CropEnergies, a major European bioethanol producer, has released financial results for the first quarter of the 2018/2019 financial year.
According to a statement, the German biofuel producer started the financial year with a below average quarter compared to previous years.
Revenues decreased by 17% to €192 million (the previous year’s figure was €231 million). Earnings before interest, taxes, depreciation, and amortisation (EBITDA) were €14 million, compared to €33 million for the previous year.
According to the CropEnergies statement, “the main reason for the reduction is the significantly lower ethanol price, which was temporarily below the gasoline price. As a result, production was reduced by 8% to 257,000 (previous year: 280,000) cubic metres of ethanol.
Net financial assets for CropEnergies improved to €41 million, compared to €37 million in February 2018.
According to the CropEnergies statement, the company is expecting a gradual improvement in ethanol prices and results over the course of the financial year.
The company also sees the 14 June agreement between European Parliament, Council and Commission negotiators on RED II as a positive. Among other things, these negotiations saw an agreement to increase the minimum share of renewable energies in transport from 10% in 2020 to 14% in 2030.
The statement claims that CropEnergies sees ‘significant progress’ in the compromise. “Thanks to its know-how and experience, CropEnergies is well positioned to make mobility even cleaner in the future with sustainably produced renewable fuels,” the statement concludes.