Friedrich Vorwerk: The Profiteer of the Energy Transition and Rising Demand for Electricity is Sitting on Over € 1 Billion in Orders!
The energy transition and the expansion of the electricity grids to ensure a stable power supply could cost Germany a good €1.2 trillion in the long term. Three-digit billion euro amounts flow into the electricity grids. As Friedrich Vorwerk proves with the A-Nord order and the offshore grid connection system order for BorWin4 and DolWin4, the company is receiving concrete orders. The hidden champion is likely to receive further orders in the next few years and thus enjoy good sales growth, as the order backlog already stands at €1.045...
Read this article now with a free account.
Your benefits:
- Every month, you can read 5 articles from the premium section for free.
- Monthly 2 trial issues of the Trader newspaper for free.
- Create a personal watchlist with an overview of news about your stock.
Already registered? Log In
At an event, Tesla CEO Elon Musk explained his thoughts on the future of the electric car manufacturer and the influence of AI. Investors and Teslafans...
At Adobe MAX, the world's largest creative trade show, held from October 10 to October 12, the leading image-editing software provider unveiled new models...
array (
'ID' => '4118',
'post_author' =>
array (
'ID' => '3',
'user_url' => '',
'display_name' => 'Chiara Ferrario',
'user_registered' => '2023-09-12 13:13:33',
'nickname' => 'ChiaraFerrario',
'first_name' => 'Chiara',
'last_name' => 'Ferrario',
'description' => '',
'description_en' => '',
'description_es' => '',
'description_fr' => '',
'description_it' => '',
'freelancer' => '0',
'passive' => '0',
'twitter_link' => '',
'profile_image' => '',
'name' => 'Chiara Ferrario',
'name_short' => 'C. Ferrario',
'slug' => 'chiara-ferrario',
),
'post_date' => '2024-06-11 14:02:48',
'post_date_gmt' => '2024-06-11 12:02:48',
'post_content' => '
- The energy transition and the expansion of the electricity grids to ensure a stable power supply could cost Germany a good €1.2 trillion in the long term. Three-digit billion euro amounts flow into the electricity grids.
- As Friedrich Vorwerk proves with the A-Nord order and the offshore grid connection system order for BorWin4 and DolWin4, the company is receiving concrete orders.
- The hidden champion is likely to receive further orders in the next few years and thus enjoy good sales growth, as the order backlog already stands at €1.045 billion thanks to the €600 million A-Nord order!
Friedrich Vorwerk realizes the energy infrastructure!
Friedrich Vorwerk is a construction company that specializes in laying power cables, connecting LNG terminals, building hydrogen pipelines and district heating networks. For example, it offers a turnkey approach for transmission system operators and distribution system operators for underground power grids, from project conception and engineering through to implementation and maintenance. Furthermore, transformer and converter stations are realized. In the gas market, Friedrich Vorwerk is dedicated to complex pipeline construction - from high-pressure transmission networks to industrial projects. Gas pressure regulating stations, compressor stations and pumping stations are built. The Group is even active in the hydrogen market, implementing electrolysis and hydrogen pipeline projects. Finally, the Group is also helping to expand district heating networks. The growing demand for electricity in the coming years due to AI and electrification will require massive investment in the expansion of electricity grids. The energy transition, with the expansion of offshore wind farms, the laying of new power lines and the transition to a hydrogen economy, is also a structural driver of demand.
Will the energy transition swallow up more than €1 trillion?
According to a recent study by Friedrich Vorwerk, a successful energy transition will require an investment of over €1.2 trillion in Germany. The group is addressing over €600 billion with its business positioning. Over €250 billion would have to flow into the transmission grid, more than €220 billion into the distribution grid and over €70 billion into district heating. In order to meet the increasing demands on the electricity grid by 2045, such as the connection of offshore wind farms, the transport of electricity from the north to the south-west and the expansion of the electricity grid to cope with the growing demand for electricity, a good €320 billion would have to be invested. This could result in over 4,800 km of new power lines and more than 2,500 reinforced power lines. Large electricity projects such as "WindaderWest", "Amprion Corridor B" and "RheinMainLink" with gigantic volumes are currently underway, especially towards the end of the decade. Friedrich Vorwerk could participate in the tenders in consortia.
Friedrich Vorwerk wins its first major contracts!
The energy infrastructure company landed its first major contract in 2023, with Friedrich Vorwerk contributing 40%, or a good €600 million, to the €1.5 billion A-Nord project. In addition to the civil engineering work and the construction of the protective conduit systems required for the underground cables along the approximately 300 km long route, the project scope also includes the parallel construction of the offshore grid connection systems BorWin4 and DolWin4 over a distance of around 100 km, which are also to be realized by Amprion. On June 5, 2024, Friedrich Vorwerk announced the next major order. The group will be responsible for implementing the onshore underground cable connection for the BalWin3 and LanWin4 offshore connection projects. The contract awarded by cable manufacturer Nexans covers the entire onshore sections, each around 45 km long, from the landfall point on the coast of Lower Saxony to the future converter station in Wilhelmshaven. The volume is well into the three-digit million euro range. It is estimated to be up to €200 million.
Friedrich Vorwerk is sitting on over 1 billion euros in orders and wants to increase the margin!
Friedrich Vorwerk already has an order backlog of €1.045 billion thanks to the A-Nord order. The new order from June 5, 2024, will increase this further. Thanks to price clauses that also allow higher prices to be passed on, the company believes it is in a better position than it was back then with the LNG connections. Increased material and personnel costs had a negative impact on the margin there. Friedrich Vorwerk\'s goal for 2024 is to achieve an EBITDA margin of 11-13% on revenue of over €380 million. According to FactSet, revenue is expected to increase to €457.4 million by 2026. The EBITDA margin should have further upward potential. Investments must be made for the energy transition and rising demand for electricity. Friedrich Vorwerk should have good opportunities for further major orders in the coming years. The hidden champion is now also being discovered by the capital market. The share rises to a 52-week high!
',
'post_title' => 'Friedrich Vorwerk: The Profiteer of the Energy Transition and Rising Demand for Electricity is Sitting on Over € 1 Billion in Orders!',
'post_excerpt' => '',
'post_status' => 'publish',
'comment_status' => 'open',
'ping_status' => 'open',
'post_password' => '',
'post_name' => 'friedrich-vorwerk-the-profiteer-of-the-energy-transition-and-rising-demand-for-electricity-is-sitting-on-over-eur-1-billion-in-orders',
'to_ping' => '',
'pinged' => '',
'post_modified' => '2024-06-11 14:02:48',
'post_modified_gmt' => '2024-06-11 12:02:48',
'post_content_filtered' => '',
'post_parent' => '0',
'guid' => 'https://tradertimes.com/wordpress/?p=4118',
'menu_order' => '0',
'post_type' => 'post',
'post_mime_type' => '',
'comment_count' => '0',
'_encloseme' => '1',
'_pingme' => '1',
'magazine' =>
array (
'ID' => '4122',
'post_title' => 'The Trader Times #107 dated June 11, 2024',
'post_content' => '',
'post_date' => '2024-06-11 13:57:08',
'post_type' => 'tradertimes',
'post_mime_type' => '',
'post_parent' => '0',
),
'seo_description' => '',
'seo_image' => '',
'seo_title' => '',
'teaser' => '',
'category' =>
array (
9 =>
array (
'term_id' => '9',
'term_taxonomy_id' => '9',
'name' => 'Top Stories',
'slug' => 'top-stories',
'description' => '',
'parent' => '0',
'lang_term_taxonomy_id' => '8',
'lang_term_id' => '8',
'lang_name' => 'English',
'lang_slug' => 'en',
'translations' =>
array (
'de' => 1,
'en' => 9,
'es' => 13,
'fr' => 17,
'it' => 21,
),
'seo_title' => '',
'seo_description' => '',
'seo_image' => '',
'sub_ids' =>
array (
0 => 9,
),
'link' => '/top-stories/',
),
),
'link' => '/top-stories/friedrich-vorwerk-the-profiteer-of-the-energy-transition-and-rising-demand-for-electricity-is-sitting-on-over-eur-1-billion-in-orders-4118.html',
'image' =>
array (
'ID' => '4117',
'post_title' => 'top story',
'post_content' => '',
'post_date' => '2024-06-11 12:11:41',
'post_type' => 'attachment',
'post_mime_type' => 'image/jpeg',
'post_parent' => '4116',
'src' => 'https://tradertimes.com/files/2024/06/top-story-2.jpg',
'width' => 1400,
'height' => 785,
'sizes' =>
array (
'thumbnail' =>
array (
'file' => 'https://tradertimes.com/files/2024/06/top-story-2-150x150.jpg',
'width' => 150,
'height' => 150,
'mime-type' => 'image/jpeg',
'filesize' => 6689,
),
'teaser' =>
array (
'file' => 'https://tradertimes.com/files/2024/06/top-story-2-632x280.jpg',
'width' => 632,
'height' => 280,
'mime-type' => 'image/jpeg',
'filesize' => 34080,
),
'content' =>
array (
'file' => 'https://tradertimes.com/files/2024/06/top-story-2-1296x785.jpg',
'width' => 1296,
'height' => 785,
'mime-type' => 'image/jpeg',
'filesize' => 141172,
),
'fb' =>
array (
'file' => 'https://tradertimes.com/files/2024/06/top-story-2-1200x628.jpg',
'width' => 1200,
'height' => 628,
'mime-type' => 'image/jpeg',
'filesize' => 102061,
'cpt_last_cropping_data' =>
array (
'x' => 0,
'y' => 0,
'x2' => 1400,
'y2' => 731,
'original_width' => 1400,
'original_height' => 785,
),
),
),
),
'translations' =>
array (
'de' =>
array (
'post_title' => 'Friedrich Vorwerk: Der Profiteur der Energiewende und steigenden Stromnachfrage sitzt auf über 1 Mrd. Euro an Aufträgen!',
'post_name' => '',
'ID' => '4116',
'post_type' => 'post',
'link' => '/de/top-storys/-4116.html',
),
'en' =>
array (
'post_title' => 'Friedrich Vorwerk: The Profiteer of the Energy Transition and Rising Demand for Electricity is Sitting on Over € 1 Billion in Orders!',
'post_name' => 'friedrich-vorwerk-the-profiteer-of-the-energy-transition-and-rising-demand-for-electricity-is-sitting-on-over-eur-1-billion-in-orders',
'ID' => '4118',
'post_type' => 'post',
'link' => '/top-stories/friedrich-vorwerk-the-profiteer-of-the-energy-transition-and-rising-demand-for-electricity-is-sitting-on-over-eur-1-billion-in-orders-4118.html',
),
'es' =>
array (
'post_title' => 'Friedrich Vorwerk: el beneficiario del cambio energético y de la creciente demanda de electricidad tiene pedidos por valor de más de 1.000 millones de euros.',
'post_name' => 'friedrich-vorwerk-el-beneficiario-del-cambio-energtico-y-de-la-creciente-demanda-de-electricidad-tiene-pedidos-por-valor-de-ms-de-1000-millones-de-euros',
'ID' => '4119',
'post_type' => 'post',
'link' => '/es/noticias-principales/friedrich-vorwerk-el-beneficiario-del-cambio-energtico-y-de-la-creciente-demanda-de-electricidad-tiene-pedidos-por-valor-de-ms-de-1000-millones-de-euros-4119.html',
),
),
)
