DGAP-News: PETROTEC AG: Petrotec achieved solid results despite tough market conditions
(firmenpresse) - DGAP-News: PETROTEC AG / Key word(s): Quarter Results/Quarter Results
PETROTEC AG: Petrotec achieved solid results despite tough market
conditions
10.08.2012 / 13:21
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Petrotec AG
Corporate News
Results first half year 2012 (Jan. 1 to June 30)
H1 2012: Petrotec achieved solid results despite tough market conditions
- Revenue up 3 % to EUR 77.1 mio. in H1
- EBIT profit of EUR 0.9 mio. in H1
- Expansion of storage capacity in Emden plant
- Double counting scheme in Germany started to compensate for decline in
demand from UK market
- Business activities in Spain continued its positive growth
- Outlook 2012: management expects sales to be at the lower end of EUR
150 mio. to EUR 190 mio. range and EBIT margin at around 2 %
Borken, August 10, 2012 - Petrotec AG (ISIN DE000PET111), the leading
producer of waste-based biodiesel (mainly used cooking oil-based) in
Europe, announced revenues at group level of EUR 77.1 mio. (H1 2011: EUR
74.9 mio.) in the first half of 2012, up 3 percent compared with the prior
year. The Company generated an operating profit (EBIT) of EUR 0.9 mio. in
H1 2012 (H1 2011: EUR 1.8 mio.). EBT amounted to EUR minus 0.1 mio. (H1
2011: EUR 0.6 mio.). EPS was reduced from EUR 0.03 in H1 2011 to minus EUR
0.01 in H1 2012.
Q2 results below Company's expectations
The biodiesel market has been under pressure from heavily subsidized
imports from Argentina and Indonesia where DETs (Differential Export Taxes)
apply. Abusive practices of the mass balance principle are reducing margins
for virgin oil based biodiesel as well as waste-based biodiesel produced in
Europe (as the premium of the latter is based on the benchmark pricing of
'FAME 0'). In this difficult market environment Petrotec faced some
additional challenges in the second quarter (Q2) like extraordinary
maintenance and malfunctions in its production lines, a change in
regulation in the UK market on April 1st, whereby the 20 Pence per liter
compensation scheme was replaced by the double counting incentive scheme
for UCOME and TME, and a high volatility of both commodities and
currencies. These circumstances impinged on utilization, sales and
earnings. During Q2 Petrotec produced close to 28,000 tons of biodiesel (Q2
2011: ca. 31,500 tons). By the end of Q2 malfunctions in the production
line have been fixed. Petrotec generated sales in Q2 of EUR 35.0 mio. (Q2
2011: EUR 41.6 mio.) and an operating profit of EUR 0.3 mio. (Q2 2011: EUR
1.4 mio.), EBT amounted to minus EUR 0.2 mio. (Q2 2011: EUR 0.8 mio.).
On the positive side, the growing double counting scheme market in Germany
started to compensate the decline in demand from the UK and the Company was
able to acquire a significant number of new local customers. Petrotec
developed additional storage capabilities in its Emden plant. The Company's
recently started business activities in Spain which generate positive
contributions. Petrotec has strengthened and grown its position in the
Spanish market by establishing business relationships to UCO collectors and
local producers.
Positive operating cashflow of EUR 1.1 mio.
Balance sheet figures have been kept stable compared with the end of fiscal
year 2011. Total assets position as of June 30, 2012 rose by 9.5 % to EUR
55.8 mio. mainly caused by higher inventories. As of June 30, 2012, the
equity ratio of 39.9 % was slightly below the ratio as of December 31, 2011
(43.9%) due to the increase in total assets and the loss in the period
under review.
Working capital increased by EUR 1.5 mio. to EUR 10.1 mio. at June 30, 2012
(Dec. 31, 2011: EUR 8.6 mio.). Despite this increase and the generated loss
Petrotec was able to generate a positive cash flow from operating
activities of EUR 1.1 mio. (H1 2011: EUR 3.5 mio.) in the first half of
2012. At the balance sheet date the Company holds a cash position of EUR
9.4 mio. (Dec. 31, 2011: EUR 11.1 mio.), after the repayment of a EUR 2.2
mio. loan to IC Green Energy.
Audited sustainability scheme and traceability of feedstock supply chain
As fraudulent trading of UCOME is still an issue in the double counting
markets in Europe, Petrotec has intensified its lobbying and education at
governmental bodies' and potential customers. The value for the double
counting biodiesel only comes with correct and extensive sustainability
documentation. Thus, Petrotec itself has prolonged and further improved its
sustainability scheme and traceability of the feedstock supply chain which
both have been proven and confirmed in the course of several sustainability
audits in the second quarter.
'The biodiesel market has been under pressure from heavily subsidized
imports from Argentina and Southeast Asia. Dumping practices are reducing
demand for virgin oil and waste based biodiesel produced in Europe. In this
difficult market environment Petrotec faced some additional challenges in
the second quarter (Q2) like extraordinary maintenance and malfunctions in
its production lines, a change in regulation in the UK market on April 1st,
whereby'
Demand for fair competition based on tough sustainability criteria
Petrotec calls on national governments and EU institutions to secure the
same competitive conditions for all market participants regardless of their
geographic production base. It is not acceptable that German biofuel
producers are under pressure simply because they meet all the criteria for
a sustainable biofuels, while at the same time other non-German based
producers do not comply with these standards. Subsidized imports must be
tackled via countervailing duties at EU level and banned from the German
blending mandate as the relevant German law prohibits double subsidies.
Petrotec actively supports the European Biodiesel Board (EBB) and the
Verband der Deutschen Biokraftstoffindustrie (VDB) in their actions against
unfairly disadvantaging EU biodiesel producers to enforce applicable laws
in order to ensure equal and fair conditions for competition in the biofuel
sector. Petrotec together with the German and European biofuels industry
appreciate and fully support the EU's binding climate targets and within
which only biofuels from approved sustainable energy sources will be
acceptable to contribute for the road transport climate targets. The German
Biofuel Sustainability Directive (Biokraftstoff-Nachhaltigkeits-Verordnung)
which came into force on January 1, 2011 is an acknowledged and practicable
way to ensure such sustainability of the used feedstock and the production
process.
Outlook
Overall, Petrotec management is positive for the Company's future
activities supported by growing demand for waste-based biodiesel with the
ongoing adoption of the double counting scheme across Europe. From the
sales and procurement standpoint, the new storage facility in Emden will
increase flexibility for biodiesel and raw materials storage. Broadening
its customer base with the growing double counting market in Germany and
upcoming markets such as Spain and Italy forms a more robust commercial
base for the Company and makes it less dependent on a single market in a
highly regulated environment. Especially Spain is seen as a valuable
business opportunity by the management with both a quota system and a
double counting incentive scheme for UCOME expected to be introduced in the
beginning of 2013.
For the financial year 2012 management currently expects that the Company
will meet the lower target range of sales between EUR 150 mio. and EUR 190
mio. given in its annual report for the year 2011. EBIT margin is expected
be around 1.5 % to 2 % rather than the estimated 3 % provided in financial
report 2011.
The full H1 report can be found at the following link:
http://petrotec.de/cgi-bin/show.ssp?id=305&companyName=petrotec&language=E
nglish
H1 2012 Petrotec group key figures
EUR million Q2 2012 H1 2012 Q2 2011 H1 2011Disclaimer
Sales revenues 35.0 77.1 41.6 74.9
EBIT 0.3 0.9 1.4 1.8
EBT - 0.2 - 0.1 0.8 0.6
Profit/Loss of the period - 0.2 - 0.1 0.8 0.6
EPS in EUR - 0.009 - 0.005 0.051 0.032
Operative Cashflow 1.1 3.5
Cash&equivalants 9.4 11.1
Equity ratio % 39.9 24.9
Number of shares 24,543,741 16,362,494
This corporate news contains forward looking statements, which are based on
assumptions and estimates of the management of Petrotec AG. Although
Petrotec management believes that these assumptions and estimates are
correct, actual future developments and results can deviate substantially
from these assumptions and estimates due to many factors. These factors can
include alteration of the economic situation, legal and regulatory
constraints in Germany and the EU, and changes in Petrotec's general
business and competitive environment. Petrotec assumes no liability and
provides no warranty that future developments and actual future results
will conform with the assumptions and estimates expressed in this corporate
news.
About Petrotec AG
Petrotec AG, Germany, is the leading waste-based biodiesel in Europe
(mainly based on used cooking oil). The Company owns an overall nominal
biodiesel production capacity of 185,000 tons per year at two locations in
Germany. Petrotec runs a vertically integrated business model including own
collection of used cooking oil from more than 15,000 collection points,
treatment and refining of the raw material up to the technologically
demanding production of waste-based biodiesel. The Company sells its
biodiesel to large mineral oil companies in northwest Europe. The usage of
waste based biodiesel is incentivized by major EU countries with a double
counting scheme as part of the mandatory blending quotas. Since its IPO in
2006, Petrotec has cleaned 600,000 tons of waste and saved over 1.6 million
tons of CO2 emissions. Petrotec is a public listed company (ISIN
DE000PET111) in the regulated market of Frankfurt Stock Exchange, in the
Prime Standard segment. It has a capital stock of 24,543,741 Euro, equaling
24,543,741 shares. In the business year 2011 (Jan. 1st to Dec. 31st)
Petrotec reached sales of EUR 173 mio. and generated an EBIT of EUR 5.3
mio. and a net profit of EUR 3.0 mio. The Company employs about 100
employees.
End of Corporate News
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10.08.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: PETROTEC AG
Fürst-zuSalm-Salm-Str. 18
46325 Borken-Burlo
Germany
Phone: +49 (0)2862 9100 19
Fax: +49 (0)2862 9100 99
E-mail:info(at)petrotec.de
Internet: www.petrotec.de
ISIN: DE000PET1111
WKN: PET111
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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