CropEnergies reports increased ethanol production in Q3 results

By Erin Voegele | January 13, 2014

Germany-based CropEnergies AG has released financial results for the first three quarters of its current fiscal year, reporting a 5 percent increase in the production of ethanol. CropEnergies produced a total of 626,000 cubic meters of ethanol during the nine-month period, up from the 597,000 cubic meters produced in the same period of 2012.

According to the company’s financial results, it achieved a 12 percent increase in revenues from March 1 through Nov. 30. Revenues for the nine month period were €572.8 million ($781.64 million), up from €509.7 million during the same period of 2012. The company attributed the increase to higher sales volumes of ethanol, along with food and feed products.

However, CropEnergies reported a declining EBITDA and operating profits. According to information released by the company, falling market prices for ethanol along with increased raw material increases resulted in EBITDA of €61.8 million, down from €94 million during the same period of the previous year. CropEnergies also indicated that operating profit decreased by almost half, dropping from €70.2 million €37.2 million. The decrease is attributed to the commissioning of the Ensus plant in the U.K. and floods in Germany.

CropEnergies attributes falling ethanol prices to increased competition due to imports that are circumventing current customs regulations. The company notes that current price levels will result in accelerated consolidation of the European ethanol industry.

Moving forward, CropEnergies predicted that operating profit for the full year will be between €33 million and €43 million, down from €87 million in the previous financial year. Production and sales volumes, however, are expected to increase.

The company currently owns four ethanol plants, located in Germany, Belgium, the U.K., and France. The Ensus plant in the U.K. was acquired by CropEnergies in mid-2013.