Biofuel maker CropEnergies Q1 core profit drops on lower ethanol prices (updated)

CropEnergies AG

05/07/2023 06:45

(Adds details on ethanol production and prices in paragraphs
3-5)
       July 5 (Reuters) - German biofuel producer CropEnergies
 CE2G.DE  reported a drop in first-quarter core profit on
Wednesday, citing normalised ethanol prices and lower production
volumes due to maintenance shutdowns.
    The company's earnings before interests, taxes, depreciation
and amortisation (EBITDA) fell 74% to 25 million euros ($27.2
million) in the March-May quarter, compared to the same period a
year earlier.
    The subsidiary of Europe's largest sugar refiner Suedzucker
 SZUG.DE  said it expected the volatility in energy and raw
material markets to gradually stabilise, after prices spiked
last year due to Russia's invasion of Ukraine.
    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.
    Ethanol prices fell at the end of last year and have in 2023
remained below the record levels reached in 2022, company said.
    CropEnergies confirmed its full-year outlook.
($1 = 0.9202 euros)

 (Reporting by Paolo Laudani and Tristan Veyet in Gdansk;
Editing by Milla Nissi)
 ((Paolo.Laudani@thomsonreuters.com;
Tristan.Chabba@thomsonreuters.com))