DGAP-News

Muehlhan AG: Muehlhan AG publishes results for financial year 2020 - Seite 2

A geographic review shows that revenues in Europe increased by 2.3% to €238.8 million despite the COVID-19 pandemic. A key factor for the increase was the successful expansion of wind service activities. EBIT fell by €2.2 million to €8.6 million since most of the European companies were hit by the effects of the pandemic. By contrast, in the Middle East revenues fell significantly by €8.5 million to €14.3 million. This decline was caused by the effects of the pandemic, lower investments generally and selective project screening. EBIT was negatively affected by impairments of trade receivables and retentions and came in at a very low €-2.6 million. Business in North America came to a virtual standstill due to the pandemic. Revenues came to just €4.6 million compared with €24.4 million in the previous year. EBIT fell to €-2.3 million compared with an above-average €3.5 million the previous year for project-related reasons. The situation in the Rest of the World was similar. Travel restrictions and platform closures made it virtually impossible to complete oil and gas projects. As a result, revenues were down by €11.7 million to €3.9 million and EBIT was negative at €-1.0 million (previous year: €1.6 million).

Revenues in the Energy segment of €113.6 million in the reporting year were almost constant compared with €114.5 million the previous year. At €5.5 million, EBIT also remained virtually constant compared with the previous year (€5.9 million). Although revenues and earnings fell significantly in the oil and gas business, the Renewables segment reported a significant increase in revenues and earnings. The Marine & Construction segment reported revenues of €148.6 million, which was €34.6 million down on the year 2019. EBIT fell from €10.1 million to €0.9 million, partly due to the pandemic and partly to loss allowances on receivables.

With the Supervisory Board's approval, the Executive Board is proposing a dividend of €0.12 per share for the 2020 financial year in view of the stable financial position of the Muehlhan Group, following no dividend being paid from 2019 earnings in the previous year due to the unpredictable development of the pandemic.

The forecast for 2021 depends to a large extent on the further course of the pandemic. The Executive Board and Supervisory Board of Muehlhan are expecting revenues and earnings for 2021 to be similar to 2020 if there is no significant improvement in the status of the pandemic. Even if all the restrictions are lifted in the short term, it will scarcely be possible to match 2019 revenues and earnings in 2021 because it takes time to resume all economic activities in full and at the time of writing this report almost three months have already passed under lockdown.