Sif has reported a 9% rise in EBITDA in the first three months of 2023.
The offshore foundations manufacturer achieved EBITDA of €9.6m, compared to €8.8m in Q1 2022.
During the first three months of 2023, monopiles and transition pieces were manufactured for Dogger Bank B and He Dreiht.
However, relatively high illness rate led to a higher need for temporary workforce in a still relatively stretched labour market.
During the next nine months, Sif will continue to manufacture transition pieces for He Dreiht and monopiles for Dogger Bank B.
In addition, production will start of transition pieces for Noirmoutier and Doggerbank C next to monopile production for Doggerbank C.
Sif Group chief executive Fred van Beers said: “In line with the improved pricing-environment that we have been announcing for our products, I am pleased to see this reflected in the step-up in contribution margin for our manufacturing activities.
“This trend is expected to continue as we have also communicated during the capital markets day for our expansion plan on 17 March.
“Volumes in the first quarter of 2023 are slightly below what we had forecast.
“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.
“As such I am delighted that construction works for the expanded site at Maasvlakte 2 have started according to plan at the start of the second quarter.
“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.
“The latter being the next project booked under the capacity framework agreement with Equinor.
“With 719 Kton the order book is at a record level and stretches well into 2026. Further order book additions are expected to be signed in the course of 2023.
“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.
“Q1 results were still positively impacted by marshaling & logistics services for Siemens Gamesa.
“As the contract comes to an end during the summer this year and no new marshaling & logistics orders could be booked due to the need for space for the expansion project, we expect to see a balance of the positive effect of higher production volumes against a fading effect of marshaling & logistics services.”