PETROTEC AG / Final Results/Forecast
30.03.2009
Release of a Adhoc News, 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 sales up 28 % but losses increased
Strategic investor ICG supports ongoing financial restoration effort
- Sales rise 28% to EUR 77.7 million
- Impairment leads to extraordinary amortization of EUR 14.7 million
- Market conditions for biodiesel industry remain difficult
Borken, March 30, 2009 - Petrotec AG (ISIN DE000PET1111), manufacturer of
climate-friendly biodiesel from used cooking oil, booked consolidated sales
according to the audited accounts in business 2008 (Jan. 1 - Dec. 31) of
EUR 77.7 million up from EUR 60.8 million the prior year, and a loss before
interest, taxes, depreciation and amortization of EUR 21.1 million (2007:
loss of EUR 5.4 million). An impairment test conducted on a regular basis
by Petrotec in line with IFRS when preparing the annual financial
statements showed an impairment charge of EUR 14.7 million (2007: EUR 23.3
million) for the year under review. After amortization and the impairment
charge, the loss before interest and taxes for 2008 was EUR 42.7 million
(2007 loss: EUR 37.6 million). In particular, results were influenced by
the volatile commodity prices in connection with selling prices fixed at an
early date, higher personnel expense and greater other operating expenses.
The after-tax loss for the period was EUR 41.8 million (2007 loss: EUR 39.8
million), which translates into a loss per share of EUR 3.98 (2007 LpS: EUR
3.79).
New main shareholder ICG strengthens the capital base
In late summer 2008, the strategic investor IC Green Energy Ltd. (ICG),
Israel, acquired some 42.8% of the Petrotec shares from the old shareholder
Petrotec S.à r.l. ICG was also prepared in the short term to support
Petrotec's liquidity and make financial resources available to it for
trading purposes.
As part of applying for exemption from the mandatory buy bid as filed with
Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) as per section 37
German Securities Acquisitions and Takeover Act (WpÜG) in connections with
sections 8, 9 sentence 1 no. 3 WpÜG Bid Decree (exemption in relation to
restoring a company to financial health), ICG tabled a viable plan for
restoring Petrotec to financial health. The exemption BaFin subject to
certain stipulations was issued on the basis of this plan. When assessing
the financial restoration plan put forward by ICG, BaFin came to the
conclusion that it iss to be assumed that Petrotec can be restored to
financial health.
IC Green Energy Ltd. has confirmed to Petrotec that it will meet the
stipulations as stated in the certified exemption from the mandatory buy
bid issued by Finanzdienstleistungsaufsicht (BaFin) on February 26, 2009 in
due time.
The maximum volume of the contributions to be made to financial restoration
as stipulated by BaFin total some EUR 15 million. The stipulations firstly
secure Petrotec future support from ICG and secondly improve the Company's
liquidity situation.
Assets and financial position
Petrotec AG's equity/assets ratio as at Dec. 31, 2008 was 24.7% (2007:
63.6%). Liquid funds came to EUR 1.0 million (2007: EUR 23.5 million incl.
current financial assets). As at the balance-sheet date, Petrotec's balance
sheet total came to EUR 39.2 million (2007: EUR 81.0 million). The equity
capital was reduced by the extraordinary amortization stemming from the
impairment test and the negative operating result by EUR 41.8 million to
EUR 9.7 million (2007: EUR 51.5 million). Liabilities due to banks as at
Dec. 31, 2008 came to EUR 18.3 million (2007: EUR 18.1 million).
Liabilities due to shareholders as at that date totaled EUR 4.8 million
(2007: EUR 0 million).
Outlook
The economic state of the biodiesel industry has not improved over the
first few months of the current year. It remains characterized by a very
low price for crude oil, excess production capacities, subsidized cheap
imports and legal regulations in Germany inimical to the industry. Thus,
capacity utilization of the Petrotec biodiesel plants has remains low as
the price trend in the markets for used cooking oil and Biodiesel have
mainly not allowed production at a price that covered costs. For this
reason, the Company has extended the period of short time for the employees
at the two biodiesel plants, in Oeding, nr. Südlohn, and in Emden.
The Management Board expects to post a clear loss in business 2009, which,
so the budget plans, should be appreciably reduced in business 2010. It
will probably not be possible to post a positive result until 2011. By
then, the translation of the EU Commission's 'Renewable Energy Directive'
into national law will lay the foundations presumably for better sales of
Petrotec biodiesel, which is based on used cooking oil and has a CO2
emission reduction potential of at least 83%.
Disclaimer
As far as this ad hoc release contains forward-looking statements, these
forward-looking statements are based on current assumptions and forecasts
made by the management of Petrotec AG and other information currently
available to Petrotec. Various known and unknown risks, uncertainties and
other factors could lead to material differences between the actual future
results, financial situation, development or performance of the company and
the estimates given here. Petrotec does not intend, and does not assume any
liability whatsoever, to update these forward-looking statements or to
conform them to future events or developments.
About PETROTEC
Since November 2006, Petrotec AG has been listed in the Prime Standard
segment 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 early as 1998 with the development of a
process to produce biodiesel from used frying and deep-frying oil.
Petrotec's first industrial biodiesel production plant went turn-key in
2000. Petrotec's proprietary technology is capable of transforming 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 in a single fully continuous process into biodiesel and,
thus, 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 has commenced operations in the deep-sea
port of Emden with an annual capacity of 100,000 t. Unlike many of its
competitors, Petrotec in its ongoing operations has for years now primarily
produced biodiesel from used cooking oils in a fully continuous process.
Treated used cooking oils as feedstock for biodiesel production is up to 50
percent cheaper to procure than the rapeseed oil predominantly used by
Petrotec's rivals in Europe. This enhances Petrotec's cost-competitiveness
over other manufacturers of biodiesel, as 70-90 percent of biodiesel
production costs relate to raw materials.
End of the disclosure
DGAP 30.03.2009
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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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DGAP-Adhoc: PETROTEC AG: Sales up 28% but losses increased
| Source: EQS Group AG