Hexagon Composites ASA: Results for the second quarter and first half year 2020

Aug 12, 2020 - Stock Exchange Release

In the second quarter of 2020, Hexagon Group generated NOK 683 (882) million in revenues and recorded an operating profit before depreciation (EBITDA) of NOK 19 (62) million. Profitability was reduced by the impacts of the global pandemic and resulting macro factors, particularly in Agility Fuel Solutions and Hexagon Mobile Pipeline businesses. Hexagon Ragasco experienced a strong quarter.

The first half of 2020 provided revenues of NOK 1,508 (1,704) million and an operating profit before depreciation (EBITDA) of NOK 56 (212) million. The 2019 comparative EBITDA included overall positive impacts related to the Agility Fuel Solutions transaction of NOK 62 million, in the first quarter of that year.

The financial impacts of COVID-19 were most apparent in the second quarter, especially impacting transit bus demand in North America and Europe following temporary manufacturing shutdowns of several leading OEM companies. For more detail on the Company’s risks, responses, impacts and resilience in relation to the COVID-19 pandemic, please refer to The Outlook section and the company presentation accompanying this report.

Key developments

  • The company announced the signing of a term sheet for a strategic cooperation and joint venture agreement with CIMC ENRIC, a leading Chinese manufacturer of energy equipment
  • Hexagon Purus was awarded a contract with sales value of USD 1 million (approximately NOK 9 million) to supply hydrogen systems to Toyota Motor North America (TMNA) for its newest prototype hydrogen-powered heavy-duty fuel cell electric truck
  • Hexagon Mobile Pipeline® received a USD 7.3 million (approx. NOK 70.2 million) contract for TITAN® 53 transport modules for virtual interconnect projects providing natural gas to communities and industries in the U.S.
  • Agility Fuel Solutions signed a master services agreement, including an initial order for USD 2.2 million (approx. NOK 20.5 million), with a new major global logistics customer to deliver CNG fuel systems for medium and heavy-duty trucks

Other important events in the first half of 2020

  • Hexagon Mobile Pipeline® was awarded an order for TITAN® XL modules for USD 1.7 million (approx. NOK 18 million) from a leading gas distributor in Mexico
  • Hexagon Mobile Pipeline® was also awarded an order for X-STORE® modules to transport Renewable Natural Gas (RNG) from the production site to the gas grid in the U.K.
  • Agility Fuel Solutions was awarded an order for USD 10 million (approx. NOK 105 million) in the U.S. to deliver transit bus compressed natural gas (CNG) fuel storage systems
  • Hexagon successfully executed group wide contingency plans to manage potential own production, supplier and customer disruptions due to impacts of the COVID-19 pandemic
  • Hexagon Purus was awarded an order from Everfuel to deliver new generation X-STORE modules to transport hydrogen to filling stations for fuel cell electric taxis and buses in Denmark
  • After a successful capital increase, Norwegian Hydrogen AS, a consortium including Hexagon, will proceed with plans to develop production of green hydrogen for ferries and cruise ships in the Geirangerfjord

Key developments after balance sheet date

  • Hexagon Purus signed a contract for USD 4.8 million (approx. NOK 45 million) with a major US hydrogen fuel supplier and hydrogen refueling station operator to provide X-STORE transport distribution modules
  • Hexagon has been granted USD 2.6 million (approx. NOK 24 million) in initial funding, under the U.S Department of Energy’s (DOE) H2@Scale initiative, to research reduction in hydrogen and natural gas storage tank cost
  • Hexagon Purus has been awarded a USD 5.2 million (approx. NOK 48 million) contract for high-performance Type 4 pressure vessels to a new major aerospace customer for its launch vehicle

Presentation of the results

The results will be presented live at 08:30 am. Register here to view the presentation or view it live on www.hexagongroup.com.


Karen Romer, SVP Communications, Hexagon Composites
Telephone: +47 950 74 950 | karen.romer@hexagongroup.com

David Bandele, CFO, Hexagon Composites
Telephone: +47 920 91 483 | david.bandele@hexagongroup.com

About Hexagon Composites
Hexagon delivers safe and innovative solutions for a cleaner energy future. Our solutions enable storage, transportation, and conversion to clean energy in a wide range of mobility, industrial and consumer applications including light-,medium- and heavy-duty vehicles, ground storage, distribution, marine, rail and backup power solutions.

Learn more at www.hexagongroup.com and follow @HexagonASA on Twitter and LinkedIn.

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