Verbio fiscal H1 profits jump on higher bioethanol margins
Tom Brown
04-Feb-2016
LONDON
(ICIS)–Verbio’s net income for the fiscal first half (July –
December 2015) nearly doubled year on year to €21.6m on the
back of higher bioethanol margins, and higher biomethane
capacity utilisation, the Germany-based biofuels producer
said on Thursday.
Continued high sales volumes for bioethanol and biodiesel
also helped to drive a 7% year on year increase in sales to
€330.8m, while earnings before interest, taxes, depreciation
and amortisation (EBITDA) rose 51% over the same period to
€39.1m.
Bioethanol production fell 5.1% year on year to 118,906
tonnes as a result of maintenance downtime, but higher
margins for the material saw EBITDA for the division rise 97%
to €22.7m.
First-half biodiesel production capacity usage reached 101%
and rose 4% year on year to 227,101 tonnes, while division
EBITDA rose €2m over the same period to €15.5m.
Transport and logistic services demand also increased during
the period, Verbio added.
Current sales volumes and raw materials pricing have led the
company to increase its predicted EBITDA for the full year to
around €70m compared to earlier estimates of €50m, based on a
strong fiscal second quarter and current order levels.
Differing approaches to rolling out Europe’s Renewable Energy
Directive – dictating that the EU derive 20% of its energy
needs from renewables by 2020 – by different member
states has created issues for the biofuels industry, as
well as opportunities, the company said.
“On the one hand, this situation offers arbitrage
possibilities. However, it can also result in market entry
barriers in certain countries,” Verbio said.
“The low oil price means that biofuels are less competitive
globally. Despite this, biofuels are gaining in importance in
countries with predominantly agricultural economies in Asia
and South America, where incentives for biofuel use, e.g. tax
incentives or compulsory blending requirements, are being
introduced or increased,” the company added.
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