VERBIO with good second quarter - stabilisation of results

biofuel sales increased by 16 per cent - outlook confirmed

(PresseBox) ( Leipzig/Zörbig, )
VERBIO Vereinigte BioEnergie AG increased its biofuel sales to the domestic blending market with 264,279 tons corresponding to 16 per cent compared to the halfyear 2009. In the first six months of 2010 sales were reached in the amount of EUR 243.1 million (1 HY 2009: 247.0 million). The Group result (EBIT) stood at EUR 7.7 million (1 HY 2009: -11.2 million). The improvement in EBIT in the amount of EUR 18.9 million mainly results from the bioethanol and the energy segment. In the bioethanol segment the result primarily increased due to improved yields and significant cost reductions. In the energy segment the sale of seven wind power plants (EUR 4.5 million) contributed to that outstanding result. The result for the period amounted EUR 5.4 million after EUR -16.2 million in the first half-year 2009. The Management Board still expects a significant increase in sales and positive earnings before interest and tax (EBIT) in the higher single-digit euro region in the financial year 2010.

Stable financial conditions

The financial conditions of the VERBIO Group are stable. At June 30, 2010 liquid funds amounted to EUR 42.9 million and the equity ratio was at 73 per cent.

VERBIO profits from increased demand - utilisation in the biodiesel and bioethanol segments clearly above previous year and previous period

In the first half-year of 2010, 187,181 tons were produced in the biodiesel segment and were therefore with 10,398 tons respectively 6 per cent over the first half-year 2009. Due to the lower price level, sales in the amount of EUR 165.3 million (1 HY 2009: EUR 174.8 million) decreased to the comparing previous period. The segment result (EBIT) stood at EUR -1.6 million (1 HY 2009: -1.2 million), whereby the second quarter of 2010 had a positive result amounting to EUR 0.1 million.

In the same period, 90,113 tons (1 HY 2009: 79,508 tons) were produced in the bioethanol segment and therefore with 10,605 tons respectively 13 per cent above the comparable previous period. Compared to the previous year this is because of increased demand and gained market shares. Due to higher sales and market prices, sales increased by 16 per cent to EUR 69.0 million (1 HY 2009: EUR 59.5 million). The segment result (EBIT) in the amount of EUR 3.7 million was EUR 14.3 million above the figure of the first half-year 2009 (EUR -10.6 million) and is compared to the previous year positively influenced by lower cost of materials. Compared to the first quarter of 2010, sales and segment result increased respectively improved further in the second quarter of 2010.

In the first half-year of 2010, the energy segment comprise of sales in the amount of EUR 4.9 million (1 HY 2009: EUR 9.0 million). The decline in sales results from less operating wind power plants. The segment result (EBIT) was with EUR 5.8 million clearly above the comparing previous year (1 HY 2009:EUR 0.7 million) and contains book profits from the sale of wind power plants in the amount of EUR 4.5 million.

The other segment generated revenues in the amount of EUR 3.9 million (1 HY 2009: EUR 3.7 million). The segment result (EBIT) is at EUR -0.2 million after EUR -0.1 million in the first half-year 2009.

For the first six months, investments in property, plant and equipment in the amount of EUR 26.9 million (1 HY 2009: EUR 3.0 million) are reported. Thereof EUR 25.3 million (1 HY 2009: EUR 1.4 million) relate to the completion of the biogas plants in Zörbig and Schwedt/Oder. For parts of these investments prepayments in the amount of EUR 10.4 million were already made in 2009.

First VERBIO biogas went on stream

On July 6, 2010 the first biogas plant started operation in Zörbig. Not just politicians but also economists and research and development partners recognised the viability of combining the biogas and bioethanol production in a very functional and extensive way.

VERBIO confirms their defined operative targets for 2010

For 2010 VERBIO is striving to further expand of our market share in both the biodiesel and bioethanol segment. VERBIO aims to achieve full utilisation of the existing biodiesel and bioethanol production capacities. Additional opportunities in respect of sales and cost optimisation arise when the biogas plants located in Zörbig and Schwedt/Oder start full operation. Both plants went on stream as scheduled and produce first amounts of biogas. This biogas has to be feed-in into the natural gas distribution system from August 2010.

Assuming that raw material prices remain stable, a significant increase in sales and positive earnings before interest and tax (EBIT) in the higher single-digit euro are expected by the Management Board for the financial year 2010. The share of sales contributed by the production and feed-in of biogas will be approximately EUR 6 million. Essential contributions to result are strived by first revenues from the biogas plants and therewith connected savings by running these plants as well as the possible sales of further wind power plants.

This corporate news contains forward-looking statements, which are based on assumptions and estimates of the company management of VERBIO Vereinigte BioEnergie AG. Even though the company management believes that these assumptions and estimates are correct, the actual future development and actual future results can deviate substantially from these assumptions and estimates due to many factors. For example, these factors can include alteration of the economic situation, legal and regulatory constraints in Germany and the EU, and changes in the industry. VERBIO assumes no liability and provides no warranty that future developments and actual future results will agree with the assumptions and estimates expressed in this corporate news.
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