SFC Energy AG publishes nine-month figures - still on the growth track
DGAP-News: SFC Energy AG / Key word(s): 9-month figures
SFC Energy AG - Corporate News
- Underlying EBITDA improves significantly to EUR 2,015k (prior year: minus EUR 28k)
- Gross margin climbs to 33.1% in the nine-month period from 30.3% in the previous year
- Record order intake in the Oil & Gas segment
- Order backlog increases by 29.2% to EUR 17,285k (prior year: EUR 13,380k)
- Outlook for 2018 confirmed; strong fourth quarter expected: consolidated sales of between EUR 60 million and EUR 64 million and significantly improved underlying EBITDA and underlying EBIT
Dr. Peter Podesser, CEO of SFC Energy AG: "SFC Energy AG's business performance in the first nine months of 2018 was extremely satisfactory. Back at the start of the year we reported record results in terms of sales and earnings based on the first quarter. In particular, reaching the profitability threshold was an absolute highlight in the Company's history. Furthermore, we are the only listed fuel cell company in the world to operate profitably. The Company's sustained growth dynamic strengthened despite slightly slower sales momentum in the third quarter due to seasonal factors and postponement of the delivery of a major order in the Defense & Security segment until the fourth quarter.
The SFC Energy Group generated sales amounting to EUR 44,269k in the period from January to September 2018 compared with EUR 39,366k in the previous year. This corresponds to a 12.5% rise in sales that was largely attributable to increased growth momentum in the Defense & Security, Oil & Gas and Industry segments.
Performance by segment
Oil & Gas
The Oil & Gas segment benefited from the continued stability of the oil price in the first nine months of the current financial year. Very good use was made of the momentum in maintenance investments as well as in new project business thanks to the improved market coverage developed over the last 18 months. Sales in the segment increased from EUR 18,244k in the same period of the previous year to EUR 18,625k as of September 30, 2018. Adjusted for currency effects, growth of 7.7% was achieved on a CAD basis. The record new orders in the past quarter related to major orders in all product areas and further increased growth momentum in fuel cells.
The Industry segment demonstrated stable growth in the reporting period from January to September 2018. Sales rose by 6.6% year-on-year, from EUR 11,460k to EUR 12,220k. This rise is based on the positive performance of the PBF subsidiary in terms of growth from existing customers and further business from new customers. This was supported by implementation of the new product platform. For example, PBF has received prototype first series contracts from two international laser tool manufacturers in the initial amount of around EUR 1,900k. These will mostly be delivered in 2019. Following successful qualification of the prototypes, this is expected to lead to series sales from 2020 onward.
The Defense & Security segment made the largest contribution to growth in the period from January to September 2018. Sales climbed from EUR 2,033k in the previous year to EUR 6,485k. This marked growth is attributable to the defense order from the German armed forces for portable power supply solutions amounting to EUR 3.6 million as well as a follow-up order from an Asian defense customer for hardened fuel cells from the EMILY 3000 and JENNY product ranges. In addition, a defense customer who already uses EMILY fuel cells in vehicles commissioned SFC Energy to deliver SFC Power Manager devices. SFC Energy also anticipates strong demand in the future owing to the growing trend toward weight reduction in equipment for soldiers and vehicles. It is possible to achieve a weight reduction of up to 75% through the use of fuel cells, particularly in the case of portable communications equipment.
At EUR 6,939k, sales in the Clean Energy & Mobility segment were down in the first nine months of the current financial year compared to the same period of the previous year (EUR 7,629k). It should be noted here that a major order for the delivery of surveillance systems to Singapore was recognized in sales in the previous year. SFC benefits from higher market penetration of fuel cell technology in its European core markets with a growth of 15.9%.
Gross profit rose significantly by 23.0% to EUR 14,664k in the first nine months of 2018 (prior year: EUR 11,920k). The gross margin increased from 30.3% to 33.1%. The higher gross margin is a key element in improving the earnings figures.
Group EBITDA improved year-on-year from minus EUR 275k to plus EUR 937k. EBITDA adjusted for non-recurring effects rose sharply to EUR 2,015k (prior year: minus EUR 28k). Group EBIT improved to EUR 103k (prior year: minus EUR 1,725k). Corrected for non-recurring effects, underlying EBIT was positive in the first nine months of the 2018 financial year at EUR 1,181k (prior year: minus EUR 1,005k). Consolidated net income improved in the period under review to minus EUR 792 from minus EUR 2,431k in the previous year. Earnings per share in accordance with IFRS (undiluted and diluted) improved accordingly to minus EUR 0.08 (prior year: minus EUR 0.27).
Available cash and cash equivalents climbed to EUR 5,191k as of September 30, 2018 (December 31, 2017: EUR 4,408k). This rise resulted from the net cash inflow from financial activity. The equity ratio increased from 40.2% at December 31, 2017 to 44.2% at the end of the third quarter of 2018. As of September 30, 2018, SFC Energy had 266 permanent employees (December 31, 2017: 258).
Based on an order book of EUR 17,285k as of September 30, 2018 and the positive assessment for the fourth quarter, the Management Board of SFC Energy AG is expecting to be able to achieve the previously announced sales target of between EUR 60 million and EUR 64 million for the current 2018 financial year with a further significant improvement in underlying EBITDA and EBIT.
Detailed financial information
The interim report of SFC Energy AG on the third quarter of 2018 is available to download at www.sfc.com/en/investors/finance.
13.11.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.