CropEnergies delivers boost to bioethanol production, but sees half-year revenues dip

Germany-headquarted bioethanol producer CropEnergies has reported revenues of €350 million for the first half of financial year 2016/17, compared to €390m the same period last year, due to lower trade volumes and lower ethanol prices.

Even though revenues in second quarter of 2016/17, at €182 million (previous year: €193m), did not quite reach the previous year's level, they exceeded those of the first quarter (€168m).

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) improved to  €59 million (previous year: €57m) in the 1st half 2016/17. Lower raw material and energy prices counteracted the operative costs for the restart of the production plant in Wilton

Bioethanol production increased to 450,000 (previous year: 422,000) cubic meters in the 1st half 2016/17. Correspondingly, production of food and animal products increased, the company said in a statement.

The firm said: “The rise in production volumes resulted from a higher capacity utilisation. This was mainly due to the restart of the production plant in Wilton, UK, in July 2016 which, thanks to the technical modifications that have been carried out, now has an improved process stability and energy efficiency.

“This allows for the entire production capacity of the CropEnergies Group to be operated flexibly according to market conditions and the order situation.”

Against this background, CropEnergies has increased its forecast for revenues for the financial year 2016/17 and expects them to lie between €670 and €720 million (previous forecast: €640 to €700 million).

This story was written by Liz Gyekye, editor of Biofuels International.