Hexagon Composites ASA: Results for the third quarter 2016

In the third quarter 2016 Hexagon Composites generated NOK 266.2 (256.9) million in operating income and made an operating profit before depreciation (EBITDA) of NOK 4.6 (-31.0) million. Operating profit (EBIT) was NOK -12.4 (-43.8) million and profit/loss before tax came to NOK -18.4 (-56.0) million.

Operating results in the third quarter were impacted positively by a 52% growth in revenues within the Low-Pressure segment versus the same period last year. However weak sales volumes of Mobile Pipeline ® hamper overall profitability for the Group. The realized cost initiatives executed towards the end of 2015 have a positive year-over-year impact on results.

Key developments

  • Strong Q3 performance in Low-Pressure.
  • Increase in US Heavy-Duty Truck cylinder sales.
  • Weak Mobile Pipeline ® sales.
  • Profitable growth in the Light-Duty Vehicle business.
  • Selected by Daimler AG to supply hydrogen cylinders for the new Mercedes-Benz GLC F-CELL.

After balance sheet date

  • The merger of the Group's Heavy- and Medium-Duty CNG Automotive businesses with Agility Fuel Systems to create Agility Fuel Solutions (50% owned) was closed on 3 October 2016.
  • xperion Energy & Environment in Germany, one of the leading Type 4 cylinder manufacturers, was acquired on 4 October.

For more information:
Jon Erik Engeset, CEO, Hexagon Composites ASA
Telephone: +47 916 30 550 | jon.erik.engeset@hexagon.no

David Bandele, CFO, Hexagon Composites ASA
Telephone: +47 920 91 483 | david.bandele@hexagon.no

Solveig D Saether, Communication Manager, Hexagon Composites ASA
Telephone: +47 906 34 977 | solveig.saether@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.

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
HEX Q3 2016 report
HEX Q3 2016 presentation
Proforma Agility and Hexagon CNG Merger Financial Statements Q2 2016

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Source: Hexagon Composites ASA via GlobeNewswire