DGAP-News: 2G Energy AG: Q3 2013 results in line with expectations; dynamic start to FY 2014 expected
(firmenpresse) - DGAP-News: 2G Energy AG / Key word(s): Quarter Results/Market Report
2G Energy AG: Q3 2013 results in line with expectations; dynamic start
to FY 2014 expected
25.11.2013 / 07:30
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Corporate News
2G Energy AG: Q3 2013 results in line with expectations; dynamic start to
FY 2014 expected
- 9M 2013 revenue: EUR 65.8 million (9M 2012: EUR 68.3 million)
- 9M 2013 total operating revenue: EUR 81.6 million (9M 2012: EUR 80.9
million)
- 9M 2013 revenue: EUR 0.3 million (9M 2012: EUR 4.0 million)
- Order book position grows to around EUR 80 million
- FY 2013 forecast confirmed: revenue of EUR 120 million to EUR 140
million, EBIT profit of EUR 3 million to EUR 5 million
Heek, November 25, 2013 - 2G Energy AG (ISIN DE000A0HL8N9), one of the
leading German manufacturers of combined heat and power (CHP) plants,
generated EUR 65.8 million of consolidated revenue during the first nine
months (January 1 to September 30) of the 2013 financial year (9M 2012: EUR
68.3 million). Compared with the end of the first half of 2013, revenue of
EUR 41.9 million, as expected, reflected a marked increase of 57%. Total
operating revenue also grew during the third quarter, by 69% to EUR 81.6
million (9M 2012: EUR 80.9 million). The base of projects that have already
been started increased more than 1.5 fold during the third quarter to reach
EUR 15.8 million (June 30, 2013: EUR 6.4 million), underscoring the
continued strongly seasonally-impacted capacity utilization at the
financial year-end. The order book position for CHP systems stood at around
EUR 80 million at the end of September 2013 (H1 2013: approximately EUR 60
million), with an around 27% export share. Approximately half of these
orders will be shipped and accepted by customers, and thereby become
recognized as sales, before the end of 2013. Service and after-sales
revenue must also be taken into account. 2G will make a strong start to the
2014 financial year with an order book position worth around EUR 40 million
(corresponding to 150 2G modules). Of these orders, approximately EUR 30
million comprises partially-completed work, and around EUR 10 million is
composed of order overhangs. It is expected that further new orders will be
received by the end of 2013.
2G reports EUR 0.3 million of EBIT as of September 30, 2013 (June 30, 2013
EUR -2.1 million). Overall, higher reserve costs for capacity reasons and
extraordinary valuation-related items, as well as unexpectedly weak export
demand - as communicated when the H1 report was published - burdened
profitability during the first nine months of the year (9M 2012: EBIT of
EUR 4.0 million). Consolidated net income after tax for the first nine
months of 2013 stood at EUR 0.4 million (H1 2013: EUR -1.6 million). In
line with the improved profitability during the third quarter, liquid
assets rose from EUR 7.4 million as of the half-year stage to EUR 8.9
million as of September 30, 2013.
The Management Board confirms its FY 2013 forecast (which it adjusted at
the end of September) of consolidated revenue of between EUR 120 million
and EUR 140 million, and a profit before interest and tax (EBIT) of between
EUR 3 million and EUR 5 million. Business in Germany, especially for
natural gas-driven CHP systems, continues to grow, as expected, and a
demand recovery on foreign markets is identifiable during the second half
of 2013. The Management Board assumes that the Group will return to its
growth path during the 2014 financial year.
Demand for CHP systems to provide independent and efficient electricity and
heat supplies is rising. Customer groups such as municipal utilities,
energy supply companies and industrial operations are increasingly opting
for the benefits offered by independent, cost-efficient and
environmentally-compatible energy supplies. CHP systems are the key to a
successful energy revolution because they represent supply security, the
sparing utilization of resources and predictable energy costs. Their
successful development in Germany provides a blueprint for many countries
in Europe and overseas.
More lively demand from export markets; Germany remains strong in natural
gas market; capacity expansions drive biogas market recovery
2G has experienced more lively demand and a good new order intake trend
(currently together 50 systems on order) over the past months, especially
from the United Kingdom, Italy and the USA. From Italy (18 systems), 2G is
again experiencing brisk demand after concluding a registration and
contract award procedure. 2G's product offering includes an agenitor 408
with 300 kW electric output, which is especially adapted to the Italian
biogas market's needs. The 300 kW class is very viable for plant operators
as a result of statutory changes. The market for natural gas-driven CHP's
is becoming increasingly attractive for investors thanks to a high spark
spread.
In the USA (18 systems; 50/50 split between biogas and natural gas
projects), the start of economic recovery is being accompanied by a demand
revival, and the order books of US sales and service unit 2G Cenergy are
filling up. These orders relate mainly to larger projects with average
system output of around 500 kW. In Europe, the average system sold by 2G
has approximately 250 kW output. Further major orders for modular
biogas-driven CHPs in the waste and materials recycling area are in the
final project phase. 2G Cenergy is expanding its sales and service network
on a targeted basis, including through cooperation ventures with resellers,
engineering offices and through industry-specific networks, as well as
through working with associations. The company plans as a next step to
create sales bureaus on the West and East coasts, as well as in the
Midwest. Following its own market survey, 2G assumes that it commands an
approximately one-third share of the US market for biogas-driven CHPs
(based on the last 24 months' new biogas projects). As far as the USA is
concerned, 2G expects continuous organic growth and sales revenue growth in
line with overall CHP market growth. A subsidy backdrop for CHP systems
similar to that in Europe - although especially in Germany as a result of
the German Renewable Energies Act (EEG), which has fed through to boom-type
growth - is not expected in the USA. 2G is currently having its CHP systems
for the US market undergo UL certification (industry norm). UL
certification makes approvals procedures for more rapid grid connection
easier. 2G is assuming that it will receive such certification by the end
of the first quarter of 2014.
In the United Kingdom (14 systems for biogas operation), an attractive
subsidy backdrop for biogas plants continues to exist, allowing 2G's CHPs
to be sold directly through its subsidiary and through German biogas
system-builders as resellers. 2G is focusing on the Europe and America
regions. These core markets exhibit clear growth potentials until 2020 - as
also backed up by independent studies - and attractive risk-opportunity
profiles.
Growth on the German market, especially for natural gas-driven CHP's,
remains good. Orders came particularly from industrial customers, municipal
utilities, major energy suppliers and energy contractors (IPPs, Independent
Power Producers). Municipal utilities, as special-purpose operations, are
investing in decentralized, efficient and cost-favorable energy supplies
for cities, communities and their citizens. Major utility companies are
beginning to convert their power plant business models to smaller,
decentralized, flexible and manageable CHP technology. This is also the
precondition for utility groups to participate in the creation of
infrastructure for so-called virtual power plants (VPPs). Electricity
generated from wind and solar is to be networked with electricity derived
from CHP's within such VVPs in the future, as well as with - temporarily
and on a continued basis - fossil fuel-fired power plants, in order to
create constant electricity supplies via control centers. CHP plants play a
key role here, as only they can act efficiently as offsetting and
stabilizing factors on a minute by minute basis. Industry and the housing
sector are also increasingly discovering the economic benefits of
independent electricity and heating/cooling utilization. 2G has installed
CHPs for Merck, Kraft Foods, Metro and Zentis, among others.
In mid-November, 2G presented for the first time its agenitor 408 CHP with
360 kW electric output, at the leading agricultural trade fair,
Agritechnica in Hanover. The V8 engine equipped module offers 42.5%
electric efficiency. Either natural gas or biogas can be utilized as fuels.
Interest from both German and foreign specialists at 2G's 140 m²stand was
extremely lively across the entire product range. For the first time, the
company also concluded CHP purchase agreements directly at the trade fair.
Legal basis clarified for repowering biogas plants in Germany
With a ruling to define the term 'plant' in the case of biogas systems, the
German Federal High Court at the end of October created the preconditions
for repowering plants in Germany. Legal security had previously been
lacking as to which payments under the German Renewable Energies Act (EEG)
were to be attributed to a biogas-driven CHP following a general overhaul,
or replacement investment and re-dimensioning - for instance after
attaining a lifetime output of around 60,000 operating hours. The
legislator had failed to create a regulation that determines how the higher
electricity volume of a new CHP compared with an old system can be
compensated. In its ruling, the Federal High Court speaks of an 'expanded
term' for 'plant'. In other words, the EEG payment rates are also
applicable for replacement investment and re-dimensioning measures for the
year when the original biogas system went into operation. 2G is assuming
that, over the coming quarters, biogas system operators will make greater
investments in repowering their plants from the initial boom years of 2004
to 2006.
2G Energy AG company profile
2G Energy AG is one of the internationally leading providers of CHPs for
decentralized combined heat and electricity supplies. 2G's product
portfolio offers electrical output between 2G kW and 2,000 kW for operation
with natural gas, biogas or biomethane. 2G has successfully installed more
than 4,000 modules in 25 countries to date. Its customer base spans
agricultural and industrial operations, local authorities, the housing
sector and large energy utilities. The high level of satisfaction among the
company's customers is closely connected with its dense service network and
the high technical quality and performance of 2G power plants. Through
combined heat and power generation, such plants achieve total efficiencies
of between 85% and far higher than 90%. 2G is consistently expanding its
technology leadership through continuous research and development work.
Along with the construction and manufacturing of CHP systems, the company,
which is based in Germany's Münsterland region, offers comprehensive
solutions ranging from planning and installation through to service and
maintenance.
In the context of Germany's new energy policy, CHPs within smart grids -
so-called virtual power plants - are becoming rapidly important due to
their predictable availability. 2G Energy (ISIN DE000A0HL8N9) is listed in
the Entry Standard of Deutsche Börse AG. The share capital amounts to EUR
4,430,000, and is split into 4,430,000 shares. As of June 30, 2013, the
company's founders held 56.0% of the shares, with the free float amounting
to 44.0%. In the 2012 financial year (January 1 to December 31), 2G Energy
generated EUR 146.5 million of revenue, EUR 16.6 million of earnings before
interest and tax (EBIT), and EUR 11.3 million of net income. The company
currently employs 486 staff.
Forthcoming dates in 2013
December 10, 2013 Prior Börse Capital Market Conference,
Frankfurt-Egelsbach
Further information: www.2-g.de
IR contact
2G EnergyAG
Benzstr. 3, 48619 Heek
Telephone: +49 (0) 2568 93 47-2795
Fax: +49 (0) 2568 93 47-15
E-mail: ir(at)2-g.de
Internet: www.2-g.de
End of Corporate News
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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(at)2-g.de
Internet: www.2-g.de
ISIN: DE000A0HL8N9
WKN: A0HL8N
Listed: Freiverkehr in Berlin, Düsseldorf, Stuttgart; Frankfurt in
Open Market (Entry Standard)
End of News DGAP News-Service
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241381 25.11.2013
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