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Profitability levels increased by 1% as new equilibrium found in offshore wind market
Offshore wind monopile manufacturer Sif had a solid financial year 2023, reporting a 1% rise in profitability.
The manufacturer reported adjusted EBITDA of €42.2m, compared to €41.8m in financial year 2022.
Chief executive Fred van Beers said: "After a period of uncertainty with increasing interest rates and raw material prices as fall-out from the continued wars in Ukraine and Gaza, it looks like a new equilibrium was found.
"And now that the dust seems to be settling from the turmoil in mainly the US and UK offshore wind markets, the conclusion is justified that the offshore wind market is sustainable despite termination and postponement of a few projects and despite a short slowdown in contracting activity.
"The US has already re-auctioned terminated projects, the UK will open cfd6 for tendering with strongly increased strike prices and the European Union has announced a 15- point action plan to support and accelerate the energy transition, including the Wind Power Pack."
During the report period, Sif had an output of 192 kton (169 kton in 2022), producing 141 monopiles and primary steel for 182 transition pieces (130 monopiles and primary steel for 126 transition pieces in 2022).
This included contribution to 2622MW of offshore wind capacity (1954 MW in 2022) with foundations for amongst others Dogger Bank and Hollandse Kust Noord
Furthermore, it has completed marshalling services for Siemens’ Hollandse Kust Zuid and had an orderbook addition with Baltyk II+III (Equinor/Polenergia) and termination of Empire Wind 2 (Equinor).
In February 2023, Sif took the final decision to invest €328m in the expansion of its production facilities in Rotterdam.
On 1 April 2023, it started construction works after carrying out thorough preparations and concluding the financing of the plans.
The first monopiles are expected to come off the first new assembly line in July 2024 and its expect the factory to be running at full speed and capacity by January 2025.
In 2024, factory-integration and start-up of the expanded production facilities in the second half of 2024 is expected result in lower production output of approximately 165 kton with expectation for adjusted EBITDA at a level of approximately €35m.
After start-up of the new plant, we foresee higher volumes with €135m EBITDA for 2025 and at least €160m from 2026, the Sif board said. |
