The interim consolidated operating result was EUR-12.0 million (first quarter of 2008: EUR0.7 million), mainly strained by high material costs. The manufacturing costs based on the contracted raw material basis, could be just partially passed down the market due to the price decline in fuel prices. In the first quarter the consolidated operating result was additionally influenced by the use respectively accumulation of impending loss provisions. The financial result improved by EUR0.4 million to EUR-0.6 million (first quarter of 2008: EUR-1.0 million).
At the end of the reporting period, cash and cash equivalents totalled EUR54.4 million. As of the reporting date VERBIO shows an equity ratio of 66.7% (December 31, 2008: 66.2%).
Utilization in biodiesel segment below same period last year, bioethanol segment benefits from increased demand:
In the first quarter of the current fiscal year, in the biodiesel segment 78,866 tons of biodiesel (first quarter of 2008: 93,907 tons) were produced and revenues were reached in the amount of EUR83.9 million (first quarter of 2008: EUR92.6 million). The segment result before interest and tax amounted to EUR-1.6 million (first quarter of 2008: EUR4.3 million). In the same period in bioethanol segment 42,788 tons (first quarter of 2008: 13,560 tons) of bioethanol were produced. Sales were at EUR31.2 million (first quarter of 2008: EUR22.7 million). The segment result before interest and tax amounted to EUR-11.3 million (first quarter of 2008: EUR-6.0 million) and was negatively influenced by the accumulation of a provision for impending losses on purchase and sales contracts by EUR7.9 million.
The energy segment contributed revenues of EUR5.2 million (first quarter of 2008: EUR8.2 million) to consolidated sales in the first quarter of fiscal year 2009. The revenues were below previous year’s figure because of essentially weaker wind months (especially January 2009). Therefore the segment result before tax reduced to EUR0.9 million (first quarter of 2008: EUR2.3 million). The other segment generated revenues in the amount of EUR1.7 million (first quarter of 2008: EUR1.6 million). The segment operating result relates with EUR-0.1 million (first quarter of 2008: EUR-0.1 million) to the same period last year.
Present amendment to the act in Germany insufficient to reach EU climate protection targets:
In April 2009, the Federal Parliament approved the act of change of funding biofuel. Herein was agreed to lower the regularized blending volume of biofuels in 2009 from 6.25% (energetic) to 5.25% (energetic) and stipulate the blending volume to 6.25% from 2010. The tax burden of pure biodiesel (B100) will increase instead of six by three cents per liter to 18 cent per liter in 2009. The import restriction of biofuels which received an advancement in the inland or abroad (e.g. B99) will not improve the situation at the B100-market, as in the meantime – even if mottled – the tax increase in combination with the significantly dropped prices for diesel have disrupted the B100-market.
Since January 30, 2009 a new diesel standard is valid (quality standard DIN 51628), which allows a blending up to 7% biodiesel (this complies with 6.3% energetic). Despite the agreed decrease of the total quota to 5.25% experts reckon, that annual biodiesel sales in the blending will increase by about 500,000 tons from 1.5 million tons to 2.0 million tons. They assume that the mineral oil industry will tap the possible blending quota of 7%.
The currently approved measures are not enough to reach the specifications of the EU renewable energy sources directive, which schedules a share of at least 10% for the traffic sector. Therefore it is expected that the Federal Parliament furthermore will deal with the subject biofuel quota act and result again in an initiative to the correct the act within the scope of the new legislation period.
Current cyclical and economical general conditions do not allow a concrete outlook for fiscal year 2009:
Against the background of unsecure commercial and economic data it is currently difficult to make a precise statement according the further business development in 2009. The yield of this year’s harvest is not known yet and the effect of the economic crisis to the raw material prices is not predictable at the moment.
A sustainable and explicit improvement of the situation of the biofuel industry and the business of VERBIO is expected by the management board with coming into force of the sustainability ordinance. This is in particular because VERBIO is already today well prepared according the fulfillment of the presumably required greenhouse gas reduction specifications.
