Daldrup & Söhne AG increases EBIT by 42.6 % in 2023

EQS-News: Daldrup & Söhne AG / Key word(s): Annual Results/Market Report
Daldrup & Söhne AG increases EBIT by 42.6 % in 2023

03.06.2024 / 06:50 CET/CEST
The issuer is solely responsible for the content of this announcement.

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CORPORATE NEWS

Daldrup & Söhne AG increases EBIT by 42.6 % in 2023

* EBIT margin of 5.3 % above the forecast range for 2023

* Total output 18 % above forecast at 48.4 mio. Euro

  * Order backlog at 38.5 million euros, relevant market volume at 260 mio.
    Euro

  * 2024 forecast: total operating performance of around 47 mio. Euro, EBIT
    margin between 5 % and 7 %

Oberhaching / Ascheberg, June 3, 2024 - The drilling technology and
geothermal specialist Daldrup & Söhne AG (ISIN DE0007830572) achieved
consolidated earnings before interest and taxes (EBIT) of EUR 2.6 million
(previous year: EUR 1.8 million) in the 2023 financial year (January 1 -
December 31), calculated in accordance with the German Commercial Code
(HGB). This corresponds to an increase of 42.6 % compared to the previous
year. The EBIT margin in relation to total output is therefore 5.3 %
(previous year: 4.9 %) of total operating performance and therefore above
the forecast for the reporting year (3 % to 5 %). At EUR 48.4 million, the
Group's total output is well above the forecast (around EUR 41 million) and
also above the previous year's result of EUR 36.9 million. The typically
volatile nature of large drilling orders led to consolidated sales of EUR
49.1 million in the reporting year - a pleasing and significantly higher
level than in the previous year (EUR 38.2 million). Consolidated net income
for the year amounted to EUR 890 thousand (previous year: EUR 852 thousand).
Earnings per share (EPS) thus amounted to EUR 0.15 (previous year: EUR
0.14). The Group's equity ratio remains comfortable at 50.6 % (previous
year: 49.7 %).

The aforementioned key figures document the pleasing development of Daldrup
& Söhne AG in 2023. In addition to the improved order situation, the core
business was strengthened by technical innovations and investments in the
equipment fleet, including components built in-house and services provided
by affiliated companies. As a result, the company has made good progress
towards improving efficiency in projects and in the company organization and
further increasing profitability.

Business model benefits from the decarbonization of heat supply

The business model of Daldrup & Söhne AG is largely independent of economic
cycles and is characterized by a long-term order environment for the
provision of public services. Overarching, the ongoing geopolitical and
energy policy challenges as well as progressive climate change are
strengthening the importance of geothermal energy as a solution component
for an independent, decentralized and climate-friendly energy supply. The
implementation of the heating transition, away from fossil fuels and towards
decarbonized generation, is now a fixed criterion for investment decisions
by municipalities as well as industrial and private investors. This is
complemented by an emerging regulatory framework that enables more
attractive development, investment and operating conditions for drilling
companies as well as power plant and heating network operators. In Germany,
this includes the Building Energy Act, the Municipal Heat Planning Act and
federal funding for efficient heating networks. As a result, conditions are
gradually beginning to improve for market participants. This contributes to
the urgently needed planning and investment security for the coming years.

Management Board optimistic for the 2024 financial year

At EUR 38.5 million as at the end of March 2024, the order backlog is at a
high level and will keep crews and drilling equipment busy until 2025. The
market volume under negotiation is developing dynamically and reached a
pleasing EUR 260 million at the end of March 2024. These figures
impressively reflect the vital interest in our services. Daldrup is well
positioned in the market and is a sought-after source of expertise and
valued drilling service provider. Against this background, the Management
Board of Daldrup & Söhne AG is confident that, if business develops as
planned, it will generate total Group revenues of around EUR 47 million in
2024 and achieve a significantly higher EBIT margin of between 5 % and 7 %
of total output from the operating business.

Note

The 2023 Annual Report with more detailed information and the planned
development in the 2024 financial year and the key points of the business
model is available for download at https://daldrup.eu/de/ir/ under Corporate
Reports 2024.

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) and part of the Scale30 Index.

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 von Kriegsheim

Fon +49 (0)2593-9593-29

Fax +49 (0)2593-9593-60

Bajuwarenring 17a ir@daldrup.eu

82041 Oberhaching www.daldrup.eu


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   Language:       English
   Company:        Daldrup & Söhne AG
                   Bajuwarenring 17a
                   82041 Oberhaching
                   Germany
   Phone:          +49 (0) 89 / 45 24 37 920
   Fax:            -
   E-mail:         ir@daldrup.eu
   Internet:       www.daldrup.eu
   ISIN:           DE0007830572
   WKN:            783057
   Indices:        Scale 30
   Listed:         Regulated Unofficial Market in Berlin, Dusseldorf,
                   Frankfurt (Scale), Hamburg, Munich, Stuttgart,
                   Tradegate Exchange
   EQS News ID:    1915887

End of News EQS News Service
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1915887 03.06.2024 CET/CEST