SFC Energy AG reports financial results for the first quarter of 2015 - Oil & Gas segment strong despite market environment - At last year's level


SFC Energy AG / Key word(s): Quarter Results

2015-05-05 / 07:30


SFC Energy AG - Corporate News - ISIN DE0007568578

SFC Energy AG reports financial results for the first quarter of 2015 - Oil & Gas segment strong despite market environment - At last year's level

- Consolidated revenues of EUR 12.61 million (prior year: EUR 12.94 million)

- Underlying EBITDA of EUR -0.58 million in the first three months (prior year: EUR -0.24 million)

- Positive signals from the defense sector

- Countercyclical growth expected through business partnership with Schneider Electric

- Outlook 2015: Management Board confirms revenue guidance of EUR 55 to 65 million and improved profitability over prior year

Brunnthal/Munich, 5 May 2015 - SFC Energy AG (ISIN: DE0007568578), a leading international supplier of stationary and mobile hybrid power supply solutions on the basis of fuel cells, today announced its financial results for its first quarter ended March 31, 2015.

Revenue and profit performance

Revenues

During the quarter ended March 31, 2015, SFC Energy AG generated revenues of EUR 12.61 million, as compared with EUR 12.94 million in the same period last year. The 2.5% decrease in revenues is primarily attributable to the postponement of several large orders in Europe. In its highest revenue segment, Oil & Gas, SFC Energy countercyclically generated higher revenues on EUR basis in the first quarter of 2015 compared to the prior year period despite significantly lower oil prices.

Sales by segment

Segment in million EUR Q1/2015 Q1/2014
Oil & Gas 7.19 6.62
Security & Industry 4.24 5.07
Consumer 1.18 1.25
Total 12.61 12.94
 

Segment performance

Oil & Gas

The Company's Oil & Gas segment continued to grow during the first quarter despite the significantly lower price of oil (Q1/2015: EUR 7.19 million / Q1/2014: EUR 6.62 million). While at the beginning of the year a number of commodities companies carefully scrutinized their spending or even postponed it. However, most have partially recovered from this "state of shock" over the course of the quarter, and established customer budgets are gradually being spent. In particular, the Company sees clearly defined opportunities to expand its market position countercyclically from customers "de-bottlenecking" their current operations.

In addition, with the new cooperation between its Canadian subsidiary Simark Controls and Schneider Electric, SFC Energy has taken an important step towards significant expansion of its customer base in North America and further organic growth in the Oil & Gas segment despite the challenging market environment. The Company expects the new business partnership to contribute in the mid-single digit million Canadian dollars of revenues in the current year, and management expects this contribution to increase significantly in the coming years.

Security & Industry

In the Security & Industry segment, the revenue contribution in the first quarter of 2015 amounted to EUR 4.24 million, as compared to EUR 5.07 million in the same period last year. A number of large orders were postponed in this segment during the reporting period. While funds were tight in the defense market last year, there have been increasing signs of a sustainable recovery in this sector since the beginning of 2015. This is attributable to the decision of German federal government, in the light of geopolitical changes, to increase the Bundeswehr's (German Defense) budget for the first time in years. As a result, there is a much greater willingness to invest, which SFC Energy expects will lead to increased demand. In addition, NATO members came to an agreement on a plan to increase their defense budgets significantly.
During the first quarter, the Company received a repeat order from Volkswagen Commercial Vehicles to equip the toll inspection vehicles of Federal Office for Goods Transport (BAG) with EFOY Pro fuel cells. This order is of strategic significance for the Company since it demonstrates the maturity and quality level of SFC Energy EFOY Pro fuel cells, which have reached the automotive industry standard. Moreover, executing a large order with flagship customers such as Volkswagen/BAG will generate new business opportunities with other potential fuel cell customers with large fleets of vehicles. Since the order was announced, the Company has already received additional inquiries from large fleet operators, who could benefit greatly from deployment of SFC energy solutions.

Consumer

The Consumer segment continues to present challenges due to the various markets that it includes. Revenues in the Consumer segment amounted to EUR 1.18 million in the first quarter of 2015 and were thus roughly at last year's level (Q1/2014: EUR 1.25 million). There has been positive growth in Scandinavia as well as Canada in the current fiscal year, however, sales in France and Southern Europe continue to decline because of the poor economy there. The Company believes the introduction of EFOY GO! during the third quarter of 2015 will bring new momentum to this segment.

EBITDA/EPS

The SFC Energy Group's profitability at the end of the first three months of 2015 is below the prior year period due to the postponement of several projects and large orders.

EBITDA in the first quarter was minus EUR 0.90 million, versus minus EUR 0.51 million in the same period last year. Adjusted for nonrecurring effects, EBITDA amounted to minus EUR 0.58 million (previous year: minus EUR 0.24 million).

EBIT fell in the first three months of the current fiscal year to minus EUR 1.51 million, from minus EUR 1.20 million in the first quarter of 2014. Adjusted for nonrecurring effects, EBIT stood at minus EUR 0.91 million (Q1/2014: minus EUR 0.65 million), while the adjusted EBIT margin amounted to minus 7.2% (Q1/2014: minus 5.0%).

The earnings per share under IFRS (undiluted and diluted) were minus EUR 0.18 in the first quarter of 2015, compared with minus EUR 0.17 in the prior year period.

Balance sheet

Cash on hand at March 31, 2015 amounted to EUR 4.81 million (December 31, 2014: EUR 6.12 million). The decrease by EUR 1.31 million is primarily related to the profitability of the period and deferred payments out of the Simark transaction. The equity ratio held steady at 58.4% at the end of the first quarter of 2015 (December 31, 2014: 58.4%). At March 31, 2015, SFC Energy employed 243 permanent staff (March 31, 2014: 256).

Outlook 2015

Despite the increasing challenges in the Oil & Gas segment, the management board of SFC Energy AG remains optimistic and confirms its revenue guidance in the amount of EUR 55 to EUR 65 million. Thanks to measures taken to increase sales in the Industry and Defense sectors, and the adjustment of cost structures in Canada, the management board reaffirms its expectation of an increased profitability in 2015.
Dr. Peter Podesser, the CEO of SFC Energy AG, commented: "The postponement of several large orders, which did not generate revenues or profits in the first quarter, disguise the operating progress that we have made in the past few months. We expect that the measures taken to increase sales in the Industry and Defense sectors and adjustments to cost structures of our Canada operations will give us a boost in the coming quarters. In addition, we believe the partnership with Schneider Electric, which commenced in April, will contribute significant revenues in the current fiscal year. The agreement was not in our initial budget for the year. We are confident that SFC Energy AG will continue on its growth course in the current year."

 

Key figures Q1/2015

In million EUR 1/1-3/31/2015 1/1-3/31/2014
Sales 12.61 12.94
Gross profit 3.64 3.85
Gross margin 28.9 % 29.7 %
EBITDA -0.90 -0.51
EBITDA underlying -0.58 -0.24
EBITDA-margin underlying -4.6 % -1.8 %
EBIT -1.51 -1.20
EBIT underlying -0.91 -0.65
EBIT margin underlying -7.2 % -5.0 %
Net result -1.57 -1.32
Order backlog 9.93 16.28
 

Detailed financial information

The complete three-month report of SFC Energy AG can be downloaded from the Company's website at http://www.sfc.com/en/investors/financial-reports#header.

SFC Energy AG will hold a telephone conference today, May 5, 2015, at 1:00 p.m., in English for interested investors and representatives of the press. To register please send an email to [email protected]

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]





2015-05-05 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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