Sif interim 2023 results
Full-year outlook confirmed, Order book extended, Expansion project on schedule
Operational Highlights Year to Date:
- Health and Safety first:
- Three incidents in the second quarter increase LTI to seven and LTIF to 7.88 for first half 2023 (five LTI and LTIF of 8.97 in first half 2022);
- Sick leave with 6.7% improved on the 7.2% of first half of the previous year.
- Hiring of 200 FTE for expanded facilities progressing. Permanent staff 30 June 2023 at 382 FTE (with 305 temporary staff) compared to 368 FTE end of June 2022 (with 220 temporary staff);
- New appointment of Angelique Heckman to Supervisory Board and nomination of Annabelle Vos for appointment to Supervisory Board in September 2023;
- New appointments to Management Team of Monique van den Boogaard (director projects) and Robert Verkroost (director HR).
- Strategic developments:
- Solid execution of the financing package for the expansion plan including Equinor as new shareholder for cumulative preference shares and successful rights issue with 98.9% take-up (completed in July 2023);
- Construction of expanded manufacturing plant at Maasvlakte 2 started according to plan in April 2023 and is progressing expeditiously, reaching its highest point on 17 August last. Almost 90% of construction and equipment expenses locked-in at firm rates;
- Phasing out of marshalling and logistics resulting in lower contribution levels in Q2 and to almost zero from Q3 2023.
- New projects:
- Capacity reservation agreement for Baltyk 2+3. Production of 90 monopiles (105 Kton) for delivery in 2025 and 2026 (already reported in Q1 release);
- Shift from exclusive negotiation to firm contract for production of 54 transition pieces (20 Kton) for delivery in 2025;
- New preferred supplier agreement for the delivery of monopiles (approx. 80 Kton) in 2026.
- Sustainable products and production:
- Sif participated in projects resulting in 1,344 MW renewable energy capacity (803 MW in first half 2022);
- Decreased CO2 footprint from 6,327* metric ton in first half 2022 to 1,635 metric ton in first half 2023.
*Prior period numbers are restated in line with the restatements as disclosed in the 2022 Annual report.
- Final deliveries and ongoing load-out for Dogger bank A;
- Production of monopiles for Dogger bank B;
- Production of transition pieces for He Dreiht and Noirmoutier;
- Stable income from engineering activities;
- Marshalling & Logistics for Siemens’ Hollandse Kust Zuid project almost completed.
- Total throughput of approximately 94 Kton steel or 52 monopiles and 66 transition pieces (89 Kton or 74 monopiles and 55 transition pieces in HY1 2022). Of total production, 98.5% was for offshore wind projects.
- Revenue of €218.1 million in the first half of 2023 (HY 2022: €191.3 million);
- Contribution of €71.4 million (HY 2022: €63.5 million):
- €60.8 million monopiles & transition pieces for offshore wind (HY 2022: €54.5 million);
- €10.6 million marshalling and other which includes KCI for €3.0 million (HY 2022: €9.0 million and €2.7 million);
- Adjusted EBITDA of €21.4 million slightly higher than in first half year 2022 (€21.1 million);
- Diluted earnings per share of €0.17 (€0.18 first half 2022) allowing for allocation of €0.7 million dividend to cumulative preference shares that were issued on 30 March 2023;
- Operating working capital stands at -/- €74.8 million (YE 2022: -/- €81.5 million);
- No external debt excluding lease liabilities (YE 2022: nihil). Total cash position amounts to €103.6 million (YE 2022: €89.8 million);
- Order book per 25 August 2023: 754 Kton for remainder of 2023 and beyond:
- 464 Kton signed contracts;
- 290 Kton exclusive negotiations;
- Outlook full year confirmed with adjusted EBITDA for 2023 expected to end at the level of 2022.
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