CORPORATE NEWS

 

Daldrup & Söhne AG with EBIT loss in financial year 2018

- Realignment of the Group

- Completion of Taufkirchen geothermal power plant delayed

- Landau geothermal power plant runs trouble-free

- Daldrup & Söhne AG acquires further shares (22.88 %) in Geysir Europe

- Order backlog good at EUR 48 million

- Forecast 2019: 40 million euros total operating performance, break-even at EBIT level

Grünwald / Ascheberg, 22 May 2019 - The drilling technology and geothermal specialist Daldrup & Söhne AG (ISIN DE0007830572) will report an EBIT result of between minus 14 million euros and minus 17 million euros at Group level for the 2018 financial year according to preliminary, unaudited figures. The total operating performance will amount to around EUR 37 million. The earnings forecast for 2018 of an EBIT margin of 2 percent to 5 percent with a total operating performance of EUR 40 million will not be achieved.

The order situation is good. The order backlog at the end of May 2019 was around EUR 48 million, and the order pipeline is also satisfactorily filled with a volume of EUR 105 million. Daldrup & Söhne AG is therefore expecting total Group performance of around 40 million euros and a balanced EBIT result for the current 2019 financial year.

In addition to one-off valuation adjustments, losses from operating activities also contributed to the loss at EBIT level in the 2018 financial year. The latter are due in particular to the dynamic price development for materials and services, the drilling projects calculated for the years 2015 to 2017 and weather-related project delays at the beginning of the financial year. In addition, one of Daldrup & Söhne AG's large drilling rigs was not in operation in the second half of the year due to a delayed customer order (now placed). This can be attributed fictitiously to a lost EBIT contribution of around EUR 5 million. In addition, the continuing delay in the final completion and commissioning of the Taufkirchen geothermal power plant had a negative impact on earnings. The Landau power plant ran according to plan and trouble-free throughout the first half of the year and after a successful scheduled overhaul from mid-November 2018 to the present day.

The Executive Board will propose to the Supervisory Board a realignment of the Group with a focus on the drilling services business and on investment models in the power plant division, which corresponds to the medium-sized orientation of the Daldrup & Söhne Group. The company will focus on proven standard components and system solutions in the power plant division. Daldrup & Söhne AG will publish further information in due course.

With effect from 1 April 2019, Daldrup acquired a further 22.88% of the shares in Geysir Europe GmbH from Curd Bems, the member of the Management Board responsible for power plants and energy who left the company on 14 March 2019. Daldrup thus holds 97.89 % (previously 75.01 %) of the shares. The indirect share of Daldrup & Söhne AG in the project company Taufkirchen and the operating company Landau also increases to 72.06% (previously 55.21%) and 97.89% (previously 75.01%) respectively.

About Daldrup & Söhne AG
Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a corporate history spanning more than 70 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).

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
Phone +49 (0)2593-9593-29
Fax +49 (0)2593-9593-60
Bavariafilmplatz 7
82031 Grünwald/Geiselgasteig
Germany