CropEnergies reports reduced revenues, increased profitability

By Erin Voegele | January 21, 2016

CropEnergies has released financial results for the first three quarters of the current fiscal year, the nine months ended Nov. 30, reporting that profitability improved significantly despite reduced revenues.

According to the company, revenues for the period were down 11 percent, falling to €558 million ($606.83 million), due to the temporary closure of a plant in Wilton, U.K. Profitability, however, improved due to favorable proceeds for ethanol.

EBITDA increased, reaching €89 million, up from €21 million during the same period of the prior year. Operating profit after accounting for depreciation was €63 million, up from a loss of €6 million. The operating margin was 11 percent, compared to -1 percent.

Ethanol production for the nine-month period fell to 618,000 cubic meters, down from 777,000 cubic meters during the same period of the prior year.

Moving into the next fiscal year, CropEnergies said business performance will predominately depend on price developments in the ethanol markets. The forward prices for ethanol in Europe for the 2016-’17 financial year are currently showing a significant decline, though trading liquidity continues to be low.

The company also indicated it expects European Union decisions to increase the proportion of renewable energy in the transport sector to lead to further market growth in the medium term. In particular, increased blending rates is expected to result in E10 being introduced in additional member states.

CropEnergies owns four ethanol production facilities located in Germany, Belgium, U.K. and France. The company also owns ethanol storage facilities in Rotterdam, Netherlands, and Duisburg, Germany.