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August 8, 2019

Topsoe’s revenue increased by 5%, while adjusted operating profit was up by 27%

  • In the first half of 2019, revenue increased by 5% to DKK 2,757 million compared to the first half of 2018, while EBIT increased by 50% to DKK 440 million. When adjusting for special items, EBIT increased by 27% to DKK 375 million.
  • The order backlog at June 30, 2019, was DKK 4,332 million, an increase of 33% compared to June 30, 2018.
  • The full-year 2019 revenue outlook range remains unchanged at DKK 5,400-5,700 million. When adjusting for special items, the EBIT margin for the full year 2019 is now expected to be in the range of 12-14% (previously 11-13%). The outlook can be negatively impacted by geopolitical risks.

“The results reflect that customers are looking to Topsoe for strong commercial solutions to the challenges that come with stricter environmental regulations. The world’s drive towards cleaner air and more efficient – and thus more climate-friendly – use of our resources demands new technology. Topsoe has a long history of developing world-leading, energy-efficient and cleaner solutions for the chemical and refining industries based on our significant investments in research and development and our highly committed employees. I am convinced that we will continue to see our R&D pipeline produce effective solutions to some of the world’s most pressing challenges in the coming years,” says Bjerne S. Clausen, CEO, Topsoe.

Haldor Topsoe researchers are working on several solutions to produce fuels and chemicals in a more sustainable way IML-00007547The negative impact of international sanctions on revenue development in 2019 has been offset by significant revenue growth, particularly in the Refinery Business Unit. Excluding the impact from sanctions, the revenue grew 15% on a like for like basis. A strong demand for Topsoe’s world-leading technology for producing renewable fuels from waste or biomass drove technology revenue up by 24% compared to the first half of 2018. Improved DKK/USD exchange rates also had a positive effect on revenue, contributing almost 3 percentage points of the overall 5% growth in revenue.

EBIT was DKK 440 million in the first half of 2019. EBIT was positively impacted by special items of DKK 65 million, of which DKK 41 million relate to a gain from selling surplus land and DKK 24 million originate from a currently suspended Topsoe license. When adjusted for these special items, EBIT was DKK 375 million, up 27% on the comparable period for 2018.

Profitability improved considerably in the first half of 2019. EBIT margin was 16% compared to 11% for the same period in 2018. After adjusting for special items, the EBIT margin in the first half of 2019 was 14%. The improved profitability can be attributed to consolidation of business activities, increased revenue from renewable fuel technology, organizational adjustments, and several other initiatives to increase business focus and cost optimization.

Net working capital increased by DKK 284 million in the first six months of 2019. This was mainly due to an increase in inventory resulting from higher prices of raw materials and increased production of catalysts in response to growing demand.

Dedicated and highly prioritized efforts have resulted in a significant improvement of Topsoe’s safety record. In the first half of 2019, two lost time accidents were recorded, whereas seven were recorded in the first half of 2018.

Major events in 2019
On July 3, the agreement between Haldor Topsøe Holding A/S and Temasek for Temasek to purchase 30% of the shares in Haldor Topsoe A/S was formally closed. In connection with the closing, Temasek appointed two members of the Board of Directors of Haldor Topsoe A/S. The partnership with Temasek is expected to further enhance Topsoe’s growth potential. Temasek is an experienced investor with significant insights and networks in Asian growth markets, including China, which will support Topsoe’s expansion in this region.

20190219 TIGAS AreaOn June 28, the world’s first natural gas-to-gasoline plant based on Topsoe’s advanced TIGAS™ technology was inaugurated in Turkmenistan. Start-up of the plant has proceeded according to plan, and the ultra-clean and environmentally friendly gasoline produced meets the specifications. This landmark project helps Turkmenistan monetize its huge natural gas reserves and will serve as an inspiration to monetize gas resources in other parts of the world. At full capacity, the plant will produce 15,500 barrels of gasoline per day.

On May 29, it was announced that DeLille Oxygen Co. had chosen Topsoe’s unique eCOs™ technology for cost-competitive onsite production of ultra-high purity carbon monoxide (CO). This is a major step for increased electrification and sustainability of the chemical industry. The eCOs™ solution converts the greenhouse gas, CO2, to valuable CO by electrolysis. Powered by green electricity from wind turbines or solar panels, consuming CO2 and only emitting oxygen, the eCOs™ technology is a carbon negative technology that can help the chemical industry become sustainable. In addition, the eCOs™ technology ensures security of CO supply, eliminates the need for transporting hazardous CO gas, and drastically reduces costs related to transportation, storage, and connections.

On May 27, SkyNRG announced that they had chosen Topsoe’s world-leading technology for production of renewable fuel for their planned facility at Delfzijl, the Netherlands. The plant will supply sustainable aviation fuel (SAF) directly to aircraft at the nearby airport. SAF reduces CO2 emissions by at least 85% compared to conventional jet fuel. The 100,000 tons produced at the facility will reduce CO2 emissions from aviation by more than 250,000 tons every year.

On March 5, Topsoe launched ClearView™, a break-through connected service for optimal plant performance in the chemical and refining industries. This digital service leverages the power of continuous upload of data to offer plant owners improved asset utilization, energy savings, and less unplanned downtime.

Financial highlights

  • Revenue amounted to DKK 2,757 million, an increase of 5% compared to the same period in 2018. Catalyst revenue was at the same level, while technology revenue was up by 24%.
  • Gross margin was 51%.
  • EBITDA was DKK 598 million, equal to an EBITDA margin of 22%. EBITDA was impacted by the implementation of the new IFRS 16 accounting standard.1
  • EBIT was DKK 440 million, equal to an EBIT margin of 16%. EBIT was impacted by the implementation of the new IFRS 16 accounting standard.1
  • Cash flow from operations before change in working capital was DKK 426 million.
  • The equity ratio was 25.6% at June 30, 2019 (compared to 28.7% at June 30, 2018).
  • Net debt leverage ratio was 0.9 and net interest cover ratio was 23.2 at June 30, 2019. All things being equal, the implementation of the new IFRS 16 accounting standard1 has increased the net debt leverage ratio and decreased the net interest cover ratio.
  • The full-year 2019 revenue outlook range remains unchanged at DKK 5,400-5,700 million. When adjusting for special items, the EBIT margin for the full year is now expected to be in the range of 12-14% (previously 11-13%). The outlook can be negatively impacted by geopolitical risks.


Financial highlights (DKK million)


H1 2019

H1 2018






Gross profit












Net profit








Return on equity2




Equity ratio2




Net interest cover ratio2




Net debt leverage ratio2




R&D spend (of revenue)2






June 30, 2019

Dec 31, 2018

Non-current assets



Current assets









Equity attributed to the owners of the parent company



Non-controlling interest






Equity and liabilities





H1 2019

H1 2018

Cash and cash equivalents, beginning of period



Cash flows from operations before change in working capital



Change in working capital



Cash flows from operating activities



Cash flows from investing activities



Cash flows from financing activities




Cash and cash equivalents, end of period





H1 2019

H1 2018

Equity, beginning of period



Comprehensive income



Transactions with owners



Equity, end of period





H1 2019

H1 2018

Lost time accidents




The half-year figures have not been reviewed by the company’s auditors. The audited Annual Report 2019 will be published by Haldor Topsoe A/S on March 10, 2020.



  1. Topsoe has adopted IFRS 16 "Leases" as of January 1, 2019. The standard has been implemented using the modified retrospective approach. The effect of this new standard is:
    1. Balance sheet: Right-of-use assets increased by DKK 513 million, Long-term lease liabilities increased by DKK 446 million, Short-term lease liabilities increased by DKK 72 million, Prepaid lease payments decreased by DKK 1 million, Deferred tax increased by DKK 1 million, and Equity decreased by DKK 5 million.
    2. Profit & loss: EBITDA increased by DKK 37 million, EBIT increased by DKK 3 million, and Net profit decreased by DKK 5 million.

The above has impacted the financial ratios accordingly.

  1. Financial ratios have been calculated as follows:
    1. Return on equity: Net profit for the first half year annualized x 100 / Average equity attributed to the owners of the parent company
    2. Equity ratio: Equity attributed to the owners of the parent company x 100 / Total assets
    3. Net interest cover ratio: EBITDA rolling 12 months / Net interest (12-month rolling)
    4. Net debt leverage ratio: Net interest-bearing debt / EBITDA (12-month rolling)
    5. R&D spend (of revenue): Research & Development costs in percentage of revenue

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