Hexagon Composites ASA: Fourth quarter 2023

15 February 2024: Hexagon Composites (OSE: HEX.OL), world leader in composite cylinder technology and related systems that enable safe delivery of clean gaseous energy for mobility, distribution, industries and homes, reported revenues of NOK ~5.2 billion for the year (4.3) and EBITDA of NOK 480 million (348). In the fourth quarter 2023, the Company delivered NOK 1 437 (1 276) million and an EBITDA of NOK 126 (105) million.

In the fourth quarter 2023, Hexagon recorded a one-off, non-cash impairment charge of its equity investment in Hexagon Purus of NOK 702 million. The accounting-driven impairment charge was a result of Hexagon Purus’ negative share price development in the second half of 2023. For the full year 2023, the profit after tax reached NOK 1 136 million, primarily due to improved operational performance and a NOK 2 351 million gain from the deconsolidation of Hexagon Purus in June 2023.

“Our teams delivered a strong finish to the year, and we passed the NOK 5 billion annual revenue mark. Hexagon Agility’s Mobile Pipeline distribution business was a key profit driver, combined with the successful recovery from the post covid cost inflation impacts,” says Jon Erik Engeset, Group CEO of Hexagon Composites.

For 2023, full year revenues were NOK 5 186 (4 303) million, mainly driven by record high activity in the Mobile Pipeline distribution business. The full year EBITDA totaled NOK 480 (348) million after NOK 27 million of one-off charges related to restructuring and strategic projects.

Outlook

Going forward, Hexagon has much to look forward to, including the continuation of strong Renewable Natural Gas driven growth in the Mobile Pipeline business, and the upcoming launch of Cummins’ new 15-liter natural gas engine, increasing the addressable market for natural gas fuel systems in North America by a factor of three. With digital innovation at the forefront, Hexagon expects to see renewed growth for the LPG cylinder business, and further strong growth for the high-pressure cylinder testing and requalification business.  

For further details, please see the attached fourth quarter 2023 report and presentation.

Presentation of the results today at 08:30 am CET
Jon Erik Engeset (CEO) and David Bandele (CFO) will present the results at 08:30 am today in Oslo. The presentation will be held in the Auditorium at Hexagon's location in Oslo, Haakon VIIs gate 2, on the lower level. If you would like to attend the presentation, please pre-register by emailing ir@hexagongroup.com, alternatively register upon arrival.

The presentation will also be broadcast live via: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20240215_9

For more information:
Ingrid Aarsnes, VP Investor Relations & ESG, Hexagon Composites ASA
Telephone: +47 950 38 364 | ingrid.aarsnes@hexagongroup.com

Karen Romer, SVP Communications, Hexagon Composites ASA
Telephone: +47 950 74 950 | karen.romer@hexagongroup.com

About Hexagon Composites ASA
Hexagon delivers safe and innovative solutions for a cleaner energy future. Our solutions enable storage, transportation, and conversion to clean energy in a wide range of mobility, industrial and consumer applications. Learn more at www.hexagongroup.com and follow @HexagonASA on Twitter and LinkedIn.