Hexagon Composites Reports Positive First Quarter 2017

Hexagon Composites reports a positive first quarter, impacted by a 42% growth in revenues within the Low-Pressure cylinder segment.

In the first quarter 2017, Hexagon Composites generated NOK 346.2 (291.6) million in operating income and made an operating profit before depreciation (EBITDA) of NOK 35.1 (18.6) million. Operating profit (EBIT) was NOK 16.6 (3.2) million and profit/loss before tax came to NOK 6.3 (-2.6) million.

The financial statements for the first quarter 2017 include the group's 50% share of Agility Fuel Solutions 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 the transactions which occurred and were first reported in the fourth quarter 2016.

Overall, the quarter's group results show a marked improvement in profitability both versus the first quarter 2016 and the previous quarter. Operating results in the first quarter were impacted positively by a 42% growth in revenues within the Low-Pressure segment versus the same period last year. Sales volumes of Mobile Pipeline were solid for a second consecutive quarter, however generated profit from this business unit was not enough to achieve profitability overall within the High-Pressure segment.

Key developments

  • Record high sales in the Low-Pressure segment 
  • Strong Mobile Pipeline sales driven by large order deliveries to oil and gas customer
  • Received an order for gas container modules from EGAS in Pakistan with a total estimated value of EUR 2.6 million (around NOK 21 million)
  • Awarded a substantial order for cylinders from Air Products for hydrogen transportation in Germany
  • Finalized the joint venture agreement with Nel ASA and PowerCell Sweden AB for integrated hydrogen projects initially focused on the maritime and marine segments.

After balance sheet date

  • Entered into long-term agreement with Certarus and received a TITAN order worth USD 20.6 million (around NOK 177 million).