SFC Energy AG publishes audited consolidated figures 2016 and forecast for 2017

DGAP-News: SFC Energy AG / Key word(s): Final Results

06.04.2017 / 07:30
The issuer is solely responsible for the content of this announcement.


SFC Energy AG - Corporate News

SFC Energy AG publishes audited consolidated figures 2016 and forecast for 2017

- Final consolidated figures confirm preliminary figures of February 16, 2017

- Order book grew by more than 40 % (2016: EUR 16.85 million, 2015: EUR 11.76 million)

- Guidance 2017: increase in sales to EUR 50-55 million and significant improvement in profitability expected

Brunnthal/Munich, Germany, April 6, 2017 - SFC Energy, a leading provider of hybrid power solutions to the stationary and mobile power generation markets, today published its annual report and final consolidated figures for the financial year 2016 as well as a guidance for 2017.

Sales

In the reporting year, the Group generated sales of EUR 44.04 million compared with EUR 47.31 million in the previous year. Major reason for the decline was the weakness in the Oil & Gas market.

Sales by segment

Segment in EUR million 2016 2015
Oil & Gas 19.30 25.98
Security & Industry 21.09 17.57
Consumer 3.65 3.76
Total 44.04 47.31
 

Segment Performance

Although, the 2016 financial year was overall dissatisfactory, SFC Energy has reached key milestones in its operations. Especially tight cost control and a better product mix lead to a significantly improved profitability within the Group.

Oil & Gas

Sales in the Oil & Gas segment declined due to the challenging market environment from EUR 25.98 million last year to EUR 19.30 million in 2016. The conservative spending behaviour of SFC's customers observed in most of 2016 has continued to ease over the course of the last quarter of the 2016. Since the beginning of 2017 the demand in the Oil & Gas segment is visibly picking up again and customers are investing in both replacements and expansion capex.

Security & Industry

The Security & Industry segment, which now represents the biggest segment of SFC Energy Group, recorded a positive development in 2016. Sales increased by 20.1% from EUR 17.57 million in the previous year to EUR 21.09 million in 2016. In addition to a strong growth of PBF of 15.2%, the industrial sector for fuel cells grew by 27.4% in 2016 on a broad basis. The growth was driven by global demand for reliable energy supply for surveillance applications. The defense business grew even stronger by 29.3% in the year under review.

The solid order backlog of EUR 13.52 million in the Security & Industry segment as well as the positive outlook supported by PBF and the fuel cell business in the areas of Industry and Defense equip SFC Energy for a strong year 2017. Continuous investment and improvements in efficiency, robustness, durability and weight-reduction of SFC Energy products are now beginning to bear fruit. "This fact, the expansion of our team by the new board member Marcus Binder as well as the plans of leading defense organizations make us very confident about a positive development in the field of Defense", says Dr. Peter Podesser, CEO of SFC Energy AG.

Consumer

In the reporting period, sales in the Consumer segment was with EUR 3.65 million just slightly below the previous year's level of EUR 3.76 million, whereby sales growth of 14% in Germany could not offset the downward trend in consumer markets in France and Norway.

Gross Profit

Gross profit increased slightly in the 2016 financial year to EUR 13.25 million or 30.1% (previous year: EUR 13.23 million or 28.0%).

Gross profits by segments

Segment in EUR million 2016 2015
Oil & Gas 4.41 5.80
Security & Industry 7.78 6.46
Consumer 1.06 0.97
Total 13.25 13.23
 

EBITDA improved compared to the previous year from minus EUR 4.65 million to minus EUR 2.51 million in the period under review. Adjusted for one-off effects, underlying EBITDA improved as well to minus EUR 2.66 million (previous year: minus EUR 2.98 million). The Group's EBIT improved in financial year 2016 significantly to minus EUR 4.90 million (previous year: minus EUR 10.65 million). In consideration of one-off effects, underlying EBIT amounted to minus EUR 4.11 million in the reporting year (previous year: minus EUR 4.39 million). Consolidated net income improved in financial year 2016 to minus EUR 4.99 million compared to minus EUR 10.67 million in the previous year. Earnings per share under IFRS (basic and diluted) amounted to minus EUR 0.58 (previous year: minus EUR 1.24).

Balance Sheet

Available cash and cash equivalents amounted to EUR 1.76 million as of December 31, 2016 (December 31, 2015: EUR 3.28 million). The main reason for the outflow in cash was the negative cash flow from operating activities. The equity ratio decreased from 46.1% to 39.5% in the financial year 2016 because of the loss for the period and the financing measures implemented. As of December 31, 2016 SFC Energy had 228 permanent employees (December 31, 2015: 235).

Outlook for 2017

SFC Energy started in the financial year 2017 with an order backlog of EUR 16.85 million; this represents an increase of more than 40% over the previous year's figure of EUR 11.76 million.

"Based on the strong order book by the end of 2016, a successful start into 2017, our expanded product portfolio as well as cost structures adapted to the economic conditions, we are confident of a positive business trend for the full year", commented CEO Dr. Peter Podesser.

As a result of the sustained recovery of the oil and gas price since its low last year, the Management Board expects a positive development for the Oil & Gas segment, in the current financial year.

For its Defense business, SFC Energy is expecting an expansion of its international business and a significant increase in sales for the current financial year. In particular, the Managing Board expects that shifted projects will now be commissioned in 2017. In addition to the organic growth, the key growth in the field of Defense and Industry should also be achieved through strategic partnerships as well as the further concentration on complete solutions.

SFC Energy expects that total sales in the Consumer market will at least be at the previous year's level.

Based on the current forecast, the Management Board expects consolidated sales ranging from EUR 50 million to EUR 55 million in financial year 2017, as well as significantly improved earnings on the basis of the underlying EBITDA and the underlying EBIT.

"On the one hand, our confidence is based on the increasing investment of our customers in the field of Defense & Security, which results in an increasing need for safety. On the other hand, there is a further recovery in the oil & gas business due to the relative stability of the oil price. We also expect a significant increase in our customers' investments", says Dr. Peter Podesser.


Key figures 2016

In EUR million 1/1/ - 31/12/2016 1/1/ - 31/12/2015
Sales 44.04 47.31
Gross profit 13.25 13.23
Gross margin 30.1% 28.0%
EBITDA -2.51 -4.65
EBITDA margin -5.7% -9.8%
EBITDA underlying -2.66 -2.98
EBITDA margin underlying -6.0% -6.3%
EBIT -4.90 -10.65
EBIT margin -11.1% -22.5%
EBIT underlying -4.11 -4.39
EBIT margin underlying -9.3% -9.3%
Net result -4.99 -10.67
Order backlog 16.85 11.76
 

Detailed financial information

The 2016 annual report of SFC Energy AG can be downloaded from the Company's website http://www.sfc.com/en/investors/financial-reports#header.

SFC Energy AG will hold a telephone conference in English for interested investors and journalists today, April 06, 2017, at 9.00 a.m. To register please send an e-mail to [email protected]


About SFC Energy Group
SFC Energy AG (www.sfc.com) is a leading provider of hybrid solutions to the stationary and portable power generation markets. SFC is the number one supplier of fuel cells, with over 36,000 fuel cells sold to date. The Company has award-winning products and serves a range of applications in the Oil & Gas, Security & Industry and Consumer markets. The Company is headquartered in Brunnthal/Munich, Germany, operates production facilities in the Netherlands, Romania, and Canada, and sales offices in the U.S and Canada. SFC Energy AG is listed on the Deutsche Boerse Prime Standard (WKN: 756857 ISIN: DE0007568578).

 

SFC Investor Relations

SFC Energy AG
Eugen-Sänger-Ring 7
D-85649 Brunnthal
Tel. +49 89 673 592-377
Fax. +49 89 673 592-169
Email: [email protected]
Web: www.sfc.com

CROSS ALLIANCE communication GmbH
Susan Hoffmeister
Tel. +49 89 898 27 227
Email: [email protected]



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