Biopetrol expects 2008 loss, prepares for restructuring

16 February 2009 16:11  [Source: ICIS news]

LONDON (ICIS news)--Switzerland-based biodiesel producer Biopetrol Industries expects to report a loss for 2008 and must take substantial restructuring measures to avoid insolvency, the company said on Monday.

The company forecast an operating loss of €11.5m ($14.7m) compared with a gain of €5.4m in 2007, but expects a 38% increase in annual sales to €300m.

“Since the middle of the fourth quarter, Biopetrol Industries has experienced drastically worsened market conditions in Europe and in particular in the important markets of Germany and the UK," the company said in a statement.

Biopetrol said staff at its Schwarzheide, Germany, plant were already in short-time working to cut costs, while the measure was also being considered at its newer, larger Netherlands plant in Rotterdam.

“The continuing lack of orders from the beginning of 2009 together with pressure on margins makes it necessary to take substantial and sustainable steps in order to secure the continuation of the company,” it said.

The company said, due to its weaker financial situation, it was unable to pay the interest on a €75m bond it issued in February 2007.

In response to the situation, Biopetrol would offer bondholders the early conversion of their bonds into shares based on the assumed value of the company after successful restructuring measures had been carried out.

The company blamed European and German energy policies for deteriorating market conditions and an increase in energy tax, adding that this had contributed to a loss of confidence among customers.

Biopetrol said the market for pure biodiesel (B100) had “completely collapsed”, saying unclear blending quotas make it hard for producers to plan the purchase of materials. Subsidised 'B99' imports from the US also contributed to the situation, it added.

Biopetrol has postponed its 2008 results announcement until 19 May, as the potential restructuring could substantially impact the company’s outlook.

($1 = €0.78)

To discuss issues facing the chemical industry go to ICIS connect

By: Mark Watts
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly