Sif Puts Second Production Line at Maasvlakte 2 into Operation
- Business & Finance
Dutch foundation components manufacturer Sif Holding NV has put into operation the second production line at the company’s assembly facility at Maasvlakte 2, Rotterdam, bringing the plant to full capacity.
With the opening of the second production line this month, the company expects the capacity for XL monopiles to increase and reach a maximum capacity of 300 Kton on an annual basis by the end of 2017, Sif said in its financial report for the first half of 2017.
During the reporting period, Sif completed the coating hall in Rotterdam and the company’s wind production lines in Roermond were rearranged to produce cans and primary steel for transition pieces.
Investments in expanding production facilities in Roermond to allow for bigger diameters were also completed by the end of the first half of 2017. Full-year capex related to the Rotterdam plant and Roermond will amount to approximately EUR 25 million, Sif said.
The company’s production increased by 11.3% in the first half of 2017 compared to the same period of last year.
Contribution, or revenues minus cost of sales, amounted to EUR 74.4 million compared to EUR 65.2 million in the same period of last year, representing an increase of more than 14%.
Sif’s offshore wind contribution accounted for 91% of the total contribution compared to 88% in the same period of last year.
“Sif once again contributed to some of the most prominent energy projects in Northwest Europe in the first half of 2017 through deliveries for Sverdrup, Rentel and Galloper,” Sif’s CEO Jan Bruggenthijs said.
The company’s EBITDA normalized for IPO costs stood at EUR 33.7 million compared to EUR 36.9 million in the first half of 2016. Sif attributed the decrease to non- recurring set-up and startup expenses related to the commissioning of the production lines in Rotterdam and higher than expected recurring operating costs for the new Rotterdam facility.
Sif’s order book for Offshore Wind in 2017 is full and the order book for Offshore Oil & Gas is filled to the base load level. Sif expects to produce approximately 230 Kton for the entire year 2017.
The order book for 2018 for both Offshore Wind and Offshore Oil & Gas stands at 109 Kton and includes the Albatros and Borkum II offshore wind projects.
”Other projects, including St Nazaire and Courseulles in France and Fryslan in the Netherlands, scheduled for 2018 have been shifted to 2019 primarily relating to environmental issues,” Bruggenthijs said.
”Some projects, such as Borssele in the Netherlands, have been pushed back for other reasons. With annual capacity of 300 Kton from 2018 and only few remaining opportunities for production in 2018, we anticipate some underutilization of production facilities, which demonstrates the volatility of the project-driven industry of which Sif is a part. Momentum for offshore wind has, however, accelerated with unsubsidized contract wins, decreased LCOE for offshore wind in Europe, increasing interest in the United States and the Far East and contracts for the first projects for 2019 under negotiation.”