CropEnergies reports record quarterly operating profits

By Erin Voegele | October 20, 2020

European ethanol producer CropEnergies on Oct. 7 reported ethanol production and revenues for its second fiscal quarter were down when compared to last year. Operating profit, however, was up significantly.

CropEnergies said ethanol production for the second half of the 2020-’21 fiscal year, which ended Aug. 31, was at 463,000 cubic meters, down from 478,000 cubic meters during the same period of last year. Production during the second quarter at the company’s Zeitz, Germany, and Loon-Plage, France, facilities focused on the production of alcohol for use in sanitizers.

The company reported revenues of EUR 229 million (353.6 million) during the second quarter, down from EUR 245 million during the same period of the previous year. Revenues for the first half of the year were at EUR 399 million, down from EUR 448 million. CropEnergies attributed the decrease to lower sales quantities and lower sales prices for the food and animal feed products sold.

Operating profit was at EUR 42.6 million for the second quarter, up from EUR 28.6 million. CropEnergies said it is the highest quarterly operating profit achieved in the history of its operations. Operating profit for the first half of the year was at EUR 50.7 million, up from EUR 43.7 million. The company attributed improvement in earnings to significantly higher ethanol sales prices.

Moving forward, CropEnergies said it plans to invest EUR 50 million to install an additional biomass boiler at its Wanze, Belgium, plant in the next few years, with commissioning currently scheduled for 2023. The improvement is expected to lay the foundation for climate-neutral production at the site.

Also at the Wanze facility, CropEnergies investing approximately EUR 15 million with the SOL Group in a project to recover biogenic carbon dioxide. The project is expected to produce up to 65,000 metric tons of biogenic carbon dioxide annual for use in food, health and environmental applications. That project is expected to be commissioned in 2021.