PETROTEC AG / Final Results/Final Results 28.03.2008 Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Disclosure pursuant to section 15, German Securities Trading Act (WpHG) Petrotec increases sales despite temporary shut-down of production - Sales rise 9 % to 60.7 million - Impairment leads to extraordinary amortization of 23.3 million - Higher feedstock costs for used cooking oils, too - 2008: EBITDA break-even, sales of 100-110 million Borken, March 28, 2008 Petrotec AG (ISIN DE000PET1111), manufacturer of biodiesel from used cooking oil, booked audited and final consolidated sales of 60.7 million (2006*: 33.4 million) and a negative EBITDA of 5.4 million (2006: EBITDA of 2.7 million) in the business year 2007 (Jan. 1 Dec. 31). An impairment test conducted by Petrotec regularly in line with IFRS rules and as part of preparing the annual financial statements led in the financial year 2007 to one-time, extraordinary amortization of 23.3 million. These purely accounting value reductions do not impact on the Companys liquidity. After amortization, the loss before interest and taxes for the year was 37.6 million (2006: loss of 2.6 million). The loss after taxes was 39.8 million (2006: loss of 4.2 million), which translates into a loss per share of 3.79 (2006 LpS: 1.14). Petrotec will release its full financial statements of the fiscal year 2007 on March 31, 2008. Own collection of used cooking oil 23% up Despite the difficult market conditions, in 2007 Petrotec improved its competitive position. Own and third-party collection of unprocessed used cooking oil was boosted by a substantial 17%. The Company raised the volume gathered by its own waste disposal fleet even further, namely by 23%. Petrotecs subsidiary Vital Fettrecycling now provides waste disposal facilities throughout Europe for used frying and deep-fry fats for over 16,000 restaurants and food producers. Biodiesel from used cooking oil reduces CO2 emissions by 77% The biodiesel Petrotec makes with its proprietary technology from this processed feedstock is by far the most climate-friendly and sustainable biodiesel that can be made, as it is gained from waste and does not compete with food production. The EU Commission confirmed the CO2 reduction potential as being at least 77% for biodiesel made from used cooking oils in its proposed EU Directive on 'Promoting the Use of Energy from Renewable Sources' at the end of January 2008. In other words, the CO2 reduction potential of biodiesel made on the basis of used cooking oil is more than double that of biodiesel made from rapeseed oil (36 %). Rising feedstock costs Despite discontinuing biodiesel production for around three months in the year under review, Petrotec increased sales 9% on calendar 2006 ( 55.8 million). The key factor was the sale of processed used cooking oil as an interim product during the biodiesel production stop. In 2007, Petrotec produced 50,800 t of biodiesel (2006: 62,800 t) and 10,700 t of processed used cooking oil. EBITDA was influenced in 2007 by the higher procurement costs for treated used cooking oil, which was reflected in the material cost ratio rising 14.2 percentage points on 2006 to 88.2 % (2006: 74.0 %). Petrotec has laid the basis for further growth and in anticipation of the turnkey of the biodiesel plant in the Port of Emden by almost doubling staffing levels to 90 (2006: 47 staff members) to enable a Europe-wide collection of used cooking oil and a stronger international focus of biodiesel sales. Thus, personnel expense rose on calendar 2006 by 61 % to 4.0 million. Other operating expenses increased 28 % to 8.7 million and mainly comprise not only higher operating and distributing costs but in particular an accrual for pending losses of 1.4 million. The lions share of depreciation/amortization in 2007 of 32.2 million (2006: 6.0 million) resulted from the impairment test in line with IAS 36, which led to write-offs of 23.3 million, whereby the goodwill of 16.3 million was completely written off and the intangible asset items 'client base' and 'prohibition of competition' pursuant to IAS 38 were also written off. Assets and financial position Petrotec AGs equity/assets ratio as at Dec. 31, 2007 was 63.6 % (93.3 %) and cash and cash equivalents including current financial assets totaled 20.5 million (2006: 23.5 million). As at year-end 2007, Petrotecs balance sheet total came to 81.0 million (2006: 98.2 million). In 2007, Petrotec invested primarily in construction of the new biodiesel plant in Emden, with a total of 19.2 million committed for it. Shareholders capital fell owing to extraordinary amortization following an impairment test and the operating loss by 40.2 million to 51.5 million (2006: 91.7 million). Liabilities due to banks ran at 18.1 million at the close of the year. Expansion with local partners Construction of the 100,000 t biodiesel plant along with a refinery and tank farm in the Port of Emden is soon to be completed. Trial operations commenced in March 2008. Petrotec has altered its expansion plans going forwards from those of last year. It now intends to only enter the US and British markets together with business partners who will provide effective local market access by contributing feedstock. Petrotec plans to proactively and substantially expand the collection of used cooking oil both organically and anorganically in Europe via alliance partners, participations in and acquisitions of regional waste disposal companies. Thus, as per Jan. 1, 2008 Petrotec acquired a majority stake in a waste disposal company for used cooking oils in Poland. Outlook Despite ongoing complex conditions in the commodity markets, the Petrotec Management Board looks confidently to the 2008 business year. The successful expansion of used cooking oil collection both by itself and by third parties, the turnkey of production at the biodiesel plant in Emden port, with its 100,000 t capacity, and the broader international client base for selling into the blending market will all create broader foundations for Petrotec on both the operating and costs sides. Moreover, the Management Board expects that price levels for biodiesel made from waste and residual materials will rise, among other things owing to the prime and above-average CO2 balance of such fuels. However, Petrotec also believes that in 2008 purchasing prices for processed used cooking oils procured internationally will continue to rise. From todays viewpoint, the Management Board expects to post sales of 100-110 million and an EBITDA break-even. *<b*> Last business year was a short business year and covered the period June-December 2006. Disclaimer This press information constitutes neither an offer to buy or to sell shares or other securities issued by Petrotec AG, nor a call for submission of offers to buy or subscribe to securities. The shares offered during the IPO have already been placed. About PETROTEC Since November 2006, Petrotec AG has been listed in the first-tier market of the Frankfurt Stock Exchange under WKN PET111, ISIN DE000PET1111. Petrotec is one of the pioneers of the German biodiesel industry. The company started as long ago as 1998 in developing a process to produce biodiesel from used frying and deep-frying oil. Petrotecs first industrial biodiesel production plant went turn-key in 2000. Petrotecs proprietary technology is able in a single fully continuous process to transform virgin vegetable oils such as rapeseed, soybean or palm oil as well as hard-to-process oils and fats such as used cooking oils, animal fats and oils or fish oil into biodiesel. In other words, it is truly a multi-feedstock technology. The annual capacity of the plant in Borken (Westphalia), Germany, is 85,000 t biodiesel. In the first half of 2008 a second production plant will go into operation in the deep-sea port of Emden with an annual capacity of 100,000 t. Unlike many of its competitors, Petrotec has for years now in its ongoing operations primarily produced biodiesel from used cooking oils in a fully continuous process. Treated used cooking oils as the feedstock for biodiesel production are up to 50 percent cheaper to procure than the rapeseed oil predominantly used by our rivals in Europe. This gives Petrotec a costs edge over other manufacturers of biodiesel, as 70-90 percent of biodiesel production costs relate to the feedstock. For further information, please contact PETROTEC AG Falk von Kriegsheim Head of Investor Relations / Public Relations Fürst-zu-Salm-Salm Strasse 18 46325 Borken Germany Tel +49 (0)2862 910060 Fax +49 (0)2862 910099 Mobil +49 (0)173 6291344 f.kriegsheim@petrotec.de www.petrotec.de --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: DGAP 28.03.2008 --------------------------------------------------------------------------- Language: English Issuer: PETROTEC AG Fürst-zu- Salm-Salm-Str. 18 46325 Borken-Burlo Deutschland Phone: +49 (0)2862 9100 19 Fax: +49 (0)2862 9100 99 E-mail: info@petrotec.de Internet: www.petrotec.de ISIN: DE000PET1111 WKN: PET111 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, München, Hamburg, Düsseldorf, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
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