Hexagon Composites' operating results improved compared to the fourth quarter of the previous year driven by continued market growth for both High and Low Pressure Cylinders. The Gas Distribution Products (Mobile pipelines™) business delivered a particularly strong performance with record turnover for the quarter. Deliveries of fuel cylinders for Heavy Duty operations improved somewhat this quarter following declines in the third quarter.

Operating income increased 63% in the fourth quarter to NOK 496.9 (304.4) million. Operating profit before depreciation (EBITDA) grew 167% to NOK 88.5 (33.1) million. Operating profit (EBIT) increased 373% to NOK 71.4 (15.1) million and profit before tax from continuing operations grew 545% to NOK 41.3 (6.4) million.

Key developments:

  • Record quarter with strong growth in both revenues and profits
  • High capacity utilization in the Low Pressure Cylinders segment
  • Strong Gas Distribution Products (Mobile pipelines™) sales
  • Some recovery in deliveries for the Heavy Duty operations
  • Continued challenges with Rugasco joint venture in Russia
  • Some near-term market uncertainty due to oil price volatility
  • Positive overall impacts of USD and EUR currency developments

For the year 2014 Group operating income increased 29% to NOK 1,650.8 (1,271.6) million. Operating profit before depreciation (EBITDA) grew 61% to NOK 329.2 (204.4) million. Operating profit (EBIT) increased 81% to NOK 256.8 (142.1) million. Profit before tax for continuing operations grew 85% to NOK 237.4 (128.2) million.