Haldor Topsoe today reported first half year results with 8% increase in earnings to DKK 525 million compared to the first half of 2020.
However the company's revenue decreased by 9% to DKK 2.9 billion due to continued impact in the European refining business from the COVID-19 pandemic.
Full-year guidance of revenue close to DKK 6 billion reconfirmed and the company foresees continued uncertainty with the resurgence of COVID-19 infection rates negatively impacting catalyst demand and causing supply chain challenges.
“We have delivered solid financial results by increasing our earnings despite challenging circumstances caused by the COVID-19 pandemic. Many refinery and technology projects in Europe have been delayed due to low demand, and this has negatively impacted our revenue. We are, however, encouraged by the renewed momentum in the technology business and by the fact that there’s a huge interest for green solutions, which our renewable business is benefitting from,” says Roeland Baan, CEO, Topsoe.
Roeland Baan continues: “We are taking a very active role in supporting our customers in accelerating their transition towards clean products and processes. Our solutions in renewable fuels continue to drive growth. This has prompted our decision to build an additional production plant in the US to cover the increasing global demand for catalysts for producing ultra-low sulfur diesel and renewable diesel. Our relentless focus on carbon emission reduction technologies for hard-to-abate sectors such as steel production and long-haul aviation and shipping is attracting tremendous interest from global players. To increase our drive even more, we have launched a green hydrogen organization, fully focused on delivering market-leading solutions based on our SOEC electrolysis technology.
In the first half of 2021, Topsoe’s earnings were up versus last year. This is driven by lower operational costs, resulting from the labor restructuring implemented in the fourth quarter of 2020, as well as ongoing cost optimization actions initiated as part of executing on our 2024 vision. Favorable fluctuations in raw material prices and high production levels in our factories have also positively impacted our earnings for the first half of 2021.
Topsoe’s technology business saw a positive development in order intake, which will drive future revenue growth. On the other hand, the first six months of 2021 were impacted by COVID-19 related supply chain challenges, including logistics issues and temporary production shutdowns within our partner network, delaying our deliveries to customer projects. Overall, we managed to deliver flat revenue year-on-year, while several key segments even delivered solid growth. We saw significant strategic wins within renewable fuels, where our renewable diesel hydroprocessing technology, HydroFlex™, has been in high demand in the important US market.
Topsoe’s catalyst business has to a larger extent been affected by the demand situation, especially in Europe, where the demand for replacement catalysts has yet to reach pre-COVID-19 levels. Overall, our catalyst business saw a 12% decline in the first half of 2021 versus the strong first half of 2020. This was expected, but the pace of the market recovery has been slightly slower than anticipated. We do, however, see signs of recovery in the market and demand is on the rise, not least in China where the demand for high-quality methanol catalysts is significant.
