SFC Energy AG Reports Third Quarter 2016 Financial and Operating Results - First Signs of Stabilization in the Oil & Gas Segment

DGAP-News: SFC Energy AG / Key word(s): 9-month figures

2016-11-08 / 07:30
The issuer is solely responsible for the content of this announcement.


SFC Energy AG - Corporate News - ISIN DE0007568578

SFC Energy AG Reports Third Quarter 2016 Financial and Operating Results - First Signs of Stabilization in the Oil & Gas Segment

- Consolidated revenues after 9 months 2016 at EUR 31.36 million (prior year period EUR 36.33 million)

- Segment Security & Industry grows by 9.6 %

- Outlook 2016: Management Board confirms revised revenue guidance of EUR 40 to 42 million with profitability at prior year's level

Brunnthal/Munich, Germany, November 08, 2016 - 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 financial results for the third quarter of 2016.

Management Commentary

Dr. Peter Podesser, CEO of SFC Energy AG: "In the third quarter, we were faced with an unexpected setback in the Defense sector. An expected contract award to SFC Energy for 2016 will not be placed in the current financial year. However, the Defense sector remains an important business area for SFC on the basis of its proven high market potential. The growing importance of the Security & Industry segment is also reflected by roughly 10 % increase in sales in the first nine months of 2016. First positive signals are also coming from the Oil & Gas segment, also due to a relative recovery in the oil price. The very conservative spending behaviour of SFC's customers observed at the beginning of the year has continued to ease over the course of the year. Thus, the third quarter was the strongest quarter in the current financial year in the Oil & Gas segment despite the usual seasonality."

Revenue Development

In the period January to September 2016 the SFC Energy Group generated sales of EUR 31.360k. This corresponds to a decline in sales of 13.7 % compared to the previous year's figure of EUR 36,332k. The reason for this was essentially a result of the sharp decline in the Oil & Gas segment.

Sales by Segment (unaudited)

Segment in kEUR Q1-Q3/2016 Q1-Q3/2015
Oil & Gas 13,970 20,072
Security & Industry 14,536 13,261
Consumer 2,854 2,999
Total 31,360 36,332

Segment Performance

Oil & Gas

In the course of nine months, the Oil & Gas segment recorded a decrease in sales of 30.4 % to EUR 13,970k (prior year period: EUR 20,072k). The third quarter showed a better picture with quarter-on-quarter growth of 6.9 % to EUR 5,131k (previous quarter: EUR 4,799k). At the same time, cost control is still given a great importance in order to increase profitability in this segment.

Security & Industry

In the first nine months of 2016, sales in the Security & Industry segment increased by 9.6 % to EUR 14.536k (Prior year period: EUR 13.261k). While the positive trend of the first half year continued in the commercial fuel cell business (plus 20.0 %) as well as in the power electronics business (PBF) (plus 13.1 %), the Defense sector was not able to continue its good start into the 2016 financial year.

Consumer

Sales in the Consumer segment grew by 13.1 % to EUR 765k in the third quarter of 2016 compared to the prior year quarter (EUR 677k). With this, sales in the Consumer segment of EUR 2,854k were on a year-on-year comparison almost at the previous year's level (EUR 2,999k). Major trade fairs in the Caravan Market confirm the positive economic momentum, so that sales for the full year 2016 are expected at the prior year's level.

EBITDA/EPS

The profitability of the SFC Energy Group improved in the first nine months 2016 compared to the previous year despite the significant drop in sales in the Oil & Gas segment. Due to the changed product mix, the gross margin increased to 28.7 % in the reporting period (Prior year period: 27.9 %).

EBITDA improved in the first nine months 2016 to minus EUR 2,696k, compared to minus EUR 3,595k in the prior year period. EBITDA adjusted for non-recurring effects was minus EUR 2,847k (Prior year period: minus EUR 2,384k).

In the first three quarters of the current financial year EBIT improved to minus EUR 4,400k, compared to minus EUR 5,445k in the same period of the previous year. EBIT adjusted for non-recurring effects was minus EUR 3,795k in the reporting period (Prior year period: minus EUR 3,410k).

Earnings after taxes improved in the first nine months of 2016 to minus EUR 4,590k compared to minus EUR 5,514k in the same period of the previous year. Earnings per share under IFRS undiluted amounted to minus EUR 0.53 in the reporting period 2016 while diluted earnings per share amounted to minus EUR 0.48. In comparison, in the prior year period, earnings per share (undiluted and diluted) amounted to minus EUR 0.64.

Balance Sheet

Available cash and cash equivalents totalled EUR 774k as of September 30, 2016 (December 31, 2015: EUR 3,277k). The primary reasons for the EUR 2,503k decrease were the consolidated loss for the period and the final deferred payment for the acquisition of Simark. As of the end of the third quarter of 2016, the equity ratio was down to 42.0 % (December 31, 2015: 46.1 %). In order to secure liquidity SFC Energy AG raised a loan and issued an option bond on October 19, 2016. The Company received gross proceeds from the capital measures of EUR 2.0 million.

Outlook

For the current financial year, the Management Board of SFC Energy AG confirms its reduced revenue forecast of EUR 40 million to EUR 42 million. In terms of the operating result the Management Board expects a profitability at the level of the prior year.

Key figures Q1-Q3 2016

In k EUR 1/1 - 30/09/2016 1/1 -30/09/2015
Sales 31,360 36,332
Gross profit 8,994 10,126
Gross margin 28.7 % 27.9 %
EBITDA -2,696 -3,595
EBITDA margin -8.6 % -9.9 %
EBITDA underlying -2,847 -2,384
EBITDA margin underlying -9.1 % -6.6 %
EBIT -4,400 -5,445
EBIT margin -14.0 % -15.0 %
EBIT underlying -3,795 -3,410
EBIT margin underlying -12.1 % -9.4 %
Consolidated net result -4,590 -5,514
Order backlog 13,329 10,315

Detailed financial information

The complete Q3 2016 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, November 08, 2016, at 9:00 AM 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]



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