Operational highlights
• No Lost Time Injuries (4 in Q1 2023);
• Sick leave at 8.6% (7.2% in Q1 2023);
• Production of monopiles and transition pieces for Dogger Bank C and several components for offshore steel structures;
• Workforce at end of Q1 stood at 393 permanent staff and 261 flexible staff (end of Q1 2023: 374 permanent and 244 flexible staff);
• Total throughput of approximately 42 Kton steel (48 Kton in Q1 2023), on track for full year production of 165 Kton.
Key figures
• Contribution of €33.6 million (€34.0 million in Q1 2023) of which €27.7 million for Wind (€29.8 million in Q1 2023), €3.0 million for Offshore Steel Structures (OSS) (€0,7 million in Q1 2023), €2.2 million for Engineering (€0,9 million in Q1 2023), €0.3 million for Marshalling (€2.2 million in Q1 2023) and €0.4 million for other activities (€0.4 million in Q1 2023);
• Adjusted EBITDA of €8.0 million (€10.8 million in Q1 2023) on track for full year generation of €35 million adjusted EBITDA;
• Net Working Capital at end of Q1 2024 -/- €158.3 million (-/- €133.4 million at end 2023);
• Cash at the end of Q1 2024 of €140.7 million (€131.4 million at end 2023);
• Orderbook contains approximately 125 Kton for remainder 2024 and 320 Kton for 2025 and beyond.
Fred van Beers, CEO of Sif Group, comments:
"I'm very pleased with the safety performance in the past two quarters. We need to keep safety top of mind and have had safety standdowns on May 13 of this year to reiterate the importance of safety to all colleagues. I am less enthusiastic about the sick leave numbers. The replacement of staff on a longer-term sick leave requires a large training effort and impacts efficiency. And although this is not deviating much from the trend in the industry, analysis and more (pro)active absence management is high on the management agenda for 2024.
The construction works for the new factory are on schedule and within budget. Recruiting efforts have started paying off and were satisfactory. We are on schedule to fill all critical positions to smoothly run the existing operation and the ramp up the new factory.
With 445 Kton the order book stretches into 2026. Further order book additions, predominantly covering 2026, are expected to be signed in the course of 2024.
With contribution of €33.6 million and adjusted EBITDA of €8.0 million in Q1 2024, we are on track to close the year 2024 with an adjusted EBITDA of approximately €35 million. Q1 results were positively impacted by components for offshore steel structures like substations. We foresee a steady demand for a similar amount of smaller diameter tubulars in the next decade. Our order book and the pipeline for European offshore wind projects, make us confident in achieving the EBITDA projections of €135 and €160 million in 2025 and 2026 respectively".
PDF attachment for the full release:
https://sif-group.com/en/investor-relations/download/880ed35c-d194-4cf2-b9fb-83a49aa9c726/tradingupdateq12024-17may.pdf
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