SFC Energy AG: Strong growth expected for second half of 2014

SFC Energy AG / Key word(s): Half Year Results

04.08.2014 / 08:00

SFC Energy AG -Corporate News - ISIN DE0007568578

SFC Energy AG: Strong growth expected for second half of 2014

SFC Energy AG / Key word(s): Half Year Results

- Q2/14 revenues up 112 % to EUR 13.23m (Q2/2013: EUR 6.24m)

- Underlying Q2/14 EBITDA improved to EUR -0.26m (Q2/Q13: EUR -0.81m)

- Strong increase in Oil & Gas revenues

- Outlook: Strong second half 2014 expected

Brunnthal/Munich, August 4, 2014 - SFC Energy AG, (ISIN: DE0007568578) the leading international provider of fuel cell-based hybrid power solutions to the stationary and mobile power generation markets, today announced revenues for the second quarter 2014 of EUR 13.23m, up over 112% on the same period last year (Q2/2013: EUR 6.24m). This growth was driven largely by our increasing success in the Oil & Gas segment. In terms of earnings, underlying EBITDA for Q2 came in at EUR -0.26m slightly down on the previous quarter but ahead of the same period last year (Q2/2013: EUR -0.81m). SFC Energy's order intake improved by over 100 % year on year to EUR 22.49m and SFC Energy finished the second quarter with a strong order backlog of EUR 13.74m (June 30, 2013: EUR 5.64m).

Based on these figures, the Management Board reiterates its guidance for the current financial year that revenues will be between EUR 55-60m with a positive underlying EBITDA.

Financial Highlights

- Gross profit for the first half of 2014 increased to EUR 7.67m, up 61.8 % (HY2013: EUR 4.74m).

- Underlying EBITDA for the first half of 2014 of EUR -0.50m was up on last year's level (HY2013: EUR -0.69m).

- Underlying EBIT in the reporting period was EUR -1.30m, with the second quarter showing year-on-year improvement to EUR -0.65m (Q2/2013: EUR -1.28m).

- Cash and cash equivalents (freely available) at June 30, 2014 was EUR 4.44m (December 31, 2013: EUR 7.14m).

- As of the end of the second quarter, 2014 SFC Energy had 247 permanent employees (June 30, 2013: 187).


Gross Profit by segment

in million EUR HY/2014 HY/2013 Q2/2014 Q2/2013
Oil & Gas 3.43 0.16 1.81 0.10
Security & Industry 3.54 3.67 1.66 1.60
Consumer 0.70 0.91 0.36 0.34
Total 7.67 4.74 3.83 2.04

Revenues by segment

Revenues in the Oil & Gas segment increased from EUR 0.30m in the first half of 2013 to EUR 14.04m in the same period in 2014. In the Security & Industry segment revenues were still impacted by the order cancellation, which we reported in Q1/14. The order backlog at the end of the second quarter, however, points towards a stronger second half year in this segment. The defense business segment (now part of Security & Industry) also showed first signs of recovery after a slow start to the year. Revenues in the Consumer segment (which is identical to the Consumer segment in the prior segmentation) of EUR 2.39m were lower than the EUR 2.86m in the first half of 2013. Here, revenue increases in Scandinavia could not compensate for economy related weakness in the French market.

in million EUR HY/2014 HY/2013 Q2/2014 Q2/2013
Oil & Gas 14.04 0.30 7.43 0.18
Security & Industry 9.73 10.42 4.66 4.87
Consumer 2.39 2.86 1.14 1.19
Total 26.16 13.58 13.23 6.24

Operational highlights for the first half of 2014

- The oil & gas business has been very strong and on a local currency basis is performing ahead of plan.

- SFC Energy has further expanded the portfolio of intelligent, sustainable oil & gas solutions with the new EFOY ProCabinet fuel cell system for extreme weather and temperature conditions. This new system has integrated remote control, support, notification, as well as data acquisition and logging features for EFOY Pro fuel cells. These features open up a broad spectrum of additional applications. The new products are expected to contribute significantly to revenues in the second half of 2014.

- In the Security & Industry segment SFC Energy reported a major order for integrated hybrid power systems with EFOY Pro fuel cells for public security applications in Singapore in the first quarter of 2014. In the second quarter of 2014, the Company realized a first project with Windkraft Service GmbH for new integrated EFOY ProCube power system for obstruction lights of wind turbines.

- In the first quarter, SFC Energy received a development order including low rate initial production (LRIP) by an international defense organization.


Dr. Peter Podesser, CEO of SFC Energy AG: "In addition to the planned growth in our core markets our continuous innovation policy as well as our well filled product pipeline will open up attractive growth potentials in new market segments. We are currently working on higher power products for the security and industry markets and on an extension of our consumer product portfolio towards new possibilities in outdoor applications and for emergency home back up. We see significant market potential in back up and emergency power. Our current positive business performance, the order backlog at the end of the second quarter, and the increasing amount of projects reinforce our unchanged positive outlook for the second half of 2014. In addition, normal seasonality should also contribute to a stronger second half of the year, whereupon traditionally the third quarter turns out relatively weaker and the fourth quarter is the strongest."

Key data
in million EUR
HY/2014 HY/2013 Q2/2014 Q2/2013
Sales revenues 26.16 13.58 13.23 6.24
Gross profit 7.67 4.74 3.83 2.04
Gross margin 29.3 % 34.9 % 28.9 % 32.7 %
EBITDA -1.07 -0.77 -0.56 -1.07
EBITDA underlying -0.50 -0.69 -0.26 -0.81
EBITDA margin underlying -1.9 % -5.1 % -2.0 % -12.9 %
EBIT -2.44 -1.73 -1.23 -1.54
EBIT underlying -1.30 -1.65 -0.65 -1.28
EBIT margin underlying -5.0 % -12.1 % -4.9 % -20.6 %
Consolidated net loss -2.68 -1.76 -1.36 -1.55
Order backlog 13.74 5.64    


- In estimating Simark's revenue and earnings, Management has assumed an exchange rate of 1.40 between the Canadian dollar and the Euro.

- Underlying EBITDA and EBIT include adjustments for one off items in relation to a previous acquisition.

Detailed financials

The detailed SFC Energy AG Half Year 2014 Report is available at http://www.sfc.com/en/investors/financial-reports

SFC Investor Relations

SFC Energy AG
Eugen-Sänger-Ring 7
D-85649 Brunnthal
Tel. +49 89 673 592-378
Fax. +49 89 673 592-169
Email: [email protected]
Web: www.sfc.com

CROSS ALLIANCE communication GmbH
Susan Hoffmeister
Tel. +49 89 89827227
Email: [email protected]

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