Sif Seeks Short and Long-Term Funding as Project Slips

Dutch offshore wind foundation maker Sif is negotiating a short-term funding solution with its lenders, the Dutch State and its agencies, other stakeholders and its largest shareholder. The company also says it needs a long-term financial solution, which it expects will involve raising new equity. The funding gap stems mainly from continued uncertainty over the timing of a 190 kton exclusive project, and Sif has warned of a material uncertainty over its ability to continue as a going concern.

 

Bridge Funding Talks and Lender Support

 

Sif disclosed the negotiations in its third-quarter 2026 update, published on 6 November. The company said discussions on a short-term solution are continuing and that it still sees avenues to reach a consensual agreement. It is negotiating a bridge arrangement with its lenders and certain suppliers and customers, though any deal would remain subject to third-party consents and final documentation. No binding agreement has yet been reached.

Lenders have already shown some flexibility. They agreed to temporarily defer a €6.7 million term loan repayment that fell due on 30 September 2026, giving the parties time to negotiate. However, Sif’s €50 million revolving credit facility will not be available while talks continue, which tightens its liquidity. In parallel, the company and its advisers are exploring strategic options and holding discussions with several parties.

 

The Going Concern Warning and Equity Plans

 

Sif said that uncertainty over the 190 kton project and the short-term funding solution creates a material uncertainty over its ability to continue operating as a going concern over a 12-month outlook period. This is a formal disclosure that auditors and investors watch closely, as it signals real doubt about the company’s financial footing. Beyond the bridge, Sif says it needs a long-term solution to fix its capital structure and fund the business until the major project begins. The source, terms, structure and timing of that solution have not yet been determined.

To prepare for a possible capital raise, Sif will hold an extraordinary general meeting on 22 December 2026. Shareholders will be asked to authorise the executive board, with supervisory board approval, to issue shares or grant subscription rights up to the company’s authorised capital. This would let Sif move quickly if an opportunity to raise equity arises. The company said it cannot yet give guidance on the size or type of any equity raise, and its shares fell 23.7 percent after the update, according to Clarksons Securities.

 

The 190 Kton Project at the Centre

 

The funding shortfall is rooted in delays to the 190 kton exclusive project, a North Sea development representing about 2 GW of offshore wind capacity and the largest order in Sif’s history. The client has not yet taken a final investment decision, and the customer, the Dutch State and the grid operator are still working towards final agreement. Sif continues to plan for production to start around mid-2027 and has carried out preparatory work such as detailed engineering and factory layout design. The project is critical for keeping its core workforce employed at both production sites.

CEO Koen Bogers said the liquidity challenge has built up from several factors. These include higher costs during the ramp-up of the Maasvlakte 2 factory and the resulting liquidated damages, a broad downturn in the offshore wind market, and the delay to the 190 kton project. He said a bridge financing is needed until there is clarity on that project, after which the company aims to address its funding and capital structure more permanently. Sif is also shortlisted for several tenders for 2028 onwards and is in exclusive negotiations on one of them.

 

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Strong Operations Despite Financial Strain

 

The funding problems come despite a clear improvement in operating performance. Sif produced 211 kton in the first nine months of 2026, up from 124 kton a year earlier, and its new factory is now consistently producing four monopiles per week. Adjusted EBITDA for the period rose to €68.3 million from €26.7 million, and the company reiterated its full-year adjusted EBITDA outlook of €95 million. Safety also improved, with the lost-time injury frequency falling to 3.74 from 5.37 at the end of 2025.

Sif completed the Baltyk 2 and 3 projects for Equinor and Polenergia and is progressing work on OranjeWind and East Anglia 2. Its order book stood at 352 kton at the end of September, with 156 kton contracted and 196 kton in exclusive negotiations. The company remained within its banking covenants at 30 September. However, strong production alone has not been enough to offset the cash pressures created by the project delay and the weak near-term market.

 

Capacity Cuts to Conserve Cash

 

To conserve cash, Sif will close one of the three production lines at its Maasvlakte 2 factory in Rotterdam from the fourth quarter of 2026. It will also scale back operations at its Roermond facility from the first quarter of 2027. The measures will reduce tonnage output and staff numbers, which have already fallen by around 130 full-time equivalents since the first quarter. Bogers said the move is intended to save costs while retaining experienced staff that the company has invested in heavily.

The cuts highlight wider difficulties across the European offshore wind supply chain. Few projects reached final investment decision recently, leaving demand for monopiles weak in 2027 and 2028. Sif expects demand to recover from around 2029 as government targets turn into firm tenders, and it noted progress in Brussels on level-playing-field measures for European manufacturers. Its near-term survival, however, depends on securing bridge funding and a firm go-ahead for the 190 kton project.

 

Source: Sif Group