CropEnergies’ revenues rise by nearly a quarter

Bioethanol producer CropEnergies has reported a 22% rise in group revenues to €425.8 million which the company says is because of the higher prices of bioethanol and protein food and animal feed products.

‘Ethanol prices in Europe have risen since 2010, mostly due to higher demand which is fuelled by the growing blending rates and implementation of the EU Renewable Energies Directive in more and more countries in Europe,’ explains COO Lutz Guderjahn told Biofuels International. ‘As for protein food and animal feed products, CropEnergies has managed to realise attractive selling prices for these due to the demand for high quality products in those markets.’

EBITDA also rose by 21% to €66.1 million, compared to €54.6 million made the year before, and operating profit increased by 34% to €42.8 million.

Unsurprisingly, the company reported a rise in net earnings of 37% to €26.4 million and net financial debt was reduced to €155.4 million.

CropEnergies says it hit its highest production on record, 191 million m³ of bioethanol for the third quarter of this financial year, compared to 186 million m³ the year before.

However, in the first half of last year there was a drop in production because of a modified raw material mix and maintenance and optimisation methods.

‘As a matter of fact, although ethanol prices are currently still at a rather high level, they have decreased considerably in Europe,’ says Guderjahn. ‘In addition to the decline of raw material prices, the surge in bioethanol imports from the US has had a negative impact on prices. The phase-out of the blender’s credit and the initiation of anti-dumping and anti-subsidy proceedings regarding imports of bioethanol originating from the US by the European Commission will have a positive impact on prices.’

From the period of March to November 2011, CropEnergies only produced 497,000 m³ of bioethanol.

For this coming year, CropEnergies is predicting a further rise in profit, with revenues hitting between €550 million and €570 million, up from €472.8 the previous year.

It will use this revenue for future expansion and says it is planning to do the following in the near-future:

1. Optimise its existing plants

2. Expand trading activities by establishing a subsidiary in the US

3. Build a new plant.