EnviTec Biogas reports record sales for 2011
Lohne -- 2011 was an exceptional year for the German biogas industry and, hence, for EnviTec Biogas AG [ISIN: DE000A0MVLS8]. Last year, some 1,100 new biogas plants with an electrical output of approx. 440 megawatts (MW) went on line in Germany. Some 17 percent of these plants were built by EnviTec Biogas, which has thus increased its market share. A total of 7,000 biogas plants meanwhile produce approx. 17.5 billion kWh of climate-friendly energy in Germany. As biogas is suitable for baseload generation, this means that the German biogas industry substitutes more than two nuclear power plants.
Consolidated sales revenues of the company, which specialises in the construction and operation of biogas plants, reached a new record level in 2011. Sales increased from EUR 148.0 million to EUR 243.9 million, which represents an increase of 64.8 percent. All business segments contributed to this dynamic growth. Plant construction activities in Germany were the main growth driver. Biogas plants planned on the basis of the old German Renewable Energy Sources Act (EEG) had to go on line before the end of 2011. Accordingly, domestic sales increased by 78.9 percent on the previous year’s EUR 101.1 million to EUR 180.8 million and made the biggest contribution to total Group sales. International sales also showed a positive trend and picked up by 34.3 percent to EUR 63.1 million (previous year: EUR 47.0 million).
The strong sales growth also had a positive impact on the bottom line. Earnings before interest, taxes, depreciation and amortisation (EBITDA) surged by 144.0 percent from EUR 8.3 million to EUR 20.3 million. Having reached positive territory in the previous year, earnings before interest and taxes (EBIT) continued their positive trend and reached EUR 10.8 million (previous year: EUR 1.0 million). In this context, it should be noted that the Own Plant Operation segment did not reach its full earning power due to multi-year maintenance work and the large number of plants under construction. Consolidated net income for the year also picked up markedly in the financial year, climbing from EUR 2.3 million to EUR 7.6 million. Accordingly, earnings per share rose from EUR 0.15 to EUR 0.51. The financial position of EnviTec remains sound. The company’s equity capital amounted to EUR 183.9 million at the end of 2011, when the equity ratio reached 59.5 percent.
Production capacity in Own Plant Operation segment doubled to 42 MW
“We decided not to distribute a dividend but to invest in the very profitable Own Plant Operation segment, which is characterised by good planning certainty,” said Jörg Fischer, CFO of EnviTec Biogas AG. In 2011, this segment finally became an important sales and earnings driver for EnviTec in addition to the Plant Construction segment. In the past year alone, EnviTec invested some EUR 37 million in the construction of own plants. The success of these investments is reflected in the fact that biogas plants with an electrical output of 20,5 megawatts (MW) went on line in 2011. This means that the company exceeded its new capacity target of 12 MW by far. As of the turn of the year, EnviTec had a total capacity of approx. 42 MW. While the 29.0 percent increase in sales revenues to EUR 28.6 million in 2011 was gratifying, it should be noted that many plants went on line in autumn and winter and therefore generated no - or only insignificant - sales revenues. Growth in this segment will therefore continue at a fast pace in 2012.
Still potential for the German biogas market
Overall, 2012 will be a year of transition for EnviTec. This is due to the amended German Renewable Energy Sources Act, which came into force at the beginning of 2012. While the legal framework remains very attractive and we continue to see opportunities, the new directives are much more complex. In particular, the production of electricity in biogas plants in accordance with actual requirements and the direct marketing of the electricity generated will gain importance. Market participants still have to develop the business models for this and establish them in the market. Says Jörg Fischer: “As a leading player in the German market, we want to exploit the new opportunities of energy marketing. We have set the course for this by launching our new Energy segment in 2011.” EnviTec Energy GmbH & Co. KG offers specific contracting models for heat customers. Under these models, EnviTec plans the local generation of heat from internally produced biomethane in efficient CHP plants, which is sold at favourable prices under long-term supply contracts. This allows industrial, commercial and municipal customers to improve their carbon footprint through the use of green heat. The new subsidiary, EnviTec Stromkontor GmbH & Co KG., also operates under the umbrella of EnviTec Energy. This subsidiary will combine the capacity of a large number of biogas plants into a virtual power plant, market this “EEG electricity” in accordance with actual requirements and offer balancing energy to the transmission network operators. The energy will be marketed in cooperation with a strong partner, EGL Deutschland GmbH, a subsidiary of Swiss electricity company EGL AG. Alfred Gayer was appointed Managing Director of this promising business segment with effect from 1 February 2012. He previously held various managing positions at multi-utility RWE, most recently as Commercial Managing Director of RWE Energiedienstleistungen GmbH, and has long-standing experience in energy contracting and district heat as well as great marketing expertise.
Outlook on 2012: Clearly profitable although sales revenues will decline
Following the exceptional year 2011, the transformation of the German market will lead to a decline in domestic revenues of EnviTec’s Plant Construction segment. Incoming orders should pick up again in the second half of the year and lead to new momentum in 2013. The company expects to partly offset the decline in domestic revenues by growth abroad. Revenues in the Own Plant Operation and Service segments should also increase markedly. EvniTec Biogas therefore expects a clearly positive result again for 2012. In 2013, Group sales revenues should pick up again compared to 2012. For this to happen it is important that the German market adapts to the new framework and that the legal framework in foreign markets remains stable.
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 as well as their commissioning. The company provides the biological and technical service, and also offers full plant and operating management. In addition, EnviTec also operates its own biogas plants. In 2011 EnviTec Biogas expanded business operations into the direct marketing of processed biomethane and green electricity and balancing energy marketing with EnviTec Energy Contracting GmbH & Co. KG and its 100% subsidiary EnviTec Stromkontor GmbH & Co. KG. Today, the company is represented in more than 15 countries throughout Europe, as well as in India. EnviTec Biogas generated revenues of EUR 243,9 million and EBIT of EUR 10.8 million in 2011. The EnviTec Group currently has 459 employees. EnviTec has been listed on the Prime Standard segment of the Frankfurt Stock Exchange since July 2007.
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