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Daldrup & Söhne AG fully consolidates geothermal plants of Taufkirchen and Landau

Landau geothermal power plant, Germany (source: Claus Ableiter, creative commons)
Alexander Richter 8 Oct 2018

German drilling and geothermal company Daldrup & Söhne AG has now consolidated the geothermal power plants of Landau and Taufkirchen, and expects the Taufkirchen plant to ramp up capacity in the spring of 2019.

German drilling and geothermal company Daldrup & Söhne AG announces that 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. This was announced in its financial results for the first half of 2018.

The first-time full consolidation of the power plant business activities for the Taufkirchen site has a significant impact on the consolidated balance sheet as of June 30, 2018. The Daldrup Group has acquired additional shares in Kraftwerksgesellschaft Taufkirchen during the period under review and now holds 55 percent of the company’s shares. The unit’s consolidation contributes to a substantial rise in Daldrup & Söhne’s balance sheet total to EUR158.8 million as of the reporting date compared to EUR101.7 million on December 31, 2017. Total fixed assets increased to EUR 118.6 million (EUR 59.6 million) following the full consolidation of the Taufkirchen power plant business activities. 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.

Despite the first-time consolidation, the balance sheet continues to be solid with an equity ratio of 46.2 % (December 31, 2017: 45.3 %). Both the subscribed capital (EUR6.0 million compared to EUR 5.4 million a year earlier) and the capital reserve (EUR36.4 million after EUR 30.5 million the previous year) increased following a successful equity issue in Q1. Liabilities rose to EUR73.2 million compared to the December 31, 2017, balance sheet date when they were EUR48.5 million. Much of this is due to financing the acquisition of shares in the Taufkirchen power plant project. Liabilities to credit institutions were reduced by 26.5 %, resulting in a significant drop to EUR 10.5 million (2017: EUR 14.5 million).

Following the commissioning of its first evaporator and the start of electricity generation at the Taufkirchen geothermal power plant, the second stage of the plant’s planned capacity increase is about to start. This will require a second evaporator, which will be delivered and installed in the coming months. From the current perspective, the company will be able to begin ramping up to full electricity generation capacity once the heating period gradually winds down in spring 2019. At that time, the plant will contribute significantly to consolidated cash flow for the first time.

Source: Company release