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EnviTec Biogas continues its international expansion in H1 2016
Sales revenues decline to EUR 68.1 million for reporting date-related reasons (previous year: EUR 95.5 million)
High order backlog in Plant Construction segment: EUR 115.6 million (previous year: EUR 56.2 million)
Positive EBIT of EUR 0.9 million (previous year: EUR 2.6 million)
Group forecast for 2016 confirmed: moderate increase in sales revenues and improved earnings before interest and taxes (EBIT)
EnviTec Biogas AG (ISIN: DE000A0MVLS8) successfully continued to internationalise its business activities in the first half of 2016. Given that only a low number of construction projects could be invoiced by 30 June 2016 - notwithstanding the Plant Construction segment's high level of capacity utilisation - the sales revenues of the first six months do not yet reflect this successful international expansion. Accordingly, Group revenues declined to EUR 68.1 million (previous year: EUR 95.5 million). By contrast, total output - which also reflects work in progress through changes in inventories - increased by 11.7% to EUR 91.0 million (previous year: EUR 81.5 million). The order backlog in the Plant Construction segment climbed from what was already a high level at the beginning of the year by another 48.4% to EUR 115.6 million at the end of June 2016 (previous year: EUR 56.2 million).
Of the total, an amount of EUR 109.0 million relates to orders in international markets, an amount of EUR 82.2 million is under construction. In view of the high capacity utilisation, management confirms the existing forecast and continues to project a slight increase in Group revenues.
At EUR 35.7 million, the Own Plant Operation segment made the biggest contribution to revenues in the first six months (previous year: EUR 32.7 million). EnviTec's Service segment increased its revenues by 26.3% to EUR 14.4 million (previous year: EUR 11.4 million). The Energy segment contributed EUR 12.7 million to total revenues (previous year: EUR 15.5 million). As the amendments to the German energy and electricity law are having the anticipated adverse effect, EnviTec will discontinue certain activities in this field and restructure the business segment. Due to the reporting date effects described above, the Plant Construction segment's sales revenues amounted to only EUR 5.3 million in the first six months of 2016 (previous year: EUR 35.9 million).
On the cost side, the strong expansion of service resources in the UK and the announced maintenance cycle of the Group's own biogas plants led to a sharp increase in the cost of materials. Although these effects reduced the result, the EnviTec Group generated positive earnings before interest and taxes (EBIT) of EUR 0.9 million in the reporting period (previous year: EUR 2.6 million). After taxes, the EnviTec Group generated earnings of EUR -0.1 million (previous year: EUR 2.2 million). The Group's profit after minority interests amounted to EUR 0.2 million (previous year: EUR 1.3 million). Earnings per share came in at EUR 0.01 (previous year: EUR 0.09). For the full year 2016 EnviTec continues to expect a moderate improvement in earnings before interest and taxes (EBIT) in comparison to the previous year.
The amendment of the German Renewable Energy Sources Act (EEG) adopted in July has disparate consequences for EnviTec Biogas. On the one hand, a follow-up regulation has been introduced for the time after the expiry of the current EEG tariff for old plants; on the other hand, the reform of the EEG tariff for new plants will fail to stimulate plant construction activity in Germany.
Jörg Fischer, Chief Financial Officer of EnviTec Biogas AG: "The newly introduced follow-up tariff for existing biogas plants in Germany gives the Own Plant Operation segment greater investment certainty and is a political signal that the biogas sector should continue to make a contribution to Germany's energy supply. At the same time, the standstill in plant construction once again vindicates our strategy of early internationalisation and flexibilisation and we will also step up the international expansion of our Service business. We are confident that the ongoing internationalisation of our Group will have a positive impact on sales revenues and earnings in the full year 2016."
The full interim report on the first six months of 2016 is available at http://www.envitecbiogas.de/ir/veroeffentlichungen/finanzberichte.html (German only).
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