Sif reaps offshore windfall – reNews

Revenue from Sifs wind business increased to almost 352m in 2016 from just over 283m in 2015.

The sector contributed more than 75.4m to the companys overall gross profit of 86.4m, up from 59.9m out of a total of 71.1m in the previous year.

Sifs overall revenue stood at just over 400m last year, up from more than 321m in 2015.

Sif chief executive Jan Bruggenthijs described market growth in the offshore wind sector as very robust in 2016, which resulted in an extremely busy second half of the year.

He cited the companys investment in the Maasvlakte 2 plant as timely. We now have a facility that will enable us to produce XL monopiles with an 11-metre diameter, 120-metre length and 2000 tonnes weight.

This gives Sif Group a strong competitive edge, not just now, but also going forward.

In 2017, the companys contracted order book stands at 210 kilotonnes, having been 191 kilotonnes for the whole of 2016.

The contracts include work for the Norther, Beatrice, Hohe See and Rentel offshore wind farms, Sif said.

The company said it is also involved in the tendering process for other offshore wind farm developments.

The significant drop in LCOE (levelised cost of energy) may result in pricing pressure from Sifs clients, including for the projects that will continue into the 20182020 production period, Sif said.

Sif Group will protect its margins by focussing on cost reduction per produced tonne based on high utilisation of its production capacity, improving efficiency even further and actively supporting clients wishes to reduce steel weight by applying the latest innovations, it added.

Image: Sif

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Sif reaps offshore windfall - reNews