Half-year statement: Revenue and EBIT growth from continuing business – half-year results impacted by sale of business areas

Copenhagen, 2017-08-15 12:59 CEST (GLOBE NEWSWIRE) -- Topsoe’s continuing business delivered revenue of DKK 2,549 million in the first half of 2017, while EBIT amounted to DKK 452 million, resulting in an EBIT margin of 17.7%.

As described in the Annual Report for 2016, restarted contracts led to an extraordinary increase in revenue and EBIT last year. The revenue and EBIT growth rates have been adjusted for this one-time effect of DKK 93 million in the first half of 2016.

“Taking these factors into account, our continuing business delivered satisfactory results in the first half of 2017 which are in line with our outlook. The organic growth in revenue and EBIT from our continuing business shows that our core business continues to be very healthy,” says Peter Rønnest Andersen, CFO, Haldor Topsoe.

On June 20, 2017, Topsoe announced that it had sold its emissions control business areas to Umicore. The divestment involves a total estimated loss of DKK 444 million (mainly related to an impairment loss), which is recognized in the financial statements for 2017. In the longer term, the divestment provides financial headroom to increase Topsoe’s strategic focus on developing new sustainable solutions and expanding the core business within energy-efficient, clean, and integrated solutions for the petrochemical and refining industries. The divestment is subject to customary closing conditions and is expected to be finalized around year-end.

Assuming that the closing of the transaction is completed by year-end, 2017 total revenue (incl. the emissions control business) is expected to be in line with 2016 revenue. Net profit will decrease significantly as a consequence of the impairment loss recorded in 2017 and the one-time positive effect of restarted contracts in 2016. The sales proceeds will have a significant positive impact on cash flow. For the continuing business, full-year 2017 revenue and EBIT are expected to be on par with 2016 levels, when adjusting for the one-time positive effect in 2016. The forecast does not include any impact from potential tightening of international sanctions, which could influence Topsoe’s business in certain geographies.

**

Financial highlights

• The total estimated loss related to the divestment of Topsoe’s emissions control business areas was DKK 444 million, mainly in the form of an impairment loss.
• Revenue from continuing business amounted to DKK 2,549 million, an increase of 1% compared to the same period in 2016. Adjusting for the one-time effects of restarted contracts in 2016, revenue from continuing business increased by 5% compared to the same period in 2016.
• EBITDA from continuing business was DKK 570 million, equal to an EBITDA margin of 22.4%. Adjusting for the one-time effects of restarted contracts in 2016, EBITDA from continuing business increased by 6% compared to the same period in 2016.
• EBIT from continuing business was DKK 452 million, equal to an EBIT margin of 17.7%. Adjusting for the one-time effects of restarted contracts in 2016, EBIT from continuing business increased by 8% compared to the same period in 2016.
• Cash flow from operations before change in working capital was DKK 483 million, whereas working capital increased by DKK 534 million, mainly as a consequence of reduced prepayments, increased account receivables, and increased inventories.
• The equity ratio was reduced to 25.6% by the end of the first half of 2017 as a consequence of the impairment loss from the divestment of Topsoe’s emissions control business areas (compared to 29.5% by the end of the first half of 2016).
• The outlook for 2017 is impacted by the divestment of Topsoe’s emissions control business areas. Assuming that the closing of the transaction is completed by year-end, 2017 total revenue (incl. the emissions control business) is expected to be in line with 2016 revenue. Net profit will decrease significantly as a consequence of the impairment loss recorded in 2017 and the one-time positive effect of restarted contracts in 2016. The sales proceeds will have a significant positive impact on cash flow. For the continuing business, full-year 2017 revenue and EBIT are expected to be on par with 2016 levels, when adjusting for the one-time positive effect in 2016. The forecast does not include any impact from potential tightening of international sanctions, which could influence Topsoe’s business in certain geographies.

Financial highlights for Haldor Topsoe A/S Group (DKK million)

The half-year figures have not been reviewed by the company’s auditors. The audited Annual Report 2017 will be published by Haldor Topsoe A/S on March 20, 2018.

         Svend Ravn, Media Relations Manager, Haldor Topsoe A/S
         Phone: +45 22 75 43 58
         Mail: svra@topsoe.dk