Order book, plans for clients to fund expansion drive Sif Holding shares
18/03/2022 12:06
(Updates shares, adds analyst comments)
** Shares in Sif Holding SIFG.AS jump 7%, paring earlier
gains of over 11%, as the market cheers the firm's strong order
book and discussions with clients to fund its capacity expansion
** Order book capacity for 2022-2024 is "well filled with
projects", with 180 Kton production volumes for 2022 and 250
Kton for 2023 and beyond, the company says urn:newsml:reuters.com:*:nFWN2VL034
** "Many orders are firm hard orders now and the order book
increased, says ING analyst Tijs Hollestelle in reference to the
2023 and beyond order book guidance
** However, in a note to clients, Hollestelle says the Q4
results are "somewhat weaker than expected", while the outlook
looks cautious
** Sif expects EBITDA for 2022 to slightly surpass its 2021
level of 39.4 million euros ($43.6 million), and proposes a
dividend of 0.19 euro per share, up from 0.12 euro year ago
** In the note, Hollestelle adds the pending capex plan is
the most important topic for the equity story
** "Sif has to upgrade and/or expand production capacity in
order to be able to handle the even larger monopile foundations
from 2024-25 onwards," Hollestelle writes; the investment
decision is still planned for July
** ODDO BHF analyst Thijs Berkelder says that in his view,
the share reaction is related to the statement that a
substantial part of the expansion project will be funded by
clients, as markets had feared an equity raise
** Sif says it is in exclusive negotiations on 400 ktons
launching capacity for new factory, where clients have committed
to substantial funding
($1 = 0.9029 euros)
(Reporting by Elena Vardon)
((elena.vardon@tr.com))