EQS-News

VERBIO Vereinigte BioEnergie AG: Recovery in Bioethanol segment leads to solid Q3 2022/23 earnings - Seite 2

In the Bioethanol segment VERBIO recorded a positive trend in sales revenues and earnings compared to the second quarter of the current financial year due to the higher market prices and to the sale of additional GHG quotas for biomethane. VERBIO generated sales revenues of EUR 133.8 million, a 9 percent increase compared to the previous quarter (Q2 2022/23: EUR 123.3 million) and at a comparable level to the same period in the previous year (Q3 2021/22: EUR 133.7 million). EBITDA was EUR 17.5 million, once again significantly higher than in the previous quarter (Q2 2022/23: EUR 1.7 million). In the comparative previous year period (Q3 2021/22: EUR 52.0) VERBIO benefitted from lower grain procurement prices and lower energy costs.

VERBIO prepares the foundation for additional growth in the global decarbonisation market

In the third quarter VERBIO invested EUR 35.8 million in the ongoing expansion to the biorefinery in Nevada, the BioLNG/BioCNG filling station network, and the expansion of its advanced biofuels capacity in Germany. In the current quarter (Q4 2022/23) VERBIO announced the acquisition of a bioethanol plant in the USA, which will be modified to convert it into a VERBIO biorefinery. The Inflation Reduction Act aims to encourage investment in climate action and clean energy in the United States and offers provisions that will benefit the project.

Net financial assets at March 31, 2023 totalled EUR 121.3 million (June 30, 2022: EUR 284.1 million) and the Group’s equity ratio was 73.8 percent (June 30, 2022: 72.5 percent).

Outlook: Time lag between purchasing and sales initially a burden on earnings; Action is being taken against misuse of certificates in the Biodiesel market

In view of the continued fall in biodiesel prices due, among other things, to falsely labelled imports of Chinese biodiesel combined with raw material purchases made on a rolling basis, the Management Board amended the EBITDA forecast on April 27 to approximately EUR 240 million. According to industry reports, EU‑wide and national solutions are currently being developed to combat the misuse of certificates. “We welcome the fact that the certification body ISCC has also reacted with surprise integrity checks and has already withdrawn five certificates in recent weeks. Mineral oil companies must now also react and should not use falsely classified biodiesel based on palm oil. This is the only way to ensure that the transport sector is decarbonised using sustainable biofuels,” said Claus Sauter, Chief Executive Officer of VERBIO AG.