Full Year 2016
Solid Results in Breakthrough Year for Offshore Wind
Roermond, The Netherlands - 29 March 2017
Key figures and highlights
• Operational highlights:
• Lost Time Injury Frequency below 3
• Successful delivery of monopiles and transition pieces for Galloper, Dudgeon and Rampion
• Successful delivery of components for Sverdrup and Maersk jackets
• Construction of new plant at Maasvlakte 2 near Rotterdam
• Total throughput of approximately 191 Kton of steel
• Financial key figures:
• Contribution 2016: € 129.5 million, 28.9% higher than 2015 (€ 100.5 million)
• Normalized EBITDA: 2016 € 65.4 million, 13.1% higher than 2015 (€ 57.8 million)
• Net earnings 2016: € 37.4 million, 5% higher than 2015 (€ 35.6 million)
• Earnings per share 2016: € 1.47, 5% higher than 2015 (€ 1.40)
• Dividend proposal € 0.37 cash per share
• Revenue 2016: € 400.3 million, 24.6% higher than 2015 (€ 321.3 million)
• Working Capital at year end: € 8.3 million (YE 2015 € 19.3 million)
• Net Debt at year end: € 42.0 million (YE 2015 € 26.9 million)
• Sif Group financing arrangements modified
• Order book: 210 Kton for 2017 and 98 Kton for 2018
Jan Bruggenthijs, CEO of Sif, comments:
“Sif has focused on the production of monopiles for offshore windfarms since the turn of the millennium. Interest in sustainable energy has gradually increased and the number of offshore wind projects is growing steadily. With Levelized Costs of Energy (LCOE) dropping well below the 2020 target of € 100 per kwh, 2016 can be considered a breakthrough year for wind farm projects.
Our results for 2016 with 191 Kton produced are solid and at 210 Kton our order book for 2017 is well filled. With the delivery of foundations and transition pieces for projects like Galloper, Rampion and Dudgeon, Sif now ranks among the largest suppliers of monopiles for wind farms.
For the longer term we foresee further growth and healthy market conditions. Our € 90 million investment programs in the new plant at Maasvlakte 2 and improvements in Roermond are increasing Sif’s capacity from 225 Kton at the end of 2015 to 300 Kton on completion of the new plant at the end of 2017. The development of XL monopiles supports scale growth in offshore wind farms.
Sif is well positioned to benefit from the longer term market growth. Viewed on a year-to-year basis, utilization and results may be volatile. This is a characteristic of the project environment in which Sif is active: new projects involve large investments and complicated political or commercial decision processes. The shift of the anticipated grid connection of French and Dutch projects from 2020 to 2021 illustrates this. This will affect the wind farm supply-chain. In 2017 we will focus on the acquisition of projects matching our production schedule for 2018 and on measures that further strengthen our organization and cost- structure.”