PRESS RELEASES
BIOPETROL: Sales growth on target
- Heavy investment in production capacities
- Capacity build-up and tax debate reduce result
- First ever positive operative cash flow
NB: Please note the disclaimer at the end of this press release
August 22, 2006. BIOPETROL INDUSTRIES AG's consolidated sales revenues rose by 96% to €62.3 million in the first half of 2006. Consolidated operating earnings before interest and taxes (EBIT) were on a par with the previous year at a little under €2.0 million. The gross profit fell to 8.3% (previous year: 11.4%) in the same period. The reasons were old contracts that expired on 30 June 2006 and the continuing debate on biofuel taxation in Germany. First-half results also included higher expenditure on building up personnel capacities in the new Rostock and Rotterdam works and preparing the Group's infrastructure for the targeted growth. The consolidated first-half net income increased by about 45% to €1.5 million due to a higher financial result and a lower taxrate. First-half earnings per share were €0.04 (previous year: €0.03).
Sales growth was a result of enlarging the biodiesel plant at Schwarzheide in the third quarter of 2005 from 100,000 to 150,000 tons per year. Thanks to the excellent reliability of the plant H1 2006 sales rose to 74,788 tons of biodiesel (previous year: 45,452 tons). Sales consisted mainly of biodiesel (about 93%) and pharmaceutical grade glycerine (5%). The remainder were vegetable oils and other by-products.
Sound balance sheet structure
In the first half of 2006 BIOPETROL INDUSTRIES earned its first positive operative
cash flow. At €5.0 million it was significantly higher than the previous year's
€ -4.8 million. The balance sheet total increased to €75.3 million due to
the higher business volume. The equity ratio was 86% (31 December 2005: 88.7%).
Heavy investment
In the first six months of 2006 BIOPETROL invested €25.6 million in setting
up production facilities in Rostock and Rotterdam. Funding being assured for
further investment in Rotterdam, financial backing is in place for the increase
in capacities planned so far. Cash and cash equivalents at 30 June 2006 totalled
€14.5 million.
Outlook:
The Rostock works will commence operations on schedule in October/November
2006. The Group's total capacity will then increase to an initial 300,000
tons and from 2007 to more than 350,000 tons per year. Rotterdam works is
scheduled to start-up in third quarter 2007, which will boost the company's
overall biodiesel production capacity to 750,000 tons per year. With the new
locations and their optimal logistical connection to deep-sea ports, pipeline
and railway networks, additional markets can be opened up in Europe.
The management of BIOPETROL INDUSTRIES is confident that the company will achieve a higher consolidated net income in the second half than in the first half of 2006 with the expiry of unfavourable old contracts and the end of non-recurrent effects.
The full quarterly report (Q2 to 30 June 2006) has been published in German and in English on the company's website at www.biopetrol-ind.com.
About the company:
BIOPETROL INDUSTRIES AG, based in Zug, Switzerland, produces and distributes
with its German subsidiaries biodiesel and pharmaceutical grade glycerine
of the highest quality. Its customers include the mineral oil industry and
oil traders, large fleet operators, public transport, agriculture and the
construction industry. In addition, glycerine is supplied to the pharmaceuticals
and cosmetics industries.
At present BIOPETROL INDUSTRIES AG produces about 150,000 tons of biodiesel and 30,000 tons of pharmaceutical grade glycerine per year in Schwarzheide. At the beginning of February 2006 the foundation stone for a further location was laid in Rostock, where from October/November 2006 an annual 150,000 and in the second stage 200,000 tons of biodiesel will be produced. In Rotterdam in the Netherlands, BIOPETROL is building a works with a production capacity of 400,000 tons of biodiesel and 60,000 tons of pharmaceutical grade glycerine per year. By the end of 2007, annual capacity is to be increased fivefold to 750,000 tons of biodiesel.
Disclaimer
This release is neither an offer to sell nor an invitation to submit an offer
to buy or subscribe to securities. This release and the information that it
contains are not intended for direct or indirect circulation to or within
the United States of America, Canada, Australia or Japan.
[ Home | Sitemap | Credits | Deutsch | Nederlands ]
Print
Recommend