Daldrup & Söhne AG increases EBIT by 12.5 % in 2022

• EBIT margin at 5 % in the middle of the forecast range
• Order backlog at 33 million euros, market volume under negotiation at 203 million euros
• Forecast 2023: 41 million euros total operating performance, EBIT margin at 3 to  5 %

Oberhaching / Ascheberg, 1 June 2023 - Drilling technology and geothermal specialist Daldrup & Söhne AG (ISIN DE0007830572) achieved consolidated operating earnings before interest and taxes (EBIT) of 1.8 million euros (previous year: 1.5 million euros) in fiscal year 2022 (Jan. 1-Dec. 31), calculated in accordance with the German Commercial Code (HGB). This represents an increase of 12.5 % compared to the previous year. The EBIT margin, based on total operating performance, was thus 5.0 % (3.4 %), in line with the forecast issued for the year under review (4 to 6 %). As already communicated, the Group's total operating performance of EUR 36.9 million was around EUR 5 million below the original forecast. The typically volatile course of major drilling contracts resulted in consolidated sales of EUR 38.2 million in this reporting year (EUR 78.1 million). Consolidated net income for the year amounted to EUR 0.9 million (EUR 0.8 million). Earnings per share (EPS) thus amount to 0.14 euros (0.13 euros). Daldrup & Söhne AG has successfully continued its path of financial and operational consolidation in 2022. The equity ratio in the Group amounts to a comfortable 49.7 % (49.3 %) of the balance sheet total.

This solid result was driven by the improved order situation for drilling services for major geothermal contracts compared with the prior-year period, as well as orders for raw material extraction and for special deep drilling, such as for the search for a final repository in Switzerland and Germany. Daldrup also benefited from continued brisk demand for geothermal probe drilling in shallow geothermal energy and exploratory drilling in old mines for safeguarding measures.
 

The business model is benefiting from the decarbonization of heat supply

Daldrup & Söhne AG's business model is largely independent of economic cycles and characterized by a long-term order environment for public services. Public awareness of the necessity of a heat turnaround, away from fossil energies towards decarbonized generation, has increased significantly. This provides Daldrup & Söhne AG with a strong tailwind for its drilling services - from boreholes for geothermal probes for the residential and commercial sectors to large-scale deep geothermal projects for municipal executing agencies and industrial companies. From the Heat Pump Initiative to the Building Energy Act and the Municipal Heat Planning Act to the BMWK's key issues paper "Geothermal Energy for the Heat Turnaround," support and funding through legal frameworks is clearly picking up speed. This also creates security for investments.

Geothermal energy is one of the most efficient heating technologies. Moreover, it is available almost everywhere, whether as near-surface or deep geothermal energy, and is thus very well suited for a decentralized and base-load-capable heat supply.

Executive Board looks confidently to fiscal 2023

As of mid-May 2023, the order backlog stands at EUR 33.2 million, which means that crews and drilling equipment will be working to capacity until 2024. The market volume under negotiation is developing dynamically and reached a level of EUR 203 million (EUR 104 million) at the end of April 2023. Against this background, the Management Board of Daldrup & Söhne AG is confident to generate a consolidated total output of around 41 million euros in the current year 2023 and to achieve an EBIT margin resulting from the operating business of between 3 % and 5 % of the total output. This conservative earnings forecast is based on the expansion of the IT systems and the costs incurred in 2023 for increasing the performance of a large drilling rig.

Note

The full Annual Report 2022 with more detailed information as well as on the planned development in fiscal year 2023 and the key points of the business model is available for download at https://daldrup.eu/de/ir/ under Corporate Reports 2023.

About Daldrup & Söhne AG

Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a corporate history spanning more than 75 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 shares of Daldrup & Söhne AG are listed in the Scale (sub-segment in the open market of the Frankfurt Stock Exchange).

Disclaimer

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

     Fon +49 (0)2593-9593-29

     Fax +49 (0)2593-9593-60

Bajuwarenring 17a   [email protected]

82041 Oberhaching   www.daldrup.eu