ZITON reports strong growth in revenue and earnings in 2016

ZITON A/S released its Annual Report 2016 earlier today.
The report has the following highlights:

Revenue more than tripled to EUR 29 million from EUR 9.1 million in 2015.
Operating profit (EBITDA) was EUR 16.4 million compared to a loss of EUR 1.0m in 2015.
Cash flows from operating activities were an inflow of EUR 4.0m compared to an outflow of EUR 15.1m in 2015.

The 2016 results were in line with expectations. The strong improvement came on the back of increased activity levels and higher utilisation rates for ZITON’s fleet of specialized jack-up vessels servicing offshore wind farms.
In March 2016, ZITON’s vessel J/U WIND SERVER began a three-year charter with Siemens Wind Power. In the second half of 2016, ZITON entered into agreements with DONG Energy (three-year framework and blade project agreement) and Vattenfall (three-year framework agreement for a large part of their wind farms), adding to the existing agreement with MHI Vestas Offshore Wind, which runs until the end of 2017.
Commenting on the 2016 results, ZITON CEO Thorsten Jalk said:

“Having contracts with four of the leading players in the offshore wind industry demonstrates the strength of our business model of providing dedicated offshore wind O&M services and having vessels available at all times to ensure reduced wind turbine down-time”

Continued progress
Ziton expects continued progress in 2017 based on its strong contract portfolio: Operating profit (EBITDA) is expected to be in the range of EUR 23-26 million, driven by higher revenue and increased fleet utilisation. Cash flow from operating activities is expected at EUR 12-15 million.

“The offshore wind industry is growing rapidly and focus is very much on reducing the cost of energy. Our framework agreements and turnkey solutions are important factors in our customers’ cost out planning. ZITON is always dedicated to reducing risk for our customers, and by establishing ZITON Contractors we have become an even more resourceful business partner because we are now able offer offshore wind turnkey solutions. A one-stop shop,” said Thorsten Jalk.

ZITON and ZITON Contractors
Founded in 2008, ZITON is the market-leading service provider within offshore wind operations and maintenance. ZITON’s primary business is to provide jack-up services for major component replacement, including gearboxes, generators, blades, transformers, main bearings, main shafts, full rotors etc. In addition, ZITON provides jack-up services such as installation support, blade repair and decommissioning of turbines, foundations and met masts.
So far, ZITON has carried out more than 530 service interventions at more than 40 wind farms. ZITON owns and operates three jack-up vessels and has 100 employees on- and offshore. Ownership of ZITON is distributed between BWB Partners, the founder of the DBB Group, Oy Finans and ZITON management.
ZITON Contractors were established in 2017 to accommodate the need for a more efficient offshore setup. ZITON Contractors offers technical expertise, project planning management and execution.
By offering joint offshore turnkey solutions, ZITON A/S and ZITON Contractors are able to optimise the work offshore, reducing the cost out for customers in terms of: