Ad-hoc | 19 March 2007 01:29
VERBIO Vereinigte BioEnergie AG / Results Forecast
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Hamburg/Zörbig, March 18, 2007 – VERBIO Vereinigte BioEnergie AG
anticipates at present that in 2007 the cumulated results of the previous
year won’t be achieved. The Board of Management raised concerns that the
Group-EBIT in 2007 will be in the single-digit million EUR range.
The reasons for that negative outlook for 2007 are in the bioethanol
segment the very hesitant fulfilment of the mandatory blending and still
high crop prices. The prospective result of the biodiesel segment is
burdened with the since August 2006 existing taxation, the high rapeseed
oil price and the stronger competition in the German biodiesel market.
However VERBIO is satisfied with the current utilisation of the biodiesel
capacity.
VERBIO has achieved in 2006 sales*of 446.2 million EUR and realised an
operating result before special items (amortisation of intangible assets
and adjustments of claims in respect of investment grants and subsidies) of
55.5 million EUR. Thus the operative target for 2006 (EBIT-margin 12.4%)
was fully achieved.
The full annual report of the VERBIO Vereinigte BioEnergie AG will be
published at the press conference on March 29, 2007.
*2nd abbreviated financial year 2006 cumulated with IFRS-consolidated pro
forma information for the period 01.01.- 30.06.2006.
Contact
VERBIO Vereinigte BioEnergie AG
Alexandra Mühr
Tel.: (+49) 34956 / 303 985
Fax: (+49) 34956 / 303 99
E-mail: ir@verbio.de
Information on VERBIO Vereinigte BioEnergie AG
The VERBIO Group is one of the leading producers and suppliers of biofuels
and also the only industrial-scale producer of biodiesel and bioethanol in
Europe. Nominal capacity currently amounts to around 400,000 tons of
biodiesel and 300,000 tons of bioethanol per year. The company has
developed its own processes and innovative technologies for the production
of biodiesel and bioethanol. It supplies its products directly to European
mineral oil corporations, mineral oil traders, independent gas stations and
haulage companies. VERBIO AG also markets high-quality pharmaglycerin for
the consumer goods and cosmetic industries (glycerin is a by-product of
biodiesel production). Within the Group, VERBIO AG acts as the management
holding company. The Group’s operating business is run by its subsidiaries:
MUW Mitteldeutsche Umesterungswerke, NUW Nordbrandenburger
Umesterungswerke, MBE Mitteldeutsche BioEnergie, NBE Nordbrandenburger
BioEnergie and SBE Swiss BioEnergy.
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Information and Explaination of the Issuer to this News:
VERBIO expects better results not before 2008
2007 burdened with weak demand of ethanol despite of mandatory blending,
continuing margin pressure in the biodiesel business
Hamburg/Zörbig, March 18, 2007. – VERBIO Vereinigte BioEnergie AG (ISIN
DE000A0JL9W6), one of the leading producers and suppliers of biofuels in
Europe anticipates sales and earnings in 2007 substantially below the
previous year’s figures. The businesses will not improve before 2008.
However for 2006 the operating results were fully achieved.
Based on the current existing negative industry and tax related environment
the Board of Management of VERBIO anticipates 2007 as a difficult year in
which the previous year’s results won’t be achieved.The Board of Management
has raised concerns that the operating result of the Group in 2007 will be
in the single-digit million EUR range.
The bioethanol business is currently especially burdened due to the very
hesitant fulfilment of the mandatory blending and still high crop prices.
Furthermore large volumes of cheap ethanol were imported from Brazil to
Europe, produced out of low-priced sugar cane. This has led to a stop of
ununtil then positive price development of ethanol.
The biodiesel business is still under pressure because of the weak crude
oil price and the high rapeseed oil price. Despite of the difficult
business conditions VERBIO is satisfied with the current utilisation of the
biodiesel capacity. In fact the overcapacity in Germany leads to additional
margin pressure but for VERBIO as cost and technology leader it also offers
opportunities to gain market share and to play an active role during the
consolidation process. In addition VERBIO has a successful export business
both in biodiesel as in bioethanol. If the German legislation however
sticks to its taxation plans for pure biodiesel the B100-business could not
be carried on profitable from 2008 onwards.
VERBIO assumes that the economic situation of the biofuel industry will
improve in the second half of the 2007 due to declining rapeseed oil and
crop prices. The Board of Management expects a sustainable and significant
improvement not until 2008. Inspite of this the Board of Management is
strongly convinced that the long term growth trend of the biofuel sector in
Europe is fully intact.
Operating targets in 2006 achieved
Listed in the Prime Standard segment of the German Stock Exchange (Deutsche
Börse) since October 16, 2006, the company raised sales of EUR 446.2
million in the full year of 2006. This represents an increase of roughly
57% or EUR 161.6 million in comparison to 2005 as a whole (EUR 284.6
million). In the same period, the operating result before special items
rose to 55.5 million EUR (EBIT-Marge 12.4%) after 25.0 million EUR for 2005
(EBIT-Marge 8.8%). After special items the operating result for 2006 was
44.1 million EUR (EBIT-Marge 9.9%) and 23.9 million EUR in 2005 (EBIT-Marge
8.4%).
Sales in the 4th quarter of the calendar year (2nd quarter of the 2nd
abbreviated financial year 1 July - 31 December 2006) was 120.5 million EUR
and thus slighty above the sales figure of the 3rd quarter of the calendar
year (1st quarter of the 2nd abbreviated financial year 1 July - 31
December 2006: 120 million EUR). The operating result of the 4th quarter of
the calendar year was burdened due to declining prices for biodiesel and
high prices for crop and energy. In addition not liquidity-related special
items in the amount of 5.6 million EUR had an negative impact especially on
the operating result of the ethanol segment.
In total the results in 2006 were seriously influenced by not
liquidity-related special items in the amount of 11.4 million EUR. They
apply with 4.6 million EUR to adjustments of claims in respect of
investment grants and subsidies, with 6.3 million EUR to depreciations of
orders on hand in the context of initial consolidation and with 0.5 million
EUR for costs due to the establishment of the corporation.
The profit before tax for 2006 amounts to 38.8 million EUR (2005: 17.8
million EUR). The profit after tax accounts for 26.6 million EUR (2005:
11.6 million EUR).
Segments
Sales in the Biodiesel and Bioethanol segments grew to 302.0 million EUR
(2005 as a whole: 205.8 million EUR) and 123.2 million EUR (2005 as a
whole: 55.7 million EUR ), respectively. The operating result before
special items in the Biodiesel segment was 45.7 million EUR (2005 as a
whole: 36.2 million EUR ), after special items 41.0 million EUR (2005 as a
whole: 35.1 million EUR). In the biodiesel segment the reduction of the tax
relief starting from August 1, 2006 and the more than 20% declined crude
oil price diluted the result. The operating profit before special items in
the bioethanol segment was 8.7 million EUR, after special items 2.0 million
EUR. In 2005 the operating result was minus 12.4 million EUR.
In the next years the company will invest about 300 to 400 million EUR in
order to extend its leading market position in Europe. Apart from expanding
one of its current facilities, this is to be achieved above all by building
up new locations.
The annual report of the VERBIO Vereinigte BioEnergie AG will be published
at the press conference on March 29, 2007.
Contact
VERBIO Vereinigte BioEnergie AG
Alexandra Mühr
Tel.: (+49) 34956 / 303 90
Fax: (+49) 34956 / 303 99
E-mail: pr@verbio.de
Information on VERBIO Vereinigte BioEnergie AG
The VERBIO Group is one of the leading producers and suppliers of biofuels
and also the only industrial-scale producer of biodiesel and bioethanol in
Europe. Nominal capacity currently amounts to around 400,000 tons of
biodiesel and 300,000 tons of bioethanol per year. The company has
developed its own processes and innovative technologies for the production
of biodiesel and bioethanol. It supplies its products directly to European
mineral oil corporations, mineral oil traders, independent gas stations and
haulage companies. VERBIO AG also markets high-quality pharmaglycerin for
the consumer goods and cosmetic industries (glycerin is a by-product of
biodiesel production). Within the Group, VERBIO AG acts as the management
holding company. The Group’s operating business is run by its subsidiaries:
MUW Mitteldeutsche Umesterungswerke, NUW Nordbrandenburger
Umesterungswerke, MBE Mitteldeutsche BioEnergie, NBE Nordbrandenburger
BioEnergie and SBE Swiss BioEnergy.
Important Note
This Ad hoc announcement contains forward-looking information, which is
based on assumeptions and estimates of the company management of VERBIO
Vereinigte BioEnergie AG. Even though company management believes that
these assumptions and estimates are correct, the actual future development
and actual future results can deviate substantially from these assumptions
and estimates due to many factors. For example, these factors can include
alteration of the economic situation, legal and regulatory constraints in
Germany and the EU, and changes in the industry. VERBIO assumes no
liability and provides no warranty that future developments and actual
future results will agree with the assumptions and estimates expressed in
this interim report.
DGAP 19.03.2007
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Language: English
Issuer: VERBIO Vereinigte BioEnergie AG
Thura Mark 18
06780 Zörbig Deutschland
Phone: +49 (0)34956-303 90
Fax: +49 (0)34956-303 99
E-mail: pr@verbio.de
www: www.verbio.de
ISIN: DE000A0JL9W6
WKN: A0JL9W
Indices:
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin-Bremen, Stuttgart, Düsseldorf, München
End of News DGAP News-Service
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