DGAP-News: EnviTec Biogas AG / Key word(s): Half Year Results/Quarterly / Interim Statement
EnviTec Biogas significantly increases total output and earnings in the first half of 2020
Lohne, 30 September 2020 - Despite the macroeconomic impact of the coronavirus pandemic, EnviTec Biogas AG (ISIN: DE000A0MVLS8) reported a very good business performance in the first half of 2020. Especially the Plant Construction segment developed extremely dynamically thanks to high demand on the international biogas markets. While consolidated sales revenues declined by 7.6% to EUR 89.6 million, total output, which also includes plants under construction via changes in inventories, increased noticeably by 17.7% from EUR 91.4 million to EUR 107.6 million.
The Group's largest business segment, Own Plant Operation, recorded a 4.0% drop in sales revenues to EUR 53.0 million in the first half of 2020 (H1 2019: EUR 55.2 million). Total output decreased by 1.0% to EUR 55.9 million (H1 2019: EUR 56.5 million).
In the Service segment, sales revenues in the first six months of 2020 fell by 20.7% to EUR 18.4 million (H1 2019: EUR 23.2 million) due to a large number of finally invoiced projects in the previous year. In contrast, total output declined only slightly by 1.9% to EUR 21.1 million as a result of a renewed increase in inventories.
In the Plant Construction segment (including Holding), EnviTec recorded a very dynamic business performance in the period under review. With sales revenues of EUR 18.2 million (H1 2019: EUR 18.6 million), total output, which also includes plants under construction via changes in inventories, rose by 128.7% to EUR 30.5 million. In addition, the Plant Construction segment generated a positive result for the period for the first time in several years.
Successful earnings trend continued
At Group level, the EnviTec Group was able to continue the successful earnings trend of the previous years in the first six months of 2020 based on high capacity utilisation and efficient materials and merchandise management. Consolidated earnings before interest and taxes (EBIT) thus improved from EUR 5.4 million in the prior-year period to EUR 8.8 million in the reporting period. Earnings before taxes (EBT) increased to EUR 9.2 million (H1 2019: EUR 5.5 million), while consolidated net profit for the period after minority interests rose to EUR 7.5 million (H1 2019: EUR 4.5 million). Consolidated earnings per share climbed to EUR 0.55 in the period under review (H1 2019: EUR 0.32).
With a view of the balance sheet structure, the EnviTec Group also continues to be strongly positioned and solidly financed. Cash and cash equivalents amounted to EUR 34.7 million at the interim balance sheet date (31 December 2019: EUR 11.4 million). With total assets of EUR 249.1 million, the equity ratio rose to 57.8% as of 30 June 2020 (31 December 2019: 56.8%).
As the business performance in the year to date was significantly above the company's original conservative plans, the Group has raised its forecast for the year once again, as announced in an ad hoc release on 28 September 2020. EnviTec's management now expects an EBT of EUR 17-19 million in the 2020 financial year with an increasing total output.[*]
Jörg Fischer, Chief Financial Officer of EnviTec Biogas AG: "We are very happy that our business performance in the year to date has been so positive. Especially the Plant Construction segment, which already experienced a significant upturn last year, is developing excellently. Certainly, the biogas industry is only partially affected by the coronavirus crisis; the regulatory and general framework in the energy sector is naturally more important for us. In the current situation, we nevertheless see that our diversified three-pillar business model is once again paying off."
The order backlog in the Plant Construction segment totalled EUR 147.3 million at the end of June 2020. Of this amount, EUR 87.9 million is already under construction and partially included in changes in inventories. Most of these are orders in France, Denmark and China. Estonia and Greece are other important markets. Compared to the beginning of the year, the order backlog increased by 18.5% (31 December 2019: EUR 124.3 million).
EnviTec welcomes rules for existing plants in the new EEG draft; beyond that major improvements are still required
"We see a significant increase in demand in our international markets, in particular because the urgency of a post-fossil, climate-friendly energy supply makes biogas an indispensable energy carrier," says Olaf von Lehmden, CEO of EnviTec Biogas AG. "In Germany, however, the gap between aspiration and reality continues to widen, especially compared to our European neighbours. It is positive that the new draft of the Renewable Energy Sources Act (EEG), which was presented a few days ago, contains at least adequate rules for the continued operation of existing plants." However, incentives for plant expansions are still missing. What is more, the first draft of the new Greenhouse Gas Emissions Trading Act (TEHG) gives the impression of being a law promoting e-mobility, instead of treating other climate-friendly forms of energy at least equally. "From our point of view, the TEHG draft can, unfortunately, only be seen as failed, which is why we, together with the German Biogas Council, will fight in the further legislative process to ensure that the opportunity for real climate protection in the transport sector will be actually used," concludes Olaf von Lehmden.
The full interim report on the first six months of 2020 is available at https://www.envitec-biogas.com/company/investor-relations/ir-reports/financial-reports.
30.09.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
EnviTec Biogas AG
+49 (0) 44 42 - 80 65 0
+49 (0) 44 42 - 80 65 103
Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Basic Board), Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
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