Swedish drilling equipment manufacturer Epiroc saw a 29% increase in orders received during the first quarter of 2022 to SEK13,818m (€1,335m), an organic year-on-year increase of 18% from SEK10,690m (€1,033m) in Q1 last year.
Revenues increased by 26% year-on-year to SEK11,088m (€1,071m), representing an organic increase of 14%, and operating profit rose by 41% to SEK2,631m (€254m).
Epirocpresident and CEO Helena Hedblom said the year got off to a strong start, with demand remaining at a high level.
“It is encouraging to see the high demand for our equipment, for our solutions within automation, digitalisation, electrification, as well as for our aftermarket offering,” she added. “Several large- and medium-sized orders were won, of which many included battery-electric vehicles and automation features. The order intake for services was also strong.”
Hedblom said that Epiroc’s operating cash flow decreased to SEK867m (€1,610m) in Q1, impacted by a build-up of working capital due to strong growth and constraints in the supply chain.
Referring to current political events, she added: “The war in Ukraine and the resulting humanitarian suffering is truly horrifying. Our primary concern is the safety and well-being of our employees and we have taken several measures to keep our colleagues safe. Our business was negatively impacted in Russia and Ukraine, mainly in March, as we paused deliveries to Russia and the activities in Ukraine have been very limited.
“The impact from the Covid-19 pandemic decreased, but the challenges in the supply chain continued to negatively impact our operations.”
Epiroc expects that demand, both for equipment and aftermarket, will remain at a high level in the near term.
