Petrotec AG

Corporate News

Results of first quarter 2013 (Jan. 1^st to March 31^st)

Petrotec: Sales and earnings increased in Q1 2013

Positive results mirror the continuous improved operational parameters of Petrotec group and the increasing demand for CO2 friendly waste based biodiesel in Europe

- Sales up 13.7 % to EUR 47.8 mio. compared with Q1 2012

- EBIT of EUR 1.5 mio. in Q1, up 153.6 % compared with Q1 2012

- EBIT-margin of 3.2 % realized in Q1

- High utilization of above 81 % in biodiesel production plants

- Petrotec reduced liabilities by 23.3 %

- Financials further strengthened via trading facility line with one of the leading European banks

Borken, May 7^th, 2013 - Petrotec AG (ISIN DE000PET111), the largest European producer of waste based biodiesel predominantly from used cooking oil, reports group sales of EUR 47.8 mio., up 13.7 % compared with the prior year (Q1 2012: EUR 42.1 mio.) in the first quarter of the business year 2013 (Jan. 1^st to March 31^st). The company generated an operating profit (EBIT) of EUR 1.5 mio. (Q1 2012: EUR 0.6 mio.). EBT reached EUR 1.1 mio. (previous year EUR 0.1 mio.) and earnings per share (EPS) went up from EUR 0.01 in Q1 2012 to EUR 0.04 in Q1 2013. These results demonstrate Petrotec's solid position in the European waste based biodiesel market as well as the continuous improvement in the company's production costs and production yields.

Better market conditions in Q1 2013 enabled Petrotec to reach its second highest quarterly sales result which included the sale of the processed high raw material stocks from the fourth quarter 2012. Utilization of both biodiesel production plants reached a record high of 81.3 % (Q1 2012: 74.2%) and record production of 37,100 tons of biodiesel (Q1 2012: 34,200 tons; Q4 2012: 30,220 tons). Despite being a seasonally weak quarter, Petrotec generated relatively strong quarterly results triggered by the strong increase in sales and improvements of the cost of the material ratio.

In the German market the first quarter was marked by the insufficient transition period granted for the implementation of the new German Biofuels Law (36^th BImSchV) which introduced stricter standards for tracing origins of double counting waste based feedstock. This caused and still is causing bottlenecks in UCO supply and led to complex selling and buying decisions including refusing local demand in the German market and selling some significant volumes outside of Germany.

Towards the end of March the number of certified suppliers somewhat increased, and Petrotec has been able to slightly increase the offered volumes of UCOME being compliant with the double counting requirements in Germany. The continuous high level of attention Petrotec puts in its sustainability and certification system is acknowledged by its customers. Petrotec is concerned that the complexity and time constraints in certifying all collectors and suppliers in the provided time frame by the 36^th BimSchV might negatively impact feedstock availability and ultimately waste-based biodiesel for the German market.

In the European market (excluding Germany) Petrotec sold its biodiesel mainly into the UK and the Netherlands. In Spain the company is growing its business and targeting its product to the Southern Europe market. Spain is expected to adopt the double counting scheme by the beginning of 2014.

Equity ratio increased to 46.9 %

As of March 31, 2013 total assets decreased by 12 % to EUR 52.0 mio. due to a significant decrease in inventories by 31.6 % to EUR 13.4 mio. In addition, Petrotec paid accrued interest to its main shareholder IC Green Energy of EUR 1.6 mio., which in turn reduced the cash position to EUR 6.5 mio. On the liability side current bank loans decreased by EUR 6.3 mio. to EUR 1.2 mio. after repaying a bank loan provided in Q4 2012 to support Petrotec's working capital requirements. Overall, total liabilities reduced from EUR 36.0 mio. as of Dec. 31, 2012 by 23.3 % to EUR 27.6 mio. During this first quarter, Petrotec has also managed to further strengthen its financing capacity by concluding a long term non committed trading facility line with a major European bank. These measures result in a stable balance sheet and a more robust company. As of March 31^st, 2013 the equity ratio increased to 46.9%.Working capital declined compared to 2012 year end by EUR 4.8 mio. to EUR 15.6 mio., mainly due to dissolving stock of raw materials in the first three months of 2013. In the period under review Petrotec generated a positive cash flow from operating activities of EUR 6.8 mio. (Q1 2012: EUR 1.0 mio.).

Outlook

Overall, management sees a slightly improving market environment. The relative limited availability of UCOME with all required certifications is creating a healthy demand for the company's product in Germany. In the other European markets, the company sees an increase in demand as now most of the major Western European countries have adopted the double counting scheme. Some countries are about to increase their blending obligations in order to achieve GHG saving targets as well. This provides Petrotec with a competitive advantage compared to the vegetable oil based biodiesel producers. Due to significantly higher GHG savings generated by usage of UCOME Petrotec's product better matches the regulatory intention to promote sustainable biofuels with as high CO2 emissions savings as possible. Petrotec's efforts to constantly increase production and sales output by improving its technology, processing yields and its logistics network flexibility continue to be of highest priority to Petrotec's management. The management maintains the outlook given in the 2012 annual report and shall provide an updated outlook in its half year report.

Report download

The full Q1 2013 financial report can be found in the following link:
http://www.petrotec.de/core/cms/front_content.php?idart=386&changelang=2&lang=2

Petrotec group financial figures

Disclaimer

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

Petrotec AG, Germany, is the largest European producer of waste-derived biodiesel, mainly based on used cooking oil. The Company owns an overall nominal 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 primarily to large mineral oil companies in northwest Europe. The usage of waste based biodiesel enjoys a preferential double counting scheme granted by major EU countries as part of the mandatory blending quotas. Petrotec's EcoPremium biodiesel provides significant environmental and climate advantages with the highest CO2 emission reduction of 83% (compared with fossil diesel) amongst all biofuels approved by the EU Renewable Energy Directive (2009/28/EC). Since its IPO in 2006, Petrotec cleaned more than 700,000 tons of waste and saved over 2 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, complying with high international transparency standards. It has a capital stock of 24,543,741 Euro, equaling 24,543,741 shares. Main shareholder is IC Green Energy Ltd., Israel, with a stake of 69 percent, freefloat is approx. 18 percent. In the business year 2012 (Jan. 1^st to Dec. 31^st) Petrotec reached sales of EUR 166 mio. and generated an EBIT of EUR 2.9 mio. and a net profit of EUR 0.9 mio. The Company employs about 100 employees.

Press contact

Petrotec AG

Falk v. Kriegsheim

Investor Relations

Tel.: +49 (0) 172 9837109

ir@petrotec.de