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2G Energy AG defies procurement market distortions and boosts total output in Q3

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DGAP-News: 2G Energy AG / Key word(s): 9 Month figures
18.11.2021 / 08:30
The issuer is solely responsible for the content of this announcement.

Corporate News Heek, November 18, 2021

2G Energy AG defies procurement market distortions and boosts total output in Q3

- Total operating performance in Q3 recorded at EUR 67.1 million (previous year: EUR 64.7 million)

- Customers postponing projects due to bottleneck situations

- Q3 final invoices of EUR 51.5 million down on previous year (EUR 61.0 million), while EBIT at satisfactory level (EUR 1.4 million, previous year: EUR 2.7 million)

- Management Board anticipates marked growth in net sales in 2022

Heek, November 18, 2021 - 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) systems, is reporting new record output figures in spite of distortions on the procurement market. Never before has the company achieved a higher total output in a third quarter.

"Actually, from a production point of view, this is the best quarter in the company's history," as CFO Friedrich Pehle stated, "because if you adjust the total output in the quarters for the margin included in each case, it shows that we have never produced more CHP systems in a previous quarter. Stocking up in a timely manner has paid off."

Delayed project progress on the customer side

In the past quarter, however, an increasing number of projects were postponed by several weeks or months at the express request of customers. In many instances, the main reason was delayed project progress as a result of bottlenecks in materials, labor or official approvals on the customer side. "Currently, more than 40% of customers are postponing their projects by more than one month. The important thing for us is that we have not had any cancellations. The unfortunate distortions as a result of the continuing Corona impact are fortunately temporary. Like many others, we expect conditions to normalize in the first half of 2022", as CEO Christian Grotholt explains.

Despite meeting the promised delivery dates, 2G was therefore only able to close the third quarter with sales of EUR 51.5 million (previous year: EUR 61.0 million). These delays in the final invoicing of projects, however, impacted on the result in the third quarter. Thus, 2G generated an EBIT of EUR 1.4 million (previous year: EUR 2.7 million).

Management Board confirms sales and EBIT forecast for 2021

With a look to the current fourth quarter, the Management Board expects to be able to offset only part of the backlogs in sales. Despite the significant increase in orders on hand at the beginning of the quarter (EUR 168.4 million, previous year: EUR 145.8 million), the multifaceted bottleneck situations on the customer side will not be resolved in the short term.

Consequently, the Management Board expects quarterly sales to be recorded at a comparable level to the previous year (previous year: EUR 100.2 million). The sales forecast on an annual basis of EUR 250 to 260 million is thereby confirmed, the EBIT margin is also expected to be in the forecast of 6.0 to 6.75%.

Management Board anticipates further sales growth in 2022

In view of the continuing upbeat order intake, combined with the ongoing steady growth in the service business, the Management Board anticipates further corporate growth in the coming year. The range for expected sales revenue is currently still cautiously stated at between EUR 260 and 290 million.

Consolidation of HJS Motoren GmbH

As has emerged from the dialog with the auditors, the sales revenues of HJS Motoren GmbH - in contrast to the presentation in the half-year financial statements - will no longer be consolidated since the beginning of the current fiscal year, but since the date of acquisition (May 20, 2021). The Company generated revenues of EUR 2.0 million in the third quarter and EUR 2.7 million in the period from the beginning of June to the end of September. Due to the pandemic situation in the first few months of the current year, HJS Motoren GmbH generated only small contributions to earnings from January to May, meaning that the corrective impact on Group EBIT is marginal.



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. Aftersales 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 energy production 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. 2G's customers thereby 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 establishes a high barrier to market entry for competitors.

2G employs around 700 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 247 million in the 2020 financial year. 2G was founded in 1995 and has been listed on the stock market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the "Scale" segment of the Frankfurt Stock Exchange.

2021/2022 calendar dates
November 22-24     German Equity Forum (virtual)
February 3               Pareto Securities' 24th annual Power & Renewable Energy Conference
February 24             Announcement of Preliminary Net Sales 2021
March 31                 Preliminary results for FY 2021, 2022 guidance
April 22                    Consolidated financial statements for FY 2021
May 19                    Q1 key figures and business trends
June 3                     Ordinary AGM, Ahaus
September 8           Consolidated financial statements for H1 2022
November 21          Q3 key figures and business trends

IR contact
2G Energy AG
Benzstrasse 3, 48619 Heek
Phone: +49 (0) 2568 93 47-2795
Fax: +49 (0) 2568 93 47-15
Email: ir@2-g.de
Internet: www.2-g.de


18.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

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:

service@2-g.de

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:

1250008


 

End of News

DGAP News Service

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