PETROTEC AG / Half Year Results/Forecast 21.08.2008 Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ad hoc disclosure pursuant to section 15, German Securities Trading Act (WpHG) Petrotec boosts sales by 29 % - New biodiesel plant with 100,000 tons coming on stream - Accruals for impending losses of EUR 4.9 million squeeze earnings - Own collection of used cooking oils rises by over 50 % - 2008: revised forecast for the year Borken, August 21, 2008 Petrotec AG (ISIN DE000PET1111), the manufacturer of climate-friendly biodiesel refined from used cooking oil, booked first-half 2008 consolidated sales of EUR 41.0 million, up 29.1 % on the year. Compared with Q1 2008, in Q2 the company raised sales by higher production output and selling efforts and positive sales price development significantly by 60.8 % to EUR 25.3 million, a trend bolstered by the new biodiesel plant in Emden coming on stream. Owing to accruals for impending losses necessary to cover biodiesel contracts concluded at the end of 2007, in H1 2008 Petrotec reported a loss before interest, taxes, depreciation and amortization of EUR 8.0 million (H1 2007 loss: EUR 0.6 million). After depreciation/amortization, the loss before interest and taxes was EUR 11.3 million (H1 2007 loss: EUR 5.0 million). The after-tax loss for the period ran at EUR 11.0 million (H1 2007 loss: EUR 4.9 million) which translates into a loss per share of EUR 1.04 (H1 2007 loss EUR 0.46). Cash and cash equivalents as at June 30, 2008 came to EUR 9.1 million. The Management Board has revised the forecast for 2008 downwards: While it continues to expect sales of EUR 90-100 million, it anticipates the loss before interest, taxes, depreciation and amortization rising from the EUR 5 million originally expected to EUR 8-9 million. Own collection of used cooking oil feedstock expanded by over 50 % Petrotec boosted its own collection of feedstock by 52.6 % on H1 2007. Petrotecs Vital Fettrecycling subsidiary now handles disposal of used frying fats for over 16,000 hospitality outlets and food producers in Europe. Petrotec has achieved the growth both organically through its own distribution chain and alliances as well as by M&As. Biodiesel from used cooking oil: 77% reduction in CO2 emissions The biodiesel Petrotec produces with its proprietary technology from the refined used cooking oil feedstock is by far the most climate-friendly and sustainable biodiesel that can be produced. It is made from waste and does not compete with food production, as do fresh vegetable oil feedstock. At the end of January 2008, the EU Commission confirmed in its EU Directive on 'Promoting the Use of Renewable Energy Sources' that biodiesel made from used cooking oils has a CO2 reduction potential of at least 77%. Meaning that biodiesel derived from used cooking oil contributes more than twice as much to avoiding CO2 emissions than does biodiesel based on rapeseed oil feedstock (36 %). New 100,000 t biodiesel plant in Emden goes on stream At the end of June 2008, following trial production Petrotecs Emden plant went fully operational. Thanks to the new plant, Petrotec now has two plants with a combined annual total production capacity of 185,000 t (approx. 210 million liters). With the two facilities, Petrotec is superbly positioned to serve the blending market, the dominant one in Europe, as a port-side location and supply security through at least two production plants is a key precondition for doing business with the international oil majors. In H1 2008, Petrotec produced about 34,900 t of biodiesel, slightly up on the figure of 34,500 t in the same period the prior year. Blending market dominates Cost of materials as a ratio of sales edged up slightly from 89.0% in H1 2007 to 91.2 %. Primarily, this reflects higher purchasing prices for used cooking oil and other commodities. Petrotec sold the lions share of its output to oil companies in the B5 blending market. Sales through the B100 pure-grade market were slight, firstly because of the higher tax of EUR 0.15 per liter of pure biodiesel in effect since Jan. 1, 2008, clearly dampened demand and secondly as Petrotec largely committed its production capacities to contracts with blending market players. On the sales side, in the January-June period, the biodiesel sales split was 65 % (H1 2007: 37 %) for B5 business and 35 % (H1 2007: 63 %) for B100 contracts. New staff hired In first-half 2008, Petrotec increased its payroll by more than 50% from 64 (H1 2007) to 99 staff members to be able to handle future growth and with a view to turnkey of the new biodiesel plant in Emdens deep-sea port, , the pan-European expansion of own used cooking oil collection efforts, and the strengthening of international distribution of our biodiesel. Thus, the personnel expense rose on the year by about 80 % to EUR 2.9 million. Assets and financial position The Petrotec AG equity/assets ratio as at June 30, 2008 came to 53.0 % (Dec. 31, 2007: 63.6 %), and cash and cash equivalents totaled EUR 9.1 million (Dec. 31, 2007: EUR 20.5 million). As at June 30, 2008 the Petrotec balance sheet total was EUR 76.4 million EUR or EUR 4.6 million down on the figure as at Dec. 31, 2007. In Q1, Petrotec invested EUR 2.7 million in the construction of the new biodiesel plant in Emden. Shareholders capital fell, specifically owing to the loss for the period, to EUR 40.5 million (Dec. 31, 2007: EUR 51.5 million). Liabilities due to banks remained unchanged at EUR 18.1 million. Outlook: Impending losses impact on annual earnings As of the beginning of the third quarter, we have been witnessing corrections to the price levels on the markets for crude oil and agricultural commodities. Thus, the commodities boom, which has been ongoing for several years now, would seem at least to be entering consolidation. The price per barrel of crude oil WTI fell 20% within the space of six weeks and a ton of palm oil has become 27 % cheaper, while the price of rapeseed oil is down 13 %. To date, Petrotec has not benefited from this trend when buying in feedstock as the prices for used cooking oils typically respond only after a clear time lag to changes owing to the heterogeneous market, which lacks transparency. However, we discern falling price levels for the remainder of the year. With its new biodiesel plant in Emden, which is now fully operational, Petrotec will be able to enhance its position in the procurement and selling markets and improve cost structures. With the end of the sales contracts signed in winter 2007 for the period through September 2008 Petrotec will once again be in a position to do biodiesel business in line with market conditions, and by locking into the biodiesel price and the price for used cooking oil generate a profit. The Management Board is revising the forecast for 2008 issued at the end of May, 2008, firstly because given the prevailing market conditions from todays viewpoint there are insufficient opportunities to avoid the accruals established for impending losses and secondly the biodiesel plant in Emden will contribute less to total production output this business year than originally assumed. The Management Board continues to assume that sales for business 2008 will be in the order of EUR 90-100 million, but that the loss before interest, taxes, depreciation and amortization will be EUR 8-9 million, as compared with the prior forecast of a loss of EUR 5 million at EBITDA level. 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 9100760 Mobil +49 (0)173 6291344 f.kriegsheim@petrotec.de www.petrotec.de DGAP 21.08.2008 --------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------
DGAP-Adhoc: PETROTEC AG: Sales boosts by 29 %
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