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Daldrup & Söhne AG confident in its 2018 EUR62m order forecast

Daldrup drilling rig on site in Geretsried, Germany (source: Daldrup & Söhne AG)
Alexander Richter Alexander Richter 8 Oct 2018

Drilling and geothermal company Daldrup & Söhne AG reports confidence in reaching its annual forecast of volume order of EUR 62 million ($73 million) in its half year 2018 financial release. The company expects a high likelihood of EUR 105m pipeline projects.

In a release before the weekend, German geothermal energy and drilling company Daldrup & Söhne AG reports on its financial and operational results for the first half of 2018.

The company reports a well-filled order book, full utilization of capacity in all business divisions and ongoing major geothermal drilling projects for Stadtwerke Munich as well as in Belgium and Switzerland. The demand for drilling services and turnkey geothermal power plants continues to be strong from both investors and municipal authorities. The volume of orders stood at 62 million Euros as of the end of September 2018, which means the Daldrup Group will be working to capacity into 2020.

The company now consolidated the power plant business activities for its Taufkirchen geothermal plant with significant impact on the consolidated balance sheet as of June 30, 2018.

The Landau geothermal power plant has successfully generated energy during the first half of 2018, beating expectations for the first six months of the year. Routine inspection work started during the summer and is expected to be completed during the next two to three weeks.

Both the activities of geox GmbH (the operating company for the Landau power plant) and of the Taufkirchen project corporation are now fully consolidated and are no longer reported at-equity in the company’s financial statements.

In its statement the company confirms its forecast for 2018. The volume of orders (around EUR 62 million/ USD 73 million) and the high likelihood of a pipeline project worth ca. EUR 105 million being commissioned reflect the overall strong demand for drilling services and geothermal power plant projects in Central Europe.

As a well-established competitor that has realized more than 40 major geothermal drillings, Daldrup is in an excellent position to benefit from the rising demand for such services. The company’s next own power plant project is about to get underway following the recent award of the concession for the exploratory field in the Neuried claim.

Thanks to the positive economic environment, the Management Board of Daldrup & Söhne AG is optimistic the company will achieve the forecast of around EUR 40 million total output with a consolidated EBIT margin between 2 % and 5 %. In the context of the predominant project business, this forecast is subject to the successful completion of some large drilling orders and the accounting effect on sales and earnings at the balance sheet date at the latest.

Source: Company release