Crop Energies predicts “significantly lower” ethanol prices

CropEnergies, one of Europe’s biggest biofuels producers, increased its revenue by 20% to EUR679 million ($824 million) in the first three quarters of 2017, up from EUR565 million in the equivalent period in 2016 as it reaped the rewards of higher prices.

But the Mannheim, Germany-based bioethanol producer expects prices to fall this year.

In an earnings release this week, the company said that EBITDA in the third quarter of 2017 increased slightly to EUR88 million, broadly in line with the EUR87 million in the corresponding period in 2016.

The company said its biorefineries all ran at high utilisation rates in order to increase ethanol production, and recorded output at 847,000 cubic meters between March and November last year, up from 735,000 cubic meters in the equivalent period in 2016.

CropEnergies said it expected a high level of volatility in ethanol prices and expects prices to fall “significantly below that of the previous year until the end of the current financial year”.

In addition, it said higher grain prices are expected for the financial year 2017/18, and predicted revenues in a range of between EUR880 and EUR920 million.

CropEnergies forecast operating profit would range EUR65 million to EUR85 million.

Crop Energies operates four refineries in Europe, one of which, its Ensus subsidiary in the UK, which was forced to suspend production in 2015 because of declining profits. The UK plant restarted output in 2016.