14 October 2022: Hexagon Composites ASA (“Hexagon”) refers to its financial guidance for 2022 for Hexagon excluding Hexagon Purus (“Purus”) as communicated in the second quarter reporting on 11 August 2022. The expected revenues were stated between NOK 3.7 to 3.9 billion and EBITDA target of around NOK 400 million, with downside risk, for full year 2022.
Demand remains robust and revenues for 2022, mainly secured by backlog, are expected to meet the guided target. However, we continue to experience exceptionally high costs of production which we are unable to mitigate in the short term. Hexagon is accordingly adjusting its EBITDA guidance for full year 2022 to approximately NOK 325 million.
The high costs of production are due to continued high costs of energy, materials and components. While some raw material prices, such as aluminum and steel, have come down from their peak, it will take two to three quarters before these affect our component input prices. Additionally, Hexagon continues to experience challenging operating conditions from supply chain disruptions impacting production planning and efficiency. The unpredictable timing and impacts of these factors are making precise profitability forecasting challenging.
Since the first half of 2022, Hexagon’s business units have passed on the relevant price rises to their customers. Purchase orders confirmed before the price increases and deliveries under Long Term Agreements (LTAs) with only annual price adjustment clauses have not yet benefitted from these price increases, but all new business and most deliveries under LTAs will be at adjusted prices from the first quarter 2023. We will carefully consider further price increases, balancing the need to restore healthy profit margins with the need to support our customers in a challenging time for all levels in the value chain. In addition, Hexagon has initiated other profitability initiatives taking effect immediately.
Hexagon will publish its third quarter 2022 results at 07:00 CET on 3 November 2022.
For more information:
Karen Romer, SVP Communications, Hexagon Composites
Telephone: +47 950 74 950 | karen.romer@hexagongroup.com
Ingrid Aarsnes, VP Investor Relations and ESG, Hexagon Composites
Telephone: +47 950 38 364 | ingrid.aarsnes@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.
This information is inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange release was published by Berit-Cathrin Høyvik, Director of Communications, on 14 October 2022 at 08:30 CET.
