Daldrup & Soehne AG (DE:4DSG) continues to increase its presence in geothermal generation and was recently awarded a new drilling concession for the Neuried claim. The order book remains strong and the macro environment is positive in our view. Daldrup & Söhne is on track to meet FY18 management guidance and we believe further growth is likely in the coming years.
H118 results on track to meet FY18 guidance
H1 results from Daldrup & Söhne showed total output of €22.0m (H117: €22.8m), but EBITDA rose by 34.8%, from €2.3m in H117 to €3.1m in H118. Other operating income, generated by provision reversals and sale of fixed assets, rose by c €0.8m to c €1m and accounted for the majority of the rise in EBITDA. EBIT increased by €0.7m to €1.2m in H118, generating an EBIT margin of 5.5%. H118 operating cash flow was positive and, overall, Daldrup & Söhne appears well on track to meet management guidance for the year of revenue of at least €40m and an EBIT margin of 2–5%.
To read the entire report Please click on the pdf File Below