Sif Lays Good Foundation for 2017

Sif today reaffirmed the projected production of 183 ktons for the entire 2016, with a full order book for offshore wind and the order book for offshore oil and gas filled to the base load level. For 2017 and Q1 2018, the order book is filled up to 118 ktons and an additional 160 ktons are under exclusive negotiation, the company said in its Q3 financial results.

The production expansion program activities for both Rotterdam and Roermond are on schedule, Sif said.

With the new assembly facility at the Maasvlakte 2 in Rotterdam, the current production capacity will increase from 225 ktons to 300 ktons per annum in the course of 2017. The first monopiles were assembled in September 2016 and the first load out is scheduled before the end of this year. The temporary coating facility at the Maasvlakte 2 is finished and in production.

The accelerated delivery of the first 150 meters of the quay side with a draught of 16 meters by the Port of Rotterdam is scheduled to be ready on 23 December 2016.

Sif’s revenue in Q3 2016 amounted to EUR 313.8 million, with EUR 213.5 million reported for the same period last year.

The Q3 Contribution (calculated as revenues minus cost of sales, including costs for raw materials, subcontracted work, logistics and other external project related charges) amounted to EUR 98.6 million, compared to EUR 69.6 million in the same period last year, which is an increase of 42%.

Normalized EBITDA, which was at EUR 39.4 million in Q3 last year, now reached a level of EUR 54.9 million.

Sif’s CEO Jan Bruggenthijs said: “The high asset utilization of the Offshore Wind production lines continued to date. Revenue and tonnage in the third quarter 2016 were slightly lower compared to the same period last year, but Contribution and EBITDA were both higher due to the efficiency of the production lines and the effect of a good product mix.

“As anticipated, the production for the Offshore Wind business continued to run at high capacity throughout the third quarter. Oil & Gas performed in line with expectations, despite challenging market conditions.

“Planned maintenance in the second half of the year and the accelerated start of production at Maasvlakte 2 in Rotterdam are expected to have an impact on full year performance, resulting in a slightly lower EBITDA in the fourth quarter of this year.”