DGAP-News: 2G Energy AG confirms sales and earnings guidance for 2022, 2024 and 2026

2G Energy AG confirms sales and earnings guidance for 2022, 2024 and 2026

• Interest in and new order intake for CHP systems with alternative gases record strong growth worldwide.
• New order intake for natural gas CHP systems as a transitional solution and as a hedge remains at a high level.
• Supply chain remains intact and enables high monthly output.
• Order book position approaches the EUR 200 million level for the first time

Heek, July 8, 2022 – 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) systems, confirms its guidance for net sales for the current financial year of between EUR 280 million and EUR 310 million.

Interest in and new order intake for CHP systems with alternative gases is recording strong growth worldwide.

The expected permanent increase in energy prices worldwide enhances the economic viability of CHP systems, as the additional technical expenses associated with operating a CHP system, particularly maintenance and depreciation, become less important in relation to fuel costs and, in particular, yields for thermal and electrical energy. This is especially true for CHP systems that run on gases other than natural gas, as their fuel costs have increased at a significantly lower rate than their yields. If waste gases (such as landfill gas, gas from purification plants, etc.) are recycled, fuel costs are often unchanged while income growth of several hundred percent is possible.

This fundamental connection is reflected in a tangible increase in global interest in CHP systems that run on gases other than natural gas.

New order intake for natural gas CHP systems as a transitional solution and as a hedge remains at a high level.

The economic efficiency of natural gas CHP systems, which has also risen sharply in some cases, is leading to sustained high demand and a corresponding intake of new orders for this type of CHP system, which acts not only as a transitional solution on the path to the purely regenerative age but also as a means of securing on-site supplies. The ability to convert natural gas CHP systems in the 100 to 1,000 kW power range to operation with 100% hydrogen is proving to be very beneficial.

With the complete halt in deliveries of Russian natural gas to the Netherlands and Denmark at the end of May, discussions about potential gas shortages in Germany have increased once again. Nevertheless, new order intake in Germany for natural gas CHP systems again reached a level in June that stood well above the long-term June average for natural gas CHP systems in Germany, and fell short of the prior-year level by only around EUR 1 million.

“This high level of new order intake in Germany – including in this special situation – is very understandable,” notes CEO Christian Grotholt. “This is because these CHP systems can be converted at any time to all types of hydrogen, especially also of green origin, thereby forming a reliable foundation both on the path towards, and in the context of, carbon neutral energy supplies.”

Supply chain remains intact and enables high monthly output.

Even during the Covid-19 pandemic, the established network of suppliers, combined with forward-looking procurement planning, proved to be very resilient and reliable. At no time during the pandemic has a customer construction site been subject to delays due to a 2G CHP system not being delivered on time.

Consequently, 2G remains confident that it will maintain its high level of final invoicing for the rest of the year.

Order book position approaches EUR 200 million level for the first time

According to preliminary and as yet unconsolidated figures, 2G expects its order book position at the end of the second quarter to be recorded in the region of EUR 200 million. Despite monthly deliveries remaining intact, this would represent a new high, which will lead to full capacity utilization throughout the entire winter.

“Full capacity utilization over the winter is of great importance in this challenging geopolitical situation, as we consider a restriction of gas supplies in Germany to be at least possible over the coming months,” comments CFO Friedrich Pehle. “However, it remains to be said that potential gas shortages are a serious but ultimately temporary phenomenon that essentially affects only the German market. Nevertheless, the high costs of energy worldwide will remain, and for many years to come.”

2G Energy AG confirms net sales and earnings guidance for 2022, 2024 and 2026

The Management Board estimates that a potential gas shortage might exert only a temporary negative effect on new order intake for natural gas CHP systems in Germany, which account for around 22% of Group net sales, even though this conceivable restraint is not yet reflected in the current new order intake. At the same time, permanently high energy prices have a positive effect on the entirety of the Group’s sales.

The net sales and earnings guidance for the current year (net sales: EUR 280 million to EUR 310 million, with an EBIT margin of 6 to 8%) is expressly confirmed. The same applies to the guidance for 2024 (net sales: EUR 330 million, with an EBIT margin of 10%) and 2026 (net sales: EUR 400 million, with an EBIT margin of 8.5 to 10%). 

 

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 conversion 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 750 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 266 million in the 2021 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.

2022 calendar dates

August 25  Hamburger Investoren Tage

September 5  Consolidated financial statements for H1 2022
September 5-6  Autumn Conference, Frankfurt
November 21  Q3 key figures and business trends
November 28-30  German Equity Conference, Frankfurt

IR contact

2G Energy AG
Benzstrasse 3, 48619 Heek
Phone: +49 (0) 2568 93 47-2795
Fax: +49 (0) 2568 93 47-15
Email: [email protected]: www.2-g.de