German CropEnergies' Mar-Nov ethanol production falls 6% on year

London — CropEnergies' ethanol production over March-November 2019, the first three quarters of its fiscal year, fell 6% year on year to 729,000 cu m, the Germany-based producer said Monday.

High ethanol margins led to profits in fiscal Q1-Q3 more than tripling on the year to Eur70.3 million ($78.2 million) from Eur19.1 million and crush spreads estimated at well over Eur100/mt compared with negative margins estimated a year earlier.

The lower output was in line with capacity utilization, which was adjusted to suit market conditions and carry out regular maintenance, the company said in a statement. This can be seen with the Ensus plant in Wilton, Northeast England, operating at reduced rates and serving the UK market only.

CropEnergies has production facilities in four locations, with the following annual ethanol production capacities: Zeitz in Germany (400,000 cu m), Wanze in Belgium (300,000 cu m), Loon-Plage in France (190,000 cu m) and Wilton (400,000 cu m).

CropEnergies posted record revenue in fiscal Q1-Q3. Revenue rose by 12% year on year to Eur664 million due to significantly higher ethanol prices. S&P Global Platts T2 FOB Rotterdam ethanol assessment averaged Eur605.57/ cu m over the March-November 30, up significantly from Eur475.28/ cu m a year earlier, when prices were exceptionally low.

For the whole financial year CropEnergies said it now expects revenues of around Eur900 million with an operating profit in the order of Eur100 million.

--Huw Shortland, huw.shortland@spglobal.com

--Edited by Jonathan Dart, newsdesk@spglobal.com