Roermond, The Netherlands,
07
November
2019
|
07:00
Europe/Amsterdam

Trading update: Highlights and Key Figures Q3 2019

Summary

Sif Holding N.V. (Euronext symbol SIFG / ISIN code NL0011660485) - Regulatory news

Highlights Q3:

  • High tender and contracting activity:
    • Contract win for Vineyard windfarm USA (84 monopiles, 103 Kton)
    • Contract win for zones 2-4 of Hollandse Kust Zuid windfarm in The Netherlands and post- Q3 also the win of zone 1 of Hollandse Kust Zuid (total project 140 monopiles, 136 Kton)
  • First contract with DEME for new Sif marshalling- service on Maasvlakte 2- hub and lease of additional 20 hectares
  • Opening of sales- office Japan
  • Delay by US federal authority BOEM of Vineyard project for undefined period of time

Key figures:

  • Year-to-Date (YTD)1 contribution increased to €66.6 million (€57.0 million YTD 2018)
  • EBITDA Year to Date increased to €14.6 million (€13.0 million YTD 2018)
  • Operating Working Capital at end of Q3 2019 -€8.2 million (€28.4 million at end of Q3 2018)
  • Net Debt excluding IFRS 16 at end of Q3 2019 €19.2 million (€43.1 million at end of Q3 2018)
  • Throughput of 46 Kton brings Year to Date production to 140 Kton (100 Kton YTD Q3 2018)
    • 95% for offshore wind
    • 5% for offshore oil & gas & other
  • Order book 47 Kton for Q4 2019, 245 Kton for 2020 (including 103 Kton for Vineyard) and 108 Kton for 2021.

 

In € million YTD 2019 YTD 2018 ChangeYoY Q3 2019 Q3 2018
Contribution 66.6 57.0 16.8% 21.1 11.4
EBITDA (adjusted2) 14.6 13.0 12.3% 1.8 -1.1
Kton production 140.0 100.0 40.0% 46.0 19.0
Order book in Kton at 7 November 2019 For remainder 2019 For 2020 For 2021 and beyond
Contracted 47 165 108
Exclusive negotiation 0 80 0
Total for the year 47 2453 108

Comment from Fred van Beers, CEO of Sif-Group:

Tender activity and order intake were strong in the third quarter of 2019 with large project- wins and satisfactory pricing- levels. Improved pricing levels also applied to the projects at hand at the start of the third quarter. However, both the pressure on this quarter’s production capacity as a consequence of the delayed Borssele 3+4 project and production issues, caused planning problems and a less efficient production. With multiple projects at hand and tight delivery schedules, production- lines repeatedly required conversion. This resulted in production of 46 Kton at much higher than precalculated manhours and overtime. This impacted this quarter’s contribution margin. For the final quarter of 2019 we expect an equal utilization with production anticipated at 47 Kton and contribution margins at least at Q2 2019 levels.

The outcome of 2020 remains uncertain with limited clarity on timing of the Vineyard project. We are still in talks with the client on different scenarios ranging from full delay of the project to manufacture of part of the order in 2020. Further news on timing is not expected before December 2019 but with the passing of time it becomes less likely that Vineyard will lead to production in 2020. For 2021 we already booked 108 Kton following the recent addition of the 4th part of Hollandse Kust Zuid in The Netherlands. With increasing ambitions of various countries and high tender activity, we expect good utilization from 2021 onwards.

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1 Year-to-date (YTD) refers to the period 1 January- 30 September

2 Adjustments relate to IPO- expenses for which 2018 EBITDA- numbers are adjusted.

3 Including 103 Kton for Vineyard

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About Sif Holding N.V.

Sif is a leading manufacturer of large steel tubulars, which are used as foundation components for the offshore wind and offshore oil & gas markets. The Company manufactures customised tubular components for offshore foundations, predominantly in the greater North Sea region. Sif combines a highly automated and flexible production facility with technology leadership in rolling and welding of heavy steel plates, which is based on over 70 years of experience and innovative in-house developed techniques and processes. Sif primarily produces monopiles, transition pieces and piles that are used to anchor jacket foundations in the seabed for offshore wind turbines, as well as legs, pile sleeves and piles of the larger jackets for oil & gas as well as tubular structures for various uses such as jetties.

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