Dutch turbine foundation maker Sif has recorded a €20m fall in half-yearly earnings after experiencing a sharp slowdown in offshore wind activity.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first six months of the year stood at €14m compared to €33.7m in the first half of 2017.
The company said steel throughput tallied 81 kilotons between January and June, down from 108 Kton a year ago, with offshore wind declining to 78% of its business from 91%.
Sif chief financial officer and acting chief executive Leon Verweij said the last few weeks of the second quarter were marked by nearly zero production, with quarterly EBITDA reaching just below €4m with a production volume of 29 Kton.
“For the full year 2018, around half of the maximum production capacity of 300 Kton is expected to be utilized,” he added.
The Roermond company has cut staff from 615 employees at the start of 2018 to around 320 by the end of June.
Looking ahead, Sif said its order book is filling up with 200 Kton booked for 2019 and 90 Kton for 2020.
“Momentum for offshore wind energy has returned, with new projects without government subsidies, a further cost reduction in Europe and a growing interest from the United States and the Far East,” said Verweij.
Image: Maasvlakte 2 plant near Rotterdam (Sif)
Slowdown hits Sif bottom line
By EBS