Hexagon Composites has reported its 2018 fourth quarter (Q4) results generating NOK 426.8 ($49.5m) in operating income and an operating profit before depreciation (EBITDA) of NOK 55.2m ($6.4).
Operating profit (EBIT) was for the company was NOK 19.2m ($2.2m) and profit/loss before tax came to NOK 41.4m ($4.8m). The EBIT in Q4 was adversely impacted by an asset impairment adjustment of NOK 16m ($1.8m).
EBITDA for the quarter included a positive impact of NOK 18.4m ($2.1m), triggered by a final reduction of the earn-out obligation related to the 2016 xperion acquisition.
Underlying operation results in the fourth quarter were positively impacted by strong contribution from Agility Fuel Solutions and strong sales volumes from Mobile Pipeline.
In Q4 (2018), Hexagon signed an agreement to acquire the remaining 50% in Agility Fuel Solutions, the leading clean fuel systems and solutions provider. The transaction was closed on 4th January (2019). The acquisition strengthened Hexagon’s position as the globally leading gas fuel solutions provider.
Reported Group operating income for the year (2018) increased by 4% to NOK 1,486.5m compared with NOK 1,429.4m in 2017, which was positively impacted by NOK 21.5m ($2.5m) from the sale of certain assets to related party Agility.
EBITDA was NOK 234.6m ($27.1). EBITDA for the year (2018) included a positive impact of NOK 108.5m ($125.6) associated to the reduction of the earn-out obligation related to the xperion acquisition.
EBIT was NOK 140.2m ($16.2), while profit before tax was NOK 167.6m ($19.4).
In 2018 Hexagon composites achieved numerous milestones which help achieve the company’s financial growth. The company was selected by a third original equipment manufacturer (OEM) to supply hydrogen tanks for serial production of fuel cell electric vehicles.
The company also received a permit from the United States of Department of Transport (US DOT) for high-pressure vessel hydrogen transport systems. The company was the first to receive the permit (SP20391) for 950bar (13,776 psig).
2018 also saw Hexagon Composites acquire the leading testing technology company, Digital Wave Corporation, allowing the company to fully integrate capabilities for testing and requalification of high-pressure cylinders.