Daldrup & Söhne AG
Daldrup & Söhne AG increases EBIT by 15.3 % in H1

CORPORATE NEWS

Daldrup & Söhne AG increases EBIT by 15.3 % in H1

– Group total operating performance increased by 36.0 % to 24.1 million euros

– Group EBIT of 1.4 million euros again above previous year (1.2 million euros)

– Order situation comfortable, Group order backlog at 38.0 million euros at the end of September

– Solid equity ratio of 57.0 %

– Group forecast 2023 confirmed: total output of around 41 million euros, EBIT margin of 3 % to 5 % of total output

Oberhaching / Ascheberg, 6 October 2023 – The drilling technology and geothermal specialist Daldrup & Söhne AG (ISIN DE0007830572) achieved a total output of 24.1 million euros at group level in the first half of 2023 (previous year 17.7 million euros). The Group improved its half-year earnings before interest, taxes, depreciation and amortisation (EBITDA) as of 30 June to EUR 2.7 million (EUR 2.4 million). At group level, Daldrup achieved earnings before interest and taxes (EBIT) of EUR 1.4 million (EUR 1.2 million), which corresponds to a margin of 5.9 % (7.0 %) in relation to total output. Group net income for the half-year (EAT) amounted to 0.7 million euros (0.4 million euros). This results in earnings per share (EPS) of 12 cents (7 cents).

Despite the generally weak economic environment, the first half of 2023 was characterised by a positive operative development in all business areas for Daldrup & Söhne AG. To date, Daldrup & Söhne AG has invested around 0.5 million euros in its core business to increase efficiency. In the medium term, profitability is also to be sustainably improved in this way.

Andreas Tönies, CEO of Daldrup & Söhne AG, comments on the half-year result: “The demand for drilling services for geothermal projects is increasing significantly. With the law on municipal heat planning, municipalities and municipal utilities have an obligation to decarbonise the heat supply quickly. Geothermal energy can provide and store renewable, base-load heat in most regions of Germany: be it from deep or medium-deep reservoirs and aquifers, be it with geothermal probes or via water-air heat pumps. But one thing is clear: without expert drilling, geothermal heat and thermal water cannot be tapped and fed into the heating networks. This puts the drilling services of Daldrup & Söhne AG in a key position in the heat turnaround. The half-year result shows once again that we have further strengthened the operational earning power of the Daldrup Group. We are convinced that we can sustainably profit from the structural growth in the geothermal market from a good competitive position.”

Order backlog of 38.0 million euros ensures capacity utilization until well into 2024

The order situation in all business areas of Daldrup & Söhne AG is good. As of the end of September 2023, the order backlog reaches around 38.0 million euros (previous year 27.1 million euros). This means that the drilling business will be utilised until well into 2024. The processed market volume of around 245 million euros (previous year 136 million euros), assessed with probabilities of occurrence and relevant for Daldrup, as a prospect of possible order backlogs in the coming financial years, also indicates that business will continue to develop satisfactorily overall.

Demand for exploratory drilling and drilling for geothermal power and heat projects remains brisk in the DACH region and Benelux. Thus, further geothermal projects in Munich and in the neighbouring Alpine region are scheduled for drilling by Daldrup & Söhne AG in the next quarters. The interest of North German municipalities and public utilities has also increased significantly after the successful geothermal expansion of the heat supply in Schwerin, which Daldrup has developed with two boreholes. The special feature there is the combination of the extracted thermal water with large heat pumps.

Executive Board confirms forecast for the 2023 business year

Assuming that the current drilling projects can be settled on schedule by the end of the year, the Executive Board confirms the Group’s forecast for the 2023 financial year: Given the current order situation and continued utilization of crews and drilling rigs, the management expects to achieve a total output of around €41°m with an EBIT margin of between 3°% and 5°%. In today’s research update, SMC-Research basically confirmed the previously existing price forecast EUR 11.80 with a price target of EUR 11.40 and issued a “buy” recommendation.

Notice:

The published consolidated half-year report as of 30.06.2023 with further details on the business and earnings development as well as the research update by SMC-Research are available for download at www.daldrup.eu under Investor Relations.

About Daldrup & Söhne AG

Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a company history of more than 75 years is a specialised provider of drilling and environmental services and is positioned among the leading companies in Germany. Its activities are divided into the business areas Geothermal, Resources & Exploration, Water Extraction and Environment, Development & Services (EDS). In the Geothermal Energy business sector, drilling services are provided both for near-surface geothermal energy (especially geothermal probes for heat pumps), but above all also drilling services for deep geothermal energy of up to 6,000 m, in order to use the geothermal energy thus accessible for the generation of electricity and/or heat. In the Raw Materials and Exploration business sector, the wells drilled by Daldrup & Söhne AG are used for exploration as well as mineral raw materials and ores (e.g. copper and gold). This division also provides drilling services in the context of finding a safe final repository for nuclear waste. The Water Extraction business area includes well construction for the extraction of drinking, industrial, medicinal, mineral, boiler feed or cooling water as well as thermal brine. The business area Environment, Development & Services (EDS) comprises special environmental engineering services such as the hydraulic remediation of contaminated sites, the construction of gas extraction wells for the extraction of landfill gas, the construction of groundwater quality measuring points or the construction of water purification plants.

The shares of Daldrup & Söhne AG are listed in the Scale (sub-segment of the Open Market of the Frankfurt Stock Exchange).

Disclaimer

This publication constitutes neither an offer to sell nor a solicitation of an offer to buy or subscribe for securities. This publication and the information contained therein are not intended for direct or indirect distribution in or within the United States of America (“USA”), Canada, Australia or Japan.

Press & Investor Relations Contact

Daldrup & Söhne AG

Falk v. Kriegsheim

     Fon +49 (0)2593-9593-29

     Fax +49 (0)2593-9593-60

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82041 Oberhaching   www.daldrup.eu