Press release BoxID: 133736 (EOP Biodiesel AG)
  • EOP Biodiesel AG
  • Am Hünengrab 09
  • 16928 Pritzwalk
  • Contact person
  • Volker Siegert
  • +49-69-58997-305

2006/07 sales up 34% on year / Political framework conditions burden result as expected / Large order received for 2008

Strategic alignment to blending market successfully implemented

(PresseBox) (Pritzwalk, ) EOP Biodiesel AG, Pritzwalk, took its sales to €46.6 million (previous year: €33.7 million) in the financial year 2006/07 (ending 30 June). Adjusted for energy tax (not levied in the previous year), sales rose by 34% to €45.1 million. The increase was significantly lower than the sales growth originally planned, mainly due to the imposition on biodiesel of energy tax that seriously impaired the market for pure biodiesel (B100 market).

The result before interest and taxes (EBIT) was -€1.23 million (previous year +€2.51 million). The main reason for the negative trend was the fall in demand for pure biodiesel that meant EOP Biodiesel AG was unable to operate its plant at full capacity. Other burdens were additional logistics expenses and higher raw material costs. In addition, margins were affected by heavily subsidised biodiesel imports from the United States that the EU has yet to eliminate. As of 30 June 2007, EOP Biodiesel AG had 59 employees (previous year 35).

CFO Prof. Karl-Wilhelm Giersberg said, "EOP Biodiesel AG proved last financial year that it has enough substance to hold its own when the market is weak. Stable balance sheet relations with an equity ratio of 53% and a forward-looking investment policy will continue to be the basis of our strategy."

CEO Sven Schön reiterated his call on the German federal government to defer the next stage of tax on pure biodiesel planned for 2008 and to increase the blending quota significantly. "A further tax increase would be the death of the B100 market and run against all supposed climate protection endeavours by the federal government. Furthermore, we will be unable to set up any additional biodiesel production capacities and, thereby, creating new jobs unless there is a substantial increase in the blending quota in Germany."

Instead, EOP Biodiesel AG will step up its commitments in other countries, with its main focus on Eastern Europe, where subsidiaries are already active in Poland, Latvia and Romania. Opening up Serbia is planned for the current financial year. Via its shareholding in ABID AG, Austria, EOP has excellent access to South-Eastern Europe. At present, EOP Biodiesel AG has an annual production capacity of 130,000 tonnes of biodiesel in Pritzwalk. ABID, in which its holds a 56% stake, operates a plan with a capacity of 50,000 tonnes that is due to be doubled to 100,000 tonnes a year by mid-2008. "Our aim is to set up a production capacity of about 500,000 tonnes of biodiesel a year by 2010 and become a leading provider in Eastern Europe," said CFO Prof. Giersberg.

In the German market strategic alignment to the B5 market has been implemented successfully and will continue to be extended. Supply contracts with the German mineral oil industry have already taken up much of our 2008 capacity at the main production facility in Pritzwalk. Taking into service a rail link of our own in March 2008 will bring about a perceptible easement on the cost side.