SFC Energy AG publishes financial figures for the first quarter of 2016 - Significantly improved results despite decline in Oil & Gas revenues

DGAP-News: SFC Energy AG / Key word(s): Quarterly / Interim Statement

2016-05-12 / 07:30
The issuer is solely responsible for the content of this announcement.


SFC Energy AG - Corporate News - ISIN DE0007568578

SFC Energy AG publishes financial figures for the first quarter of 2016 - Significantly improved results despite decline in Oil & Gas revenues

- Consolidated revenue EUR 10.30 million (Q1/2015: EUR 12.61 million)

- EBITDA improves to EUR -0.45 million (Q1/2015: EUR -0.90 million)

- Growth in the Consumer and Security & Industry segments

- Positive signals from the defense market

- 2016 Forecast: Management Board confirms projected sales of EUR 50 to 52 million and further significant improvement of profitability compared to the prior year

Brunnthal/Munich, May 12, 2016 - SFC Energy AG (ISIN: DE0007568578), a leading international supplier of stationary and mobile hybrid power generation plants based on fuel cells, published its financial figures for the first quarter of 2016 today.

Sales development

In the reporting period January through March 2016, the SFC Energy Group generated sales of EUR 10.30 million, compared to EUR 12.61 million during the prior year period. This figure reflects an 18.3% decline in sales revenue essentially as a result of the sharp decline in the Oil & Gas segment, which represents the largest share of Group revenue. Compared to the same quarter of the prior year, sales in the Oil & Gas segment were down by 44,1% (Q1/2016: EUR 4.02 million / Q1/2015: EUR 7.19 million), due to the further sharp decline in the price of crude oil in December 2015 and January 2016 and the relatively large order book at the beginning of the first quarter of 2015. The Security & Industry segment and the Consumer segment showed an increase in sales compared to the prior year period.

In the first quarter of 2016, sales in the Security & Industry segment increased from EUR 4.24 million to EUR 4.98 million. The 17.5% increase in sales resulted in particular from strong growth in the Defense sector where, among other things, 42 Jenny 1200 portable fuel cells were supplied to an international defense force. This is a further example of the sustained recovery in the defense business.

Just in time for the 10th anniversary of the EFOY fuel cell, sales in the Consumer segment also returned to growth, with sales of EUR 1.30 million in the first quarter of 2016, for a 10.2% increase over the prior year (Q1/2015: EUR 1.18 million). Positive trends were recorded in particular in the German and Swedish markets in the early part of the current financial year.

EBITDA/EPS

Despite the decline in sales in the Oil & Gas segment, the profitability of the SFC Energy Group is significantly above the prior year level after three months. Due to the modified product mix, the gross margin increased from 28.9% in the first quarter of 2015 to 31.3% in the current financial year. In addition, in January and March 2016, SFC implemented further cost saving measures in the Oil & Gas segment.

EBITDA improved in the first quarter to EUR -0.45 million, compared to EUR -0.90 million in the prior year period. EBIDTA adjusted for one-time events was EUR -0.54 million (Prior year: EUR -0.58 million).

In addition, the efficiency-improving measures were affecting the EBIT positively. In the first three months of the current financial year EBIT improved to EUR -1.00 million, compared to EUR -1.51 million in the first quarter of 2015. EBIT in the reporting period adjusted for one-time effects was EUR -0.84 million (Q1/2015: EUR -0.91 million).

Earnings after taxes improved in the first quarter of 2016 to EUR -1.02 million compared to EUR -1.57 million in the previous quarter. Accordingly, earnings per share under IFRS (undiluted) amounted to EUR -0.12 in the first quarter of 2016, while diluted earnings per share amounted to EUR -0.11 in the same period. In the prior year period, earnings per share (undiluted and diluted) amounted to EUR -0.18.

Balance sheet

Available cash and cash equivalents totalled EUR 1.76 million as of March 31, 2016 (December 31, 2015: EUR 3.28 million). The primary reasons for the EUR 1.52 million decrease are the consolidated loss for the period and the final deferred payment for the acquisition of Simark. As of the end of the first quarter of 2016, the equity ratio was down slightly to 43.8% (December 31, 2015: 46.1%).

Oulook for 2016

For the current financial year, the Management Board of SFC Energy AG remains optimistic despite the sluggish sales in the first quarter in the Oil & Gas segment, and confirms its revenue forecast of EUR 50 to 52 million. In terms of the operating result, the Management Board is basing its expectations for a significant increase in profitability over 2015 on expected sales in the Industry and Defense sectors, as well as the cost reductions implemented in Canada.

Dr. Peter Podesser, CEO of SFC Energy AG, commented, "In spite of the relative stability of oil prices in recent weeks, we currently assume that our customers in the Oil & Gas market will continue to spend cautiously in the second and third quarter. The cost reductions implemented reflect this expectation. However, experts expect an upturn after the summer break. PBF's business continues to grow very encouragingly and we expect a significant increase in earnings in the Power Electronics sector for the full year. We are also counting on strong growth in the Defense sector, the majority of which will be realized in the second half of the year. The resulting profitability will have a positive effect on the Group."

This outlook does not include any provisions for a possible impact of the wildfires around oil producing areas in Alberta, Canada.

Key figures Q1/2016

In millions of EUR Jan. 1 - Mar. 31, 2016 Jan. 1 - Mar. 31, 2015
Sales 10.30 12.61
Gross profit 3.22 3.64
Gross margin 31.3 % 28.9 %
EBITDA -0.45 -0.90
EBITDA margin -4.4 % -7.1%
EBITDA underlying -0.54 -0.58
EBITDA margin underlying -5.3 % -4.6%
EBIT -1.00 -1.51
EBIT margin -9.7 % -12.0 %
EBIT underlying -0.84 -0.91
EBIT margin underlying -8.1 % -7.2 %
Net results -1.02 -1.57
Order backlog 10.17 9.93

Detailed financial information

SFC Energy AG's full quarterly report can be downloaded from: http://www.sfc.com/de/investoren/finanzberichte#header.

SFC Energy AG will hold a telephone conference in English at 11 AM today, May 12, 2016, for interested investors and journalists. To register, please send an e-mail 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]



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