Sif Group today announced their results for the third quarter of 2024, including an update on the construction of their Maasvlakte 2 location expansion. The company now has two out of three production lines mechanically complete and in the commissioning and operational start-up phase.
Sif Group reported a revenue (or Contribution) of €32.4 M in Q3 2024. This is slightly lower than the revenue for the same period last year (€34.8M). However, revenue YTD rose from €106.2M to 111M in Q3 2024, of which €0.9 million relates to Marshalling and Logistics services and €7.0 million relates to other activities, including engineering services (€106.2 million of which €4.8 million for Marshalling and €7.4 million for other activities, including design engineering in first nine months 2023).
Adjusted EBITDA was €5.2M in Q3 2024, versus €7.1M in Q3 2023. YTD adjusted EBITDA went up from €28.5M to €31.3M. Non-recurring expenses relating to the expansion of our manufacturing facilities amounted to €3.3 million in the third quarter, resulting in a reported EBITDA of €1.9 million (€5.6 million in Q3 2023). EBITDA was impacted by higher labor costs related to the outcome of collective labor agreements, lower efficiency due to the integration of the new production facilities and by higher costs related to scaling-up of the organization in anticipation of the completion of the new facilities, Sif reports. The order book is 525 Kton per end of September.
Production update
Production and load-out of foundations for Dogger bank continued, manufacturing of Empire Wind 1 transition pieces and monopiles has started. Signed and converted reservation agreements into final contracts for 100 Baltyk 2&3 TPs (30 Kton) and for 64 MPs and TPs for East Anglia TWO wind farm (140 Kton).
Maasvlakte 2 expansion
The Maasvlakte 2 expansion project is running on schedule, says Sif: two out of three production lines are mechanically complete and in the commissioning and operational start-up phase.
“The expansion of Maasvlakte 2 is progressing within budget. The first production line was mechanically
completed early August, and the second line early November. Cans for Empire were manufactured and
the first complete Monopile is expected to enter the coating shop mid-November. Reaching this milestone, we can conclude that the various steps from plate handling up to final welding are technically working. Now we can concentrate on resolving typical start-up challenges, improving the output, and completing the last production line. As considered in our planning we will use the period until year-end for training on the job and mitigating outstanding commissioning and start-up issues. The target remains to have the entire new production facility up and running from January 2025 onwards. Hiring of new operational staff continues to be in line with plan.” – Fred van Beers, CEO of Sif Group
Outlook
According to Sif, their order book for the period post 2024 is well filled for 2025. For 2026, the company sold more than half of their production capacity, with room for one more wind farm. Tendering activity is at high levels albeit that contract awards are experiencing some delays, all for offshore wind projects designed with monopile foundations in the 9 to 11 meters diameter range. Sif reiterate their adjusted EBITDA forecast of approximately €35 million for the full year and their EBITDA outlook for 2025 and 2026 of €135 million and at least €160 million respectively.
We have taken notice of the outcome of the presidential elections in the USA. Like before we focus on
the European market where tender activity for new wind farms remains at a high level. This has attracted
competition from China selling monopiles to developers of European wind farms. Supported
by the Draghi report, it pleases me that fair competition and, even better, declaring offshore wind a
strategic EU business is high on the agenda of the new European Committee. – Fred van Beers, CEO of Sif Group
Read the full update here. Source: Sif
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