In the first quarter 2016 Hexagon Composites generated NOK 291.6 (401.6) million in operating income and made an operating profit before depreciation (EBITDA) of NOK 18.6 (52.9) million. Operating profit (EBIT) was NOK 3.2 (39.5) million and profit/loss before tax came to NOK -2.6 (53.3) million.
Operating results in the first quarter were impacted positively by a 17% growth in revenues within the Low-Pressure Cylinders segment versus the same period last year. However, weak sales volumes for Mobile Pipeline solutions has hampered overall profitability for the group, within the High-Pressure Cylinders segment. The cost initiatives executed in 2015 are being realized in 2016.
Key developments:
- Profitability impacted by weak Mobile Pipeline sales.
- Solid growth in Low-Pressure Cylinders.
- The group received NOK 667 million from a private placement of new shares and entered a strategic cooperation agreement with Mitsui & Co., Ltd.
- Awarded extension of long-term agreement with New Flyer Industries for the North American transit bus market.
- Acquisition of 67% of a Brazilian entity to pursue fuel systems opportunities for transit buses and heavy-duty trucks in South America and Africa.
- Awarded a significant Mobile Pipeline order for distribution of biomethane in the UK.
- Commenced a business viability study of a proposed joint venture with Mitsui & Co. and Toray Industries, to manufacture and sell high-pressure cylinders for hydrogen vehicles in Japan.
