CropEnergies: Ethanol production down, operating profit up in Q1

By Erin Voegele | July 15, 2019

European ethanol producer CropEnergies AG has released fiscal first quarter financial results, reporting ethanol production was down 19 percent during the three month period ending May 31. Revenue and operating profit, however, were up.

CropEnergies generated €203 million ($288.55 million) in revenue for the quarter, up from €192 million during the same period of 2018. Operating profit was €15.2 million, up from €1.6 million. The company attributed the increase in operating profit to higher ethanol prices.

Production fell to 208,000 cubic meters (54.95 million gallons) during the three-month period ending May 31, down 19 percent when compared to the 257,000 cubic meters produced during the same period of last year. CropEnergies said its plant in Wilton, U.K., operated at a reduced capacity during the quarter, supplying only the local market. As a result, coproduct production was also down.

The company currently expects revenues for the full year to be in the range of €820 million to €900 million, up from the previous estimate of €800 million to €900 million. Operating profit is expected to reach €30 million to €70 million, up from the previous estimate of €20 million to €70 million.

CropEnergies currently operates four ethanol plants, including a 400,000-cubic-meter-per-year facility in Zeitz, Germany; a 300,000-cubic-meter-per-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.