Thursday, June 6, 2019

Germany: Daldrup & Söhne AG to Concentrate More on Geothermal Drilling Services

Daldrup & Söhne AG realigns business model - Cash flows from power plants remain in focus (News Release)

At EUR 38.9 million, sales were significantly higher than in the previous year (EUR 24.8 million), as several deep geothermal wells were completed and accepted in Germany, Belgium and the Netherlands.

On the one hand, the 2018 financial year was characterised by a very good order situation in all four business areas and the technical resumption of operation of the Landau geothermal power plant for electricity production. On the other hand, a number of one-off effects, special circumstances with regard to drilling orders and lower than expected electricity production volumes at the geothermal power plants have pushed earnings well into the red.  In particular, electricity production at the Taufkirchen power plant could not be implemented as planned in the year under review.

As a consequence of the operational development, the Management Board proposed a realignment of the Group to the Supervisory Board. On the one hand, it includes a stronger concentration on the drilling services business. On the other hand, the dimensions of the project and capital risks in the power plant division are to be selected in such a way that they correspond to the medium-sized orientation of the Daldrup & Söhne Group.

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