Leipzig, May 9, 2019 – VERBIO Vereinigte BioEnergie AG reports a significant increase in profits for the first nine months of the current financial year compared to the same period in the previous year.
The positive trend in the Group’s results is primarily due to the comparatively above average good margins in biodiesel in the third quarter of 2018/2019. Earnings before interest, taxation, depreciation and amortisation (EBITDA) for the nine-month period amounted to EUR 84.4 million, 143 percent ahead of the comparative period in the previous year (9 M 2017/2018: EUR 34.7 million). The Group result before interest and taxation (EBIT) totalled EUR 68.5 million (9 M 2017/2018: EUR 18.0 million). The Group result before taxation (EBT) totalled EUR 68.4 million (9 M 2017/2018: EUR 17.9 million), and the net result for the period was EUR 49.7 million (9 M 2017/2018: EUR 12.2 million). Based on the result for the period, earnings per share amount to EUR 0.79 (9 M 2017/2018: EUR 0.19).
VERBIO produced 540,367 tonnes of biodiesel and bioethanol in the first nine months of the 2018/2019 financial year, compared to 544,949 tonnes in the comparative period in the previous year. This now represents a capacity utilisation rate of 99 percent. In addition, 515,390 MWh of biomethane were produced in the first nine months of the financial year 2018/2019 (9 M 2017/2018: 464,422 MWh).
Development of the Biodiesel and Bioethanol Segments
The results trends in biodiesel in the first nine months of the current financial year were driven by high margins accompanied by record production levels. The margins for bioethanol increased significantly in the reporting quarter with production volumes slightly lower. The production volume of biodiesel and bioethanol in the period from July 1, 2018 to March 31, 2019 totalled 540,367 tonnes, compared with 544,949 tonnes in the same period in the previous year. In addition, 515.4 GWh of biomethane were produced in the first nine months of the financial year 2018/2019 (9 M 2017/2018: 464.4 GWh), an increase of 11 percent compared with the same period in the previous year.
Construction of a biomethane plant in India and a further plant in the USA has started. VERBIO will commence production in the third phase of the sterol production capacity expansion at its Bitterfeld location mid-2019, making it one of the world's largest sterol Producers.
Earnings forecast for the financial year raised
VERBIO issued an amended earnings forecast for the financial year 2018/2019 in an ad hoc announcement made on April 2, 2019. Accordingly, EBITDA is expected to be around EUR 95 million and the net cash balance at the end of the financial year is expected to fall to around EUR 75 million. Previously the Group had expected an EBITDA of around EUR 80 million and net cash of EUR 90 million.
Detailed information on business developments in the first nine months of the 2018/2019 financial year are provided in the quarterly interim statement for the period ended March 31, 2019. The report can be viewed from 9 a.m. on VERBIO’s website at www.verbio.de.
Information about VERBIO Vereinigte BioEnergie AG (VERBIO)
VERBIO is one of the leading independent producers and suppliers of biofuels, and is also the only large-scale producer of biodiesel, bioethanol and biomethane in Europe. The Group’s annual production capacity amounts to approximately 470,000 tonnes of biodiesel, 260,000 tonnes of bioethanol and 600 gigawatt hours of biomethane. The Company produces its highly efficient fuels using internally developed, energy efficient production processes and innovative technologies. VERBIO’s biofuels achieve CO2 reductions of up to 90 percent compared to petrol or diesel. VERBIO delivers its products directly to European oil companies, oil trading companies, independent filling stations, freight forwarders, municipal utilities and vehicle fleets. In addition, VERBIO markets high-quality pharma glycerine for the consumer goods and cosmetics industry (glycerine is manufactured as a by-product in the biodiesel production process). Within the Group, VERBIO Vereinigte BioEnergie AG acts as a management holding company. The operative business is conducted by the subsidiaries VERBIO Diesel Bitterfeld GmbH, VERBIO Diesel Schwedt GmbH, VERBIO Ethanol Schwedt GmbH & Co. KG, VERBIO Ethanol Zörbig GmbH & Co. KG and VERBIO Agrar GmbH. The VERBIO share (ISIN DE000A0JL9W6/WKN A0JL9W) has been listed in the prime standard segment of the Frankfurt Stock Exchange since October 2006.
Important notice
This publication contains forward-looking statements which are based on assumptions and estimates made by the management of VERBIO Vereinigte BioEnergie AG. Although the Company’s management is of the opinion that these assumptions and estimations are realistic, actual future developments and actual future results may differ significantly from these assumptions and estimates due to a variety of factors. For example, these factors can include changes to the overall economic climate, changes to the legal and regulatory framework in Germany and the EU, and changes in the industry. VERBIO can give no guarantee and accepts no liability as to whether future development and the results actually achieved in future will match the assumptions and estimates made in this publication.