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Hexagon Composites ASA: Results for the second quarter and first half year 2017

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In the second quarter 2017 Hexagon Composites (OSE:HEX) generated NOK 372.0 (315.6) million in operating income and made an operating profit before depreciation (EBITDA) of NOK 47.8 (37.0) million. Operating profit (EBIT) was NOK 29.1 (19.7) million and profit/loss before tax came to NOK 18.0 (18.4) million.

The financial statements include the Group's fifty-percent share of Agility Fuel Solutions ("Agility") results accounted for under the equity method. In addition, the fully consolidated financial results of the acquired xperion Energy & Environment ("xperion") and related group subsidiaries are included. There are no restatements to previously reported figures as a result of these transactions which occurred, and were first reported, in the fourth quarter 2016.

Overall, Group operating profit has markedly improved versus the second quarter 2016, and the previous quarter. Operating results in the second quarter were impacted positively by an 18% growth in revenues versus the same period last year. The Low-Pressure segment continued profitable growth. However, sales volumes were not strong enough within Mobile Pipeline® and Light-Duty Vehicles to generate overall profit within the High-Pressure segment.

The first half year of 2017 provided an operating income of NOK 718.2 (607.2) million and had an operating profit before depreciation (EBITDA) of NOK 82.9 (55.6) million. The operating profit (EBIT) was NOK 45.8 (22.9) million and profit before tax was NOK 24.2 (15.8) million. The results are not comparable due to the impacts of the M&A transactions occurring in the fourth quarter 2016, as earlier referenced. Therefore, the underlying improvements are stronger than as is visible in the reported numbers.

Key developments

  • Consecutive quarter of record high sales and record EBITDA for a single quarter in the Low-Pressure segment
  • Agility expands new Powertrain Systems business unit through acquisition, accelerating product sales
  • Sales volumes within Light-Duty Vehicles were negatively impacted by a delayed customer acceptance; acceptance was achieved towards the end of the quarter
  • Significant sales orders received for composite CNG cylinder vehicle conversions in Indonesia.

Key developments after balance sheet date

  • Received a major development award for hydrogen cylinders for new fuel cell electric vehicle (FCEV) models 
  • Hexagon Ragasco LPG received a major order from Iraq with a total value of approximately NOK 120 million
  • Expanded into the fuel cell heavy-duty truck market with deliveries to Toyota and ASKO.

For more information:
Jon Erik Engeset, CEO, Hexagon Composites ASA
Telephone: +47 916 30 550 | jon.erik.engeset@hexagon.no

David Bandele, CFO, Hexagon Composites ASA
Telephone: +47 920 91 483 | david.bandele@hexagon.no

Solveig D Saether, Communication Manager, Hexagon Composites ASA
Telephone: +47 906 34 977 | solveig.saether@hexagon.no

About Hexagon Composites
Hexagon Composites ASA is a publicly listed company with its headquarters in Aalesund, Norway. The Group develops and produces composite pressure cylinders and systems for storage and transportation of various gases. | www.hexagon no

Follow us on Twitter: @HexagonASA

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.

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