HEXAGON COMPOSITES (OTCMKTS:HXGCF) operating income surged 63% to NOK 496.9 million in 4Q2014.The EBITDA increased 167% to NOK 88.5 million. The operating profit had jamp 373% to NOK 71.4 million and profit before tax grew 545% to NOK 41.3 million. The operating performance of Hexagon improved compared to 4Q2013.
The strong growth
The robust growth in 4Q2014 was led by continued market growth for both Low and High-Pressure Cylinders. The demand for both products was encouraging. The Gas Distribution Products segment reflected a particularly strong show with record turnover for 4Q. The deliveries of fuel cylinders improved compared to decline in 3Q2014.
Hexagon reported strong quarter in terms of both revenue and profits. Also, the overall performance in FY2014 was strong. The group operating income surged 29% to NOK 1,650.8 million. The company posted operating profit before depreciation of NOK 329.2 million, up 61% from the same quarter last year. The operating profit surged impressive 81% to NOK 256.8 million. The robust performance was seen in Profit before tax for continuing operations that jumped 85% to NOK 237.4 million.
The key achievements
Hexagon revenue and profit surged due to robust demand from its cylinders segment. The company reported high capacity utilization in the low-pressure cylinders segment. The performance was supported by high-pressure cylinders sector. The sales of strong gas distribution products that included mobile pipeline were impressive. In the quarter, Hexagon witnesses subdued recovery in deliveries for heavy duty operations; it is a positive indication for the company when compared to 3Q2014.
In the near term, HEXAGON COMPOSITES (OTCMKTS:HXGCF) will have the deal with continued challenges related to its Rugasco joint venture in Russia. Also, the operations may face near-term market uncertainty resulting from oil price volatility. The oil prices plunged from more than $110 per barrel to almost $50 a barrel in past few months. As of now, the prices are hovering around $50 per barrel. The company experienced positive impacts of EUR and USD currency developments.