Hexagon Composites ASA: Results for the fourth quarter 2016
(Thomson Reuters ONE) -
In the fourth quarter 2016 Hexagon Composites generated NOK 347.1 (371.4)
million in operating income and made an operating profit before depreciation
(EBITDA) of NOK 314.7 (40.9) million. Operating profit (EBIT) was NOK 288.7
(18.6) million and profit/loss before tax came to NOK 304.9 (14.7) million. The
results include a one-off gain of NOK 348 million, with corresponding tax
provision charges of NOK 122 million, recognized as a result of the Agility Fuel
Solutions ("Agility") transaction executed at the start of the quarter. The
results also include one-off costs and movement in accruals contained to the
quarter of approximately NOK 46 million.
The financial statements for the fourth quarter 2016 include the impact of
deconsolidating the previous Medium and Heavy-Duty CNG Automotive business unit
results and instead accounting for Hexagon Composites' fifty-percent share of
Agility results under the equity method for the first time. In addition, the
fully consolidated financial results of the acquired xperion Energy &
Environment ("xperion") and related group subsidiaries for the whole quarter is
included for the first time. There are no restatements to previously reported
figures as a result of the transactions.
The main impact to profit & loss is lower underlying revenue, EBITDA and EBIT
levels versus immediately before the transaction, whereas the one-off gain as a
result of the Agility transaction increases EBITDA and EBIT levels. The one-off
gain is booked within EBITDA with a corresponding provision for deferred tax
charges booked in the tax cost line.
The main impacts to the statement of financial position are materially higher
total assets after recognition of the relevant investment value of both
transactions, an inclusion of the earn-out provision forming part of the booked
investment cost of the xperion acquisition and increased equity from recognition
of the one-off gain from the Agility transaction.
Operating results in the fourth quarter, aside from the above mentioned effects,
were impacted positively by a 19% growth in revenues within the Low-Pressure
segment versus the same period last year. Despite strong sales volumes of Mobile
Pipeline(®) in the quarter, profitability within the High-Pressure segment was
hampered by one-off items, indirect impacts of M&A activities and movements in
accruals totaling NOK 26 million, as well as the dilutive impacts of the
Hydrogen business unit which is now in an early growth phase. Integration
synergies from the acquisition of xperion have not yet been realized in the
fourth quarter. However, the High-Pressure segment is expected to benefit from
such synergies in 2017.
Key developments
* Closing of Agility Fuel Solutions merger
* Acquisition of xperion Energy & Environment
* Strong Mobile Pipeline(®) sales driven by large order deliveries
* Large order to North American oil and gas industry customer for delivery
mainly in first quarter 2017
* Hexagon Ragasco entered into strategic partnership with customers in
Bangladesh and Chile
* Hexagon Ragasco LPG order to Qatar with a total value of NOK 121 million
* Letter of Intent with Nel ASA and PowerCell Sweden AB to establish a JV to
pursue hydrogen opportunities
For the year 2016, Group operating income decreased to NOK 1,220.5 (1,443.9)
million. Operating profit before depreciation (EBITDA) was NOK 374.9 (100.1)
million. Operating profit (EBIT) was NOK 299.3 (37.5) million. Profit before tax
for continuing operations was NOK 302.3 (0.3) million.
The lower revenues were driven principally by lower volumes of Mobile Pipeline®,
US Heavy-Duty truck and Rest-of-the-world transit bus during the first three
quarters of 2016. Profitability was negatively impacted by one-off items,
movements in accruals and M&A related costs totaling approximately NOK 46
million, while positively impacted by the recognition of the gain on the Agility
transaction.
For more information:
Jon Erik Engeset, CEO, Hexagon Composites ASA
Telephone: +47 916 30 550 | jon.erik.engeset(at)hexagon.no
David Bandele, CFO, Hexagon Composites ASA
Telephone: +47 920 91 483 | david.bandele(at)hexagon.no
Solveig D Saether, Communication Manager, Hexagon Composites ASA
Telephone: +47 906 34 977 | solveig.saether(at)hexagon.no
About Hexagon Composites ASA
Hexagon Composites ASA is a publicly listed company with its headquarters in
Aalesund, Norway. The Group is a leading global supplier of composite pressure
cylinders and systems for storage and transportation of various gases.
HEX Q4 2016 presentation:
http://hugin.info/132600/R/2080599/783571.pdf
HEX Q4 2016 report:
http://hugin.info/132600/R/2080599/783572.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Hexagon Composites ASA via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 22.02.2017 - 08:30 Uhr
Sprache: Deutsch
News-ID 525672
Anzahl Zeichen: 5659
contact information:
Town:
Ã…lesund
Kategorie:
Business News
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