EnviTec Biogas continues to grow in H1 2017 in spite of difficult market conditions
- Sales revenues climb 15.5% to EUR 78.6 million
- Total output incl. plants under construction reaches EUR 101.7 million (previous year: EUR 91.0 million)
- Positive operating result (EBIT) of EUR 0.6 million (previous year: EUR 0.9 million)
- Group forecast for 2017 confirmed: moderate increase in revenues and EBIT
Lohne, 29 September 2017 – EnviTec Biogas AG (ISIN: DE000A0MVLS8) continued to grow in the first half of 2017, boosting its consolidated sales revenues by 15.5% to EUR 78.6 million although the market environment remained difficult. At EUR 101.7 million, the Group’s total output, which comprises the value of plants under construction, also exceeded the prior year level (EUR 91.0 million) by a wide margin. The Service and Own Plant Operation segments showed a particularly positive performance.
Sales revenues in the Group’s largest business segment, Own Plant Operation, climbed 15.2% to EUR 55.7 million. This is attributable to the first-time inclusion of new high-performance plants in the portfolio. Moreover, the previous year’s revenue and profit contributions had been adversely affected by reconstruction measures and an intensive maintenance interval. The Own Plant Operation segment’s EBIT margin (EBIT in percent of total output) rose from 9.2% to 13.6%. EnviTec’s Service segment also continued to expand its business activity in the first six months of 2017. Sales revenues increased by an impressive 19.2% to EUR 17.2 million. At EUR 5.7 million, sales revenues in the Plant Construction segment were slightly higher than in the previous year (EUR 5.3 million). In this context, it should be noted that the German Commercial Code (HGB) stipulates that sales revenues from plant construction are realised only after completion. Total output, which also comprises plants under construction, increased by 7.0% to EUR 26.8 million. As of the balance sheet date, the Plant Construction segment had an order backlog of EUR 137.1 million, compared to EUR 103.3 million at the end of 2016.
The fact that costs and deadlines for several plant construction projects were exceeded had an adverse impact on the EnviTec Group’s operating performance in the first half of 2017. As a result, the cost of materials, which is one of the Group’s main expense items, rose by 20.5% to EUR 71.3 million. The latter was also due to the growth of the material-intensive repowering operations and the expansion of the service capacities. The EnviTec Group generated positive earnings before interest and taxes (EBIT) of EUR 0.6 million in the first six months of the year (previous year: EUR 0.9 million). After taxes, the Group generated earnings of EUR 0.7 million (previous year: EUR -0.1 million). The consolidated profit after minority interests amounted to EUR 0.9 million (previous year: EUR 0.2 million). Earnings per share stood at EUR 0.06 (previous year: EUR 0.01).
Although, as usually, the number of completed and invoiced plants will increase significantly by the end of the year, the company’s Plant Construction segment will not reach its revenue and earnings targets in 2017. The Executive Board of EnviTec Biogas AG nevertheless confirms the existing forecast and continues to project a moderate increase in revenues and slightly higher earnings before interest and taxes (EBIT) than in the previous year for the full year 2017.
Jörg Fischer, CFO of EnviTec Biogas AG: “Thanks to our diversified integrated corporate structure and the positive business trend in the Service and Own Plant Operation segments, we were able to more than offset the negative earnings contribution made by the Plant Construction segment. At the same time, we are currently conducting a comprehensive market and process analysis for this segment. After all, it remains our primary objective to continuously achieve a stable revenue and earnings performance in all business units of the EnviTec Group regardless of the volatile political environment and project risks.”
The full interim report on the first six months of 2017 is available at www.envitec-biogas.com/company/investor-relations/ir-releases/financial-reports/
About EnviTec Biogas AG
EnviTec Biogas AG covers the entire value chain for the production of biogas, including the planning and turnkey construction of biogas plants and biogas upgrading plants as well as their commissioning. The company takes charge of biological and technical services on demand and also offers full plant and operational management. In addition, EnviTec also operates its own biogas plants. In 2011, EnviTec Biogas along with EnviTec Energy GmbH & Co. KG and its 100% subsidiary EnviTec Stromkontor GmbH & Co. KG expanded its business operations into the direct marketing of upgraded biomethane as well as the marketing of green electricity and balancing energy. With a presence in 14 countries worldwide, EnviTec Biogas AG is represented by its own companies, sales offices, strategic partners and joint ventures. In 2016, EnviTec generated revenues of €162.9 million and an EBIT of €4.2 million. The EnviTec Group currently has around 460 employees. EnviTec Biogas has been listed on the Frankfurt Stock Exchange since July 2007.
EnviTec Biogas AG
Tel: +49 25 74 88 88 - 810