Hexagon Composites ASA: Results for fourth quarter 2015 and preliminary results for the year 2015

Feb 11, 2016

In the fourth quarter 2015 Hexagon Composites generated NOK 371.4 (496.9) million in operating income and made an operating profit before depreciation (EBITDA) of NOK 40.9 (88.5) million. Operating profit (EBIT) was NOK 18.6 (71.4) million and profit/loss before tax came to NOK 14.7 (63.5) million.

Hexagon Composites' financial performance improved from the third quarter. Operating results in the fourth quarter were however lower than our levels achieved in the same period last year, impacted by lower sales volumes for Mobile Pipeline(TM) solutions and comparatively lower sales volumes of Low-Pressure Cylinders. The heavy-duty truck and transit bus market in North America remained robust. The program of cost initiatives announced in the previous quarter were all executed within the quarter. The positive effects to profit of these initiatives while partly realized in this quarter, will be fully realized in 2016.

Key developments:

* Profitability was restored, though at lower levels than in the previous year

* All restructuring and cost initiatives completed

* Nominated by a leading international vehicle modifier to supply CNG tanks to passenger vehicles in Europe

* Completed agreed deliveries of LPG cylinders to Gasco in Saudi Arabia within the quarter

* Established a separate business unit for Hydrogen storage and transportation systems

For the year 2015 Group operating income decreased to NOK 1,443.9 (1,650.8) million. Operating profit before depreciation (EBITDA) was NOK 100.1 (329.2) million. Operating profit (EBIT) was NOK 37.5 (256.8) million. Profit before tax for continuing operations was NOK 0.3 (237.4) million.

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

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.