May 3 (Renewables Now) - Sif Holding NV (AMS:SIFG), the Dutch firm that makes tubular components for offshore foundations, reported a 17.2% drop in normalised EBITDA and 21.2% lower production for the first quarter of 2018.
The company explained that capacity utilisation in 2018 has been reduced by the postponement of a number of large projects, mainly in Belgium, France and the Netherlands. In addition, mechanical issues in March hurt production, but the machines have been repaired and are working again.
Sif expects production to increase from July 2018 thanks to the commencement of projects such as the 731.5-MW Borssele III & IV phases.
Earnings before interest, tax, depreciation and amortisation (EBITDA) and production details are in the table. Contribution too, defined as revenue minus cost of raw materials, subcontracted work, logistics and other charges.
|All in EUR million||Q1 2018||Q4 2017|
|Contribution per tonne (in euros)||531||468|
|Production (in Kton)||52||66|
Production in the quarter was 82% for offshore wind and 18% for oil and gas.
Sif can produce about 300 Kton a year, but it has signed contracts for just about 185 Kton in 2018 which means its capacity would not be fully utilised. The company has drawn-up contingency plans that provide for a phasing out of temporary personnel. As for 2019, the company already has signed contracts for 60 Kton and is in exclusive negotiations for 100 Kton more so the outlook for next year and beyond is good.