BIOPETROL increases sales revenues - loss for 2010
- Net loss of KEUR 73,009 including impairment charges of KEUR 47,755
- Difficult market conditions force production halt at German plant
- Production continues at better-situated Rostock and Rotterdam facilities
BIOPETROL INDUSTRIES AG, the Switzerland-based producer of biodiesel and high quality pharmaceutical-grade glycerine, today reported a net loss of KEUR 73,009 for 2010 amid continuing overcapacity in the European biodiesel market which led to pressure on margins and low utilization rates across the industry.
BIOPETROL has taken a total impairment for the year of KEUR 47,755 (2009: KEUR 0). EBITDA was KEUR -9,808 for the year compared to KEUR -6,737 for 2009, while sales revenues were KEUR 369,238 (2009: KEUR 127,390).
As part of the company's response to these continuing difficult market conditions, BIOPETROL today with regret informed the Works Council at its plant in Schwarzheide, eastern Germany, that the company intends to end production at that plant in June.
"This was an extremely difficult decision for the Board," said Maarten Roelfs, Chief Executive Officer of BIOPETROL. "We will work closely with the Works Council to mitigate the impact of the lost jobs as far as possible."
The ending of production will unfortunately result in the loss of 31 production positions at the plant. The Board has been able to save administrative positions at Schwarzheide by giving these personnel Group-wide duties.
Due to its location far from the sea, the Schwarzheide plant lacks the transport links to seek new potential customers beyond its own oversupplied region. The Board concluded that there is no prospect of improvement in the foreseeable future.
"We are confident that the European biodiesel market will pick up in the years to come, but unfortunately not quickly enough to allow us to use all our plants economically in the short term," said Mr Roelfs. "Our plants in Rotterdam and Rostock are better located to withstand the current difficult market conditions as they have access to a wider pool of customers via sea links."
During 2010 BIOPETROL took a number of other actions to further drive cost efficiency and competitiveness, including moving its commercial activities from Zug to Rotterdam, the main hub of the European biodiesel industry.
BIOPETROL INDUSTRIES AG
With its German, Dutch and Swiss subsidiaries, BIOPETROL INDUSTRIES AG, which has its head office in Baar (Switzerland), produces and sells biodiesel and pharmaceutical-grade glycerine of the highest quality. Among our customers are the oil industry and oil traders, large-scale fleet operators, public short-distance transport, as well as the agricultural and construction industries. The pharmaceuticals and cosmetics industries are in addition supplied with glycerine of pharmaceutical quality. BIOPETROL INDUSTRIES AG has annual production capacities in Schwarzheide, Rostock and Rotterdam of 1,000,000 tonnes of biodiesel and 90,000 tonnes of pharmaceutical-grade glycerine.