Topsoe delivers solid financial results for first half-year 2024

Read the full report here

Topsoe, a global leader in carbon emission reduction technologies, delivers its financial results for the first half of 2024. Revenue and earnings remain solid and are supported by strong margins.

The financial results come on the heels of a first half-year where the business environment was affected by inflation, high interest rates and a general slow-down in Europe. Delays in finalizing regulatory guidance, cost increases for CAPEX projects and high interest rates have led to a low conversion of announced projects to final investment decision. Clear, consistent and impactful policies and regulations are urgently needed for more energy transition projects to reach FID.

Despite the current market conditions, Topsoe continues to see a strong demand for its technologies and solutions within renewable and low-carbon fuels. Further, the award of a more than $135 million U.S. tax credit allocation under section 48C of the Inflation Reduction Act (IRA) is a resounding recognition of its Solid Oxide Electrolyzer Cell (SOEC) technology. The allocation will support construction of an SOEC factory in the U.S. Pending FID, the manufacturing facility will be built in Chesterfield, Virginia and further supported by a $6 million grant from the Commonwealth Opportunity Fund.

Financial highlights

• Revenue for the first six months was DKK 4,150 million (DKK 4,664 million in the same period 2023).
• EBIT before special items was 7% higher at DKK 503 million (DKK 472 million) as a result of higher gross margins and a strong focus on operating costs.
• 19% of revenue, around DKK 800 million, came from business related to technologies and solutions that enable the energy transition.
• Based on our current projections and first half-year results we expect revenue in the range of DKK 8,200-8,600 million (previous range 8,300-8,800) and we expect EBIT margin in the higher end of the guided range (8.0-10.0%).
  
  

Roeland Baan, CEO, Topsoe said:
“In the first six months of 2024, our business has delivered solid results, and we’re on track to deliver yet another strong full-year result. We continue to see an increasing demand for our solutions for sustainable aviation fuel (SAF) and renewable diesel as well as hydrogen produced from either renewable energy or natural gas with carbon capture and storage. However, despite our growing pipeline, not enough projects are moving from ‘announced’ to ‘committed’, and this delay is posing a serious threat to the global target of reaching net zero by 2050. Clear regulatory guidance is urgently needed for further clean hydrogen projects to reach FID.”

“We stay committed to supporting the energy transition and are excited to start operations at our first SOEC factory in Herning, Denmark by the end of the year. This is a big step forward in our capabilities to take a leading position in the energy transition – a position that will be further cemented with a potential factory in the U.S. Pending final investment decision on the U.S. factory, the two facilities combined would make Topsoe the largest SOEC manufacturer in the world.”

About Topsoe
Topsoe is a leading global provider of technology and solutions for the energy transition. We combat climate change by helping our customers and partners achieve their decarbonization and emission reduction goals.

Based on decades of scientific research and innovation, we offer world-leading solutions for transforming renewable resources into fuels and chemicals for a sustainable world, and for efficient and low-carbon fuel production and clean air.

We were founded in 1940 and are headquartered in Denmark, with over 2,800 employees serving customers all around the globe. To learn more, visit www.topsoe.com. 

For more information, please contact:

Media relations
Ulrik Frøhlke, Media Relations Manager
Phone: +45 27 77 99 68
Mail: ulfr@topsoe.com

Investor Relations
Anders Hindum, Senior Director
Phone: +45 22 75 46 43
Mail: anhi@topsoe.com