Sif: First Monopile Load-Out from Rotterdam by Year End

Dutch foundation components manufacturer Sif Holding N.V. plans to load out the first monopiles from its new facility at Maasvlakte 2 in Rotterdam in the last quarter of this year.

Source: Sif

The production of the first monopiles in Rotterdam is expected to start in the second half of September 2016, the company said in its financial report for the first six months of 2016.

With the completion of the new production facility in Rotterdam, the company’s capacity for XL monopiles will increase in the second half of 2017, reaching a maximum capacity of 300 ktons by the end of 2017.

The new capacity will help Sif handle the rising order book for offshore wind. The company’s order book for 2016 is full, and 62 ktons is already contracted for 2017. In addition, Sif is in exclusive negotiations for production in 2017 for 116 ktons.

The order book for 2018 is also building up and Sif has contracted a total of 8 ktons and is in exclusive negotiations for another 24 ktons.

”The Offshore Wind market is developing rapidly and we are witnessing an increasing demand compared to previous market projections,” the company said in the report.

‘3 jacket based projects in the UK have been cancelled and more cost efficient foundations are expected to be deployed, the reserved budgets for these projects are expected to be re-invested in other wind projects.”

Looking at the financial results, Sif recorded EUR 205.3 million revenue in the first half of 2016, a 109% jump compared to EUR 98.1 million revenue reported for the first half of 2015.

Contribution, calculated as revenues minus cost of sales which includes costs for raw materials, subcontracted work, logistic and other external project related charges, and is considered a key financial indicator for Sif, increased by 54% to EUR 65.2 million during the period as compared to EUR 42.3 million recorded in 1H 2015.

This increase was mainly driven by high production volumes throughout the first half year of 2016, reaching full utilization of production capacity for the offshore wind business. In the first half of 2016, the company’s offshore wind contribution was 88% of the total contribution compared to the same period last year.

The company’s operating profit in 1H 2016 was EUR 28.7 million, compared to EUR 20.8 operating profit reported for the same period a year earlier.

”While BREXIT appears to have caused a slowdown of UK projects, the UK remains committed to offshore wind,” Sif said.

”The recent outcome of the Dutch tender process for the development of the Borssele I and II wind parks in the North Sea is worthwhile mentioning. A main target of offshore wind is to lower the production price of offshore wind energy. Much faster than foreseen, the sector has reached an important milestone and has proven that it is able to produce offshore wind energy at much lower prices than anticipated thus far. It is expected that Germany will follow the Dutch tendering system as used for Borssele I and II.”