Earnings Release • Aug 28, 2008
Earnings Release
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Corporate | 28 August 2008 07:30
EnviTec Biogas overcomes the challenges in Q2: Business picks up again
EnviTec Biogas AG / Half Year Results
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EnviTec Biogas overcomes the challenges in Q2:
Business picks up again
Lohne, 28 August 2008 – 'The long awaited decision to amend the Renewable
Energy Sources Act in June 2008 and the planned higher funding of biogas
has given our sector a strong boost,' says Olaf von Lehmden, CEO of EnviTec
Biogas AG. 'Demand for biogas plants has picked up markedly since.' As had
been anticipated, the first six months of 2008 were a difficult period, but
major contracts have now led to a positive outlook on the second half of
the year.
In the first six months of 2008, EnviTec Biogas generated sales of EUR 32.1
million (H1 2007: EUR 65.6 million). Earnings before interest and taxes
(EBIT) amounted to EUR -1.4 million (H1 2007: EUR 11.2 million). A net
profit of EUR 0.3 million (H1 2007: EUR 7.1 million) means that the company
was profitable even during this difficult phase, in which customers were
reluctant to place orders due to the uncertain legal framework in Germany.
This is not least attributable to the company’s lean and flexible
structures, thanks to which no capacity cuts were necessary. EnviTec Biogas
now has the resources that are needed to respond immediately to the pick-up
in demand. Shortly after the amendment of the German Renewable Energy
Sources Act (EEG) in June of this year, the company received several major
orders, thus consolidating its leading market position. It was particularly
gratifying that the largest order ever in the company’s history was placed
by a German customer. Under this contract, EnviTec will deliver 500 KW
plants worth EUR 60 million to a German project developer. In the second
quarter alone, the company received orders in a total amount of roughly EUR
100 million.
At EUR 4 million, the Own Plant Operation segment made the first
significant contribution to total sales. An important strategic step was
the start of construction of the first company-owned plant abroad. In the
Dutch town of Bergharen, EnviTec Biogas is building a 625 KW plant in
cooperation with a local farmer. In Germany, another 2.1 MW was connected
to the grid in the first half of the year. Going forward, EnviTec Biogas
will continue to push ahead the operation of its own plants. The company
was also successful in markets outside Germany, where it could reap the
fruit of its early expansion. Customers in Belgium and the Czech Republic
placed orders in a total amount of approx. EUR 37 million, most of which
will be executed before the end of the year. As of 30 June 2008, the
company’s order backlog totalled EUR 190.8 million; EUR 55.5 million of the
total order volume came from abroad.
The main reason for the rise in demand is the attractive environment for
biogas. The record oil price and the announcement by many utilities to
raise the prices of natural gas by over 50% has strengthened the focus on
the global search for solutions to reduce the dependence on natural gas
imports and other fossil energy sources. EnviTec is currently building the
world’s largest plant for the refinement of biogas to natural gas standards
in Güstrow. In future, the plant will generate 10,000 cubic metres of
biogas per hour, refine it to natural gas standards and fee it into the
natural gas grid. This is equivalent to an installed rated electrical
output of approx. 22 MWel per hour.
The EEG amendment and the Gas Grid Access Directive, which was adopted in
February, have created an attractive environment for biogas. Under the
amended EEG, biogas and especially the smaller plants will be promoted
more strongly. 'We have responded quickly and added 190 KW plants to our
portfolio,' says Olaf von Lehmden. The decline in agricultural prices is
also having a positive effect on the biogas industry. Good harvests in the
USA and Europe have brought relief and made the production of biogas even
more attractive. The company believes that it is becoming increasingly
clear that biogas hardly competes with the food industry at all and has
virtually no impact on food prices.
The company plans to more than double its sales to over EUR 70 million and
to generate a positive result in the second half of the year. For the full
year 2008, EnviTec projects EBIT of EUR 5 - 8 million on sales of EUR 105 -
115 million. This positive sales and earnings performance should continue
next year. The broad product portfolio, which ranges from 190 KW plants to
4 MW modules, will enable EnviTec Biogas to satisfy the demand of farmers,
institutional investors and utilities in Germany and abroad. 'The
environment is right again. Our technological expertise, our distribution
activities in more than 14 countries worldwide and our liquid funds in an
amount of over EUR 80 million mean that we have got what it takes to take
full advantage of our opportunities.'
The interim report 2008 is available on the Internet at
www.envitec-biogas.de.
EnviTec Biogas AG covers the entire value chain for the production of
biogas - including the planning and turnkey construction of biogas plants
as well as their commissioning. The company provides the biological and
technical service and also offers the full plant and operating management.
In addition, the company also operates its own biogas plants. In Penkun, in
the German state of Mecklenburg-Western Pomerania, EnviTec constructed the
world's largest biogas park with an electrical connected load of 20
megawatts. Today, the company is represented in more than 14 countries
throughout Europe and as well in China and India. In 2007 EnviTec generated
revenues of EUR 132 million and EBIT of EUR 18 million. The EnviTec Group
has about 260 employees. Since July 2007 EnviTec is listed on the Prime
Standard segment of the Frankfurt Stock Exchange.
Investor Relations:
Olaf Brandes
EnviTec Biogas AG
Tel: +49 44 42 80 65-118
E-mail: [email protected]
Press Contact:
Fabian Lorenz, Grit Pauli
HOSCHKE & CONSORTEN Public Relations GmbH
Tel: +49 40 36 90 50- 56 /-31
E-mail: [email protected]; [email protected]
Language: English
Issuer: EnviTec Biogas AG
Industriering 10a
49393 Lohne
Deutschland
Phone: +49 (0) 44 42 - 80 65 0
Fax: +49 (0) 44 42 - 80 65 103
E-mail: [email protected]
Internet: www.envitec-biogas.de
ISIN: DE000A0MVLS8
WKN: A0MVLS
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, Hamburg, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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