EOP Biodiesel AG increases group revenue slightly

EBIT and results of EOP group continue to be negative - CFO Prof. Dr. Giersberg leaves the company on 30 June 2009 at his own request - pricing structure for biodiesel producers is currently improving

Pritzwalk, (PresseBox) - In the first nine months of its financial year 2008/09 (effective date: 31 March 2009), EOP Biodiesel AG in Pritzwalk has increased its group revenue according to IFRS slightly from €84.6m to €87.9m. EBIT after nine months was at €-7.9m (previous year: €-7.0m). Group results in the reporting period were at €-13.0m (previous year: €-8.7m), which was negatively impacted by hedging contracts for raw material sourcing as well as reevaluation of deferred taxes.

„Although we could stabilize significantly in the third quarter, we could not make up for the losses in the first half of our financial year. Also, for the full financial year 2008/09 we are expecting a negative result”, says CEO Sven Schön.

The reason for the unfortunate earning development was in particular the fact that EOP Biodiesel AG sourced a large part of its raw material in the first half of 2008/09 at a high price level. On the revenue side, the low price for mineral diesel, which is the basis for the biodiesel price, was depressing the margins. Additionally, EOP Biodiesel AG was suffering from the revocation of the announced increase of the blending quota from five to seven per cent. In order to satisfy higher demand in the future, the company had already purchased raw material, which was not required.

In Germany, the legal situation is further unclear after the Federal Council (Bundesrat) called the mediation committee because of the decision of the Federal Government to change the blending regulation. According to CFO Prof. Dr. Karl-Wilhelm Giersberg, “Reliable planning is not possible on basis of this chaotic legislation.” As opposed to the initial plans to increase the biodiesel blending rate of currently five per cent to seven per cent, the Federal Government only changed the norm for diesel, so that the mineral oil industry can blend up to seven percent biodiesel on a voluntary basis. There is, however, due to the present price for mineral oil little incentive to do so.

Currently, the pricing structure for biodiesel producers is developing in a favourable direction. While the price for rape and rape seed oil increased only slightly, the diesel price increased considerably. On this basis, EOP Biodiesel AG should show a significant increase in results in the next financial year.

Abroad, the sales process for the Baltic Holding Company in Liepaja (Latvia) has progressed and should be closed in the first quarter of the new financial year. CFO Prof. Dr. Giersberg leaves the company on 30 June 2009 at his own request for personal reasons. His tasks will be performed by CEO Sven Schön until further notice. Chairman of the supervisory board, Klaus Maerten-Hinrichs says: “The supervisory board thanks Prof. Dr. Giersberg for his excellent work during the time of building up the business and the IPO, the subsequent international expansion and the establishment of the company as one of the leading producers of biodiesel in Germany. The supervisory board whishes Prof. Dr. Giersberg all the best for his future private and professional plans.”

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