Topsoe's revenue increases by 10% to DKK 3,210 million in H1 2022
In the first half of 2022, revenue increased by 10% to DKK 3,210 million versus DKK 2,908 million in 2021, according to the company's release. When adjusted for currency changes, mainly USD driven, Topsoe’s revenue increased by 5%. This was driven by a strong demand for Topsoe’s energy transition solutions, especially in renewable business.
Topsoe stopped doing business in Russia, which negatively impacted the revenue and growth. Growth excluding Russia was 17% and 11% in fixed currencies.
Revenue growth was supported by strong order intake, which resulted in the backlog increasing by 21% to DKK 4,379 million.
Topsoe is positioned to lead the transition to a greener future with an 80%-win rate of contracts globally to turn waste and biomass into low carbon renewable diesel for trucks and cars and with an increased interest in solutions for sustainable aviation fuels.
EBIT before special items declined by 26% to DKK 387 million. One of the main reasons for the decline was margins being pressured by less favorable product mix, supply chain challenges as well as a continued pressure from raw material, energy, and logistics costs.
The situation is being addressed through price adjustments, which are expected to have a positive impact in the second half of 2022.
Another reason was operating expenditure. Topsoe remains committed to the green transition and continues to upscale the Power-to-X organization to deliver on its ambitions. As part of developing new solutions, we have invested 9.2% of revenue in R&D, which is in line with last year.
As many other companies, Topsoe is expected to face implications of the reduced flow of natural gas from Russia and is preparing for alternative sources in which natural gas can be replaced by for example Liquified Natural Gas (LNG) at its production facility in Denmark.
Topsoe has set clear targets to measure progress. Topsoe’s 2022 Mission is to reduce customers’ greenhouse gas emissions by 12 million tonnes.
Founded in 1940, Topsoe is a one of the global leaders in developing solutions for a decarbonized world, supplying technology, catalysts, and services for worldwide energy transition. Topsoe is headquartered in Denmark, with 2,100 employees serving customers all around the globe.
