11 August 2022: Hexagon (excluding Hexagon Purus) delivered NOK 1 034 (726) million in revenues and an operating profit before depreciation (EBITDA) of NOK 90 (71) million in second quarter 2022. The underlying demand remains strong with record-high demand for Mobile Pipeline and hydrogen distribution modules for infrastructure and industrial segments. However, further cost escalation and supply chain inefficiencies in the industry continue to weigh on margins.
In accordance with its ambitious business plan, Hexagon Purus more than doubled revenues year over year to NOK 210 (94) million and recorded operating profit before depreciation (EBITDA) of NOK -112 (-69) million. The strong revenue growth was primarily driven by hydrogen distribution, and the company is continuing its ramp-up in personnel and infrastructure to accelerate growth. Hexagon Purus remains fully consolidated in the Hexagon Group accounts after its spin-off in December 2020, with Hexagon currently retaining a 73% ownership.
Hexagon Group, including Hexagon Purus, generated NOK 1 180 (788) million in revenues and recorded an operating profit before depreciation (EBITDA) of NOK -21(3) million.
“We delivered strong 50% revenue growth year-over-year, and an acceptable EBITDA when considering supply chain challenges and further cost inflation. Mitigating actions are in place, but the effects of these actions lag the cost increases and supply chain inefficiencies in the second half of the year. We expect margins to improve and normalize from the first quarter 2023," says Jon Erik Engeset, CEO of Hexagon Group. “We see that our results are backed by continued high demand for Hexagon’s clean energy solutions and growing supportive regulatory frameworks.”
“Looking ahead, we believe that the US Inflation Reduction Act and the European Commission’s REPower EU, as well as similar programs in other major economies, will drive Hexagon’s total addressable market to new levels,” says Engeset.
Together with clients and partners, Hexagon is finding ways to make near-zero and zero emission energy solutions available and affordable while delivering on its purpose of driving energy transformation.
For further details, please see the attached second quarter 2022 report and presentation.
Presentation of the results today at 08:30 am CEST
Jon Erik Engeset (CEO) and David Bandele (CFO) will present the results at 08:30 am today in Oslo. The presentation will be held in the Auditorium at Hexagon Composites' offices, Haakon VIIs gate 2, on the lower level.
The presentation will also be broadcasted live via:https://channel.royalcast.com/landingpage/hegnarmedia/20220811_3/
For more information:
Ingrid Aarsnes, VP Investor Relations & ESG, Hexagon Composites ASA
Telephone: +47 950 38 364 | ingrid.aarsnes@hexagongroup.com
Karen Romer, SVP Communications, Hexagon Composites
Telephone: +47 950 74 950 | karen.romer@hexagongroup.com
About Hexagon Composites ASA
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. Learn more at www.hexagongroup.com and follow @HexagonASA on Twitter and LinkedIn.
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