November 8 (Renewables Now) - Sif Holding NV (AMS:SIFG), the Dutch supplier of tubular components for offshore foundations, today reported significantly lower results for the first nine months of 2018 as it continued to experience low utilisation in the third quarter.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 71% year-over-year to EUR 13 million (USD 14.8m). In the third quarter, they were negative EUR 1.1 million, compared to EUR 11.2 million a year ago.
Contribution, a key indicator for the company which is calculated as revenues minus cost of raw materials, subcontracted work, logistics and other external project related charges, dropped 45.6% to EUR 57 million in the first nine months of 2018. The decline was mainly attributed to underutilisation in the production facilities during the second and third quarters.
The company also said that only some 10% of production for the Borssele 3+4 project was realised in the first nine months of 2018 and that delay in delivery of steel has so far caused a seven-week set-back in production. It added this will affect the margin and production flow in the remainder of 2018 and in 2019.
Nine-month production fell to 100 Kton, of which 74% for offshore wind, from 167 Kton a year earlier. In the third quarter the company produced 19 Kton. It said the continued low capacity utilisation was partially due to delays in the supply of steel and low water levels in various rivers. In the full year, production is expected to be around 145 Kton.
After high tendering activity during the first two quarters of this year, Sif has an order book of 200 Kton for 2019 and 90 Kton for 2020 and beyond.
(EUR 1 = USD 1.142)