VERBIO enjoys record bioethanol production in Q3 2011

• Total production in Q3 2011 reaches 91.4 per cent capacity
• E10 catching on
• Availability of verbiogas at filling stations growing throughout Germany –biogas expansion going to schedule

Zörbig/Leipzig, 10 November 2011 • During the first nine months of 2011, the group sales of VERBIO Vereinigte BioEnergie AG (VERBIO) rose substantially over the previous year by 45.6 per cent, reaching EUR 539.4 million (up from EUR 370.5 million in Q1–3 2010). This increase in turnover was largely accounted for by rising prices for biofuels coupled with trading activities. In Q1–3 2011, VERBIO produced 410,308 tonnes of biofuel, compared to 426,682 tonnes in the same period last year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first nine months of 2011 were EUR 23.5 million, up by EUR 7 million on the same period last year (Q1–3 2010: EUR 16.5 million – a figure boosted by EUR 7 million from the sale of seven wind turbines). The consolidated operating result (EBIT) for Q1–3 2011 was EUR 4.0 million (Q1–3 2010: EUR 7.9 million). This result was impacted by depreciation increasing by EUR 10.9 million to EUR 19.5 million (up from EUR 8.6 million in the same period in 2010). This chiefly resulted from depreciation for the biogas plants opened in 2010 as well as write-ups in the bioethanol segment at the end of 2010.

The consolidated operating result before tax (EBT) was a loss of EUR 0.6 million (compared to a profit of EUR 5.9 million in Q1–3 2010) while the loss for the period was EUR 1.1 million (compared to a profit of EUR 6.3 million in Q1–3 2010). In the period under review, this resulted in negative earnings per share of EUR 0.02 (compared to positive earnings in Q1–3 2010 of EUR 0.10).

At 30 September 2011, VERBIO’s balance sheet total was EUR 679.0 million (31 December 2010: EUR 608.4 million). At the end of September 2011, its equity ratio was 49 per cent (31 December 2010: 55 per cent) with an equity position of EUR 329.6 million (31 December 2010: EUR 332.5 million).

At 30 September 2011, VERBIO had liquid funds totaling EUR 49.4 million (31 December 2010: EUR 47.8 million).

Q3 2011: good biodiesel earnings and bioethanol production record

In Q3 2011, VERBIO’s production was running at 91.4 per cent capacity. Group sales at EUR 224.4 million were once again considerably higher than in the previous quarters (Q1 2011: EUR 142.5 million; Q2 2011: EUR 172.5 million). In the biodiesel segment, in Q3 segment earnings reached EUR 5.3 million owing to falling prices for raw materials in this period. In the bioethanol segment, VERBIO benefited from high demand for bioethanol and reached a manufacturing record in Q3 with production capacities running at 90.1 per cent. Here, too, segment earnings improved, reaching a loss of just EUR 1.2 million in Q3 compared to losses of EUR 3.5 million in Q1 and EUR 6.1 million in Q2. Taking into account the two segments Trade Märka and Other, the consolidated operating result for Q3 2011 amounted to EUR 3.8 million, a sharp increase on EUR 0.2 in the same period last year.


Availability of E10 rising in North and West Germany

According to recent publications by the oil industry, sales of E10 throughout Germany account for 20–30 per cent of total petrol consumption. E10 has mainly been sold at petrol stations in the east and south of Germany since February 2011 – and has been increasingly available in the north and west of Germany since August 2011. Thanks to improving availability and additional publicity, E10’s share of total petrol consumption can be expected to rise to 30–50 per cent in the not-too-distant future.


Interest in biogas as vehicle fuel among public utilities on the rise

Following the launch of verbiogas, VERBIO has managed to sign up additional municipal utilities which are keen to introduce this new fuel made from residue at natural gas filling stations. In addition to delivering verbiogas for the first time to utilities in the German towns of Aschaffenburg, Brunswick, Wittenberg, Dessau, Schwedt and Wernigerode, existing cooperation with Augsburg was stepped up with the 100 per cent blending of verbiogas.

In early September, VERBIO was delighted to receive an award for its biofuel verbiogas at the ÖkoGlobes – the awards for green innovations in the transport industry. VERBIO collected an ÖkoGlobe in the ‘Innovative fuels and energy source’ category, confirming its pioneering role in biogas production.


Biogas expansion in Zörbig and Schwedt and construction of straw-processing plant going to plan

The expansion of the existing biogas plants in Zörbig and Schwedt is going to schedule. Completion is planned for late 2012 or early 2013, taking nominal capacity to a total of 125 MW. Since mid-2011, building work has been underway on straw-processing plants for biogas production at both production sites. The official start-up of the first plants of their kind in the world is planned for the first half of 2012.


Forecast for 2011 sharpened

In Q4 2011, VERBIO’s production capacities will be running at almost full capacity with the production of biogas also remaining stable. Total biogas production in 2011 will amount to some 180 GWh, falling short of the original target. This is due to technical difficulties which at the beginning of the year temporarily halted biogas production and delayed the planned complete start-up of the production facilities.

For 2011 as a whole, VERBIO’s sales are predicted to be in the range of EUR 650–750 million. EBITDA are forecast to be in the region of EUR 28–32 million, with EBIT reaching EUR 6–9 million.

Key figures Group and segments 9 M 2011/2010:

About VERBIO Vereinigte BioEnergie AG (VERBIO)
VERBIO is one of the leading independent producers and suppliers of biofuels and also the only industrial-scale producer of biodiesel, bioethanol and biogas in Europe. Nominal capacity currently amounts to around 450,000 tons of biodiesel, 300,000 tons of bioethanol and 480 gigawatt hours of biogas per year. In the production of its highly efficient fuels, the company uses its own energy-saving production processes and innovative technologies. The biofuels produced by VERBIO achieve CO2 reductions of up to 90% compared with petrol and diesel. VERBIO supplies its products directly to European mineral oil corporations, mineral oil traders, independent petrol stations, haulage companies, public utilities and vehicle fleets. VERBIO AG also markets high-quality pharma glycerine for the consumer goods and cosmetic industries (glycerine is a by-product of biodiesel production). VERBIO Vereinigte BioEnergie AG acts as the management holding company within the Group. The Group’s operating business is run by its subsidiaries VERBIO Diesel Bitterfeld GmbH & Co. KG, VERBIO Diesel Schwedt GmbH & Co. KG, VERBIO Ethanol Schwedt GmbH & Co. KG, VERBIO Ethanol Zörbig GmbH & Co. KG and Märka GmbH. VERBIO shares (ISIN DE000A0JL9W6 / WKN A0JL9W) have been listed on the Prime Standard of the Frankfurt Stock Exchange since October 2006.

Important note
This corporate news contains forward-looking statements, which are based on assumptions and estimates of the company management of VERBIO Vereinigte BioEnergie AG. Even though the company management believes that these assumptions and estimates are correct, the actual future development and actual future results can deviate substantially from these assumptions and estimates due to many factors. For example, these factors can include alteration of the economic situation, legal and regulatory constraints in Germany and the EU, and changes in the industry. VERBIO assumes no liability and provides no warranty that future developments and actual future results will agree with the assumptions and estimates expressed in this corporate news.