Petrotec AG
Corporate News
Results of first half year 2014 (Jan. 1st to Jun. 30th)
Petrotec AG: Weaker H1 results due to pressure on UCOME prices and high feedstock prices
- Net loss of EUR 0.9 mill. for H1
- Net cash flow from operating activities of EUR 4.8 mill. in H1 (H1 2013: EUR 7.0 mill.)
- Equity ratio improved to 50.1 % (Dec. 31st 2013: 47.6 %)
Borken, August 13th, 2014 - Petrotec AG (ISIN DE000PET1111), the largest European producer of waste based biodiesel predominantly from used cooking oil, reports group sales of EUR 96.0 mill., down 0.9 % compared with the prior year (H1 2013: EUR 96.9 mill.) in the first half (Jan. 1st to Jun. 30th) of the business year 2014. In contrast, sales volumes increased by 6.7 % to 93 thousands tons. The company generated an operating loss (EBIT) of KEUR 9 (H1 2013: plus EUR 3.7 mill.). Net loss reached EUR 0.9 mill. (previous year: net profit EUR 2.8 mill.) and earnings per share (EPS) went down to minus EUR 0.04. These results demonstrate the tough market conditions in the waste based biodiesel market.
In Q2 2014 Petrotec reached its second highest quarterly sales result of EUR 50.0 mill. (Q2 2013: EUR 49.1 mill), and generated an EBIT of EUR 0.75 mill. Yet, this didn't compensate for the first quarter loss, mostly attributed to the decline in the sales price, which resulted in an overall loss for the first half year of 2014. While, as witnessed by the sales volumes, the demand for Petrotec's product remained stable, the downward trend in the pricing of the biodiesel had a negative effect on the margins and profitability, as the feedstock prices adjust with a delay. Production volumes in H1 2014 declined by 1,731 tons to 69,407 tons (H1 2013: 71,138 tons) due to tighter feedstock supply, mainly in the first quarter of 2014. Utilization of both biodiesel production plants reached a level of 75.7 % in the first half year of 2014 (H1 2013: 77.5 %).
Equity ratio increased to 50.1 %
As of Jun. 30, 2014 total assets declined by EUR 4.3 mill. to EUR 53.9 mill. The decline from year end 2013 is primarily due to the decline in inventories by EUR 1.6 mill. and decline of trade receivables by EUR 2.6 mill. Cash and cash equivalents decreased from EUR 9.9 mill. as of Dec. 31, 2013 to EUR 9.1 mill. as of Jun. 30, 2014. Through the agreement from the first quarter 2014 the current loans of Petrotec's major shareholder (ICG) in an amount of EUR 7.3 mill. were extended at least till end of first quarter 2015. The company has reduced its total liabilities by EUR 3.6 mill. to EUR 26.9 mill. as of Jun. 30, 2014 compared to Dec. 31, 2013. Petrotec's equity ratio improved to 50.1% compared to 47.6 % as of the balance sheet date on Dec. 31, 2013, which is mainly attributable to the reduced asset position.
Compared to 2013 year end Petrotec's working capital declined by EUR 3.4 mill. to EUR 13.2 mill. due to the favorable development of inventories and trade receivables. In the period under review Petrotec generated a net cash flow from operating activities amounting to EUR 4.8 mill. (H1 2013: EUR 7.0 mill.) mainly thanks to the decrease in inventories and trade receivables.
Regulation Update
Similar to the situation prior to implementation of 36. BImSchV, Petrotec again faces a high level of regulatory uncertainty due to the de-carbonization framework (mandatory blending switching from energy volume base to a CO2 emission saving base) which should commence on Jan. 1, 2015. Details of the implementation and monitoring are not expected to be set before November 2014, just a few weeks before the go-live date of the regulation. This unfortunate fact paralyses the market and encourages buyers, the mineral oil industry, to keep their purchases of biodiesel to the absolute minimum required.
The Spanish quota, which only accepted biodiesel produced from certified plants to count for the Spanish mandate, came into effect in Q2 2014. Petrotec managed to get its full capacity of two production plants certified. Thus, it is all set up to sell volumes into this market. Since Petrotec produces and sells sustainable double counting biodiesel, it is awaiting the introduction of the double counting scheme into the Spanish market, expected to take place in 2015, to further increase its activity in Spain.
Outlook
On the longer terms management sees a further increasing of the demand for biodiesel mainly thanks to an increasing number of countries adopting the double counting scheme and to higher blending obligations in order to achieve the GHG saving targets. Yet, on the short term, due to the decreasing trend of the UCOME prices following the decrease in the FAME0 margin over gasoil, the company expects a relative weak third quarter. Having to secure its plants' continuous operations, the company often purchases feedstock in advance to its actual production and sales. In weak market conditions, with soft demand for its product, this might result in eventually capturing lower than initially anticipated margins on the purchased feedstock. Considering those market conditions, the management still expects sales to be in the range of the provided original guideline, however sees a high risk for the company EBIT not to be positive for the year 2014.
Report download
The full H1 2014 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
| EUR million |
2013 |
2012 |
H1 2014 |
H1 2013 |
| Sales revenues |
193.3 |
166.2 |
96.0 |
96.9 |
| EBIT |
4.9 |
2.9 |
-0.009 |
3.7 |
| EBT |
3.1 |
0.9 |
-0.9 |
2.8 |
| Profit/Loss of the period |
4.0 |
0.9 |
-0.9 |
2.8 |
| EPS in EUR |
0.16 |
0.04 |
-0.04 |
0.11 |
| Operative cashflow |
11.6 |
-6.3 |
4.8 |
7.0 |
| Cash & equivalents |
9.9 |
7.9 |
9.1 |
6.1 |
| Equity ratio % |
47.6 |
39.3 |
50.1 |
46.8 |
No. of shares as of
Dec. 31 / Jun. 30 |
24,543,741 |
24,543,741 |
24,543,741 |
24,543,741 |
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 800,000 tons of waste and saved over 2.5 million tons of CO2 emissions. Petrotec is a public listed company (ISIN DE000PET1111) 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 2013 (Jan. 1st to Dec. 31st) Petrotec reached sales of EUR 193 mill. and generated an EBIT of EUR 4.9 mill. and a net profit of EUR 4.0 mill. The Company employs about 115 employees.
Press contact
Petrotec AG
Vera Berlin
Investor Relations
Tel.: +49 (0) 2862 910080
ir@petrotec.de
End of corporate news
