Hexagon Composites ASA: Results for the second quarter and first half year 2019

In the second quarter of 2019 Hexagon Group generated NOK 882.1 (366.8) million in revenues and recorded an operating profit before depreciation (EBITDA) of NOK 62.0 (73.6) million. This was driven by continued positive developments in Hexagon Purus’ CNG Light-Duty Vehicles and Agility Fuel Solutions, which is consolidated entirely after the acquisition on 4 January.

The EBITDA for the second quarter of 2018 included a positive impact of NOK 40.0 million from a reduction of an earn-out obligation related to the xperion acquisition in 2016. In the second quarter of 2019 depreciation and amortization increased to NOK 59.0 (19.3) million. This was primarily due to the Agility acquisition.

Operating profit (EBIT) was NOK 2.9 (54.3) million and profit/loss before tax came to NOK -31.3 (69.0) million. It was influenced by negative foreign exchange fluctuation effects of NOK -12.4 (18.1) million and interest payments related to the unsecured bond issued for the financing of the Agility transaction.

The first half of 2019 provided revenues of NOK 1,703.9 (783.0) million and an operating profit before depreciation (EBITDA) of NOK 212.3 (140.1) million. The operating profit (EBIT) was NOK 95.2 (101.6) million and profit before tax came to NOK 34.8 (100.3) million.

KEY DEVELOPMENTS

• Agility launched high-performance battery packs and electric drivetrains, which will be delivered to multiple truck OEM electric vehicle programs
• Awarded order for TITAN® transport modules from Certarus with total value of USD 5.2 million (approx. NOK 45 million)
• Hexagon Purus is expanding capacity in Kassel, Germany with a total investment of around EUR 6.0 million (approx. NOK 58 million). Commissioning scheduled in second half of 2019
• Hexagon joined H2Bus Consortium to provide complete hydrogen storage and delivery solutions to drive zero-emission public transportation in Europe  

OTHER IMPORTANT EVENTS IN THE FIRST HALF OF 2019 

• Closed the Agility Fuel Solutions transaction on 4 January 2019
• Agility extended exclusive long-term agreement with New Flyer Industries with total value of USD 75 million (approx. NOK 640 million) 
• Awarded USD 8.1 million (approx. NOK 70 million) TITAN® order from Certarus
• Completed a private placement raising NOK 493 million of new share capital
• Placed a new senior unsecured bond of NOK 1.1 billion to complete the long-term financing of the Agility transaction at attractive terms
• Awarded contract from Audi to supply hydrogen tanks for development and small FCEV serial production

KEY DEVELOPMENTS AFTER BALANCE SHEET DATE

• Received order for TITAN® 53 transport modules, with value of USD 4 million (approx. NOK 34 million) for efficient delivery of Renewable Natural Gas (RNG)
• Awarded USD 7.3 million (approx. NOK 62 million) TITAN® order from Certarus
• Hexagon was informed of an indefinite delay of a fuel cell vehicle program for reasons unrelated to Hexagon

For more information

Jon Erik Engeset, CEO, Hexagon Composites ASA
Telephone: +47 916 30 550 | jon.erik.engeset@hexagongroup.com

David Bandele, CFO, Hexagon Composites ASA
Telephone: +47 920 91 483 | david.bandele@hexagongroup.com

Hiva Ghiri, VP Investor Relations, Hexagon Composites ASA
Telephone: +47 958 66 790 | hiva.ghiri@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.

For more information, please visit www.hexagongroup.com

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