CropEnergies reports slow start to the year, positive signs for the future
CropEnergies, a major European bioethanol producer, has released financial results for the first quarter of the 2018/2019 financial year.
According to a statement, the German biofuel producer started the financial year with a below average quarter compared to previous years.
Revenues decreased by 17% to €192 million (the previous year’s figure was €231 million). Earnings before interest, taxes, depreciation, and amortisation (EBITDA) were €14 million, compared to €33 million for the previous year.
According to the CropEnergies statement, “the main reason for the reduction is the significantly lower ethanol price, which was temporarily below the gasoline price. As a result, production was reduced by 8% to 257,000 (previous year: 280,000) cubic metres of ethanol.
Net financial assets for CropEnergies improved to €41 million, compared to €37 million in February 2018.
According to the CropEnergies statement, the company is expecting a gradual improvement in ethanol prices and results over the course of the financial year.
“Revenues of €810 to 860 (previous year: 882) million and an operating profit of €25 to 55 (previous year: 72) million are expected for the full 2018/19 financial year. This corresponds to an EBITDA of €65 to 95 (previous year: 111) million, so that a further improvement in net financial assets and equity is expected.”
The company also sees the 14 June agreement between European Parliament, Council and Commission negotiators on RED II as a positive. Among other things, these negotiations saw an agreement to increase the minimum share of renewable energies in transport from 10% in 2020 to 14% in 2030.
The statement claims that CropEnergies sees ‘significant progress’ in the compromise. “Thanks to its know-how and experience, CropEnergies is well positioned to make mobility even cleaner in the future with sustainably produced renewable fuels,” the statement concludes.