Abengoa reports financial results for first half of 2016

By Erin Voegele | October 04, 2016

Abengoa has released financial results for the first half of 2016, reporting revenues of €1.215 billion ($1.361 billion) and EBITDA of -€51 million. Within the report, the company briefly discusses its U.S. bioenergy assets.

In its statement, the company said it is currently in the course of obtaining the necessary accessions to the restructuring agreement of its financial debt, which was reached on Sept. 24. Abengoa said obtaining the necessary percentage of accessions from the financial creditors as required by law will provide the company with the financial resources needed to restart its ordinary business activities and operate in a competitive and sustainable manner. According to Abengoa, the accession period will conclude on Oct. 25 and will be presented to the judge for homologation.

Regarding industrial production activity, which includes the bioenergy business, Abengoa reported revenues reached €532 million and EBITDA was at €7 million, down from €972 million and €16 million, respectively, during the same half of 2015. According to Abengoa, the decrease is mainly due to the continued effects of general slowdown in activity and, in some cases, plant stoppages in the U.S. and Europe. The company said the impact has been partially offset by the positive impact in EBITDA in volume of ethanol and sugar sold in Brazil and higher prices in both products when compared to the first six months of 2015.

According to Abengoa, the net results represents a €3.689 billion loss, due mostly to the negative impact from the impairment of certain assets, the negative impacts of the ongoing insolvency proceedings in the U.S., Brazil, and Europe, and the general decrease in activity. The company also said the main negative impacts as of June 30, which amount to €3.253 billion, correspond to the registration of impairment in assets and affiliates for a total of €3.079 billion, mostly due to accounting losses for the lower valuation of certain bioenergy assets in the U.S. and Europe, along with certain transmission lines in Brazil. In its bioenergy segment, Abengoa said the impairment totals €1.256 billion due to the lower value of first and second generation plants that are currently under various Chapter 11 insolvency proceedings in the U.S., and similar liquidation procedures in Europe for the Rotterdam plant.

Abengoa announced agreements to sell four of its U.S. ethanol plants in June. On Aug. 22, the U.S. Bankruptcy Court for the Eastern District of Missouri named successful bidders for five Abengoa first-generation ethanol plants in the U.S.  Approximately one week later, on Aug. 29, the court approved the plant sales, with closings expected to occur within the following 30 days. 

On Sept. 26, Green Plains Inc. announced it had completed the acquisition of three Abengoa plants. The three facilities, located in Madison, Illinois; Mount Vernon, Indiana; and York Nebraska, have a combined capacity of 236 MMgy. In addition, a subsidiary of KAAPA ethanol is purchasing the 90 MMgy plant in Ravenna, Nebraska, while IMC Inc. is purchasing the facility in Colwich, Kansas. 

Abenoga is also in the process of selling its cellulosic ethanol plant in Hugoton, Kansas. In July, Ocean Park Advisors announced it had been retained to sell the facility under Chapter 11 bankruptcy proceedings.