CropEnergies reports reduced revenues, earnings for Q3

By Erin Voegele | January 14, 2019

European ethanol producer CropEnergies AG recently released financial results for the first nine months of its fiscal year, reporting reduced revenues and earnings when compared to the same period of the previous fiscal year. The company said it expected the drop.

On Jan. 9, CropEnergies reported revenues fell to EUR 596.1 million ($693.64 million) for the nine month period, which ended Nov. 30, down from EUR 678.9 million during the same period of the previous financial year. For the third quarter, revenues fell to EUR 2.29 million, down from EUR 219.1 million during the third quarter of the previous fiscal year.

CropEnergies attributed the decrease, in part, to lower ethanol prices. While ethanol prices were up when compared to the first part of the current fiscal year, they were still down significantly when compared to prices the previous year. The company also said lower sales volumes contributed to the decrease in revenues.

CropEnergies currently operates four ethanol plants, including a 400,000-cubic-meter-per-year facility in Zeitz, Germany; a 300,000-cubic-meter-p-year plant in Wanze, Belgium; a 400,000-cubic-meter-per-year facility in Wilton, U.K.; and facility in Loon-Plage, France that can produce up to 100,000 cubic meters of fuel ethanol annually.

The company said that its plants, on a combined basis, produced 771,000 cubic meters of ethanol during the first nine months of the current fiscal year, down from 847,000 cubic meters during the same period of the previous fiscal year. The Wilton plant has been idled since the end of November.

EBITDA fell to EUR 48.5 million, down from EUR 88.2 million during the first nine months of the previous year. CropEnergies attributed the decrease to lower ethanol prices and higher raw material costs. The company also noted improved sales prices for food and animal feed products helped mitigate reduced earnings. Operating profit was EUR 19.1 million, down from EUR 59.3 million during the same period of last year.

For the full financial year, CropEnergies is predicting it will achieve revenues of EUR 770 million to EUR 800 million, down from EUR 882 million achieved for the previous financial year. Operating profit is expected to range from EUR 25 million to EUR 40 million, down from EUR 72 million during the previous financial year.