NGV Investor
Oil & gas, small-cap, long-term horizon

Hexagon Composites - Investment Thesis Remains Intact Despite Disappointing Q2

Hexagon Composites (OTC:HXGCF) reported Q2 earnings on August 28. I published an article on August 18 where I predicted a strong quarter. As can be seen from the table below, Q2 earnings were weaker than expected and at first glance the reasons behind the Q2 miss seem relatively straightforward. However, the earnings report is full of significant pieces of information beyond the immediate headlines. More on these points below, but first let's take a look at the headline numbers.

Q2 came in below expectations due to production issues at Hexagon Ragasco and lower-than-expected Hexagon Lincoln turnover. The Hexagon Ragasco production issues resulted in a drop in turnover and a negative NOK 7 million EBIT impact. This is significant...

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