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PETROTEC AG: Weaker H1 results due to pressure on UCOME prices and high feedstock prices

DGAP-News: PETROTEC AG / Key word(s): Half Year Results/Half Year
Results
PETROTEC AG: Weaker H1 results due to pressure on UCOME prices and
high feedstock prices

13.08.2014 / 07:30

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Petrotec AG

Corporate News

Results of first half year 2014 (Jan. 1st to Jun. 30th)

Petrotec AG: Weaker H1 results due to pressure on UCOME prices and high
feedstock prices

- Net loss of EUR 0.9 mill. for H1

- Net cash flow from operating activities of EUR 4.8 mill. in H1 (H1
2013: EUR 7.0 mill.)

- Equity ratio improved to 50.1 % (Dec. 31st 2013: 47.6 %)

Borken, August 13th, 2014 - Petrotec AG (ISIN DE000PET1111), the largest
European producer of waste based biodiesel predominantly from used cooking
oil, reports group sales of EUR 96.0 mill., down 0.9 % compared with the
prior year (H1 2013: EUR 96.9 mill.) in the first half (Jan. 1st to Jun.
30th) of the business year 2014. In contrast, sales volumes increased by
6.7 % to 93 thousands tons. The company generated an operating loss (EBIT)
of KEUR 9 (H1 2013: plus EUR 3.7 mill.). Net loss reached EUR 0.9 mill.
(previous year: net profit EUR 2.8 mill.) and earnings per share (EPS) went
down to minus EUR 0.04. These results demonstrate the tough market
conditions in the waste based biodiesel market.

In Q2 2014 Petrotec reached its second highest quarterly sales result of
EUR 50.0 mill. (Q2 2013: EUR 49.1 mill), and generated an EBIT of EUR 0.75
mill. Yet, this didn't compensate for the first quarter loss, mostly
attributed to the decline in the sales price, which resulted in an overall
loss for the first half year of 2014. While, as witnessed by the sales
volumes, the demand for Petrotec's product remained stable, the downward
trend in the pricing of the biodiesel had a negative effect on the margins
and profitability, as the feedstock prices adjust with a delay. Production
volumes in H1 2014 declined by 1,731 tons to 69,407 tons (H1 2013: 71,138
tons) due to tighter feedstock supply, mainly in the first quarter of 2014.
Utilization of both biodiesel production plants reached a level of 75.7 %
in the first half year of 2014 (H1 2013: 77.5 %).

Equity ratio increased to 50.1 %

As of Jun. 30, 2014 total assets declined by EUR 4.3 mill. to EUR 53.9
mill. The decline from year end 2013 is primarily due to the decline in
inventories by EUR 1.6 mill. and decline of trade receivables by EUR 2.6
mill. Cash and cash equivalents decreased from EUR 9.9 mill. as of Dec. 31,