Brief: Verbio says volatile market environment affects Q3 2023/24 earnings

Verbio SE

14/05/2024 07:15

May 14 (Reuters) - VERBIO SE  VBKG.DE :
    * Q3 2023/24: VOLATILE MARKET ENVIRONMENT AFFECTS EARNINGS
    * EXPECTS SIGNIFICANT IMPROVEMENTS IN EARNINGS IN Q4 2023/24
    * Q3 2023/24 EBITDA LOWER THAN IN COMPARABLE PRIOR-YEAR
PERIOD AND
PREVIOUS QUARTER
    * NET FINANCIAL DEBT AT MARCH 31, 2024 TOTALLED EUR 55.0
MILLION
(JUNE 30, 2023: NET FINANCIAL ASSETS OF EUR 57.4 MILLION)
    * EQUITY RATIO WAS 68.4 PERCENT (JUNE 30, 2023: 70.3
PERCENT)
    * SAYS AS EXPECTED, IT WAS NOT YET POSSIBLE TO REVERSE
DOWNWARD
TREND SEEN IN Q2 OF 2023/24 (EBITDA Q2 2023/24: EUR 26.1
MILLION)
    * SAYS LOWER REVENUE TRENDS IN BIODIESEL SEGMENT IN Q3 OF
CURRENT
FINANCIAL YEAR 2023/24 (EUR 217.8 MILLION) COMPARED TO Q3 OF
2022/23 (EUR 308.2 MILLION) WERE PRIMARILY DRIVEN BY SHARP FALL
IN BIODIESEL AND GHG QUOTA SALES PRICES IN EUROPE, WHILE SALES
VOLUMES REMAINED STABLE
    * FOR CURRENT FINANCIAL YEAR 2023/24, VERBIO EXPECTS AN
EBITDA IN
RANGE OF EUR 120 MILLION TO EUR 150 MILLION, AND NET DEBT IN
RANGE OF EUR 145 MILLION TO EUR 175 MILLION
    * SAYS FORECAST REFLECTS CONTINUED PRESSURE ON ETHANOL AND
GHG
QUOTA PRICES
    * SAYS DESPITE SIGNIFICANT FALL IN IMPORTS FROM CHINA, OIL
COMPANIES ARE SITTING ON A GHG QUOTA RESERVE OF APPROXIMATELY 6
MILLION TONNES OF CO2, WHICH HAS BEEN GENERATED LARGELY USING
INCORRECTLY DECLARED BIODIESEL IMPORTS FROM CHINA
    * WITH PUBLICATION OF RESULTS FOR FIRST NINE MONTHS OF
FINANCIAL
YEAR MANAGEMENT BOARD HAS INDICATED THAT EBITDA IS LIKELY TO BE
AT LOWER END OF RANGE INDICATED
    * SAYS COMPARED TO Q3 2023/24, THIS MEANS A SIGNIFICANT
INCREASE
IN EBITDA IN Q4 2023/24 AS A RESULT OF IMPROVED PRODUCT MARGINS
AND HIGHER CAPACITY UTILISATION AT SOUTH BEND PLANT IN USA
    * SAYS IN SOUTH BEND, INDIANA, IN RECENT MONTHS VERBIO
SUCCEEDED
IN SIGNIFICANTLY INCREASING OUTPUT OF ETHANOL PLANT FROM
FEBRUARY 2024 BY APPROXIMATELY 30%
    * SAYS VERBIO IS READY TO BEGIN EXPANSION TO ENABLE COMBINED
BIOETHANOL-BIOMETHANE PRODUCTION IN SOUTH BEND PLANT

Source text for Eikon:  ID:nEQ1SdgSJa 
Further company coverage:  VBKG.DE 

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