CropEnergies reports increased ethanol production volumes

By Erin Voegele | October 18, 2016

European ethanol producer CropEnergies AG has announced ethanol production increased during the first half of the 2016-’17 financial year, reaching 450,000 cubic meters (118.88 million gallons), up from 422,000 cubic meters during the same period of the prior year. Increased production volumes are attributed to higher capacity utilization, primarily due to the restart of the Wilton, U.K., plant in July. CropEnergies said modifications made to the facility have improved process stability and energy efficiency, allowing the entire production capacity of the CropEnergies Group to be operated flexibly according to market conditions and the order situation.

The company reported revenues of €350 million ($385.11 million) for the first half of the 2016-’17 marketing year, down from €390 million during the same period of the previous year, due to lower trade volumes and lower ethanol prices. Revenues for the second quarter were €182 million, down from revenues of €193 reported for the second quarter of the previous year, but up from €168 million reported for the first quarter of this year.

EBITA was at €59 million, compared to €57 million during the first half of the previous year. CropEnergies said lower raw material and energy prices counteracted the operative costs from the restart of the Wilton plant. The decrease in trading volumes along with an increase in the sale of volumes produced by the company also contributed to improved earnings.

The first half of 2016-’17 achieved an operating profit of €41 million, up from €40 million during the same period of the previous year. Operating margin also improved reaching 11.7 percent, up from 10.2 percent.

For the full financial year 2016-’17, CropEnergies currently projects revenues to reach €670 million to €720 million.

CropEnergies owns four ethanol plants, including a 400,000 cubic meter plant in Zeitz, Germany; a 300,000 cubic meter plant in Wanze, Belgium; a 400,000 cubic meter plant in Wilton, U.K.; and a 100,000 cubic meter plant in Loon-Plage, France.