Earlier this week the PETROTEC Group published H1 result of fiscal year 2011. The group reported on a positive comprehensive income after tax of 525,887 EUR.

Consolidated key financial figures reported:
Revenue: EUR 74,851k
EBITDA: EUR 2,863k
Comprehensive Income After Tax: EUR 526k

In the first half of 2011, revenue increased in EUR 43.2m compared with EUR 31.7m for the first half of 2010. This represents an increase of 136.3%.

From January until June 2011, PETROTEC produced 61,717 tons of biodiesel, compared with 44,200 tons during the same period 2010. The increase of 17,517 tons, corresponds to an increase of 39.6%.

These results are the fruits of a restructuring program, which began at 2008 as Israel Corporation Green entered the company as a major shareholder. Restructuring activities were mainly in following areas:

1. Technical optimization and development of a proprietary multi-feedstock technology which enables PETROTEC to process all types of feedstock (mainly waste products, such as used cooking oil) into high-grade biodiesel.

2. Expansion of purchasing, collection and logistics activities. PETROTEC collects used cooking oil from over 10,000 restaurants in Germany. This continues to be part of PETROTEC's core business activity.

3. Developments of new customers base across Europe.

4. Operational restructuring and implementation of quality and sustainability certificate mechanisms.

5. Financial restructuring which included debt restructuring and a capital increase of 4.8 million EUR. Subscribed capital increased to EUR 16.4m. As a result, equity increased by EUR 5.3m from the original EUR 6.7m to EUR 12m. PETROTEC's equity ratio is currently at 24.9% compared with 17.3% as of end of 2010.

PETROTEC is currently experiencing a positive trend attributed to preference of sustainable biodiesel made from waste. PETROTEC intends to further benefit from this trend which is in the core of its niche and business model.

The company looks forward to a fast and successful implementation of double counting framework (legislation framework which prefers biodiesel made from waste in contrast to that made of fresh vegetable oil) in Germany and other countries in Europe to further strengthen its competitive advantage and support growth of waste to energy sector across Europe.

Pending market conditions and as a further step to strengthen the financial situation of the group, PETROTEC may consider to implement further recapitalization measures which could include a debt to equity swap.

The 2011 H1 financial report could be found in the following link:
http://petrotec.de/cgi-bin/show.ssp?id=305&companyName=petrotec&language=English