Daldrup & Söhne AG

Earnings Release • Jun 1, 2017

News Details

Corporate | 1 June 2017 07:00

Daldrup & Söhne AG increases revenues by 80%, EBIT by 18% in 2016

DGAP-News: Daldrup & Söhne AG / Key word(s): Final Results/Forecast

01.06.2017 / 07:00

The issuer is solely responsible for the content of this announcement.

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CORPORATE NEWS

Daldrup & Söhne AG increases revenues by 80%, EBIT by 18% in 2016

– Revenues grew by 80% to 31.1 million Euros (previous year: 17.3 million Euros)

– EBIT increased by 18% to 1 million Euros (0.8 million Euros)

– Equity ratio continues to be solid at 50.4% (52.3%)

– Forecast 2017: total output of 40 million Euros, EBIT margin of 2%-5%

– Excellent order situation for all business divisions; full utilization of capacity until 2018

Grünwald / Ascheberg, Germany, 1 June, 2017 – The drilling technology and geothermics specialist Daldrup & Söhne AG (ISIN DE0007830572) posted certified group revenues of 31.1 million Euros for the 2016 fiscal year (2015:17.3 million Euros). Including increases in inventories worth 8.3 million Euros for work in progress, the total output rose to 39.5 million Euros (2015: 26.4 million Euros). This includes drillings for geothermal projects in the Netherlands and Germany as well as drillings for raw materials in Switzerland, which are still in progress and therefore have not yet been finally invoiced. The first half of the 2016 fiscal year saw a high number of contract negotiations with local authorities and investors regarding deep geothermal projects. In the second half of the year, the volume of the drilling business also increased substantially in the Raw Materials & Exploration business division. The growing demand was further boosted by amendments to Germany’s 2017 renewable energies law (EEG). Approved by parliament in summer 2016, the EEG 2017 provides investors with planning and legal certainty as well as a fixed feed-in tariff for the next couple of years as well as a funding period of 20 years.

Daldrup posted consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) of 4.6 million Euros (2015: 4.5 million Euros). After scheduled depreciations of 3.6 million Euros (2015: 3.7 million Euros), the Daldrup group’s earnings before interest and taxes (EBIT) were 1 million Euros (2015: 0.8 million Euros). The EBIT margin based on total output was 2.4%. That means the Daldrup group has exceeded its forecast of a total output of 33 million euros for fiscal year 2016 while comfortably meeting the EBIT margin target of 2%-5%. Consolidated profits after financial results and taxes stood at 0.2 million Euros (2015: 0.2 million Euros). Earnings per share were 0.03 Euro, consistent with the previous year.

Strong start into the 2017 fiscal year

Based on the company’s well-filled order book, the Board of Directors projects a total output of around 40 million Euros and an EBIT margin between 2% and 5% for the 2017 fiscal year. This forecast does not include possible revenue and profit contributions from the geothermal power plants in Landau and Taufkirchen, Germany. As communicated in the past weeks, the current fiscal year has gotten off to a strong start for all business divisions. Including the recently secured drilling orders for geothermal projects in Geretsried (19 million Euros), Bad Bellingen (3.8 million Euros) and for Munich-based municipal utility Stadtwerke München (double-digit million amount), the company will be working to capacity well into 2018.

Operations at the geothermal power plants in Taufkirchen and Landau should start shortly

The new heat exchangers for the Taufkirchen power plant are currently being produced by a renowned manufacturer. It is being planned to start trial operations shortly after their installation in summer 2017. The main operating plan for the Landau power plant was approved at the end of July 2016, with approval for the special operating plan to follow soon. Daldrup is meeting all of the requirements set forth by local authorities. The Board of Directors is positive that the legally binding approval to operate will follow shortly. We can now pursue further steps towards realizing the Neuried power plant project. This has been made possible by the March 2017 dismissal of the lawsuit by the city of Kehl against the regional council’s approval of the main operating plan for four geothermal drillings.

Note : The consolidated financial statement and the 2016 annual report have been published as planned on May 31, 2017. They can be downloaded at http://www.daldrup.eu/de/ir/ .

About Daldrup & Söhne AG

Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a corporate history spanning more than 60 years is a specialist provider of drilling and environmental services and ranks as one of the leading companies in Germany. Its activities are divided into the business divisions Geothermics, Raw Materials & Exploration, Water Extraction as well as Environment, Development & Services (EDS). The Geothermics business division provides drilling services for near-surface geothermics (especially geothermal probes of heat pumps), along with drilling services for deep geothermics up to 6000 m, in order to utilise the geothermal energy accessible in this way for electricity and/or heat generation. In the Raw Materials and Exploration business division, the bores made by Daldrup & Söhne AG serve for exploring and developing fossil fuel deposits (especially coal and gas) as well as mineral resources and ores (e.g. copper and gold). The Water Extraction business division comprises well construction for the extraction of drinking, service, curative, mineral, boiler-feed or cooling water as well thermal brine. The Environment, Development & Services (EDS) business division comprises special environmental engineering services such as the hydraulic clean-up of contaminated sites, the drilling of gas extraction wells for recovering waste dump gas, the provision of groundwater quality measuring points or the installation of water purification plants.

The majority stake in Geysir Europe GmbH also gives the Daldrup Group its own fields of experience in the exploration of geothermal energy in the Bavarian Molasse Basin and in the Upper Rhine Plain. The existing project management and power station expertise means that all stages of value creation can be covered for a deep geothermics project.

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

Disclaime r

This publication represents neither an offer for sale nor a call to submit a tender for the purchase or underwriting of securities. This publication and the information it contains is not intended for direct or indirect dissemination in or within the United States of America (“USA”), Canada, Australia or Japan.

Press & Investor Relations Contact:

Daldrup & Söhne AG

Falk v. Kriegsheim

Phone +49 (0)2593-9593-29

Fax +49 (0)2593-9593-60

Bavariafilmplatz 7 ir@daldrup.eu

82031 Grünwald/Geiselgasteig www.daldrup.eu

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01.06.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.

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Language:	English
Company:	Daldrup & Söhne AG
	Bavariafilmplatz 7 / Gb. 32
	82031 Grünwald/Geiselgasteig
	Germany
Phone:	+49 (0) 89 / 45 24 37 920
Fax:	–
E-mail:	info@daldrup.eu
Internet:	www.daldrup.eu
ISIN:	DE0007830572
WKN:	783057
Listed:	Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange; Open Market (Scale) in Frankfurt

End of News	DGAP News Service