Leipzig, February 10, 2022 – VERBIO Vereinigte BioEnergie AG has recorded sales of EUR 809.1 million in the first half of the financial year 2021/2022, an increase of 68.9 percent. Earnings before interest, taxation, depreciation and amortisation (EBITDA) for the first six months of the financial year 2021/2022 amounted to EUR 187.2 million, representing a very significant increase compared to the comparative period in the previous year (1 HY 2020/2021: EUR 80.4 million). The Group result before interest and taxes (EBIT) totalled EUR 172.4 million (1 HY 2020/2021: EUR 65.0 million). The net result amounted to EUR 120.3 million (1 HY 2020/2021: EUR 44.2 million).
The renewed record sales and results were primarily driven by strong global demand, in particular for advanced biofuels. Advanced biofuels from waste materials, for example from straw, have become particularly attractive since January 1, 2022 because under certain conditions their use counts double towards meeting quotas.
Record sales in all segments due to increased sales prices
The capacity utilisation of the Group’s production plants was good in both segments.
Sales revenues in the Biodiesel segment totalled EUR 585.7 million (1 HY 2020/2021: EUR 321.2 million). In the Bioethanol segment sales revenues were EUR 217.7 million (1 HY 2020/2021: EUR 153.1 million). The increase in sales revenues in both segments, with production and sales volume quantities remaining largely unchanged, is primarily due to the massive increase in sales prices in the first half of the financial year 2021/2022.
Taking advantage of growth momentum in North America
VERBIO commenced production at its straw biomethane plants in India and the USA at the end of 2021. In India VERBIO will initially concentrate on ramping up to full-scale capacity at its production plant and on process and cost optimisation, and it has already commenced expanding its plant in the USA.
The Iowa plant location will be expanded and converted into a VERBIO biorefinery offering combined bioethanol-biomethane production similar to the German plant design. VERBIO will invest a further USD 80 million in this expansion by the end of 2022. This plant will then have the same capacity as the biorefinery in Schwedt. The production of biomethane will increase from 20 MW to 80 MW.
In the short and medium term North America provides VERBIO with significant growth potential. The team in the USA has been strengthened with experienced people in order to drive the business forward in this market. In addition, VERBIO has opened a trading desk in Stamford (Connecticut) in order to participate in global trading in biofuels and synthetic fuels.
Chemicals from renewable sources for the chemical industry – a new growth business
As part of a comprehensive investment programme through to 2023, in September 2021 VERBIO announced the construction of an ethenolysis plant in Germany, as well as the associated manufacture of catalysts in Hungary. In the medium term this will enable the Group to process up to 30 percent of the rapeseed oil methyl produced by VERBIO which is currently marketed as biodiesel, creating high-value basic chemicals from renewable sources for use in the chemicals industry. This will involve investments in VERBIO’s future sustainability in the amount of approximately EUR 100 million.
In addition, looking forward VERBIO will also enter the market for synthetic renewable fuels. VERBIO has a large volume of green CO2, which is generated during the manufacture of bioethanol and biomethane. Currently this CO2 remains unused, although, due to its high purity, it is very well suited to the manufacturing of synthetic methane or for use in the manufacture of speciality chemical products. VERBIO is examining the necessary requirements for the construction of a pilot plant for synthesising the green CO2 generated. The objective is to expand the biorefineries, enabling them to manufacture synthetic products. CO2 will become a raw material.
Earnings forecast for the financial year 2021/2022
As a result of the Group’s very good results to date, on January 26, 2022 the Management Board once again increased its earnings forecast for the financial year 2021/2022 and announced that the forecast EBITDA for the financial year has been increased to approximately EUR 300 million with approximately EUR 130 million net financial assets.
Detailed information on business developments in the first six months of the 2021/2022 financial year is provided in the half-yearly interim statement for the period ended December 31, 2021. The report can be viewed from 8.30 a.m. (CET) on VERBIO’s website at:
https://www.verbio.de/en/investor-relations/news-publications/financial-reports/20212022/
Important notice
This publication contains forward-looking statements that 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.