EQS-News: 2G Energy AG boosts Q3 net sales by around 50 % to approximately EUR 79 million (previous year: EUR 51.5 million)
EQS-News: 2G Energy AG
/ Key word(s): 9 Month figures
Corporate News Heek, October 20, 2022 2G Energy AG boosts Q3 net sales by around 50 % to approximately EUR 79 million (previous year: EUR 51.5 million)
Heek, October 20, 2022 – On the basis of preliminary results, 2G Energy AG (ISIN DE000A0HL8N9), one of the leading international manufacturers of gas-fired combined heat and power (CHP) systems, boosted its net sales in the third quarter by around 50 % to approximately EUR 79.0 million. Both net sales from the final billing of new systems (EUR +16 million or +60 %) and net sales from service (EUR +11 million or +44 %) recorded substantial growth. “As already announced in our corporate news release on September 5, our very high level of factory output in the first half of the year laid the foundation for successfully completing a high number of ongoing projects in the past quarter,” comments COO Ludger Holtkamp. The Management Board regards this as confirmation of its guidance of achieving net sales of between EUR 290 million and EUR 310 million by the end of the year. New order intake in Germany robust at EUR 23.4 million (previous year: EUR 23.8 million) In the past quarter, 2G recorded further demand growth for CHP systems, with the focus of interest on biogas-fueled systems and on systems that can be converted to hydrogen. This increase in customer interest was converted into new order intake in Germany at the previous year’s level (EUR 23.4 million, previous year: EUR 23.8 million). Although the new order intake in the rest of Europe was temporarily down (EUR 7.9 million, previous year: EUR 13.4 million), at the same time the European subsidiaries noted growing interest from customers. Overall, new order intake for new systems amounted to EUR 37.6 million, which is around 14 % lower year-on-year. The composition of new order intake in the past quarter is as follows:
“Our technological openness in terms of fuels – the ability to utilize hydrogen, biogas, natural gas or even a mix, depending on the customer situation and availability – is proving a strategic advantage,” notes CEO Christian Grotholt. “The realization is slowly gaining ground in the market that an early end to the fossil fuel era can be ideally managed with our flexible engine concepts, as fuel switching is possible at any time and at short notice.” Against this background, 2G observes that some of the traditional customer groups currently have existential concerns and are therefore only making legally required investments. The vast majority of companies, however, have no doubts about their own business model and therefore focus their investments on cost-cutting measures, with energy-saving measures and security of supply taking top priority. Net sales guidance for 2023 between EUR 310 million and EUR 350 million The Management Board anticipates net sales of between EUR 310 million and EUR 350 million for the coming year. This confident outlook is based, firstly, on the order book position, which has not decreased below the EUR 200 million level for months. Secondly, the service business in Germany and abroad is now also making a significant contribution to growth in absolute terms. “With our global technology leadership in hydrogen and in combination with our conversion capability from natural gas to hydrogen operation, our CHP units enable the rapid development of a hydrogen infrastructure and thereby contribute significantly to mitigating the chicken-and-egg problem,” comments CTO Frank Grewe. Expected turnover in 2024 of up to 390 million euros with an EBIT margin of 8.5 to 10% (previously for 2024: 330 million euros with 10% EBIT margin) Given long-term higher energy prices and an accelerated development of a hydrogen economy, the Management Board is raising its medium-term guidance. Net sales are expected to amount to as much as EUR 390 million by 2024 (previous forecast for 2024: EUR 330 million). However, given price trends, supply chains, wage agreements and, above all, the serious geopolitical risks, the Management Board is retaining its guidance of absolute earnings potential of EUR 33 million for the time being, corresponding to an EBIT margin of 8.5 to 10 % (previously 10 %). “The way business is currently developing, by 2024 we will be almost where we originally saw ourselves not reaching until 2026, in other words, with net sales of around EUR 400 million and an EBIT margin of 8.5 to 10 %,” notes CFO Friedrich Pehle, underlining the significance of the new guidance. "Of course, we also expect further growth in turnover after 2026. However, due to the many imponderables at present, we are refraining from naming new forecast targets." 2G company portrait The 2G Energy AG Group is an internationally leading manufacturer of decentralized energy supply systems. With the development, production and technical installation as well as digital grid integration of combined heat and power systems (CHPs), the company offers comprehensive solutions in the growth market for highly efficient CHPs. After-sales and maintenance services comprise an important additional performance criterion. The product range especially includes CHP modules in the 20 kW and 4,500 kW range for operation utilizing hydrogen, natural gas, biogas as well as other lean gases. Worldwide, more than 7,000 installed 2G systems in various applications supply electrical and thermal energy to a broad spectrum of customers including companies in the housing industry, agriculture, commercial and industrial companies, public energy utilities, and municipal and local government authorities. 2G benefits from global long-term trends that make efficient and decentralized energy solutions ever more important. These trends include not only rising energy demand but also the need to conserve natural resources. The parallel generation of electrical and thermal energy makes CHP technology more efficient and climate-compatible than conventional power conversion methods, especially when, for example, hydrogen of regenerative origin is harnessed as fuel. 2G power plants can offset wind and solar power plant production fluctuations as required, thereby forming a backbone technology for future supply concepts, especially in the deployment of hydrogen engines. As a consequence, 2G’s customers derive consistent benefits from economically and ecologically highly beneficial innovations that rapidly pay for themselves and create extensive added values. 2G is consistently expanding its technological leadership through continuous research and development work, both in gas engine technology for hydrogen, natural gas and biogas applications, as well as in specific software development. Moreover, in the energy revolution’s future electricity market design, the digitalization that 2G consistently implements forms an indispensable system-relevant element in combination with solar, wind, biogas and natural gas producers, and creates a high barrier to market entry for competitors. 2G employs around 750 staff at its headquarters in Heek, Germany, in North America, as well as at five other European locations. The company is active in more than 50 countries and generated net sales of EUR 266 million in the 2021 financial year. 2G was founded in 1995 and has been listed on the capital market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the “Scale” segment of the Frankfurt Stock Exchange. 2022 calendar dates November 21 Q3 key figures and business trends November 28-30 German Equity Forum, Frankfurt
IR contact 2G Energy AG Benzstrasse 3, 48619 Heek Phone: +49 (0) 2568 93 47-2795 Fax: +49 (0) 2568 93 47-15 Email: [email protected] Internet: www.2-g.de
20.10.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | 2G Energy AG |
Benzstr. 3 | |
48619 Heek | |
Germany | |
Phone: | +49 (0)2568-9347-0 |
Fax: | +49 (0)2568-9347-15 |
E-mail: | [email protected] |
Internet: | www.2-g.de |
ISIN: | DE000A0HL8N9 |
WKN: | A0HL8N |
Indices: | Scale 30 |
Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Stuttgart, Tradegate Exchange |
EQS News ID: | 1467515 |
End of News | EQS News Service |
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1467515 20.10.2022 CET/CEST