Petrotec's sales rise in 2006 on biodiesel output

30 March 2007 11:34  [Source: ICIS news]

LONDON (ICIS news)--German biodiesel producer Petrotec increased sales in 2006 by 38.2% to €55.8m ($74m) driven by an increase in plant production, the company said on Friday.

 

Petrotec’s adjusted earnings before interest and tax (EBIT) were booked at €8.5m with a margin of 15.7%. A year-earlier earnings figure was not disclosed.

 

The company’s cheap feedstock, yellow grease, contributed to good earnings, despite the price rising 11% in the second half due to a correlation with palm oil.

 

“The company assumes for 2007 that its feedstock of yellow grease will be priced significantly below the cheapest fresh vegetable oil, namely palm oil,” said a company statement.

 

“From today’s viewpoint, feedstock prices will continue to rise and Petrotec thus anticipates booking a single-digit margin on EBITDA (earnings before interest, tax, depreciation and amortisation), on the back of sales of around €70m,” it added. “The volume produced at the new biodiesel plant at Emden will already contribute to this figure.”

 

The construction of the 100,000 tonne/year biodiesel plant at Emden, northwest Germany, was ahead of schedule and expected to go on line in the fourth quarter of 2007.

 

The company added it would focus on export markets due to the taxation of pure biodiesel (B100) in Germany introduced in 2006, which makes it “increasingly unappealing” for forwarding agents to fill truck tanks with the product.

 

Petrotec said it planned to start building new plants in the UK and the US in 2008.

By: Mark Watts
+44 20 8652 3214

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