Sif interim 2024 results

30 Aug 2024 07:00 CEST

Operational Highlights: 

Health and Safety first*: 

• One LTI, LTIF at 3.29 (seven LTI, LTIF at 7.88 at the end of the first half of 2023);  
• Sick leave of 6.7%, equal to first half-year 2023. 

People: 

• Hiring on schedule with permanent staff per 30 June 2024 at 415 FTE (with 285 temporary staff) compared to 382 FTE at the end of June 2023 (with 305 temporary staff). 

Strategic developments: 

• Construction of expanded manufacturing plant at Maasvlakte 2 is on planning and on budget:  
• The first of three production lines became operational according to plan in August 2024; first can production for Empire Wind 1 ready; 
• On track for the start of full production on 1 January 2025; 
• Agreement with the Port of Rotterdam Authority for the temporary lease of 20 hectares of additional land for storage, marshalling and logistics projects. 

New projects: 

• Shift from exclusive negotiation to firm contract for the production of 53 monopiles (76 kton) in 2026 for OranjeWind (Hollandse Kust West Kavel VII); 
• Capacity reservation agreement with Equinor/Polenergia to produce 100 transition pieces (30 kton) for Baltyk 2+3 wind farm in joint venture with Smulders; 
• Heerema contracted Sif to manufacture four jacket piles for the jacket foundation for RWE's Substation Thor.   

Sustainable products and production: 

• Sif manufactured foundations for projects that will result in 773 MW renewable energy capacity (1,344 MW in the first half of 2023);  
• Increased CO2 footprint from 1,635 metric ton in the first half of 2023 to 2,675 metric ton in the first half of 2024.  

Operations: 

• Production of monopiles and transition pieces for Dogger Bank C;  
• Final production of transition pieces for Noirmoutier; 
• Production of offshore steel structures (OSS) for various pinpile and structural leg orders; 
• Increased income from engineering. 

Total throughput of 53 monopiles and 64 transition pieces (86 Kton) (52 monopiles and 66 transition pieces in the first half-year of 2023 [94 Kton]).  

Key figures: 

Revenue of €231 million in the first half of 2024 (first half-year of 2023: €218 million);  

Contribution of €78.6 million (first half-year 2023: €71.4 million): 

• €66.5 million monopiles, transition pieces and other foundation components for offshore wind (first half-year 2023: €60.8 million); 
• €0.6 million Marshalling and Logistics services (first half-year of 2023: €4.9 million); 
• €11.6 million other (first half-year 2023: €5.7 million), which includes engineering services for €4.3 million (first half-year 2023: €3.0 million); 

Adjusted EBITDA of €26.1 million compared to €21.4 million in the first half-year of 2023; 

Diluted earnings per share of €0.21 (€0.17 in the first half-year of 2023) allowing for allocation of € 1.25 million dividend to cumulative preference shares (first half-year 2023: €0.6 million); 

Operating working capital stands at -/- €106.0 million (year-end 2023: -/- €133.4 million); 

External debt excluding lease liabilities €60.0 million (year-end 2023: €20.0 million). Total cash position amounts to €87.2 million (year-end 2023: €131.4 million); 

Order book per 29 August 2024: 405 kton signed contracts and 30 kton in exclusive negotiation for the remainder of 2024 and beyond;  

Outlook for full year 2024 confirmed with expected production of 165 kton and adjusted EBITDA of approximately €35 million. 

*on a 12-month rolling basis 

Please read PDF attachment for full text of the interim report