision can be taken.
- Sustainable products and production:
- 100% of production for offshore wind industry. Sif participated in projects resulting in 803 MW renewable energy capacity;
- Increased gross CO2 footprint from 1,943 to 2,092 ton due to more shipping movements in 2022 relating to subcontracted work (transition pieces) then in first half of 2021. Net CO2 neutral with 13 MW wind turbine on Sif-premises;
- Switch from gas pre-heating to electrical on schedule with conversion at seven workstations.
- Project AmpHytrite: feasibility study by Sif, GE Renewable and Pondera to determine whether it is possible to produce green hydrogen at sea on a large scale, safe and economically viable.
- New projects:
- Capacity reservation agreement for production of 62 (19 Kton) transition pieces for delivery to an undisclosed project in 2023;
- Production of 64 (36 Kton) transition pieces for delivery to project He Dreiht in 2023.
- Final deliveries of TP-less monopiles for Hollandse Kust Zuid;
- Monopiles for Dogger Bank A ready for load-out;
- Production of monopiles for Hollandse Kust Noord started;
- Stable execution of Marshalling & Logistics for Siemens’ Hollandse Kust Zuid project.
- Total throughput of approximately 89 Kton steel or 74 monopiles and 55 transition pieces (88 Kton or 102 monopiles and 3 transition pieces in HY1 2021), all for offshore wind energy production.
- Revenue: less subcontracted passthrough work than in first half of 2021 results in lower revenue of €191.3 million (HY 2021: €249.3 million);
- Contribution of €63.5 million (HY 2021: €57.7 million)
- €54.5 million monopiles & transition pieces for offshore wind (HY 2021: €53.7 million);
- €9.0 million marshalling and other which includes KCI for €2.7 million (HY 2021: €4.0 million and €1.8 million);
- Adjusted EBITDA of €21.1 million slightly higher than in first half year 2021 (€20.6 million);
- Operating working capital stands at -/- €42.0 million (HY 2021: -/- €56.9 million);
- No external debt excluding lease liabilities (HY 2021: nihil). Total cash position amounts to €57.6 million (HY 2021: €61.7 million);
- Order book per 30 June 2022: 282 Kton for 2023 and beyond:
- 263 Kton signed contracts
- 19 Kton exclusive negotiations;
- Outlook full year 2022 confirmed at slightly higher adjusted EBITDA compared to 2021.
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