Press release
Voisins Le Bretonneux, 21st October 2022 (19h00)
OREGE GROUP ACTIVITY AND HALF YEAR 2022 RESULTS
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Summary financial information for the six months ended 30 June 2022
(consolidated accounts approved by the Board of directors on 19 October 2022).
| In K€ - IFRS | H1 2022 (30 June 2022) | H1 2021 (30 June 2021) | Year 2021 (31 December 2021) |
| Turnover | 1 078 | 790 | 2 264 |
| Operating expenses (net) | |||
| Payroll expenses | -1 927 | -1 841 | -3 149 |
| Other operating expenses | -1 817 | -1 527 | -3 056 |
| Depreciation and amortisation | -255 | -140 | -555 |
| Total operating expenses (net) | -3 999 | -3 508 | -6 760 |
| Operating result | -2 921 | -2 718 | -4 496 |
| Financial result | 4 | -49 | -108 |
| Corporation tax | 0 | 0 | 0 |
| Net loss | -2 917 | -2 767 | -4 604 |
Turnover
Turnover for the first half year 2022 was 1 078 K€ compared to 790 K€ for the first half year 2021 representing an increase of 36%.
Operating expenses
Operating expenses for the first half year 2022 increased by 14% compared to the first half year 2021 which reflects the increase in activity.
Financial result
The financial result is made up of the interest cost on debt of 736 K€ (593 K€ for H1 2021) and net foreign exchange gains of 740 K€ (544 K€ for H1 2021).
Financing and cash
At 30 June 2022, Orege had 744 K€ of cash and cash equivalents (374 K€ at 31 December 2021).
At 30 June 2022, financial debt totalled 32 528 K€, including 30 825 K€ in respect of drawn shareholder current account advances (31 December 2021: 28 494 K€, including 26 631 K€ in respect of drawn shareholder current account advances).
Since 30 June 2022, Orege cashed in 552 K€ related to research tax credits (CIR) and Eren Industries granted the company total additional shareholder current account advances of 4 600 K€ which should enable the Group to meet all its financing requirements until 30 June 2023. At the date of this communication 2 600 K€ are undrawn.
Activity and outlook
Resumption of post-pandemic activity
Almost all the constraints linked to the pandemic have been lifted since this summer since when Orege has thus been able to resume the execution of two projects, both frozen for 2.5 years, one in Germany and the other in Japan. However, no revenue will be generated in 2022 from these two projects.
Orège has been able to adapt to disrupted supply chains
The global pressure on supply chains has increased in recent months (prices, delivery times, availability of certain electronic components and PLCs, etc.).
Orege started planning for this challenge since the end of 2021 and has since then thus carried out a complete reorganization of its supply chains: recruitment of an experienced supply chain manager, new distributors, “opportunistic” purchases of component stocks, revisited PLC configurations in order to adapt to the context, etc.
As a result, Orege does not anticipate any problem for the end of 2022, nor any significant constraint for 2023 on the basis of how things stand presently.
Impact of the energy crisis on the business
In a context where the energy crisis has a strong impact on many of our customers and partners, Orege considers that opportunities are created by proposing an improvement in the performance of "anaerobic digesters" which are most often found in large wastewater treatment plants.
It should be remembered that the energy costs of wastewater treatment plants are a significant operating expense of these plants.
Orege's solutions, which themselves consume little energy, enable operators to generate substantial financial savings, but also from now will enable operators to optimize biogas production.
This dedicated commercial approach will enable Orege to refine its positioning in the sludge recovery chain.
Projects signed and/or in the execution phase in the US and the UK
Orders expected by the end of 2022
- The two projects signed with municipal utilities in Wisconsin (La Crosse) and in South Carolina (Easley) will be largely completed in 2022, which should generate revenue for the year of approximately 700 K€.
- A major project on an industrial wastewater treatment plant in Houston, initiated in collaboration with the Alfa Laval Group, is in progress.
It should make a significant contribution to revenue for 2022.
- Orege has just signed a contract in October for the sale of 3 SLG-F thickening solutions with a new Water Utility in the UK. The 3 corresponding units could be implemented by the end of 2022 and generate around €1 million in revenue for the current financial year.
- Four orders (3 in the UK and 1 in the US) are expected by the end of 2022 for a total value of around €1.3 million. The Orege solutions for these 4 projects would be implemented by early 2023.
Outlook 2023
A detailed update the outlook for 2023 will be given during the Oddo BHF Forum which will take place on January 9 and 10, 2023. The PowerPoint document which will serve as a framework for all investor meetings will be posted on the Orège website. from January 9, 2023.
Other information:
The half year report will be published in French on the Company’s website (www.orege.com) 21st October 2022.
Orege has been listed on the regulated market Euronext – Paris since 5th July 2013 - ISIN FR0010609206 - OREGE.
Contact Orege: Financial information – George Gonsalves
George.gonsalves@orege.com - mob: +33 6 08 03 50 72
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