2G Energy AG defies procurement market distortions and boosts total

DGAP-News: 2G Energy AG / Key word(s): 9 Month figures
18.11.2021 / 08:30
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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…