VERBIO Vereinigte BioEnergie AG

Earnings Release • Nov 11, 2010

News Details

Corporate | 11 November 2010 06:50

VERBIO Vereinigte BioEnergie AG releases report as at 30 September 2010

VERBIO Vereinigte BioEnergie AG / Key word(s): Quarter Results

11.11.2010 06:50

Positive operatives result (EBIT): EUR 7.9 million in first three quarters
- Biogas sales volume contractually assured - Vertical integration and
strengthening of the Management Board underpin the strategic orientation
introduced

Leipzig/Zörbig, 11 November 2010: In the first nine months of 2010, VERBIO
increased its biofuel production to 426,684 tons after 419,620 tons in the
same period of 2009. In total, sales of EUR 370.5 million were generated by
30 September 2010 (9M 2009: EUR 380.0 million), with the consolidated
operating result (EBIT) amounting to EUR 7.9 million (9M 2009: EUR -10.4
million). A major contribution to this improvement in earnings in the
amount of EUR 18.3 million was made by higher yields in the Bioethanol
segment and the sale of seven wind turbines, generating a book gain of EUR
4.5 million in the Energy segment. The net profit for the period amounts to
EUR 6.3 million after EUR -14.9 million in the same period of the previous
year.

Financial position remains stable

The operating cash flow development and the application of funds resulted
in a level of cash and cash equivalents plus term deposits of EUR 49.6
million as at 30 September 2010. The equity ratio is 66 per cent.

VERBIO benefits from increased demand - good utilisation of production
capacity

The sales volume of biodiesel, which VERBIO supplies primarily to the
domestic blending market, rose by around 4 per cent, while that of B100
remained weak. In the period under review, 280,218 tons were produced in
the Biodiesel segment; this is 8,684 tons lower than in the same period of
the previous year. The lower production is partly due to the decline in
sales volume in the highly competitive international business (particularly
in the third quarter). The export volume was down 26 per cent year-on-year.
In total, sales of EUR 243.8 million (9M 2009: EUR 267.4 million) were
generated. In addition to the lower production, this decrease is chiefly
attributable to a lower price level and is reflected in the segment result
(EBIT), which amounts to EUR -2.1 million (9M 2009: EUR 0.1 million).

In the Bioethanol segment, 146,466 tons were produced in the same period
(9M 2009: 130,718 tons). This was 15,748 tons or 12 per cent more
bioethanol than in the same period of the previous year. VERBIO benefited
here from a substantial increase in demand and higher market prices as
compared to the previous year. This led to a rise in revenues of just under
21 per cent to EUR 113.7 million (9M 2009: EUR 94.3 million). At EUR 4.3
million, EBIT was EUR 15.1 million higher than the previous year's figure
(EUR -10.8 million).

The Energy segment generated sales of EUR 6.8 million in the period under
review (9M 2009: EUR 12.2 million). This sales decline results from the
lower amount of electricity fed into the grid due to the sale of wind
turbines. EBIT of EUR 5.6 million is posted (9M 2009: EUR 0.2 million).

In the Other segment, which comprises the services of the Group's own fleet
and logistics, sales and EBIT were at the previous year's level at EUR 6.2
million and EUR 0.1 million respectively.

VERBIO confirms EBIT target for 2010

VERBIO increased its market share in the Biodiesel and Bioethanol segments
in the first nine months of 2010 and expects this to continue in the fourth
quarter. Because sales in the third quarter of 2010 were below the original
expectations, particularly in the Biodiesel segment, due to price and sales
volume factors, the sales forecast for 2010 as a whole has been adjusted.
Sales in 2010 as a whole are now expected to be at around the level of the
previous year.

The start of operations at the biogas plants and the start of production
went according to plan. VERBIO has been feeding the biogas produced into
the natural gas grid since August 2010. Because the completion of the feed
system by the grid operator has been delayed, sales from biogas sales will
amount to between EUR 2 million and EUR 3 million in 2010.

The target of generating positive earnings before interest and taxes (EBIT)
for 2010 as a whole in the upper single-digit millions of euros is
confirmed.

Märka GmbH is included in the scope of consolidation of VERBIO as of 1
November 2010. Consequently, the sales and earnings contribution of Märka
GmbH for November and December will first be shown in the 2010 annual
financial statements.

Initial volumes of biogas contractually defined

VERBIO AG has been producing biogas in the new biorefineries in Zörbig and
Schwedt/Oder since the beginning of 2010. The start-up of the plants took
place according to plan and initial volumes of biogas have already been fed
into the natural gas grid. 'We are delighted that our new product is being
greeted with so much interest on the market. We have already contractually
assured initial large volumes with E.ON Bioerdgas and Lichtblick, and
further contracts are shortly to be signed,' says Claus Sauter, CEO. The
company also intends to take its biogas to natural gas fuelling stations.
Several discussions are already being held with public utilities, fleet
operators and automobile manufacturers regarding this. Initial results are
expected in the near future.

The objective is to change over all German natural gas fuelling station
business to sustainable, waste material based biogas. The biogas is offered
at the fuelling station at the price of natural gas. From the start of
2011, VERBIO has approximately 500 GWh of biogas, meaning that 25 per cent
of Germany's natural gas fuelling stations could already be changed over to
biogas. Production will be increased to 2,000 GWh by 2015.

Vertical integration and strengthening of the Management Board for further
expansion

With the majority takeover of Märka GmbH announced on 27 October 2010, the
company is implementing its announced vertical integration and has direct
access to European farmers with immediate effect. This also puts VERBIO in
a position to further reinforce its leading position in sustainably
produced biofuels with maximum CO2 reduction, in line with European climate
protection goals, and to make a name for itself as a top technology company
in the bioenergy field.

With regard to the sustainability of production, VERBIO was already issued
the REDcert certificate in August 2010, confirming the sustainable
production of biofuels. This guarantees secure and high-quality supply to
the petroleum industry from 2011 on.

With the expansion of the Management Board resolved by the Supervisory
Board, Bernd Sauter (41) was appointed 1 November 2010 as a new member of
the Management Board with responsibility for the area of purchasing and
logistics. To succeed Chief Technical Officer Dr Georg Pollert (62), who
left the Management Board at the end of his term in office in May 2011,
Theodor Niesmann (42) was appointed as member of the Management Board for
the Biodiesel segment and Dr Oliver Lüdtke (45) as member of the Management
Board for the Bioethanol/Biogas segment, both effective 19 May 2011.

With the raw materials supply secured through the purchase of Märka and the
Management Board strengthened, VERBIO AG is able to systematically
implement its strategic orientation. The company is the only European
producer which, with its three business pillars of biodiesel, bioethanol
and biogas, can boast such a broad product portfolio that can be used both
for electricity and heat recovery and for transportation. In future, the
expansion of business will focus on establishing new plants in Eastern
Europe and on the further ramp-up of the existing biogas plants in Germany.

Key figures for quarterly development and nine-month comparison:

in million EUR Q1 Q2 Q3 9 M 9 M
2010 2010 2010 2010 2009
Group
Sales 111.5 131.6 127.4 370.5 380.0
EBIT 5.1 2.6 0.2 7.9 -10.4
Financial result -0.7 -0.6 -0.6 -1.9 -1.8
PAT 2.2 3.2 0.9 6.3 -14.9
Segments
Biodiesel Sales 72.6 92.7 78.5 243.8 267.4
EBIT -1.7 0.1 -0.5 -2.1 0.1
Bioethanol Sales 34.1 34.9 44.7 113.7 94.3
EBIT 1.8 1.9 0.6 4.3 -10.8
Energy Sales 3.0 1.9 1.9 6.8 12.2
EBIT 5.1 0.7 -0.2 5.6 0.2
Others Sales 1.9 2.0 2.3 6.2 6.1
EBIT -0.1 -0.1 0.3 0.1 0.1
Key figures per share in EUR
Earnings per share (basic/ 0.04 0.05 0.01 0.10 -0.24
diluted)
Operating cash flow per share 0.32 -0.21
(basic/diluted)
Number of shares in million 63.0 63.0
shares

Further details can be found in the report as at 30 September 2010 on the
VERBIO AG website (www.verbio.de) under Investor Relations.

About VERBIO Vereinigte BioEnergie AG (VERBIO)
The VERBIO group is one of the leading producers and suppliers of biofuels
and also the only industrial-scale producer of biodiesel, bioethanol and
biogas in Europe. Nominal capacity currently amounts to around 450,000 tons
of biodiesel and 300,000 tons of bioethanol per year. VERBIO is also
currently using biogas projects to recycle waste materials from the
production of bioethanol. The company developed its own processes and
innovative technologies for the production of biodiesel, bioethanol and
biogas. It supplies its products directly to European mineral oil
companies, mineral oil traders, independent gas stations and haulage
companies. VERBIO AG also markets high-quality pharma glycerine for the
consumer goods and cosmetic industries (glycerine is a by-product of
biodiesel production). VERBIO Vereinigte BioEnergie AG acts as the
management holding company within the Group. The Group's operating business
is run by its subsidiaries VERBIO Diesel Bitterfeld GmbH & Co. KG, VERBIO
Diesel Schwedt GmbH & Co. KG, VERBIO Ethanol Schwedt GmbH & Co. KG and
VERBIO Ethanol Zörbig GmbH & Co. KG. VERBIO shares (ISIN DE000A0JL9W6 / WKN
A0JL9W) have been listed on the Prime Standard of the Frankfurt Stock
Exchange since October 2006.

Important note
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.

Contact:
VERBIO Vereinigte BioEnergie AG
Augustusplatz 9
04109 Leipzig

Anna-Maria Schneider
Investor Relations
Phone: +49(0)341/30853094
Fax: +49(0)341/30853098
Email: ir@verbio.de

Frank Strümpfel
Public Relations
Phone: +49(0)341/30853063
Fax: +49(0)341/30853099
Email: pr@verbio.de

11.11.2010 Dissemination of a Corporate News, transmitted by DGAP -
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Language: English
Company: VERBIO Vereinigte BioEnergie AG
Augustusplatz 9
04109 Leipzig
Deutschland
Phone: +49 (0)341 30 85 30 90
Fax: +49 (0)341 30 85 30 98
E-mail: ir@verbio.de
Internet: www.verbio.de
ISIN: DE000A0JL9W6
WKN: A0JL9W
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in München, Düsseldorf, Berlin, Stuttgart

End of Announcement DGAP News-Service

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