with significantly increased profitability in H1 2018
- Sales revenues climb 1.5% to EUR 79.8 million
- Total output including plants under construction of EUR 86.7 million (previous year: EUR 101.7 million)
- Earnings before interest and taxes (EBIT) rise from EUR 0.6 million in prior year period to EUR 5.0 million
- Group forecast for 2018 confirmed: total output at prior year level and slightly higher earnings before taxes (EBIT)
Lohne, 28 September 2018 – EnviTec Biogas AG (ISIN: DE000A0MVLS8) delivered a good business performance in the first half of 2018 and significantly increased its profitability. Consolidated sales revenues rose by 1.5% to EUR 79.8 million. Earnings before interest and taxes improved from EUR 0.6 million in the prior year period to EUR 5.0 million in the first six months of 2018. Total output, which also includes plants under construction, declined to EUR 86.7 million at Group level (EUR 101.7 million). The reduction in total output is essentially attributable to the continued difficult market conditions and to postponed projects in the Plant Construction segment. By contrast, the general trend in the Service and Own Plant Operation segments remained positive.
While sales revenues in the Group’s largest business segment, Own Plant Operation, declined by 2.7% to EUR 54.2 million in the first half of 2018, the EBIT margin (EBIT in percent of total output) again reached a very high level of 13.3% (H1 2017: 13.6%). The business trend in EnviTec’s Service segment also remained good in the first six months of 2018. While sales revenues declined by a moderate 3.0% to EUR 16.7 million (H1 2017: EUR 17.2 million), total output, which also comprises unfinished repowering and flexibilisation projects, rose by 4.4% to EUR 18.4 million.
At the end of 2017, EnviTec outsourced the Plant Construction segment’s permits and structural engineering operations and streamlined the project management department in order to better cope with the volatile conditions in some core markets and to respond to the growing importance of international markets. In the first six months after the reorganisation, sales revenues increased to EUR 8.9 million (H1 2017: EUR 5.7 million). At the same time, total output dropped by 53% to EUR 12.6 million as projects in important markets were again postponed. At the end of June 2018, the Plant Construction segment had an order backlog of EUR 99.7 million (31 December 2017: EUR 102.9 million).
The Group’s earnings increased strongly in the first six months of 2018. One of the main reasons was the noticeably improved result of the Plant Construction segment. Consolidated earnings before interest and taxes (EBIT) rose from EUR 0.6 million in the prior year period to EUR 5.0 million in the reporting period. Consolidated net income after minority interests increased sharply from EUR 0.9 million to EUR 3.5 million. Earnings per share amounted to EUR 0.24 at Group level in the first half of 2018 (H1 2017: EUR 0.06).
As of the interim reporting date, 30 June 2018, the balance sheet structure of the EnviTec Group was further strengthened. Cash and cash equivalents of EUR 28.9 million (31 December 2017: EUR 14.9 million) and an equity ratio of 57.9% (31 December 2017: 54.7%) mean that the company has a strong foundation on which to seize growth opportunities that arise in the international biogas markets.
The situation in the international biogas markets has lately improved noticeably compared to the previous year, especially with regard to plant construction activities, which will open up new opportunities. In 2018, the Plant Construction segment will probably not reach its target of average revenues of roughly EUR 40 million and a positive earnings contribution. At Group level, the Executive Board of EnviTec Biogas AG has confirmed the existing forecast for the full year 2018 and continues to project a total output at the prior year level and slightly higher earnings before interest and taxes (EBIT) than in the previous year.
“The Service and Own Plant Operation segments had a generally positive first half-year and will continue to grow as the year progresses,” said Jörg Fischer, Chief Financial Officer of EnviTec Biogas AG. “The structural adjustments in the Plant Construction segment have laid a new basis for the continuous expansion of the EnviTec Group’s integrated business model. The noticeable improvement in earnings achieved after the first six months and the growing demand in key markets make us optimistic that this segment will be able to achieve a sustainable turnaround in the coming quarters.”
The full interim report on the first six months of 2018 is available (German only) 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 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 16 countries worldwide, EnviTec Biogas AG is represented by its own companies, sales offices, strategic partners and joint ventures. In 2017, EnviTec generated revenue of EUR 198.8 million and EBIT of EUR 6.5 million. The EnviTec Group currently has around 440 employees. EnviTec Biogas has been listed on the Frankfurt Stock Exchange since July 2007.