European producer reports doubled operating profit in Q3
Germany-based ethanol producer CropEnergies AG has announced its operating profit more than doubled during its third fiscal quarter of 2012, which ended Nov. 30. The company attributes the increase to increased ethanol sales and higher proceeds from the sale of food and animal feeds.
According to CropEnergies’ website, it currently operates three ethanol plants, located in Germany, Belgium and France. Together, these facilities produced approximately 700,000 cubic meters (185 million gallons) of ethanol each year. The company utilizes a variety of feedstocks, including wheat, corn, triticale, barley and sugar beet syrups.
The company reported a 20 percent increase in revenue for the first nine months of the fiscal year, from €426 million ($557 million) during the same period of 2011 to €510 million in 2012. EBITDA also improved to €94 million from €66 million in 2011, reaching a margin of 18.5 percent. Operating profit also increased by 64 percent, from €43 million to €70 million.
“The main reasons for the growth in earnings are the additional contributions to operating income made by increased production and sales volumes, an early and cost-efficient hedging of raw materials as well as the higher proceeds from the sale of food and animal feed products,” said the company in a statement.
During the nine months ended Nov. 30, 2012, CropEnergies increased its ethanol production by 20 percent. The increase is attributed to improved capacity utilization, a result of successful process optimizations and a change in feedstock mix.
In its financial statement, the company also said it expects to see its revenues to increase next year, to more than €670 million, with operating profit increasing to more than €80 million.