Verbio warns Asian biofuel imports putting pressure on earnings

Verbio SE

08/02/2024 10:50

By Paolo Laudani
       Feb 8 (Reuters) - German biofuels producer Verbio
 VBKG.DE  warned on Thursday that large-scale imports of
biofuels from Asia, some of which have allegedly been falsely
declared in the past, were weighing on its earnings.
    Verbio reiterated its guidance for 2023/24 earnings before
interest, taxes, depreciation and amortization (EBITDA) in the
range of 120 million to 150 million euros ($129.23 million to
$161.54 million) and net debt in the range of 145 million to 175
million euros.
    "These forecasts reflect the ongoing pressure on the prices
for ethanol and GHG quotas, in particular as a result of the
massive volumes of questionable imports of advanced biofuels
from Asia in 2023," the company said in a statement.
    In September, the company posted full-year EBITDA of 240.3
million euros.
    Greenhouse gas quotas (GHG) are legally binding limits on
the amount of greenhouse gases that a country, organization or
industry can emit over a certain period.
    In December, a complaint from the producer group European
Biodiesel Board (EBB), of which Verbio is a member, prompted the
European Union to begin an anti-dumping investigation into
biodiesel imports from China, which the bloc's industry says has
slashed domestic production.
    Earlier last year, the EU began investigating whether
biodiesel from Indonesia was circumventing EU duties by going
through China and Britain.
    
($1 = 0.9286 euros)

 (Reporting by Paolo Laudani, Editing by Rachel More)
 ((Paolo.Laudani@thomsonreuters.com;))