Petrotec looks to boost finances
Petrotec looks to boost finances
Biodiesel manufacturer Petrotec has reported sales are up 28%, but financial performance has suffered due to the current economic contraction.
While its used cooking oil-based biodiesel has sold in higher quantities, interest and tax losses have increased due to depreciation of the euro.
Petrotec reported sales in 2008 at €77.7 million, up from €60.8 million the prior year, and a loss before interest, taxes, depreciation and amortisation of €21.1 million, compared to 2007 loss of €5.4 million.
These losses have been attributed to volatile commodity prices in connection with selling prices fixed at an early date, higher personnel expense and greater other operating expenses.
New main shareholder, IC Green Energy says it will secure the financial future of Petrotec and improve the company’s liquidity situation with financial restoration contributions totally a maximum of €15 million.
ICG acquired 42.8% of Petrotec shares in late 2008.
The biodiesel industry has not shown signs of improving in the first few months of the current year and remains volatile due to very low prices for crude oil, excess production capacities, subsidized cheap imports and legal regulations in Germany reflective of the industry.
Petrotec management board says it expects to post a clear loss in business 2009, and is not confident a positive result will
be posted until 2011.
Petrotec will examine the
translation of the EU Commission’s Renewable Energy Directive coming into national law, which could mean laying the foundations for better sales of Petrotec biodiesel.
Biodiesel manufacturer Petrotec has reported sales are up 28%, but financial performance has suffered due to the current economic contraction.
While its used cooking oil-based biodiesel has sold in higher quantities, interest and tax losses have increased due to depreciation of the euro.
Petrotec reported sales in 2008 at €77.7 million, up from €60.8 million the prior year, and a loss before interest, taxes, depreciation and amortisation of €21.1 million, compared to 2007 loss of €5.4 million.
These losses have been attributed to volatile commodity prices in connection with selling prices fixed at an early date, higher personnel expense and greater other operating expenses.
New main shareholder, IC Green Energy says it will secure the financial future of Petrotec and improve the company’s liquidity situation with financial restoration contributions totally a maximum of €15 million.
ICG acquired 42.8% of Petrotec shares in late 2008.
The biodiesel industry has not shown signs of improving in the first few months of the current year and remains volatile due to very low prices for crude oil, excess production capacities, subsidized cheap imports and legal regulations in Germany reflective of the industry.
Petrotec management board says it expects to post a clear loss in business 2009, and is not confident a positive result will
be posted until 2011.
Petrotec will examine the
translation of the EU Commission’s Renewable Energy Directive coming into national law, which could mean laying the foundations for better sales of Petrotec biodiesel.
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