EOP Biodiesel notes turnaround in German market

19 June 2008 16:36  [Source: ICIS news]

TORONTO (ICIS news)--Germany’s biodiesel prices have improved and raw material costs have stabilised, producer EOP Biodiesel said on Thursday.


Should current selling prices and cost trends continue, EOP expected to break even in its fiscal fourth quarter ending 30 June, said chief financial officer Karl-Wilhelm Giersberg.


For March and April the company had already recorded profits, he added.


Also helping was a new railway connection, opened last month, to EOP's 130,000 tonne/year production side in Pritzwalk in Germany's eastern state of Brandenburg, that reduced transportation costs significantly, the company said.


In addition, EOP was making progress in gaining share in the market for blended biodiesel, called B5, or 5% blending, as it was establishing itself as a preferred supplier to refiners, it said.


For the nine months ended 31 March EOP doubled revenues to more than €67.7m ($106m), compared with the year-earlier period.


On a before interest and tax basis, EOP recorded a loss of €4.3m, compared with a loss of €600,000 in the year-earlier period when it benefited from investment grants, it said.


German biofuels industry association Verband der Deutschen Biokraftstoffindustrie said on Wednesday that the country's biodiesel producers continued to struggle amid high feedstock costs and a tax increase on biofuels.


Analysts said producers had been building up massive capacities in past years but came under pressure as raw material costs rose.


Also hurting results were the tax increase that took effect on 1 January, planned further tax increases through 2012, and imports, they said.


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($1 = €0.64)

By: Stefan Baumgarten
+1 713 525 2653

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