Sif's Q3 2018 Production Numbers Take a Hit

Dutch offshore foundations manufacturer Sif has reported a lower production level in the third quarter of 2018 in part due to delays in the supply of steel and extremely low water levels.

According to the company's latest financial results, the Borssele 3 and 4 offshore wind project and the Tyra gas field accounted for the bulk of production, while the delay in the delivery of steel caused a seven-week set-back in production.

For the first nine months of the year, contribution added up to EUR 57 million, mainly due to underutilization in the production facilities during the second and third quarters, which equates to a year-to-date (YTD) contribution of EUR 570 per Kton.

Contribution for Q3 totaled EUR 11.4 million, based on a production of 19Kton. The discount granted for bringing forward the start date for Borssele 3 and 4 only marginally impacted the YTD contribution per ton, while only some 10% of the production for the project was realized so far in 2018, the report writes.

The adjusted EBITDA amounted to EUR -1.1 million compared to EUR 11.2 million in Q3 2017. The year-to-date EBITDA suffered from low margins on projects in execution, due to a delayed start of Borssele 3 and 4 and a relatively high absence rate because of illness, resulting in higher than anticipated labor costs, Sif reports.

The company's net debt decreased from EUR 52.5 million at the end of Q2 2018 to EUR 43.1 million at the end of Q3 2018.

For the full year 2018, Sif anticipates a total production od 145Kton and for 2019 a total od 200Kton has been booked or is under exclusive negotiations.