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.
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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
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Information and Explaination of the Issuer to this News:
DGAP 28.03.2008
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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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