PRESS RELEASES
Taxation on biodiesel lowers profit expectations significantly — Changes in operational management
NB: Please note the disclaimer at the end of this press release
June 21, 2006. For several months now the political parties in government in Germany have been discussing a tax on biodiesel. The latest state of play was that as of August 1, 2006 a mineral oil tax of EUR 0.09 per liter will be levied on pure biodiesel (B100) and of EUR 0.15 per liter on biodiesel as an additive (B5), without any concomitant obligation being enacted to add biodiesel to fossil diesel fuels. The introduction of the additive obligation was envisaged for a later point in time.
This discussion has already strongly squeezed margins in the biodiesel contracts covering the second half of the year. On the basis of the responses in the biodiesel market, the management of BIOPETROL INDUSTRIES AG assumes that the ongoing discussion and certainly the enactment of the plans for taxation of biodiesel in combination with the absence of an obligation to use biodiesel as an additive will increase this pressure on margins still further. Following its Administrative Board meeting today, BIOPETROL INDUSTRIES AG is taking the pre-emptive step of pointing out that from today's viewpoint it will not be able to meet the budget targets set for the current year. Results in business 2007 will decisively depend on the form the obligation to use biodiesel as an additive takes.
Irrespective of this, BIOPETROL INDUSTRIES AG is pressing ahead with its investment program and the schedule for turnkey of the new plants in Rostock and Rotterdam with their favorable logistical access to international procurement and selling markets. The plant in Rostock, with a capacity of 200,000 tons of biodiesel a year, will go operational in November 2006. Production begin for the plants in Rotterdam (400,000 jato biodiesel and 60,000 jato pharmaceutical glycerin) is scheduled for August 2007. BIOPETROL INDUSTRIES AG intends to become one of Europe's Top 5 biofuel providers, with 750,000 jato of biodiesel and 90,000 jato of pharmaceutical glycerin.
Christoph Dicks, to date CEO of BIOPETROL INDUSTRIES AG, will be leaving the Company as at June 30, 2006 at his own request for personal reasons. The Administrative Board regrets this decision. Christoph Dicks played an invaluable part in setting up the BIOPETROL Group. The tasks of CEO will be assumed by Klaus-Ulrich Henschel, who has been with the Company since August 2005 as COO. K.-U. Henschel is an internationally experienced engineer and mineral oil manager, who worked for over 17 years in technical and commercial executive positions within the Shell Group.
The BIOPETROL INDUSTRIES AG management will be strengthened as of August 1, 2006 by Rudolf Albert (MBA), who as the CFO will take on a substantial part of the duties discharged by Christoph Dicks. Rudolf Albert has more than 17 years of relevant professional experience (in particular in publicly-listed companies) in the fields of Corporate Accounting, Cash Management, Controlling, Finance, and Administration. For the last four years he was a member of the management of VINCI ENERGIES DEUTSCHLAND GmbH, a subsidiary of the French VINCI Group, and thus responsible for all the commercial aspects of the German sub-group, which posts sales of EUR 1.8 billion and has a payroll in excess of 10,000 staff members.
In other words, the operational side to the production companies in the BIOPETROL Group have been further strengthened by recruiting qualified managers.
The Company
BIOPETROL INDUSTRIES AG, based in Zug, Switzerland, produces and distributes premium quality biodiesel and pharmaceutical grade glycerine through its subsidiaries. Its clients include the mineral oil industry and resellers, large fleet operators and public transport companies. Moreover, pharmaceutical glycerine is supplied to the pharmaceuticals and cosmetics industry.
Disclaimer
This communication is neither an offer to sell nor a request to make an offer to buy or subscribe to securities. This communication and the information it contains are not intended for direct or indirect forwarding to or inside the United States of America, Canada, Australia or Japan.
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