MOSCOW (MRC) -- German biofuel producer CropEnergies reported a drop in first-quarter core profit on Wednesday, hit by softer ethanol prices and lower production due to maintenance shutdowns, said Hydrocarbonprocessing.
The company's earnings before interests, taxes, depreciation and amortization fell 74% to USD27.2 MM in the March to May quarter, compared to the same period last year. Its shares fell 6% in early trading. The subsidiary of Europe's largest sugar refiner Suedzucker said it expected volatility in energy and raw material markets to gradually stabilize, after prices spiked last year due to Russia's invasion of Ukraine.
The price of ethanol is down by 39% year on year in the European Union, according to Refinitiv data. CropEnergies, which makes ethanol and animal feed from renewable materials such as biomass, posted a 21% decline in ethanol production to 221,000 cubic meters during the quarter from 281,000 cubic meters a year earlier.
"It had been expected that this year's Q1 would come in below last year's exceptional result due to the normalization of prices and scheduled maintenance," said Hartmut Moers, an analyst at Matelan Research. Moers added the reported figures were better than the brokerage had anticipated. CropEnergies confirmed its full-year outlook for EBITDA of between EUR140 MM and EUR190 MM.
We remind, Syclus intends to build and operate a plant for the production of renewable ethylene from sustainable ethanol in Chemelot Industrial Park, Geleen, The Netherlands.