Verbio to take write-offs in bioethanol

22 January 2008 19:15  [Source: ICIS news]

TORONTO (ICIS news)--Verbio expects to write down inventories in its bioethanol business by up to €15m ($22m) in the just-completed fourth quarter and may take further charges this year if market conditions and the regulatory framework do not improve, the German biofuels maker said on Tuesday.

Verbio in particular pointed to a new regulation on the carbon dioxide (CO2)-efficient production of biofuels, which is due to be implemented soon

If this regulation - called Biomasse-Nachhaltigkeitsverordnung (BioNachV) - failed to create fair and sustainable conditions for the German and European biofuels market, further write-offs in bioethanol were likely, Verbio said.

In biodiesel, the company was faring much better, despite difficult market conditions, it said.

Verbio’s size, strong financial position and technological leadership were key competitive advantages in the biodiesel market, it said.

Verbio’s comments on biodiesel were echoed by analysts who said larger biodiesel makers were in a much better position than smaller producers to withstand the increase in taxes on the fuel in Germany effective 1 January.

The company is due to report full-year 2007 results on 28 March.

($1.00 = €0.68)

Bookmark Simon Robinson’s Big Biofuels Blog for some independent thinking on biofuels.

By: Stefan Baumgarten
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