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FRIEDRICH VORWERK grows first-half revenues by 16% to € 166 million with a lower EBITDA margin of
8% and adjusts forecast for 2023 financial year

Tostedt, 26 July 2023 - Friedrich Vorwerk Group SE (ISIN DE000A255F11), a leading provider of energy infrastructure solutions for gas, electricity and hydrogen applications, achieved revenues of € 92.5 million in the second quarter of 2023 based on preliminary figures, thus following on from the strong first quarter. In the first half of 2023, turnover thus amounts to € 165.6 million, which corresponds to a growth of 16.0 % compared to the previous year. In addition to the large-scale district heating projects in Hamburg and Bremen, the drivers of the strong revenue development were the connecting pipelines for the LNG terminals in Brunsbüttel and Wilhelmshaven. Order intake rose by 25.1% to € 315.3 million in the first six months, bringing the order backlog to € 467.1 million.

EBITDA in the second quarter is € 8.0 million, which corresponds to a margin of 8.7%. The adjusted EBIT for the same period is € 3.6 million, the EBIT margin at 3.9%. For the half-year, both EBITDA, at € 13.6 million and 8.2% margin, and adjusted EBIT, at € 4.9 million and 2.9% margin, are significantly below the corresponding figures of the previous year. The reasons for the weak profitability lie not only in the foreseen cost pressure for materials and personnel, which weighs particularly heavily on old projects, but also in the follow-up work on the Wilhelmshaven LNG connection pipeline and delays in the Brunsbüttel LNG connection pipeline. Shortly after the start of the project, deadlines for the Brunsbüttel connection pipeline were postponed and significant changes to the order were made. Despite the urgency of the project, it has not yet been possible to reach an agreement with the customer on the assumption of these costs. Due to the current high level of uncertainty, additional cost burdens in connection with this major project cannot be ruled out for the rest of the year. Against this backdrop, the management expects higher revenue of over € 330 million for the 2023 financial year, but reduces the profitability forecast to an EBITDA margin of 8-11%.

Despite the current lower profitability level, the outlook remains positive. By the end of the year, the management again expects a record order backlog.  Particularly noteworthy is the major project A-North, where the decision on entering the next phase, which includes the realization of all agreed planning and construction services, is imminent. It is already becoming apparent that the project volume will likely exceed the previously communicated range of € 850 to 1,100 million, of which Bohlen & Doyen, a subsidiary of FRIEDRICH VORWERK, will account for about 40 %.

Contact Details

Friedrich Vorwerk Group SE
Niedersachsenstraße 19-21
21255 Tostedt
Tel +49 4182 – 2947 0
Fax +49 4182 - 6155
[email protected]
www.friedrich-vorwerk.de

Management Board
Torben Kleinfeldt (CEO)
Tim Hameister

Chairman of the Supervisory Board
Dr Christof Nesemeier

Court of Registration
District Court of Tostedt, registration number: HRB 208170