CropEnergies expects reduced revenues for fiscal Q1
April 19, 2023
BY Erin Voegele
European ethanol producer CropEnergies on April 17 issued a statement indicating the company expects to experience a significant reduction in revenues, EBITDA and operating profit for the first fiscal quarter of 2023, the three-month period beginning March 1.
CropEnergies primarily attributed the expected drop to normalized prices for ethanol when compared to unusually high prices experienced during the same period of last year. In addition, the company expects to experience higher raw material and energy costs when compared with the first fiscal quarter of 2022, with those impacts attributed to hedging transaction carried in the previous year.
The company currently assumes that increased volatility related to sales, raw materials and energy markets caused by the ongoing war in Ukraine will continue.
The company said it expects ethanol sales volumes to be lower this year, but noted that the introduction of E10 in European countries will help stabilize overall sales of fuel ethanol. Much of that demand, however, will likely to be met by continued high import volumes, according to CropEnergies.
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The company currently operates biorefineries located in Zeitz, Germany; Wanze, Belgium; Loon-Plage, France; and Wilton, U.K.
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