SIF‘s Year-to-Date (YTD) contribution increased to € 66.6 million (€57.0 million YTD 2018). EBITDA Year to Date increased to €14.6 million (€13.0 million YTD 2018) Throughput of 46 Kton brings Year to Date production to 140 Kton (100 Kton YTD Q3 2018) of whioch 95% was for offshore wind and the remaining 5% for for offshore oil & gas & other industries. The Order book consists of 47 Kton for Q4 2019, 245 Kton for 2020 (including 103 Kton for Vineyard) and 108 Kton for 2021.
Tender activity and order intake were strong in the third quarter of 2019 with large project- wins and satisfactory pricing- levels. Improved pricing levels also applied to the projects at hand at the start of the third quarter. However, both the pressure on this quarter’s production capacity as a consequence of the delayed Borssele 3+4 project and production issues, caused planning problems and a less efficient production. With multiple projects at hand and tight delivery schedules, production- lines repeatedly required conversion. This resulted in production of 46 Kton at much higher than precalculated manhours and overtime. This impacted this quarter’s contribution margin. For the final quarter of 2019 SIF expects an equal utilisation with production anticipated at 47 Kton and contribution margins at least at Q2 2019 levels.
The outcome of 2020 remains uncertain with limited clarity on timing of the Vineyard project. SIF is still talking with the client on different scenarios ranging from full delay of the project to manufacture of part of the order in 2020. Further news on timing is not expected before December 2019 but with the passing of time it becomes less likely that Vineyard will lead to production in 2020.
