Sif, a offshore foundations manufacturer, has reported a 9% increase in EBITDA for the first quarter of 2023, achieving €9.6m compared to €8.8m in the same period in 2022. The growth was due to an improved pricing environment for its products, said Sif Group CEO Fred van Beers.
During the first quarter, the company manufactured monopiles and transition pieces for Dogger Bank B and He Dreiht. However, Sif faced challenges due to a relatively high illness rate, which led to a higher need for temporary workers in a still-stretched labor market.
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Despite these challenges, Sif is optimistic about the future. In the next nine months, the company plans to continue manufacturing transition pieces for He Dreiht and monopiles for Dogger Bank B. It will also start production of transition pieces for Noirmoutier and Doggerbank C, alongside monopile production for Doggerbank C.
Van Beers emphasized the importance of safety in the manufacturing process. “The safety performance is reason for continued concern and again indicates the need for larger, more industrialized and set for safety production facilities, set-up to manufacture the monopiles of the future in a controlled and safe process,” he said.
To address this concern, Sif has started construction on an expanded site at Maasvlakte 2. “In the first months of 2023, we added healthy orders to our order book with BorWin 5 for Dragados and Baltyk 2+3 for the joint venture of Equinor and Polenergia,” Van Beers said. “With 719 Kton, the order book is at a record level and stretches well into 2026.”
Looking ahead, Sif is confident in its ability to maintain its positive momentum. “With contribution of €34m and adjusted EBITDA of €10.8m, we are on track to close the year 2023 with adjusted EBITDA at the level of the previous year,” Van Beers said.
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However, the company expects to see a fading effect of marshaling and logistics services, as the contract with Siemens Gamesa comes to an end this summer and no new orders can be booked due to the need for space for the expansion project.
Sif's strong performance in the first quarter of 2023 is a testament to its commitment to safety and innovation. As the company expands its production facilities and takes on new projects, it is poised for continued success in the offshore foundations market.
